Annual Allowance ‘Flexible Benefit’ access
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.