Indeed, a
done deal it seems. Currently, at a LTA of £1.25 million, active members of most defined benefit or final salary schemes will be affected if their income at retirement exceeds £62,500 (the deemed value of a DB scheme is 20 x the pension).
However, members of public sector schemes such as AFPS will currently be affected if their projected pension exceeds £54,347 net of gratuity (20 x the pension PLUS the tax free cash of 3 x the pension). If the LTA reduces to £1 million of course, so too, does the threshold. Pension protection can either be Fixed, or Individual. If you're getting a new job post military, and if you think you're going to breach the LTA then negotiate a different remuneration to a pension.
Funnily enough, I saw a client this morning , and we're diverting pension savings away from 'his' personal pension in anticipation of a breach, and squirreling more into 'hers'. He's the major bread winner. The new upper class, it seems, is the middle manager and consequently, pension apartheid gathers pace, if ever there was declared intent to do away with the public sector pension need we require more evidence?
It isn't what you make, it's what you keep -
https://www.moneyadviceservice.org.u...ension-savings
http://www.hmrc.gov.uk/pensionschemes/ip14online.htm