This is sometimes known as the Alternative Annual Allowance.
From tax year 2015/16, members who flexibly access a money purchase arrangement, in some circumstances, will trigger the modified Money Purchase Annual Allowance rules.
If the Money Purchase Annual Allowance limit is exceeded, you’ll have a reduced alternative Annual Allowance for any remaining defined benefit pension savings.
This includes the 1995 or 2008 Scheme and the 2015 Scheme.
If you think this may affect you, read the Tapered Allowance information on our website.
You’ll be sent a pension savings statement if:
- your growth in the NHS Money Purchase Additional Voluntary Contribution (MPAVC) exceeds the Annual Allowance
- you’ve flexibly accessed your money purchase arrangement and your growth in the NHS MPAVC may exceed the Money Purchase Annual Allowance
If you’re unsure of the contributions you’ve made to the NHS MPAVC Scheme, you must write to your NHS MPAVC provider(s) to confirm the contributions that have been made.