Silence on pension tax is baffling
Published 23/12/2010 | 05:00
I REAd Charlie Weston's report on ministerial pensions and it is obviously scandalous that these pensions cost so much. But what I find even more scandalous, and I have seen nothing reported on this, is the fact that the amounts used to fund these pensions are tax-free, whereas contributions made by employees themselves are now taxed.
I fund my own pension (my employer makes no contributions) so from now on every contribution I make will be taxed. I could never hope to accumulate a pension fund anywhere close to some of those being given in the public sector (even before taxation) and now I will probably choose not to fund my pension as I cannot see the benefit.
I find it surprising that there has been a virtual silence by the media on how penal this taxation is to those of us who fund our pension entirely and how there is no equity in taxing employee contributions and not those made by the employer.