The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) Order, SI 2024/357, enables pensionable service in specified legacy (closed) and connected reformed (open) public service pension schemes to be combined for the purposes of calculating an individual’s pension input amount against their annual allowance.
This will allow the offset of negative pension input in a legacy scheme against positive input in a reformed scheme where they relate to the same employment.
HMRC consulted on a draft version of these regulations earlier in 2024. The substantive detail is unchanged, but minor amendments to the previous version include additional definitions of ‘corresponds’, ‘connected’ and ‘final salary link’ to clarify what is meant by connected legacy and reformed pension arrangements.
The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) Order, SI 2024/357, enables pensionable service in specified legacy (closed) and connected reformed (open) public service pension schemes to be combined for the purposes of calculating an individual’s pension input amount against their annual allowance.
This will allow the offset of negative pension input in a legacy scheme against positive input in a reformed scheme where they relate to the same employment.
HMRC consulted on a draft version of these regulations earlier in 2024. The substantive detail is unchanged, but minor amendments to the previous version include additional definitions of ‘corresponds’, ‘connected’ and ‘final salary link’ to clarify what is meant by connected legacy and reformed pension arrangements.
