UCL continues to provide presentations covering the various issues relating to the current Annual Allowance (AA) of £50,000 which came into effect from 6th April 2011, and which will reduce further with effect from 6th April 2014 to £40,000.
Below are factors for members to consider who are potentially affected and at risk of incurring an AA tax charge:
Pensionable Salary in excess of £70,000 pa
Current Pensionable Salary has increased by 10% since April 2012 (either at UCL or by recently joining UCL from a previous USS employer)
Long Pensionable service in USS
Pay large Money Purchase AVCs
Contribute to other pension arrangements in addition to current USS membership
Expect to receive or have already received a large promotion in this tax year or next year
If your answer is YES to at least 2 of the above, it is recommended that you attend a presentation. Similarly if you have not yet attended one of the previous presentations, you should also consider attending a presentation. The core subjects covered in the presentations are:
Legislation updates, including the details announced in the December 2012 Treasury statement of the further reductions effective 6th April 2014
How the Annual Allowance is calculated
The impact of an increase in Pensionable Salary/promotion
Mechanisms to consider to mitigate or remove a charge
USS tax relief options (3) introduced 2012.
How an AA tax charge can be paid
Your responsibilities to pay a tax charge
The responsibilities of the pension scheme to provide information
Questions and answers
Further guidance and advice
Each event is scheduled to last no longer than 1 ½ hours in total including time for questions at the end.
In preparation for your attendance at one of these presentations, further information about these new tax relief restrictions can be found here.