WHILE THE NATION'S media is firmly fixed on the Butler report, the Guardian's business pages reveal senior civil servants, judges and MPs will escape the proposed higher pension tax on any contributions over £1.5m which could lead to accusations of ‘feather-bedding.
Members of the civil service and parliamentary occupational schemes will be exempt from a crucial rule designed to cap the tax benefits of pension savings of more than £1.5m, because the government refused to delete a clause in the Finance Bill which will allow public sector officials to gain extra protection of their old pension rights. Critics say in the case of a judge promoted to the appeal court who would see their salary rise from £150,000 to £170,000, their annual pension income would jump by more than £10,000 a year under new civil service pension rules. Whereas private sector...
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