PPRuNe Forums - View Single Post - Promotion and Tax bill - Scheme Pays info
Old 21st Sep 2011, 16:46
  #17 (permalink)  
LFFC
 
Join Date: Jun 2005
Location: UK
Posts: 769
Likes: 0
Received 0 Likes on 0 Posts
Excommunicator

Forget flying pay as that never entered the pension calculation in the first place.

As people are now finding out, the tax calculation for lifetime and yearly increase in pension pot is a minefield. Read the guidance very carefully and remember that any unused portion of the last 3 years of allowance can be rolled forwards to allow a potential maximum £150,000 pension pot increase on promotion. But also remember that any yearly increment in pension (or pay-rise increment when there's not a pay freeze in force) also counts, so you might not have as much as that to play with. And if you're a fast mover rising rapidly in rank - then watch out!!

I understand that this subject took up a disproportionate amount of time during the last few senior officer command courses at Shriv and many long faces were noted in the bar!

So if the Gp Capt mentioned by LJ101 is a fast mover who has been contributing annually to his own personal pension plan, then I quite believe that he could well be in for a big hit.

PS. Remember also that your pension doesn't go up until a few years after you've been promoted. So if you were promoted 2 years ago and thought you got away with it - think again!!

Last edited by LFFC; 21st Sep 2011 at 22:38.
LFFC is offline