This is the total value that can be added to your benefits in a tax year before you have to pay tax on it. It has been set at a high level, which is unlikely to affect most OSPS members.
It can include all the following:
- the increase in value of your OSPS pension over the year;
- any additional voluntary contributions (AVCs) you pay;
- any contributions you pay to other pension arrangements, such as a personal pension.
These amounts are measured over the ‘pension input period’ for each pension arrangement you are a member of. Pension schemes may have different pension input periods and they are not necessarily the same as the tax year. The pension input period for OSPS is April to March each year.
For more information see the Government guidance on Annual Allowance.