Civil Service DB Pension Input Amount Calc for 25/26

michaels

Suppose I had a 30k pa alpha entitlement accrued as at Apr 25 and made no additional contributions.

Sep 24 CPI was 1.7% Sep 25 CPI was 3.8%

Have I got a pia of 16x(30k*1.038-30k*1.017) = £10,880 which far exceeds my annual allowance with zero income of £3600?!

Edit - I didn't make no contributions, I worked the first 2 weeks of the tax year - this may mean that the deferred rules do not apply?! This is sounding super expensive. What AA charge would be applied if I had exceeded the AA by 10k? Is it the case that I worked those 2 weeks for nothing as the 2k pay will be swallowed by a 2k AA charge?!

michaels

Ok

So I think the dB pia is assessed against the 60k allowance and not the gross relevant earnings allowance.

Actual contributions: employee 5.45% plus added pension plus EPA are assessed against earnings. Plus any sipp contributions.

The limit for these is the higher of earnings and 3600.

Assuming this is correct the panic/majority annoyance of my first post luckily does not apply.

NoMore

yes the pia is tested against the AA not the tax relief limit.