Pilots ask Parliament to pledge to protect pension tax relief
British pilots are prompting the Government to focus on encouraging people to save for their retirement, ahead of the budget this week.
The British Airline Pilots Association has for some time being calling for the Government to restore stability and rebuild confidence in the pension system. Members of the union have been writing to MPs to ask them to oppose any move by the treasury to introduce detrimental and confusing changes to current tax relief arrangements.
BALPA says the reduction or removal of higher-rate tax relief would mean many pilots would pay double tax on their contributions. This in turn could persuade high earners to stop investing in pensions which would make the whole pension scheme less secure for everyone.
Last week there was some indication the message may be getting through with speculation the chancellor is poised to ease restrictions on pension tax relief for the country’s highest earners.
Head of Industrial Relations at BALPA, John Moore said:
“We believe that it is vital that the Government does all it can to ensure that people have faith in the pension system.
“High earners continuing to invest makes the system more secure for everyone and that’s why we BALPA has been urging the Government to concentrate on encouraging people to save for their old age by making sure the current pension system is stable.”