Pension schemes have begun issuing guidance following the pensions tax changes for the 2023/24 tax year which were announced in last week’s Budget.
These changes included an increase to the Annual Allowance on pension saving, and the removal of the Lifetime Allowance on pension saving.
Although these changes will only be relevant to a relatively small number of university employees, those who have a Voluntary Salary Cap or Enhanced Opt-Out in place are particularly encouraged to consult the guidance, as well as those who may be retiring with long service on or before 5 April 2023.
Guidance
These changes will only affect a small number of colleagues who would either be in the USS or NHS pension schemes. USS has already updated their guidance and the NHS pension scheme has indicated it is in the process of doing so. The latest information is available at the following links:
USS: Pension tax changes that might affect you (uss.co.uk)
NHS: https://www.nhsbsa.nhs.uk/member-hub/lifetime-allowance
Independent financial advice should always be taken in respect of significant pensions decisions.
