25 January 2016
Do employers have a duty to tell employees about pension tax rules?
With further changes to pension tax rules coming in on 6 April 2016 and more to be announced in the Budget, how much information should employers give their employees about pension tax rules? Could they be responsible if they fail to warn employees about the tax implications of their decisions?
In the recent case of Cherry, the Pensions Ombudsman determined that the employer had a duty of care to inform the employee of the tax implications of his re-employment on his retirement benefits. The employer had to make good the employee’s additional tax charges.
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