MPAA when receiving a DB pension

HighVoltage

After I turned 60 I started to receive a DB pension from a previous employer. The previous employer originally had a DB scheme but that was then changed to a DC scheme. When I started to receive my pension, I got a monthly amount and in addition got a TFLS. I have FP2016 and both of these used 99% of LTA.

I've obviously not been contributing to any pension since Apr 2016 in order to maintain FP2016. However I'm still working and have not enrolled in current employers pension scheme.

Since LTA will not now be charged and abolished next year, my understanding is since I am in receipt of a DB pension, I can contribute more than £10k/year

is this correct ?

If its only £10k, then does that include both mine and employers contributions ?

hyubh

HighVoltage said:

After I turned 60 I started to receive a DB pension from a previous employer. The previous employer originally had a DB scheme but that was then changed to a DC scheme. When I started to receive my pension, I got a monthly amount and in addition got a TFLS. I have FP2016 and both of these used 99% of LTA.

I've obviously not been contributing to any pension since Apr 2016 in order to maintain FP2016. However I'm still working and have not enrolled in current employers pension scheme.

Since LTA will not now be charged and abolished next year, my understanding is since I am in receipt of a DB pension, I can contribute more than £10k/year

is this correct ?

The Money Purchase Annual Allowance applies when you've accessed money purchase/DC benefits flexibly. Drawing a DB pension is irrelevant.

If its only £10k, then does that include both mine and employers contributions ?

The AA is assessed against total contributions (or growth in value for an active DB pension).

xylophone

https://www.mandg.com/pru/adviser/en-gb/insights-events/insights-library/money-purchase-annual-allowance-mpaa

• Defined Benefit arrangements
  

If you receive a scheme pension from any defined benefit arrangement this will not trigger the MPAA.

HappyHarry

HighVoltage said:

After I turned 60 I started to receive a DB pension from a previous employer. The previous employer originally had a DB scheme but that was then changed to a DC scheme. When I started to receive my pension, I got a monthly amount and in addition got a TFLS. I have FP2016 and both of these used 99% of LTA.

I've obviously not been contributing to any pension since Apr 2016 in order to maintain FP2016. However I'm still working and have not enrolled in current employers pension scheme.

Since LTA will not now be charged and abolished next year, my understanding is since I am in receipt of a DB pension, I can contribute more than £10k/year

is this correct ?

If its only £10k, then does that include both mine and employers contributions ?

If you have not drawn any taxable income from your DC scheme then the £10,000 (MPAA) limit does not apply.

You cannot now lose FP2016 by contributing further to your pension.

You may be restricted by the tapered annual allowance, depending on your income.