Your LTA is calculated based on the actual benefits that are due to be paid to you.


If you're commuting your pension and receiving a larger lump sum, your commuted benefits to be paid will be used to calculate the percentage of LTA you’ve used.

Scheme Pays

A Scheme Pays election will affect the amount of LTA used by your pension.

Where NHS benefits are reduced because of Scheme Pays, it’s the capital value of the reduced NHS benefits that are tested against the LTA.

Pension Sharing Order

A Pension Sharing Order, will cause either a Pension Debit or a Pension Credit.

Pension Debit

If the debit is applied before retirement, we deduct the debit from the benefits you’re entitled to and calculate the LTA percentage.

Pension Credit

We calculate the LTA percentage on the credit only.

If you’re also entitled to an NHS Pension, we’ll calculate the total LTA percentage on both your Pension and Pension Credit.

Dependent’s pension

A children’s pension is never reduced.

We may reduce an adult dependent’s pension. This depends on the value of the pension being paid.

Confirmation will be given at the time of payment.