It’s a reduced limit on how much you can contribute to money purchase pension schemes each tax year.
If you exceed the money purchase annual allowance, you’ll have a reduced alternative annual allowance (AA) for any defined benefit pension savings including in the:
- 1995 Section
- 2008 Section
- 2015 Scheme
Find the current money purchase annual allowance amount on the ‘money purchase annual allowance and the alternative annual allowance’ factsheet.
If you flexibly accessed a money purchase agreement in the tax year 2015/16, a money purchase annual allowance of £10,000 will permanently apply.
You’ll be sent a pension savings statement if:
- your growth in the NHS money purchase additional voluntary contribution (MPAVC) exceeds the AA
- 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, write to your NHS MPAVC provider to confirm the contributions made.