And the threshold should be age related
I'm aware of one public sector employer with a non contributory pension that they state the value of the pension is around 40% of salary.
So if you're on £100k you will breach the limit.
Ridiculous....
Not sure if I read that right.
A 40% final salary pension is not uncommon and is actually related to the actual contributions made until retirement.
Seems to be a lot of confusion, not helped by the media, about whether we are talking about contributions or pensions.
Which on a 1/60 scheme would be 24 years service which is not unusual.
The Annual Allowance - The Pensions Advisory Service
Those consultants need to change their accountant !! data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7
The 40% bit possibly/probably relates to the approximate cost of providing a final salary scheme as a proportion of their salary.
It's the estimated value of the contributions the employer makes each year as a percentage of salary.
Here's an example from a public sector employer.
Bank of England attacked over 50% pension contributions