Money purchase annual allance MPAA

sevenhills

I have just turned 55 and cashed in most(£35K) of my SERPs pension. I had a letter saying that I had not been informed about MPAA.
I do have a works pension, I earn around £15k. Is this something that will not affect me, as I don't understand what a MPAA is.

dunstonh

Basically, you are now restricted in the amount you pay into a pension each year (including employer contribution).

So, as long as you keep it below £4000 then that is fine.

You are required to inform any other pension you or an employer pays into that you have crystallised a pension and your annual allowance is reduced. Even if you are not exceeding £4000.

xylophone

I do have a works pension,

What kind of works pension?

http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/defined-benefits-and-the-mpaa/

sevenhills

xylophone wrote: »

What kind of works pension?

Local authority, WYPF

xylophone

Local authority, WYPF

http://www.wypf.org.uk/


Defined Benefit LGPS then.

https://www.pensionsadvisoryservice.org.uk/content/spotlights-files/uploads/End_of_Tax_Year_Planning_SPOT024_V1.4.pdf

peterg1965

dunstonh wrote: »

Basically, you are now restricted in the amount you pay into a pension each year (including employer contribution).

So, as long as you keep it below £4000 then that is fine.

You are required to inform any other pension you or an employer pays into that you have crystallised a pension and your annual allowance is reduced. Even if you are not exceeding £4000.

But this doesn't apply to DB pensions in payment though, only DC pensions and then only if you have taken out more than the 25% Tax Free Lump sum, i.e. you are taking drawdown.