Pension Tax Free Allowance

sebbykin

And the threshold should be age related

Bl4ckGryph0n

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.

sebbykin

Ridiculous....

IronGiant

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.

ChuckMountain

Seems to be a lot of confusion, not helped by the media, about whether we are talking about contributions or pensions.

sebbykin

Which on a 1/60 scheme would be 24 years service which is not unusual.

sebbykin

The Annual Allowance - The Pensions Advisory Service

maddy

Those consultants need to change their accountant !!

sebbykin

The 40% bit possibly/probably relates to the approximate cost of providing a final salary scheme as a proportion of their salary.

LM1405

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