Pensions

High earners’ pensions cut

Major employers are cutting pension contributions for senior staff because new rules, almost a year old now, are too onerous to implement.

Company bosses are deciding that it is safer to reduce pension perks for their most valued employees, rather than to risk making errors which could later result in unexpected tax charges and disputes.

Experts branded the 2016 pension changes, known as “tapering”, as “the most complicated set of rules ever introduced to pensions”.

The “annual allowance taper” is a complex requirement that drastically scale back the amount higher earners – those earning upwards of £150,000 – can put into a pension.

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