Carry Forward Specifics

NoMore

billy2shots said:

NoMore said:

billy2shots said:

Tax year 21/22

Salary £12k. Max contribution rate of 12.5% of pensionable pay to LGPS 

Tax year 20/21 

Salary £11k. Max contribution rate of 12.5% of pensionable pay to LGPS 

Tax year 19/20

Salary £11k. Max contribution rate of 12.5% of pensionable pay to LGPS 

The Contribution rate to a DB scheme is nothing to do with the AA, that's what people are trying to explain to you. You may be correct that you have enough AA available but you're just guessing.

As MX5shuggy's example upthread shows DB pensions can use a surprisingly large amount of AA despite low contributions (2000 contributions but 21000 used against the AA).

Thats all people are trying to warn you about, you need to check the PIA of the LGPS for the AA amount not the contributions. As I said you may well have plenty of AA left but you don't know for sure.

Thanks for your input but I am certain there is enough allowance left. 

The LGPS scheme pays in at 12.5% of pensionable pay. My wife has earned £34,000 over the past 3 tax years (e.g before this tax year). 

There is no way £34,000 salary will contribute £30,000 LGPS accrual over that period. That £30,000 is the safety net that we won't exceed. I am very comfortable with that thinking unless someone tells me the LGPS workings give like for like salary and pension accrual (ie £12k salary =£12k pension accrual). 
If they did that I would work for an LGPS employer myself lol. 

As I said you may well have enough AA, but you are just guessing, just be aware that if HMRC ever come to audit your wife's pension contributions, a guess won't be good enough to satisfy them that she had enough AA to carry forward.

Dazed_and_C0nfused

PIA is not as simple (and often nowhere near as small) as what has been accrued.

billy2shots

Dazed_and_C0nfused said:

PIA is not as simple (and often nowhere near as small) as what has been accrued.

During those PIPs in question a salary of 150%  more than my wifes would be needed to exceed £10,000 of PIA. That's using those years CPI and using a factor of 16.1. 


I agree the final figure of accrual is more than the contributions but I maintain on £11k or £12k this really is a non starter. 

A salary of £30,000 as opposed to £12,000, then there could be a problem. 

billy2shots

MX5huggy said:

Every last variable is important.

My LGPS contributions last year approx £2000

PIA was £21000 so only £19000 of AA left.

Can I ask what your salary was ?

Understandable if you would rather not say. 





Looking through my wife's online LGPS with her. 

The least left over Annual Allowance left she has for the years mentioned is £36,200.
It rises to £38,000 allowance.


The max needed was £30k each year. 
So as thought. This is a non issue.

NoMore

billy2shots said:

MX5huggy said:

Every last variable is important.

My LGPS contributions last year approx £2000

PIA was £21000 so only £19000 of AA left.

Can I ask what your salary was ?

Understandable if you would rather not say. 

If you're going to use this to try and deduce your wife's PIA, just get your wife to ask her Pension Admin for her PIA for each of the last three years and then you'll know exactly. Thats the best way to confirm, instead of guessing/estimating.

billy2shots

NoMore said:

billy2shots said:

MX5huggy said:

Every last variable is important.

My LGPS contributions last year approx £2000

PIA was £21000 so only £19000 of AA left.

Can I ask what your salary was ?

Understandable if you would rather not say. 

If you're going to use this to try and deduce your wife's PIA, just get your wife to ask her Pension Admin for her PIA for each of the last three years and then you'll know exactly. Thats the best way to confirm, instead of guessing/estimating.

Please look above. 

Dazed_and_C0nfused

The rest of the thread is opinion on things I am perfectly clear on and don't need help with. 

That may be true now but it clearly wasn't when you started this thread.

billy2shots

Dazed_and_C0nfused said:

The rest of the thread is opinion on things I am perfectly clear on and don't need help with. 

That may be true now but it clearly wasn't when you started this thread.

How do you mean?



I said my wife's LGPS figures were not relevant due to her lower earnings.

I knew ltd company director annual allowance because I use them as a director myself.

What didn't I know? Genuinely interested. 

And the key point. I never asked for help with those things. You assumed. 

Dazed_and_C0nfused

What didn't I know? Genuinely interested. 

Well you started off with the suggestion you could backfill  previous tax years

Can she use carry forward to backfill previous years (3 previous to this one) or not?

But the main one was this.  Seems a surprising comment from someone who knows about the annual allowance,

Now we need to minus any LGPS contributions (employee and scheme additions)

billy2shots

Dazed_and_C0nfused said:

What didn't I know? Genuinely interested. 

Well you started off with the suggestion you could backfill  previous tax years

Can she use carry forward to backfill previous years (3 previous to this one) or not?

But the main one was this.  Seems a surprising comment from someone who knows about the annual allowance,

Now we need to minus any LGPS contributions (employee and scheme additions)

The terminology might not be pension speak but backfilling (after meeting this year's allowance) is what it is. You're not 'forward filling' so I still stand by that. 


Again , terminology. I lumped everything together as 'contributions' I didn't say employee, employer/scheme and growth etc.  I'll take that or PIA. 
As shows I am no expert on this matter. The important fact is I didn't need to be as I knew it was a non issue (again, for us). 




My counter argument will be, I voiced multiple times my wife's LGPS was irrelevant for our personal situation (not everyone) and you couldn't accept that. 


Do you accept that fact now? 

 It's ok to be wrong. 



Edit - No need for me to provoke anything. 
Sorry for that if you have read it. No need to extend this further.