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Document At what date are my NHS Pension benefits tested against Lifetime Allowance?

Your NHS Pensions benefits are tested against the Lifetime Allowance (LTA) on the date of the Benefit Crystallisation event. This is the later of either the date the pension was payable from or the date the benefit payment was authorised.

The following examples explain how this works for members retiring just before or after a reduction in the HMRC LTA limits. For this example we have used the reduction of the LTA from £1.25 million to £1 million from 6 April 2016.

Member A: Your NHS benefits were payable from 1 April 2016. Your NHS benefits were calculated and authorised on 19 March 2016. The benefits crystallisation date will be the payable date of 1 April 2016 so your benefits are tested against the LTA at that date which was £1.25 million.

Member B: Your NHS pension benefits were payable from 1 April 2016. Your NHS benefits were calculated and authorised 15 April 2016. The benefits crystallisation date will be the date the payment was authorised which was 15 April 2016 so your benefits are tested against the LTA at that date which was £1 million.

Member C: Your NHS pension benefits were payable from 20 April 2016. Your NHS pension benefits were calculated and authorised on 16 March 2016. The benefits crystallisation date will be the payable date of 20 April 2016 so your benefits are tested against the LTA at that date which was £1 million.

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benefits tested, lta, lifetime allowance
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