Pensioners warned off lump sum deal Retired employees urged to seek advice before exchanging guaranteed rises for tax-free cash
It has now emerged that some schemes, including those of FTSE100 companies, have worked out that giving pensioners one-off tax-free lump sums to forfeit these increases is far less expensive than making cash injections into the scheme. Mike Serjeant of PPM said: "We offer to buy out the pre-199...
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| Published in | Sunday telegraph (London, England) |
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| Main Author | |
| Format | Newspaper Article |
| Language | English |
| Published |
London (UK)
Daily Telegraph
13.11.2005
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| Online Access | Get full text |
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| Summary: | It has now emerged that some schemes, including those of FTSE100 companies, have worked out that giving pensioners one-off tax-free lump sums to forfeit these increases is far less expensive than making cash injections into the scheme. Mike Serjeant of PPM said: "We offer to buy out the pre-1997 pension increases, which can be anything up to 5 per cent a year. In one case we offered to pay pensioners their annual pension as a one- off tax-free cash payment. So a pounds 10,000 pension would generate a pounds 10,000 tax-free cheque.'' The Pension Protection Fund, set up to compensate victims of collapsed pension schemes, does not cover pre-1997 pension increases, he said. |
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| ISSN: | 0307-269X |