Lifetime allowance

The lifetime allowance is the total capital value of all your pension arrangements, not including your state pension, pension credit, or any partner’s or dependant pension you may be entitled to, which you can build up without triggering a tax charge.

We will let you know the value of your LGPS benefits on retirement and ask you about any other pensions you may have in payment, so we can work out if we need to deduct a recovery tax charge. Also, under HM Revenue & Customs (HMRC) rules, if you recycle your lump sum back into a pension arrangement, there'll be a tax charge.

The lifetime allowance covers any pension benefits you may have in all tax-registered pension arrangements, not just the benefits you have in the Shropshire County Pension Fund.