With effect from 6 April 2024, there will no longer be a Lifetime Allowance (LTA) which limits the amount of tax-efficient pension savings that you can build up. 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 death 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.gov.uk/tax-on-your-private-pension

Newsletter October 2022

Summary Funding Statement 2022

With effect from 01 November 2021, DTUK introduced a new workplace pension scheme called a Master Trust with Legal & General (L&G) for future DC contributions including Money Purchase arrangements (also known as 1% top up) and AVCs.  This Plan is called the Deutsche Telekom (UK) Ltd DC Pension Plan.

Alongside this, the Trustee transferred the DC benefits already built up in the Current Scheme to L&G on 03 February 2022.  Please see the dedicated L&G Master Trust microsite for further information, www.legalandgeneral.com/workplace/d/deutsche-telekom-uk/