The Government has issued a consultative document that is likely to affect the higher earning members of the Local Government Pension Scheme (LGPS).
Preliminary analysis by the Fund’s actuaries, Hymans Robertson, suggests that the proposals could routinely lead to pensions tax charges for members of the LGPS earning £90,000 or more.
A worst case scenario could see those earning £60,000 affected.
Given the large degree of uncertainty over the final shape of the tax regime and the measures in place to prevent avoidance, it would seem that there is little scope for any immediate protective/preventative action by members.
Nevertheless members may want to find out more about the consultation or to contact their financial adviser.
Full details of the consultation are available at:
http://www.hm-treasury.gov.uk/consult_pensionsrelief.htm