In his pre-budget report on 27 November, Chancellor Gordon Brown gave an important reassurance to pension scheme members when he announced that the tax-free lump sum and tax relief on pension contributions will not be abolished.

here had been widespread speculation that government was planning to scrap or amend these two key features of pension scheme membership. Mr Brown said: "I can confirm that the tax-free lump sum payment to retirees will remain. Existing tax relief for pension contributions will also remain."