Published
12th July 2024
The Lifetime Allowance (LTA) was a limit on the amount that you could save through pensions during your lifetime before you had to pay a tax charge and was abolished on 6 April 2024.
Two new tax-free lump sum allowances have been introduced, and while there is no longer a restriction on how much pension you can accrue during your lifetime, there are limits on how much tax-free cash you can take from your pensions.
Most members of the LGPS will not be impacted by these new allowances, however if you have accrued a large pension, either with the LGPS or with another pension scheme, you may be affected.
We will provide members with more information about the new lump sum allowances when they leave the scheme and/or retire and take their pension benefits. You can read more about tax and your pension on the national LGPS website.
If you believe that you may be affected by the new lump sum allowances and have questions about how they may impact on your retirement plans, please contact the Technical Hub on Pensions.Technical@essex.gov.uk and they will be happy to help you.
