Budget 2010: What will be the impact on DB members?

However, it is not yet clear how such a reduction would be applied to DB pension accrual. The table below - kindly provided by Towers Watson - shows the tax charges that would be incurred by members of defined benefit schemes offering 1/60th of final salary for each year of service if the Government increased the annual allowance multiple to a factor of 15:1 and set the annual allowance at £35,000. Towers Watson said this assumes no uplift is applied to the starting value to reflect inflation. In each case, it is assumed that the individual receives a 5% pay rise during the year. I...