The Prime Minister is understood to be calling on the Treasury to relax the proposed £1.4m lifetime limit for executives whose companies contribute to pensions for their staff.
The Treasury is continuing to review whether the lifetime pension fund limit should be raised, indexed to wages rather than prices and whether funds over the limit should be returned less tax relief ahead of the publication of its pension simplification proposals next week.
Money Marketing understands that Tony Blair is concerned that senior executives who are blocked from further pension saving will be less interested in contributing to employee schemes.
Scottish Life head of pension strategy Steve Bee says: “We are getting a much more restrictive tax regime for pensions and many decision-makers are being kicked out of the system. Why not increase relief for a good director who looks after his own workforce?” A Treasury spokesman says: “When we put out the paper next week, that will be the Government's policy and it will have the support of the whole Government.”