Annual Allowance and Lifetime Allowance Modeller

This Online Pension Tool is aimed at helping you, as an employee of Perenco, manage your pension benefits and monitor any potential tax liability in relation to the Annual Allowance and Lifetime Allowance.

The Annual Allowance was introduced by the Government in 2006, the Annual Allowance makes you liable for a tax charge if the value of the pension that you earn in any year exceeds this limit, after accounting for any unused allowance amounts carried forward from the previous three years.

For the 2016/2017 tax year onwards the Annual Allowance changed from a ‘flat’ rate of £40,000 to a "tapered" individual rate that is linked to your gross income from all sources over the tax year.

Depending upon your income, the Annual Allowance of £40,000 may be cut back (or "tapered"). The amount of tapering applied will be based upon your actual income in the year.

If your total income (known as "Threshold Income") in the year is below £110,000 then you will receive the full £40,000 Annual Allowance.

If your total income is above £110,000, then you will need to also include your Pension Input Amount for the year, the resulting number will be your "Adjusted Income".

If your Adjusted Income is over £150,000 then the Annual Allowance for you will be reduced by £1 for every £2 of Adjusted Income you have in excess of £150,000.

If your Adjusted Income is over £210,000 then the Annual Allowance for you is tapered to the minimum of £10,000. The Annual Allowance cannot fall below this amount.

Any contributions you make to any other pension arrangements during the year will also count towards your own Annual Allowance usage.

Any such contributions have not been allowed for in the results produced by the modeller. If you have made any pension contributions to an alternative pension arrangement please inform the pension administrators, Capita.

The results of this modeller are intended to give you an estimate of your pension input amount for the current and following tax year and an indication of how close you are to the Annual Allowance. In doing this, certain assumptions are used:

  • No allowance has been made for any Pension Sharing Order applied to your pension benefits with the Scheme, please contact Capita directly for an accurate calculation of your Annual Allowance.
  • Inflation for revaluing the starting accrued pension is 3% for 2018/19.
  • Accrual rates, full/part time ratio, projected salary changes, AVC rates and Annual Allowance carry forward is used as input by you.
  • The Part time ratio entered will not change.
  • You will remain a member of the Plan for the duration of the Pension Input Period.

In no circumstances should the results of this modeller be used as a promise or guarantee of the pension benefits that you will accrue within the Plan or of the Annual Allowance you will have available. In particular, if any assumptions made are not borne out in practice, then the results of the modeller would need to be adjusted accordingly.

Please note that the results are very sensitive to the data input fields so please take care that these are completed accurately.

This modeller does not constitute financial advice. Any decision that you make regarding your pension should be your own choice. If you need further guidance or advice we strongly recommend that you speak to an Independent Financial Adviser, a list of which can be found at www.unbiased.co.uk.

Please note that this Pension Modeller is operated by Capita, and Perenco has not validated any results provided from this. Although Perenco have no doubt that the programme is valid, no liability is accepted by Perenco for any errors or omissions generated from the modeller.

The Lifetime Allowance, introduced in 2006, is the total value of pension you can receive at retirement without any additional tax charge. This limit applies not just to the pension schemes associated to Perenco but to all pension benefits you may have earned during your working life, excluding any State pension benefits.

The value of your benefits as measured against the Lifetime Allowance is registered at the time you draw your benefits, and will be measured against the Lifetime Allowance in force at that time.

If you retire early at your own request, the scheme benefits accrued within the Defined (Final Salary) Benefit section will be reduced by an early retirement factor. The early retirement factor has not been taken into account of within the assumptions provided. This would have the effect of reducing the value of your benefits payable upon retirement which in turn would adjust the calculation of the Lifetime Allowance.

The results of this modeller are intended to give you an estimate of the value of your pension for the current and following tax year and an indication of how close you are to the Lifetime Allowance, as well as long term pension projections from age 55 to 65 along with the applicable Lifetime Allowance estimate. In doing this, certain assumptions are used:

  • The value of your accrued benefits in the Plan as modelled under the Annual Allowance section is used to assess your Lifetime Allowance value for the current and following tax year.
  • The value of the Lifetime Allowance is currently £1,030,000 and will continue to increase each year thereafter in line with the increase in the Consumer prices Index (CPI). For illustration purposes it has been assumed that CPI will increase by 2.5% for each year after 2018/19 until your Normal Retirement Age.
  • For the current and following tax year your Lifetime Allowance results reflect the fully accrued benefit value; no correction has been made for any early retirement assumption in these results.
  • Long term assumptions around accrual rate and investment return are used as input by you.
  • The Part time ratio entered will not change.
  • Any other pension benefits from external Defined Benefit arrangements input by you will be revalued at 2.5% per annum.
  • This modeller does not apply an approved Statutory Money Purchase Illustration; instead it uses the Defined Contribution investment returns as specified by you for simplicity.

In no circumstances should the results of this modeller be used as a promise or guarantee of the pension benefits that you will accrue within the Plan or of the Lifetime Allowance you will have available. In particular, if any assumptions made are not borne out in practice, then the results of the modeller would need to be adjusted accordingly.

Please note that the results are very sensitive to the data input fields so please take care that these are completed accurately.

This modeller does not constitute financial advice. Any decision that you make regarding your pension should be your own choice. If you need further guidance or advice we strongly recommend that you speak to an Independent Financial Adviser, a list of which can be found at www.unbiased.co.uk.

Please note that this Pension Modeller is operated by Capita, and Perenco has not validated any results provided from this. Although Perenco have no doubt that the programme is valid, no liability is accepted by Perenco for any errors or omissions generated from the modeller.

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