You can use this tool to check if your LGPS pension saving is likely to exceed the annual allowance. The annual allowance is the amount your pension savings can increase in a tax year without you having to pay a tax charge. The allowance is set by the Government and is currently £40,000.
See the Tax section for information about how the value of your LGPS pension saving is calculated for this purpose. - Opens in a new browser window
How this tool works
You can use this tool to check if your LGPS pension saving in any tax year from 2016/17 onwards is likely to exceed the annual allowance.
You will need to input the value of your LGPS pension benefits at the start of the tax year and at the end and add in any AVCs you have paid during the year. The tax year runs from 6 April to 5 April each year.
You can use the pension figures provided on your annual benefit statements to provide a good estimate. However, because the figures on your statements are calculated from 1 April to 31 March each year, rather than from 6 April to 5 April, the results won’t be completely accurate. If you think you are near to, or likely to exceed the annual allowance in any tax year, you should contact your local pension fund for more accurate information.
You cannot use this tool:
- To check if you have unused annual allowance before 2016/17 which could be carried forward
- To check the amount of annual allowance used in other pension schemes
- If you are subject to the tapered annual allowance in the tax year you are checking
- If you have flexibly accessed pension benefits from another pension scheme (you will be issued with a flexible access statement if you have)
- If you have transferred non-LGPS pension benefits into the LGPS in the tax year you are checking
- If you have aggregated previous LGPS benefits with your current LGPS pension account in the tax year you are checking
If any of the above circumstances apply refer to the Tax section - Opens in a new browser window or contact your local pension fund.