Aligning the 'Pension Input Period' with the tax year
The ‘Pension Input Period’ (PIP) is the period over which your pension growth is measured. Up until 2014/15 the PIP in the LGPS ran from 1 April to 31 March.
From 6 April 2016, PIPs for all pension schemes aligned with the tax year – 6 April to 5 April. Special transitional arrangements applied for 2015/16 meaning that there are 2 PIPs in 2015/16, as set out below:
Pre-alignment tax year: 1 April 2015 to 8 July 2015 - the revised AA limit during this period is £80,000.
Post-alignment tax year: 9 July 2015 to 5 April 2016 - the AA limit for this period is the amount of the £80,000 not used up from the pre-alignment tax year (subject to a maximum of £40,000) together with any carry forward available from the three previous years.
If you have flexibly accessed any benefits in a money purchase pension arrangement on or after 6 April 2015, you should contact the Fund for information about how the pre and post alignment tax years will work as it will be different to the above.