Pension Savings Statement - all you need to know
Annual Allowance is the maximum value of the growth in your pension savings each year that can benefit from tax relief.
The Annual Allowance applies to your entire pension savings with UK registered pension schemes. Any contributions you and your employer have paid into any Defined Contribution pension arrangements (for example Civil Service AVC Schemes, the partnership pension account, a stakeholder or a personal pension outside the Civil Service pension arrangements) are not included on your Civil Service Pension Savings Statement.
We’ll send Pension Savings Statement(s) (PSS) to you if you meet one or more of the following criteria as at 5 April 2018:
- you have exceeded the Annual Allowance limit of £40,000* in 2017/18;
- you earn over £100,000; and/or
- you have requested one.
* Please note – high-Income Individuals may be subject to a tapered Annual Allowance.
Further information and guidance on how to calculate tapered annual allowance can be found on HMRC’s website - https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance
In your statement envelope, you can expect to receive:
- a covering letter;
- a single PSS or, if you have benefits in alpha and one of the sections of the Principal Civil Service Pension Scheme (PCSPS), two PSS.
We’ll be starting to send out PSS from late June 2018 and plan to distribute as close to 100% of the statements as possible by 31 August 2018 – ahead of the regulatory deadline of 6 October 2018. This is so that employers and members have the maximum time available to plan and organise any necessary activities related to PSS.
You’ll need to:
- calculate whether there’s a tax charge for you to pay by visiting HMRC at: https://www.gov.uk/tax-on-your-private-pension/annual-allowance ; and
- decide whether you wish to use Scheme Pays.
We know that it’s handy for you to have information gathered together in one easy-to-access place. So, whether you want to find out:
- when your PSS will be arriving; or
- have a query once it’s arrived,
you’re just one click away from help.
Simply, choose which box to click on from the selection below.