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Money Purchase Annual Allowance (MPAA) and DB Pension receipt

Quick question please, relating to my wife.

Does retiring from the NHS and being in receipt of the NHS (1995 scheme) DB pension trigger the MPAA ?

Not (allowed) to join an NHS pension scheme but wanting to carry on paying £6k plus per annum into a DC scheme.


What I have read seems to suggest it is only triggered when taking from a DC pot.



Thanks in advance.

Comments

  • HappyHarry
    HappyHarry Posts: 1,898 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Quick question please, relating to my wife.

    Does retiring from the NHS and being in receipt of the NHS (1995 scheme) DB pension trigger the MPAA ?

    Not (allowed) to join an NHS pension scheme but wanting to carry on paying £6k plus per annum into a DC scheme.


    What I have read seems to suggest it is only triggered when taking from a DC pot.



    Thanks in advance.

    What you've read is accurate. Taking income and tax free cash from a DB scheme does not trigger the MPAA.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
  • That's great thanks
  • westv
    westv Posts: 6,613 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Presumably you will have enough earned income to contribute £6k.
  • ManMadeWays
    ManMadeWays Posts: 66 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    edited 16 August 2018 at 8:34PM
    Yes, she has, in fact pushing it up to £1k a month. I'm way over Lifetime Allowance so we're maxing her Pension now, cheers


    edit to add she will return to work part time after a break
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