Allowing ‘Voluntary’ Scheme Pays elections in respect of the 2016/17 tax year and beyond

Executive Summary

Teachers’ Pensions have been working with the Department for Education to introduce an option for members of the Teachers’ Pension Scheme who become subject to an Annual Allowance tax charge but who are unable to meet the statutory conditions to ask the Teachers’ Pension Scheme to meet this tax charge on their behalf. 

We can now confirm that, with immediate effect, all pension savings that have accrued since 6 April 2016, that have triggered a tax charge against:

  • the member’s Annual Allowance threshold, and
  • either do not qualify for, or cannot be met in full using the ‘Mandatory’ Scheme Pays election mechanism

can now be paid by the Teachers’ Pension Scheme using a ‘Voluntary’ Scheme Pays election.

This is especially relevant to those higher earners who may be subject to the Tapered Annual Allowance.

We regret that we cannot revisit previous cases that were denied the opportunity to make a ‘Voluntary’ Scheme Pays election in respect of tax years up to 5 April 2016.

To find out more please read the following document (PDF, 64 KB) (This link opens in a new window).

Last Updated: 01/11/2017 13:32