Pension taxation for high earners
08 March 2010
The Government has recently announced some significant changes to the rules governing pension saving for high earners (those with income from all sources over £100,000).
A Local Government Employers leaflet setting out the implications has been posted on the Merseyside Pension Fund (MPF) website. On the same site there is also a short summary of the changes by Mercer Ltd. Although the leaflets are on the MPF website the same principles apply to members of the Teachers’ Pension Scheme and U.S.S.
Please visit http://mpfmembers.org.uk/content/news-archive-2010 for the two items.
Members of staff potentially affected by these measures should seek independent financial tax advice. In particular anybody with total income over £130k who is considering making a pension contribution which constitutes a change to their pattern of ongoing, regular pension saving should be aware that they could trigger a tax charge under the anti-forestalling measures. These measures were introduced by the Government in April 2009 to cover those with incomes over £150k but were extended in December 2009 to cover those with incomes over £130k.
For queries about the University’s occupational pension schemes please contact Jayne Brown (Pensions Manager) on ext: 3300.
