HMRC has revised guidance on how pension input amounts should be calculated and the way annual allowance tax charges apply following implementation of the public service pensions remedy, which addresses historic discrimination in public sector pension schemes. The changes affect how individuals who are members of public service pension schemes report their pension savings to the tax authorities. Employers and pension administrators managing affected schemes will need to apply the updated calculation methods when determining whether members exceed their annual allowance threshold.
Source: HMRC (GOV.UK) – Read the original