Pensions minister Ros Altmann has pledged to address the "major injustice" caused by net pay arrangements (NPA) that cut lower earners' pension contributions by up to 25%.
Speaking at the Headlinemoney pensions dinner last night, Altmann described the situation around NPAs as "an outrage that needs to be addressed" and "high on her list of priorities". Currently, pension contributions are calculated either through NPA where gross contributions are deducted from pre-tax pay, or relief at source (RAS) where net contributions are deducted from post-tax pay. The issue arises because of the gap that has grown between the threshold for automatic enrolment (currently £10,000 per year) and the threshold for income tax (currently 11,000 per year). If someone ...
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