We’ll send a Pension Savings Statement (PSS) to you if you meet one or more of the following criteria at 5 April 2022:

1. You’ve exceeded the Annual Allowance limit of £40,000 (those with high salaries may be subject to tapered Annual Allowance).

2. You earn over £100,000.

3. You’ve requested one.

Further information and guidance on how to calculate tapered annual allowance can be found on HMRC’s website.

Annual Allowance?

Annual Allowance is the maximum value of the growth in your pension savings each year that can benefit from tax relief.

Annual Allowance applies to your entire pension savings with UK registered pension schemes.

Contributions that you and your employer have paid into any Defined Contribution pension arrangements (for example Civil Service AVC Schemes, the partnership pension account, a stakeholder pension or a personal pension outside the Civil Service pension arrangements) aren’t included on your Civil Service Pension Savings Statement.

Your statement

If you have benefits in alpha and one of the other pension schemes, you will receive two PSS. If you only have benefits in alpha, you will receive one PSS.

If they have changed recently, don’t forget to update your personal details. You can do this quickly via the Pension Portal.

We’ll start to send your PSS from July 2022 and are aiming to complete distribution by 31 August 2022 – ahead of the regulatory deadline of 6 October 2022. This will enable employers and members to have the maximum time available to plan and organise any necessary activities related to PSS.

PSS are sent by second class post. Please allow up to five working days after the date shown on the schedule for your statement to arrive. 

If you haven’t received your statement by 27 September, or need a replacement statement, contact us at pss@mycsp.co.uk

What you need to do

  • Calculate whether there’s a tax charge for you to pay by visiting the HMRC website
  • Decide whether you wish to use Scheme Pays.
  • Pay your tax charge by the deadline

You must fulfil these responsibilities to comply with HMRC’s pension tax rules.

We cannot complete or assist you with any tax liability calculations. You should contact an independent financial adviser if you are concerned about how tax may affect your pension benefits.

Civil Service Additional Voluntary Contribution Scheme (CSAVC)

Contributions to the Civil Service Additional Voluntary Contribution Scheme (CSAVC) and benefits in the partnership pension scheme are not included in your Pension Savings Statement. You will need to ask Legal and General for a statement for these schemes. Your total Pension Input Amount will be required in order to calculate whether you have a tax charge to pay.

Annual Benefit Statement

The pension figures on your Annual Benefit Statement are an illustration of your benefits using your pensionable earnings (salary including pensionable allowances and bonuses) as at the statement date (31 March 2022).

The pension figures used to calculate your Pension Input Amount shown on your PSS are your pensionable earnings (salary including pensionable allowances and bonuses) for the PSS period (6 April 2021 to 5 April 2022) and can be different to those in your Annual Benefit Statement.

Helping you to fulfil your tax responsibilities

We have a legal requirement to send you a PSS if the growth in your Civil Service pension benefits is greater than the standard annual allowance.

Our Tax Awareness training course will explain what you need to do and by when to comply with the pension tax rules. It will also help you to understand your tax position and the impact it could have on your pension benefits.

Your employer may pay for your place on this course, or you can choose to pay for it yourself. For more information about this, contact taxsupport@mycsp.co.uk.

Pension Input Amount

Pension Input Amount is the value of the growth of benefits over the Pension Input Period (6 April 2021 to 5 April 2022)

Your Pension Input Amount can change from year to year depending on the percentage rise in your pensionable earnings, the inflation applied to the opening value of your Pension Input Amount calculation, the length of your reckonable service and your membership type.

If the inflation applied to the opening balance of your pension at 5 April 2022 is higher than the growth in your pension benefits during the Pension Input Period, your Pension Input Amount is zero.

Contact us to request your Pension Input Amounts

Money Purchase Annual Allowance (MPAA)

Claiming other benefits may trigger the MPAA. This will depend upon whether your money purchase Pension Input Amounts exceeds the MPAA in the tax year concerned. We only administer the Civil Service defined benefit schemes and so cannot assist you with this. Visit the MPAA rules page on the gov.uk website for more information.

Deferred carve out

If you were in the nuvos pension scheme and moved into alpha, your nuvos benefits will be treated as ‘deferred carve out’ from the following year onwards. This simply means that as your nuvos benefits are unaffected by any pay rises and contributing service, their PIA is automatically nil.

More information about deferred member ‘carve-out’ can be found on the Pensions Tax Manual page on the gov.uk website.

Published:
8 December 2021
Last updated:
27 May 2022