Cont👇
26/ If you have paid AA tax between 1995-22 it is likely your charges will be lower in 1995 than in 2015 scheme. This is because the AA rules are particularly unfair to members of 2 schemes. If your AA charges go down during any of the remedy period, you can claim a refund

27/ It does not matter if you paid cash for AA or used scheme pays, if you overpaid these charges can be refunded. If you charges go up (unlikely unless you have “MHO” status) you may have to pay back tax. There is usually a statutory limit of 4 years for paying underpaid tax.
28/ This limit of 4 yrs of underpaid tax was referenced in the consultation document 👇, although the position is less clear in the full consultation response. We will need to see the final regulations to understand the implications.
29/ The consultation document also stated that members who choose reformed 2015 in retirement & incurred AA charges would be “compensated”. Again detail in is less clear in the full consultation response. We will need to see the final regulations to understand the implications.
30/An important area are “contingent decisions”. Many members took decisions i.e. “opting out” of the scheme based on the age discrimination. @theBMA argued certain cases should automatically be compensated vs having to prove this on a “case by case” basis
31/ Government disagreed, and now cases will need to be made on a case by case basis, putting a huge burden on members and also the scheme to resolve this, with no guarantee of success. This is very disappointing and will likely form the basis of ongoing legal action
32/ Another area which was very disappointing is regarding the need for advice. Govmnt acknowledges that members affected by AA (i.e many doctors) will be particularly affected - and therefore need advice as a result of the discrimination.
33/ You will recall I mentioned the “cost cap” mechanism. Previously the scheme had identified a “floor breach” ie the ‘15 scheme was no longer “generous enough” (due in part to disgraceful pay rises). This should have triggered a rise in benefits i.e. 1/48ths instead of 1/54ths
34/ Instead government “froze” agreed cost-cap due to McCloud & is now saying costs from the (government’s illegal age discrimination) should be “member” costs in the cost-cap likely removing the “floor breach”. In other words, they want YOU to pay for THEIR mistake. Disgraceful.
34/ As I said, the decision over legacy (95/08) vs reformed (15) will *not* be simple. Many factors important
●when you want to retire
●need for lump sum
●need for dependent benefits
●how long your est. to live
●AA/LTA tax between choices

*DONT ASSUME LEGACY IS ALWAYS BEST*
35/ We @TheBMA are actively looking if we can build tools - like the @theBMA Goldstone modeller, to help you work out your tax position in both schemes 👇, and help you make the decision. Many people will still need advice. We’ll keep you posted.
36/ You've probably gathered, this is not straightforward! Some things have gone our way (like “DCU”) - others will be an ongoing fight. There’s never been a better time to be part of a union. @theBMA have got your back 💪
37/37

If you want to know more about pensions/"McCloud" , join me & @BMA_Pensions colleagues at one of our webinars. We've already had over 5000 people register, sign up early to avoid dissapointment.

Its free and open to all.
https://t.co/HhqdZ88c4m

Pls RT!

[END thread 2/2]

More from Finance

1/ My Mission: To Spread Financial Wellness (thread)

Here’s what "financial wellness" means to me

⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️

2/ Mindset

Humans are programmed to think short-term

Evolutionary, thinking short-term makes sense. It helps with survival.

Financial wellness is all about training yourself to develop a long-term mindset

Not easy -- it takes practice


3/ Mindset

If you join the right tribes, you can’t help but improve

My favs:
@AffordAnything
@ChooseFiFI
FinTwit
@MicroCapClub
@themotleyfoolFool
@visualizevalue

Twitter / Podcasts / Blogs / YouTube -- when used correctly -- are amazing


4/ Mindset

Educate yourself - constantly!

Especially about:

1⃣Money
2⃣Relationships
3⃣Health

These 3 categories have an outsized influence on all areas of your life

Books


5/ Career

In the beginning, focus on growing your income

Do more than what is expected

Become a lynchpin

Find a career that you ENJOY (<- important!) that also has high-income potential

Start a side hustle (<- important!)

Build your talent

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The chorus of this song uses the shlokas taken from Sundarkand of Ramayana.

It is a series of Sanskrit shlokas recited by Jambavant to Hanuman to remind Him of his true potential.

1. धीवर प्रसार शौर्य भरा: The brave persevering one, your bravery is taking you forward.


2. उतसारा स्थिरा घम्भीरा: The one who is leaping higher and higher, who is firm and stable and seriously determined.

3. ुग्रामा असामा शौर्या भावा: He is strong, and without an equal in the ability/mentality to fight

4. रौद्रमा नवा भीतिर्मा: His anger will cause new fears in his foes.

5.विजिटरीपुरु धीरधारा, कलोथरा शिखरा कठोरा: This is a complex expression seen only in Indic language poetry. The poet is stating that Shivudu is experiencing the intensity of climbing a tough peak, and likening

it to the feeling in a hard battle, when you see your enemy defeated, and blood flowing like a rivulet. This is classical Veera rasa.

6.कुलकु थारथिलीथा गम्भीरा, जाया विराट वीरा: His rough body itself is like a sharp weapon (because he is determined to win). Hail this complete

hero of the world.

7.विलयगागनथाला भिकारा, गरज्जद्धरा गारा: The hero is destructive in the air/sky as well (because he can leap at an enemy from a great height). He can defeat the enemy (simply) with his fearsome roar of war.