The Financial Times recently reported that Hospitals ‘beg and borrow’ for staff as consultants cut hours fearing huge tax bills.
As well as providing technical pension advice to a significant number of our Members affected by this issue, we have been monitoring closely the negative reaction and debate surrounding Annual Allowance (aka the Pension Tax) across the public sector pension schemes.
More and more serving military personnel are being caught up in this Pension Tax trap. The impact upon morale and retention has yet to be quantified, but anecdotal reports we are receiving suggest it is significant and could be scoring a significant own goal by exacerbating and creating manning shortages across the Services.
But we cannot engage in special pleading for the Armed Forces alone. Therefore we are talking with others across the public sector, seeking common ground on which to engage with HMT, urging them to acknowledge and address the unintended consequences of this tax which are graphically illustrated in the article*.
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