In Reply to: Re: Pension "tax dodge" posted by George on 30 November 2004 at 16:22:09:
: IBMs new Employee Consultative Committee will bring this up with David Heath at next meeting.David is in I Plan I believe.
Approach this gift horse with caution! IBM will doubtless be happy to consider this strategy - it reduces both the employee's and the employer's National Insurance contribution. What might not be so immediately obvious is that if you do this with a defined benefit scheme you are not only reducing the employee's salary for NIC purposes, you are also reducing it for final pension calculation purposes.