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Judges and mothers alike feel pensions pinch

Daniel Stanton, Accountancy Age, 07 Nov 2005

Senior judges may sue Lord Chancellor over changes to their pensions, while it is revealed many mothers and carers are not entitled to state pension

Lord Falconer, the Lord Chancellor, could be sued by a working group of senior judges over changes to their pension rights.

New tax rules will impose a lifetime cap of £1.5m on the sum of accumulated pension savings that qualify for tax relief. Anything above that sum will be subject to a tax of 25%, in addition to income tax.

At the other end of the scale, it has been reported that more than two million mothers and carers are not building up any entitlement to the basic state pension.

The Equal Opportunities Commission has warned that the current pension system fails to compensate people who take a break from work to care for others or look after children.

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