LTA and Multiple DB schemes

weaswan

I have 4 different DB schemes and have realised I am going to exceed the LTA.

Three questions:
1) Is it going to make any difference on the tax paid the order in which I trigger each pension (eg because of the way each scheme would calculate value)
2) Ideally I would like to start drawing these pensions in parallel but that seems difficult because of the need to quote %LTA used to other ones.
3) Recognise I probably need some specialist advice but are there avenues to explore to minimise the tax burden?     

Appreciate any observations / comments

Marcon

1. All DB schemes are valued the same way for LTA purposes - multiply the expected pension by 20 and add on any tax free lump sum. Any transfer values are irrelevant in terms of the LTA (unless you actually transfer, of course!).
2. Not a barrier; you just need to tell the schemes what you'd like to do and provide details of the other schemes/benefits. Alternatively, taking them one after the other should mean you can access them all within the space of 6 months or so.
3. Remember that all these screaming headlines rarely mention that you only pay this 'horror tax'(!) on the amount by which you have exceeded the LTA. Any of your DB schemes got a transfer value of under £30K? If so, you can transfer without the need for advice, set up 3 different personal pensions and put no more than £10K into each. You can then draw on these pots at any time from (currently) age 55 using the 'small pots' regime, which uses 0% of the LTA. The small pots route doesn't trigger the Money Purchase Annual Allowance restriction (limiting future contributions to a DC arrangement to a maximum of £4K) if you want to make such contributions in future.

Albermarle

Taking a DB pension early can reduce the LTA % used, as the LTA is calculated on the initial annual pension.
Each pension will have its own rules and calculations if this is possible and  how much it will reduce for taking it  before the normal retirement age. However typically it is around 4 % per year, and as you get an extra years pension it works out about even.

Maybe something else to take into account is that some DB pension administrators ( of private DB pensions rather than public sector ones) are very slow at responding or taking any action.