23 October 2006
The Government is poised to clamp down on "cash for pension"
offers to staff in a bid to prevent future taxpayers being saddled
with an army of poor dependents.
Employers are increasingly turning to these packages in an
attempt to cure pension funding problems.
Peter Askins, a senior official at the Department for Work and
Pensions has told a gathering of senior representatives of the
pensions industry, that not only might the Government consider
taxing any cash incentives but that employees should not expect the
state to make good any shortfall because they ditched their company
scheme.
He indicated that their entitlement to Pension Credit and other
support would be assessed on the pension they would have received
had they remained with their employer.
