Originally Posted by
Lordflasheart
My limited, amateur understanding is that the current lifetime allowance (£1.25m ?) applies to one's entire range of pension provision - which might include multiple workplace pensions, private pension plans and AVCs, (but not OAP at present.) Furthermore the LTA will take into account the growth of all those funds where 'growth' applies. The exception is for Final Salary schemes where the LTA is 'back-calculated' by multiplying your expected FS pension by 20. That is to say, if one's expected FS pension is 50k (yeah I know ...) it is multiplied by 20 to give you a deemed LTA of £1m.
The 'other lot' are talking about a reduction to £1m LTA from after the May election – to fund something or other ... as well as a reduction of tax allowance on one's pension contributions. If you exceed the LTA there are whopping penalties.
Serving to 60 on a mixed AFPS05/15 would see a flt lt PAS earn a £50k+ pension plus gratuity. If my understanding and humble maths is correct a reduction to £1M LTA would snare all officer aircrew serving to age 60. Even if the LTA remained at £1.25M it would not take that many years for inflation to see the vast majority of aircrew retiring at 60 to be hit by the LTA.
