Pensions prove a sore subject for one London insurer’s chief exec…
Don't throw stones in glass houses. Take the plank out of your own eye before removing the dust in another’s. there’s a lot of ways of saying it.
Personally, The Capitalist favours “don’t bang on about the Treasury reviewing pension tax breaks while you’re busy downgrading your own company’s scheme”, but that doesn’t have the same lyricism to it.
Royal London’s chief executive, Phil Loney, has been vocal of late, warning chancellor George Osborne against meddling with tax relief on pensions.
“The potential change – alongside reducing the size of pension pots – hinges on future chancellors sticking to their promises,” he told the Evening Standard.
“Nobody should be asked to save for 30-plus years without absolute certainty that savings made from income will not be taxed twice.”
Fair point, no? Well a rather disgruntled source got in touch with The Capitalist to point out that Royal London is in the middle of a consultation that could see long-serving workers lose access to its final salary pension scheme.
Perhaps some of these loyal employees have been saving… “for 30-plus years”.
A Royal London spokesperson confirmed that a consultation period is ongoing, but insisted that the firm nonetheless has a “very generous” system in place for staff.
Royal London has been phasing out its final salary scheme, which usually offers an income in retirement based on a proportion of a person’s final salary. Ten years ago, the firm stopped new-starters being eligible for this.
Loney himself joined Royal London in 2011, so wouldn’t be eligible for the scheme anyway, but don’t worry. The insurer’s chief exec gets help from generous supplements that sit above his basic pension.
In 2012, this was £152,000. In 2013, it was an extra £134,000. And last year he received £151,000 in supplements. Not bad for a basic pension.