Low earners denied free pension cash given to better paid colleagues should be compensated with a bonus into their pots from the taxman, say experts.
Critics have long demanded action over a tax flaw which means an estimated 1.5million poorly paid staff lose Government payments into their pensions, depending on the type of scheme operated by their employer.
The Treasury put forward four potential fixes over the summer, and asked for feedback and other suggestions in a consultation which has just closed.
Tax penalty: An estimated 1.5million poorly paid staff lose Government payments into pensions which are automatically handed to higher income workers
A solution where HMRC would use information it already holds on lower earners to pay money into their retirement funds is favoured in responses made public by pension groups and 온라인슬롯 other industry players.
The other options involve either clawing back money from low earners who do get the cash at present – an idea that attracted strong criticism – or 트럼프카지노신규쿠폰 two methods forcing employers to change how they currently administer pensions.
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‚The inequity of the existing system, which disproportionately impacts low earners and women, has gone on for too long and 에비앙카지노신규 must be fixed if all savers are to get the most out of their retirement savings,‘ says Nigel Peaple, director 예스카지노쿠폰 of policy and 카니발카지노먹튀 research at the Pensions and 카지노사이트 Lifetime Savings Association.
The industry group supports the HMRC bonus option – which it suggests won’t be as difficult the Treasury makes out in its consultation document – and dismisses the other three ideas as not fair and proportionate.
‚In the absence of a solution, the Government would be perpetuating an anomaly that has created social injustices at the heart of the pensions system,‘ the PLSA says in its response.