Charles Mercey Urges Tax on £160 Billion Pension Surpluses to Fund UK Defence
Updated
Updated · Financial Times · Jul 14
Charles Mercey Urges Tax on £160 Billion Pension Surpluses to Fund UK Defence
1 articles · Updated · Financial Times · Jul 14
Summary
£160 billion in UK defined-benefit pension surpluses should be partly taxed, Charles Mercey argued, casting the state as another claimant alongside scheme members and company sponsors.
Mercey said such a levy could ease Britain’s fiscal squeeze by helping finance a near- to medium-term rise in defence spending.
He also argued taxing the best-protected, asset-rich pension cohort could make wider pension reform more politically acceptable.
His proposed reforms include replacing the state pension triple lock and capping public-sector pension indexation at 3% a year.