The lifetime allowance (LTA) is the total amount of pension you can build up from all your pension savings over your lifetime before you have to pay a tax charge.
- your Derbyshire Pension Fund benefits
- pensions you hold with other LGPS funds
- pension benefits you may have in other tax registered pension arrangements
It doesn't include your State Pension or dependant’s pensions.
The current limit of £1,073,100 will remain until the tax year beginning 6 April 2024, at which point it will be abolished. However, there will be no LTA charges for the period 6 April 2023 to 5 April 2024.
Exceeding the LTA
The LTA won’t affect most members. If you’re a high earner, or have a lot of LGPS membership in terms of the years that you’ve been in the scheme, you might be at risk of exceeding the limit.
Your annual benefit statement includes the amount of LTA used for that pension as a percentage up to 31 March. We base these figures on the LGPS pension and lump sum you’ve built up with us. The percentage won’t include any additional voluntary contributions (AVCs) you've paid for.
You can find examples and how the LTA is calculated on the national LGPS member website.
Video: Your lifetime allowance
This video explains pension growth, how to calculate your current value, tax charges and available protections. For subtitles select ‘CC’ (closed captions).