Why apex court ruled that pensions are private trusts

The judges ruled that once pension contributions are remitted into a scheme, they cease to be public property.

Photo credit: Fotosearch

Pension funds sponsored by public entities belong to contributors and are not public funds subject to State procurement laws, the Supreme Court has ruled.

In a landmark victory for the retirement benefits industry and pensioners, the apex court ruled that pension savings managed under public entity-sponsored schemes are private trust funds owned by employees and cannot be treated as public money under the Public Procurement and Asset Disposal Act (PPADA).

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.