LTA was calculated based on the actual benefits due to be paid to you.
Your calculation may have been affected by:
Commutation
If you were commuting your pension and receiving a larger lump sum, your commuted benefits to be paid were used to calculate the percentage of LTA you had used.
Scheme pays
A scheme pays election affected the amount of LTA used by your pension.
Where NHS benefits were reduced because of scheme pays, it’s the capital value of the reduced NHS benefits tested against the LTA.
Pension sharing order
A pension sharing order would cause either a pension debit or credit.
Pension debit
If the debit was applied before retirement, we deducted the debit from the benefits you were entitled to and calculated the LTA percentage.
Pension credit
We calculated the LTA percentage on the credit only.
If you were also entitled to an NHS Pension, we calculated the total LTA percentage on both your pension and pension credit.
Dependant’s pension
A children’s pension is never reduced.
We may have reduced an adult dependant’s pension depending on the value of the pension being paid. Confirmation was given at the time of payment.