Members will be aware that for those at risk of breaching the Annual Allowance tax limit on their Pension Input Amount (PIA), a Pension Savings Statement (PSS) is sent in October of each year (remember that this £60,000 tax-free limit on PIA in the TPS-defined benefit scheme is growth in accrued benefits and not the contribution).
Transition Remedy members will recall the October 2023 rollback from their updated Annual Benefit Statement. This may also have altered the PIA growth going right back to the remedy period, alongside any allowable carry forward. As a result, affected transition members will not have received a PSS in October 2023 covering the tax year 2022/23.
Updated PSS' incorporating rollback, covering the entire Remedy Period and up to April 2024, were due by 6 October 2024. Unfortunately, this deadline has now been extended into 2025.
Once you have received your PSS, you may wish to amend any Scheme Pays Election accordingly if necessary. This has to be completed within six years of the 31 July from the end of the tax year to which the liability relates. See this
Scheme Pays Flowchart on the Teachers' Pensions website.
Associated and linked self-assessment returns should also be amended accordingly. These deadlines have also been extended. Members receiving a chargeable PSS from 1 November 2024 will now have three months from the issuance date to declare any liabilities to HMRC.
More details can be found on the
TPS website.
Members are reminded that as a trade union, and strictly in accordance with Finance Act 2004, ASCL cannot provide any financial advice on taxation issues, including about Annual Allowance taxation issues. Instead, members are advised to contact
Quilter Financial Advisers, our premier partner for independent financial advice.