Judges given pension privileges
Judges have won an exemption from a new pensions tax, in an apparent move by the Government to head off the threat of a large-scale walkout.
From 2006, people with personal pensions of more than £1.5m will pay extra tax, under changes announced by Chancellor Gordon Brown in this year’s Budget.
As some of Britain’s top earners, senior judges often build up big investments for their retirement, in addition to their judicial pension.
Following fears that the changes would lead to a mass exodus from the bench, the Government is planning to pass a new law, which means that judges will not have to pay the extra tax.
A document posted on the website of the Department of Constitutional Affairs said: “In discussions with the judiciary, they have expressed the view that failure to resolve this would cause both a significant number of judges to resign, and those thinking of applying for the bench to reconsider their position.”
Opposition parties have slammed the decision to exempt judges from the new tax under the proposed Judicial Pensions Bill, which was announced in a press release from Lord Falconer’s department.
The proposed new law was not referred to in last week’s Queen’s Speech.
Conservative Shadow Work and Pensions Secretary David Willetts branded the move unfair.
“This looks like one law for the judges and a different law for everyone else, ” he said.
“Conservatives want to see good pensions for the many, not Labour’s special privileges for the few.”
Defending the measures, a DCA spokesman said: “The new arrangements recognise pensions are an important part of an effective judicial remuneration package needed to recruit and retain a world-class judiciary.”
