Question to the HM Treasury:
To ask Her Majesty’s Government what guidance they provide to public sector employers on the steps they should take to ensure their low-paid workers do not lose basic rate tax relief on their pension contributions, even if they are non-taxpayers; and what steps they take to inform low-paid workers about their pension contributions.
The Government does not centrally collate data on the annual earnings of public sector workers.
Defined Benefit public sector pension schemes operate on a net pay basis. The Partnership scheme, which is a defined contribution scheme open to civil servants and other public sector workers, operates a relief at source system for payment of pension contributions.
The Pensions Regulator provides all employers with guidance on how different forms of administering pensions tax relief affect different employees. This guidance is available on its website and it applies to public sector employers in the same way as private sector employers. It is up to the individual schemes how they communicate this information to their employees.