Sir, – For 34 years I contributed loyally to my occupational pension scheme. I was very appreciative of the deferred tax status of these contributions. My fund is now in deficit and how much money will be available to pay my pension remains to be seen (I am a not yet pensionable age). I have no problem with the fact that the deferred tax on my pension contributions will be paid on the pension if and when I receive it.
However, last year the Government decided to raid “my prudence” and imposed a 0.6 per cent levy for four years on pension funds, regardless of whether they were in deficit or not. Today I received a letter from the pension fund trustees in which I am advised that my pension will be reduced by circa 2.5 per cent from the day that I start to collect my non-index-linked pension until the day that I die. This amounts to an extra 2.5 per cent tax on me for the rest of my life (perhaps I should call it a burden, a charge, or a contribution).
Needless to say, this burden will not fall on politicians (and others) who do not have pension funds because their “index-linked” pensions are paid from Government current account.
But then, where governments are concerned there are lies, damned lies and the whoppers that politicians tell the electorate. – Yours, etc,