Originally Posted by
Melchett01
I, along with a couple of friends, have all just received those letters and been faced with 5-figure bills for no reason other than going to work and being reasonably competent over the years.
If that wasn’t bad enough, the advice received was that if we elected to use Scheme Pays, it would be treated like a loan and our pensions would be reduced in perpetuity. Now forgive me if I’m wrong, but that sounds little more than theft. If I take a loan out with my bank, I pay the amount back plus interest and we go out separate ways once the business is concluded. How the Government can legally take money off you for a debt repaid in full years earlier is frankly staggering. So be aware - unless you really do have no choice, look hard at all the options before electing for the legalised theft route.
Melchett, could I be cheeky and ask a question or two?
Are you on a 75 or 75/15 pension? Have you just gone up a band on PAS?
Easy Street sets out below that it’s not necessarily about the salary but about the rate of increase in pension?
I have heard that several times so I can get my head round that, but not why 05 or 05/15 isn’t too badly hit, if at all. perhaps because it’s not a pension but an EDP? Maybe at the age 55 point people on that will be hit then?
it is a mess, and a 5 digit tax hit is something that will make people think twice.
As an aside the new RRP for pilots, paid after 7 years- is that going to hit guys getting to that point?