Tax and the LGPS

HM Revenue & Customs (HMRC) governs pensions savings. There are controls on the amount of contributions you can make whilst still receiving tax relief. There are two main allowances for pension savings - an annual allowance and a lifetime allowance.

 

Annual Allowance

As a member of the Local Government Pension Scheme you are benefiting from tax relief on the pension savings you build up each year. However, the Government sets a limit on how much tax relief you may have and this is known as the Annual Allowance (AA).

Please see the factsheet below for further information:

LGPS Annual Allowance factsheet

 

Annual Allowance Calculator

Below is a link to the the annual allowance calculator.

Pension Scheme members can use this to check

Annual allowance calculator

 

Lifetime Allowance

The maximum value of pension benefits that an individual may build up over their lifetime without incurring a tax charge is known as the Lifetime Allowance (LTA).

LGPS Lifetime Allowance factsheet