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Maximum annual pension contribution (annual allowance?) for tax relief purposes

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  • AlanP_2
    AlanP_2 Posts: 3,521 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hugheskevi has explained it with an example above but just for absolute clarity, as many people get confused about this aspect of pensions, especially when there is a DB involved:

    Earnings Limit uses amounts contributed to DB/DC schemes excluding employer contribution. 

    Annual Allowance uses amounts contributed including employer contribution for DC schemes and the "notional" calculated increase in pension benefits (the PIA) for DB schemes.


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