Annual Allowance ‘Flexible Benefit’ access

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If you have benefits in a money purchase (defined contribution) pension arrangement which you have flexibly accessed since 6 April 2015, then the money purchase annual allowance rules may apply. This will only be the case if your total contributions to a money purchase arrangement exceed the money purchase annual allowance in a year.

If your contributions exceed the money purchase annual allowance, your pension savings in the LGPS will be measured against the alternative annual allowance.

 

The money purchase annual allowance

 
Tax Year
Money purchase annual allowance
Alternative annual allowance if MPAA is exceeded
2016/2017
£10,000
£30,000
2017/2018 to 2022/2023
£4,000
£36,000
2023/2024 onwards £10,000 £50,000
 
If you access flexible benefits, your pension scheme must give you a flexible access statement. You should give us a copy of this statement.