Money Marketing revealed last week that a quarter of a million high-earning final salary pension scheme members could see their tax bill soar.
This is because the Government wants to change the multiple used to calculate the amount accrued to a pension in any given year, and in turn the amount of tax payable, to a factor that increases with age.
But judges will avoid the huge tax bill as, in 2006, the profession’s registered pension scheme was switched to an employer-financed retirement benefits scheme, which is not subject to the new tax, in a bid to get around the lifetime allowance.
Judges contribute only 1.8 per cent of salary into their pension while other high ear-ners in the public sector pay around 8.5 per cent, yet judges get around double the average public sector final-salary pension.
Standard Life head of pensions policy John Lawson says: “We risk alienating valuable public sector workers if they see others escaping scot-free.
“The proportion of tax relief going to high-earners needs to be examined but there are fairer and equally effective ways to do it.”