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Annual Allowance

There are two restrictions that apply to pension savings. These apply to all four schemes administered by SPPA eg: NHS, Teachers, Police and Firefighters. 

 

The restrictions apply to:

 

  • the amount you can increase your pension value by in any one year - the Annual Allowance (AA) and
  • the amount you can have as a total value from all your pension savings in your lifetime - the Lifetime Allowance (LTA).

 

The AA is calculated as the growth in your benefits in a year. The AA limit covers all your pensions, except your state pension, therefore all other pension savings need to be added together. From 6 April 2014 the AA reduced to £40,000 a year.

 

Changes have also been made from 6 April 2016. It is important that you also read this information.

Further information on changes from 2015/16 and 2016/17.

 

 

 

 

 

Link to Scottish Government Website