guitarchris
Registered User
- Messages
- 13
Hi, has anyone heard any facts or details relating to the rumour circulating that lump sums (public sector) will be taxed and this change is being brought in this year?
big exodus from all gov departments including assist secretaries .. all leaving sinking ship .. definitely expecting something big to be announced.. i believe the leakage from the dept of financeHi Derek/Lou heard another bit today. Two options tax those retiring after June (June and September mentioned) or just half lump sum amounts. Seems to be related to green paper on pensions and forum on taxation but neither websites feature any details. Are the unions hearing things from negotations with the social partners?
big exodus from all gov departments including assist secretaries .. all leaving sinking ship .. definitely expecting something big to be announced.. i believe the leakage from the dept of finance
I have to say that if anything like whats described above happens, you can be sure the Public Service unoins will come under a lot of pressure from members to resist in the strongest fashion.
I'm afraid that that's a conspiracy theory too far, very few people know what's in the budget regarding the lump sum and they're not telling, I'm fairly sure it will prove to be unconstitutional to bring this in. I think leaving the rumour out there does encourage those with their full 40 years to leave now and combined with the embargo on recruitment will have the happy consequence of a reduced pay bill.They are fleeing!! and of course they are all the higher up grades who are politically connected. Pretty disgusting really that they know before everybody else.
Are people retiring a few months early or a year or two early?
17.5% of a lump sum representing 150% Salary only amounts to about 3 months wages, maybe 5 or 6 if you allow for the fact that the salary is taxed.
I know it's an incentive to retire earlier than you might have but retiring a couple of years early to avoid this tax seems extreme
When you couple it with the pension levy, the increased income levy and whatever other tax increases are going to come in however, I do think that in a lot of cases it makes financial sense to go early, if you do you sums you should be able to come to a "break even" amount of months where it would make sense to go early.they are people with 1-2 years to go mostly...i agree its a bit drastic particulalry if one hadnt even begun to contemplate retirement.