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