Submitted by SWFBU on
CIRCULAR 2010HOC0533MW
26th August 2010
TO: ALL MEMBERS
Dear Brother/Sister,
IMPORTANT NEWS ON PROPOSED CHANGES TO PENSION TAX RELIEF
Members may be aware that the Government has proposed changes to tax relief on pension contributions. These changes if they are implemented are likely to affect a wide number of FBU members and could have significant tax implications for members contributing towards pensions schemes.
The initial consultation period ends on 27th August 2010 and the FBU is, with the assistance of First Actuarial (an independent actuarial consultancy that advises a number of unions and public sector bodies) submitting a response to the consultation on these proposals. The Government will then confirm its approach by the end of September 2010 and, should it decide to proceed, will publish draft legislation in the Autumn to facilitate an introduction date of 6 April 2011.
Those most likely to be affected include:
(i) members with long service and/or significant promotional or high pay rises;
(ii) high-earners and members with enhanced or primary protection;
(iii) members retiring on ill health or redundancy grounds
Although these are the groups of members who are most likely to be affected there are certain circumstances where other factors may mean that a larger range of members may be liable to a tax charge.
I urge you to recognise the importance of this issue as in many cases it will, if introduced, adversely affect a large number of FBU members. You will appreciate how important it is that this issue is explained to members and to support this a copy of the FBU response to the Governments’ consultation document along with briefing document, for officials and members, with worked examples and will be posted on the Union website www.fbu.org.uk
Contained within the briefing document is a section to assist you to write to or email your MP asking them to oppose this proposal. It is extremely important that you let your MP know your views on this and get them to act accordingly.
These proposals can only be described as yet another attack on our members’ pensions. They follow on from the Budget announcement that in future public sector pensions will be uprated in line with increases in the Consumer Price Index (CPI) and not the Retail Price Index (RPI). Members can be assured that concerns around this change to the future indexing arrangements have been raised at the Firefighters’ Pension Committee.
Members will be updated on these issues as they progresses via the usual lines of communication.
Yours in Unity,
MATT WRACK
General Secretary
