United Kingdom

Details

  • Service: Tax, Budget 2012
  • Type: Press release
  • Date: 21/03/2012

Budget 2012: Final salary pension schemes pay the price for State pension improvements 

Wednesday 21 March 2012

 

Commenting on today’s Budget, Mike Smedley, pensions partner at KPMG said:

 

“While today’s Budget was relatively quiet from a pensions point of view, there was  nevertheless confirmation of more bad news for open final salary pension schemes. The Chancellor confirmed the move to a single tier State pension (some time after 2015) - but didn’t mention that this would also mean the end of contracting-out.  Without any other changes, the increased National Insurance contributions will see companies’ pension costs go up, and scheme members out of pocket while they are working.

 

“Most of the changes announced today, such as the move to a single tier state pension and changes to the State pension age, have been well-trailed.

 

“The rumour mill proved wrong though on changes to rates of tax relief on pension contributions.  No changes have been announced, which will be good news for many, and provides some much-needed stability in our pensions tax system.”

 

 

Ends

 

 

Follow us on twitter: @kpmg_uk_llp #budget2012

For further information please contact:

KPMG Press office

Tel:  +44 (0) 207 694 8773

 

Mark Hamilton, KPMG Corporate Communications

Mobile: 07785 337672

mark.hamilton@kpmg.co.uk

 

 

About KPMG:

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.