Originally Posted by fortissimo
There may be advantages if you run into the Lifetime Allowance limit as it [Scheme Pays] could possibly reduce taxes on your pension when it becomes payable.
Interested to know more about this. I had rather assumed that Scheme Pays payments would be treated as crystallised benefits in the LTA calculation, seeing as they are taking the place of “real” money in a tax payment. If there is a chance that they won’t be treated as crystallised benefits, that would be a material factor in upcoming decisions over my own (thankfully smaller) tax bill. How official, and how tentative, are the ‘may’ and the ‘possibly’?