USS pension. How to find out how much allowance I have

dllive

Hi all

I have a DB pension, DC pension (both with the USS scheme) and a SIPP.

Id like to know how much Annual Allowance I have left for this tax year, and subsequent years.

I have my USS Annual Member Statement 2023 (these usually get released each September).

What figures do I need from the USS statement to ascertain this? My SIPP is easy becuase I can see all the contributions Ive made, but with the DB/DC I need to factor-in also what my employer has paid and how much the DC part has grown(?). Is this shown on my USS statement?

A corollary question: I know that if I go over my annual allowance I will get a 'penalty'. This penalty doesnt mean Im out of pocket does it? It just wipes-out any tax incentive that I would have had had I been within my annual allowance?

Thanks

Linton

For DB pensions the usage of the annual alliance is determined by the "Pension Input Amount" and is not directly linked to your or your employers contributions to the scheme.  I think your PIA will be given in your September statement though it will be for the 2023/2024 tax year. It is difficult to determine exactly how much the PIA will be for the current tax year.

There appears to be more info in https://www.uss.co.uk/for-members/calculate-your-benefits but I cant see it since it needs a USS login.

Universidad

Linton said:

I think your PIA will be given in your September statement though it will be for the 2023/2024 tax year. It is difficult to determine exactly how much the PIA will be for the current tax year.

Sadly, it's even more difficult than usual, as the restoration of benefits and one-off uplift associated with it (however that's calculated) means that last year's AA usage is not a good ballpark estimate for this year, even if your salary is pretty much the same.

gwt1965

Try this: https://www.uss.co.uk/-/media/project/ussmainsite/files/for-members/forms/annual-allowance-worksheet.pdf?rev=7fbb66aed84241b0a416d6daed73c79e&hash=1F7B6E23F516037AF2272F2FBDFABA52

You’ll need to login to USS.

I’ve found the method on this worksheet reliably matches the figures given on the annual statement for earlier years. 

dllive

Thanks guys, Ill look at this.

Regards the tax charge, am I right in thinking this just negates any tax incentive that I would have had had I not gone over the annual allowance?

When/where would this show? And who calculates it? For example, would the tax charge show on my self assessment once my accountant submits to HMRC?

gwt1965

When/where would this show? And who calculates it? For example, would the tax charge show on my self assessment once my accountant submits to HMRC?

As I understand it you have to calculate the tax charge yourself and complete a SA form.

This Q&A on the USS site is helpful: https://www.uss.co.uk/for-members/pension-tax/scheme-pays

It does say USS will help with the calculation and gives more details about the "scheme pays" options and how it works.

Tomatillo

Have you used your entire annual allowance for the past 3 years? If not then you might be able to cover any excess through carry forward anyway.