MyCSP and Pension Allocation Query

fcandmp

I am supporting a friend in relation to their pension planning and a query came up in context of their civil service deferred benefits. The MyCSP scheme details that an allocation could be made to pay a proportion or all of their pension for life to a nominated person e.g. A wife of son / daughter, so long as it is down in advance of drawing their benefits.

The question relates to the implication re their LTA calculation should they do this? Does the LTA still get applied to them, or does it effectively transfer to their spouse if that were the transfer nomination arrangement?

Many thanks

hugheskevi

Allocation isn't an area I am 100% familiar with, so I am happy to be told I am wrong, but the following is my understanding...

The MyCSP scheme details that an allocation could be made to pay a proportion or all of their pension for life to a nominated person e.g. A wife of son / daughter, so long as it is down in advance of drawing their benefits.

More specifically, allocation enables an individual to reduce their pension entitlement by a sum chosen by the member in order to enhance the survivor benefits payable to their spouse or dependent in the event the member pre-deceases the other person(s).

The question relates to the implication re their LTA calculation should they do this? Does the LTA still get applied to them, or does it effectively transfer to their spouse if that were the transfer nomination arrangement?

LTA usage is based on the amount of pension put into payment, so choosing to allocate will reduce LTA usage. Survivor pensions do not count toward either the member or the survivor's LTA.

fcandmp

Many thanks hugheskevi I guessed the implication might be that but cannot find any documentation to confirm.