Budget 2014 – government drops pension transfer bombshell

jloveday

Longterm Registered User
Hi all may be of interest to some of you, This message was sent to me on my Linkedin profile an i thought it may help some of you out

BUDGET 2014 – GOVERNMENT DROPS PENSION TRANSFER BOMBSHELL

It may have gone unnoticed to many ex-service personnel that in last month’s Budget, while civilian personal pension holders were being offered unprecedented personal freedom and well publicised access to pension funds from aged 55 ….. all that those with civil service public sector or defined benefit pension schemes were ‘offered’, was the loss of a basic freedom of pension choice under proposed new Government legislation.

It was clearly stated that:
“The Government plans to introduce legislation that would remove the option to transfer for those in public sector schemes.â€

In my personal opinion, ex-service personnel not in receipt of their pension or who have not already transferred out will find themselves beholden to this and to future government’s punitive legislation levelled at their “guaranteedâ€, “gold plated†pension schemes.
The Government went on to say that:

“... public service defined benefit pension schemes are a significant cost to the tax payer, as the schemes are largely underfunded.â€
I will leave you to draw your own conclusions as to what the future holds for those members of a “largely underfunded†defined benefit pension scheme that is “a significant cost to the tax payerâ€.

But it seems clear that time is running out for those in public sector pension schemes who are yet to review the option of transferring their pensions.
I want to stress, this is a personal view and should not be construed as advice or as a recommended action to transfer your pension. There are many considerations, and specialised financial advice should be taken.



Regards

jloveday
 
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Yeah I had texts from the company I transferred my with, my own decision to transfer was I may make my pension larger when the time comes to me retiring or at worst I will not make anything but just keep what I have already, so I wont lose either way, and lets be honest for those who haven't completed there full 22 years service its well worth doing. But that's my opinion my choice.
 
Pension related but off topic so apologies for the thread hijack.
If you've been awarded an MC or up any pension/annuity is tax-free.
News to me but I had wondered why so many were getting MiDs when they merited higher awards.
Pensions: particular occupations: armed forces: awards for bravery

EIM74307 - Pensions: particular occupations: armed forces: awards for bravery
Section 638 ITEPA 2003
Section 638 provides that no liability to income tax arises on a pension or annuity if it is paid to the holder of a specified award for bravery in respect of the award. The specified awards are –
•the Victoria Cross
•the George Cross
•the Albert Medal
•the Edward Medal
•the Military Cross
•the Distinguished Flying Cross
•the Distinguished Conduct Medal
•the Conspicuous Gallantry Medal
•the Distinguished Service Medal
•the Military Medal
•the Distinguished Flying Medal
 
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