Employer pension contributions

ParaP

Hi all,

I have just had a complete blank when it comes to making a large employer pension contribution using carry forward.

We have a client who is a director of a limited company and is wanting to fully use his annual allowance taking into account carry forward.

However, he has only been an active member of a pension scheme since April 2017. He is also a deferred member of a NHS DB scheme.

My question is to be able to fully use carry forward will he have had to be an active member before April 17 or is this only relevant when making member contributions?

I have looked this up on the pension technical manual but haven't had much luck.

Thanks

Chloe

arongunningham

So long as the NHS DB membership covered the years in question, you'll be fine. Being deferred doesn't change matters for Carry Forward.

ParaP

Thanks @arongunningham, my mind just went blank!

arongunningham

What about if that pension with NHS had been in payment???

Andy_Schleider

Why would you need carry forward for an employer contribution - employers can pay as much as they like iirc?

benjaminfabi

@Andy_Schleider Employer contributions aren't restricted to the NRE of the member, but the member will still pay an AA tax charge on the value of all contributions in excess of the available AA.

@arongunningham pensions in payment are fine if they are being made from a registered pension scheme. I'm not sure that a conventional annuity is automatically a registered pension scheme, so although it would be fine for a scheme pension (which can only be paid by a registered pension scheme) you'd have to check the position if it was an annuity in payment.

arongunningham

@benjaminfabi It is a Civil Service Pension and Teacher's Pension Scheme.

It would be nice to have it written down somewhere so I can show them it's ok.... pruadviser to the rescue?!