Annual Allowance and Club Transfers

The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) (Amendment) Order 2015 came into force on 28 January 2015 and will affect members who complete a transfer of pension rights into the Scottish NHS, Teachers', Police and Firefighter' schemes from an occupational pension scheme participating in the Public Sector Transfer Club (Club) on or after this date.

Final salary pension schemes will need to ensure that any growth in pension benefits arising from a pensionable pay increase when a member moves between Club schemes is taken into account when calculating the pension input amount for Annual Allowance purposes. This brings transferring members in line with members who receive an increase in pensionable pay without changing schemes.

Career average pension schemes will need to ensure that any enhanced revaluation applied to cover a break in employment is included in the calculation of the pension input amount.

Any adjustment to pension benefits to reflect differences in Club schemes will be excluded

Link to Scottish Government Website