A parliamentary loophole will enable Tony Blair to escape the new A-day laws which will cap private pension funds at £1.5 million and tax any personal pension pot over this amount at a rate of 55%. Mr Blair's pension is set out under the Ministers of the Crown Act 1937, which entitles the Prime Minister to receive pension pay-outs from the moment he leaves his position. This means that his pension is not classed as a pension "pot" and consequently the A-day rules do not apply. A Cabinet Office spokesman said: "When Tony Blair leaves office he will be entitled to a lifetime pension and this will be unaffected by the changes". Mr Blair can expect to enjoy an annual pension of £96,000 if he leaves his post in the next three years. * The Mail on Sunday http://www.mailonsunday.co.uk/pages/live/dailymail/home.html?in_page_id=1766 2 April 2006 - p2 Blair's £96,000 a year pension to escape raid by the taxman by Andrew Buckwell
to be fair though, in the parlimentary scheme, for the PM, benefits vest wholly from the 1st day of service. Which means he would be entitled to that pension, had he resigned on day 2. So, all the benefits are pre-6/4/06 and thus would be protected from taxation anyway... It's really the daily mail getting excited again.
i guess tony blair must have got a inflation adjusted pension +.....something else on top....ahh these politicians are all the same....no wonder nothing is being done about poverty in pensions...only reports and white papers + black papers + purple papers are published and discussed...the end result is zero. The reason being at the end of the day we are all selfish to a certain extent...the pm is very much a part of this....all he is concerned is just about his pension and not about the people in this country.
