Under current legislation, HM Revenue and Customs (HMRC) requires us to test members’ unclaimed pension benefits against their Lifetime Allowance (LTA) the day before their 75th birthday. In addition, active members of classic, classic plus, premium or nuvos cannot build up further benefits in the scheme after their 75th birthday.
This EPN provides information about that process, including actions for employers and members.
HM Revenue and Customs (HMRC) rules require us to test a member’s unclaimed pension benefits against their Lifetime Allowance (LTA) the day before the member’s 75th birthday.
LTA is the limit on the amount of pension benefits an individual can take from all of their registered pension arrangements before they incur a tax charge. If a member exceeds their LTA, they will incur a tax charge when they take their benefits at retirement. You can find more information about the Lifetime Allowance (LTA) on our website.
The Scheme Administrator (MyCSP) will write to members six months before their 75th birthday to provide them with details of their unclaimed pension benefits. These letters will be sent directly to members’ home addresses, or where relevant, and for security reasons, to members’ office addresses.
These letters will provide members with details of how to claim their benefits and will request information needed to test the member’s unclaimed benefits against their LTA. If members cannot provide this information to the Scheme Administrator by their 75th birthday, the Scheme Administrator will assume they have used all of their LTA and their benefits will be subject to a tax charge.
From Wednesday, 01 May 2019, the Scheme Administrator will provide employers with Management Information (MI). This MI will detail which members are due to reach age 75 within the next six months. Please note: the provided MI is on a cumulative basis and members due to reach the age of 75 within the next six months will continue to appear on the MI until they either leave or retire.
Members and employers can find more information about the LTA on the GOV.UK website (under Tax on your private pension contributions).
Should you require additional support, Annex A of this EPN contains guidance on how to use the monthly interface to notify the Scheme Administrator of a member’s decision to join either alpha or partnership or not, and Annex B contains a list of frequently asked questions and answers about the process when a member reaches age 75.
If you have a query regarding anything contained in this EPN, please contact the Scheme Administrator by either:
If you have a question about the distribution of EPNs contact firstname.lastname@example.org.
This notice is for employers and should not be issued to scheme members.
If members have a question about their pension, they can find information on this website or by contacting the Scheme Administrator (MyCSP).