Contribution limits

Annual Allowance

This is the limit on the total payments that can be made in each tax year without incurring a tax charge. It includes payments from us and the Government (tax relief), as well as your own. For most people the Annual Allowance (AA) is £60,000 for the 2024/25 tax year.

The AA can be reduced for higher earners. For the 2024/25 tax year, if the following exceeds £260,000 your Annual Allowance may be reduced (this is called the Tapered Annual Allowance):

• your total 2024/25 taxable income (excluding pension contributions) PLUS
• your total 2024/25 Salary Sacrifice pension contributions (only applicable if your Salary Sacrifice pension arrangement started after 8 July 2015)

Your Tapered Annual Allowance will not however be reduced below £10,000 per tax year.

The Annual Allowance can also be reduced if you take benefits ‘flexibly’ from your Account or another pension arrangement. The reduced limit – called the Money Purchase Annual Allowance (MPAA) - restricts the level of payments that can be made to pension arrangements (like the Scheme) to a lower limit of £10,000 for the 2024/25 tax year. If you think you might be affected you should consider seeking financial advice.
 
Irrespective of the AA, your own payments and those from the Government (tax relief) in each tax year will normally be limited to 100% of your earnings, or £3,600 (whichever is greater).

For information on the current AA limits please visit www.gov.uk/tax-on-your-private-pension/annual-allowance

Pension Input Period

HMRC require the amount of pension savings to be tested each year over a ‘pension input period’. The Trustee has previously decided that the Scheme's pension input period should run from each 6 April to the following 5 April and has nominated 5 April in each calendar year as the last day of each pension input period. Pension savings in excess of £460,000 do not qualify for tax relief. 

For more information on pension input please visit www.tax.service.gov.uk/pension-annual-allowance-calculator

Lifetime Allowance abolished

From 6 April 2024 there will no longer be a Lifetime Allowance (LTA) which limits the amount of pension savings you can effectively build – instead cash sums will be assessed against new allowances, with any excess subject to the recipient’s marginal rate of income tax.

There are two main allowances:

1. The Lump Sum Allowance of £268,275 is the new limit on the tax-free cash sums you can receive in life.
2. The Lump Sum and Death Benefit Allowance of £1,073,100, is the new limit on the tax-free cash sums that can be paid in life and death. On death after age 75 benefits are taxed at the beneficiary marginal rate.
   

Exceptions, protections, and transitional arrangements may apply:

• Exceptions – some cash sums don’t use up the allowances, e.g. small cash lump sums.
• Protections - if you have LTA protection and/or lump sum protection, you’ll retain your right to any higher protected tax-free cash sum.
• Transitional arrangements – if you used up part of the LTA, your new allowances will be reduced. 

For more information visit www.gov.uk/tax-on-your-private-pension/lump-sum-allowance

Disclaimer

No information contained in this site alters any member’s benefits or entitlement under the Scheme's trust deed and rules, which can be amended from time to time. In the event of there being any difference between the information set out on this site and the provisions of the Scheme’s current trust deed and rules, the latter will prevail.

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For queries about your DB Section benefits
contact the T-Mobile International UK Pensions Team on:
Tel: 0333 11 11 222
Email: [email protected]

For queries about your DC benefits contact L&G on:
Tel: 0345 070 8686
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