Well done Telegraph subs, well done

It’s not tax cuts here:

Drastic tax cuts mean tens of thousands of NHS staff are fleeing their gold-plated pensions

Seriously:

NHS workers are abandoning their generous gold-plated pensions in droves, with a quarter of a million opting out since 2015, according to new data laying bare the extent of problems first revealed by Telegraph Money.

Experts are blaming the exodus of 245,500 NHS staff from their defined benefit pension scheme in the past three years, including 100,000 during 2016 alone, on the creep of tightening tax rules.

Jon Greer, head of retirement policy at wealth manager Quilter, said: “The impact of the lifetime allowance is beginning to rear its head, a trend likely to continue as the Treasury has made it clear that taxation on pension is no longer for the substantially wealthy.”

Well, no, the lifetime allowance rules show how a defined benefit pension makes you wealthy in fact.

And it still ain’t all a tax cut, is it?

8 comments on “Well done Telegraph subs, well done

  1. Anyway, last time I looked, this was still slanted heavily in favour of the (mostly public sector) defined benefit scheme, because the discount rate used massively under-values the present capital value of the future pension rights.

    Fixing that would save the government a lot of money – either more public sector workers will have to pay more tax, or more of them will leave the ridiculously generous pension schemes if they have to pay tax on their real value.

  2. Wonder if they adjusted for staff who left the NHS especially those who emigrated and moved their pension out

  3. I know the euro is a bit spotty, but “acne of failure” doesn’t sound like the Moggster. I strongly suspect the Express has garbled “acme”.

  4. +1 RichardT

    Also note how lots of ideas pop out on how to tax the forms in which people in the private sector tend to save. Nobody proposes a tax that would hit a civil service pension. Not very good for democracy to have one rule for me and another for thee.

    Who wants to be a millionaire? Or given the threshold is north of a million, even richer?

  5. But I thought higher taxes had no adverse effects on behaviours? Or rather people would work harder to make up for the lost amounts?

  6. ‘Gold-plated pensions’ are part of these workers’ terms and conditions

    Or do we not care about them when they are government employees (aka ‘selfless angels’etc)

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