Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

HM Revenue and Customscontrols and yourRetirement BenefitsFrom 6 April 2006 HM Revenueand Customs introduced controlson the pension savings youcan have before you becomesubject to a tax charge.The Lifetime Allowance is the totalcapital value (see page 13) of allyour pension arrangements, but notyour state pension, which you canbuild up without paying extra tax.If the value of your benefits whenyou draw them (not includingany State Retirement Pension,State Pension Credit or anyspouse’s, civil partner’s, cohabitingpartner’s or dependant’s pensionyou may be entitled to) exceed yourLifetime Allowance, a tax chargewill be made against the excess.The Lifetime Allowance forcurrent and future years2011/2012 £1.80 million2012/2013 £1.50 million2013/2014 £1.50 millionThere are protections for benefitsearned up to 5 April 2006 in respectof those high earners affected bythe introduction of the LifetimeAllowance from 6 April 2006.You can find out more aboutthese in our factsheet, Tax andyour Benefits’. You can requesta copy on 0151 242 1360 ordownload a copy from our websiteat www.tinyurl.com/cph4v25.The Fund will let you know thevalue of your LGPS benefits onretirement and ask you aboutany other pensions you mayhave in payment, so we canwork out whether we need todeduct a recovery tax charge.If you do not provide this33