Teachers DB Pension

[Rodintee]

I'm trying to find out how contributions to a DB pension are calculated in terms of annual contributions in relation to the £60K limit.

As I understand it its not the actual contribution value but the relative increase in benefit that is measured in comparison to a DC scheme.

Does anyone have any understanding of how I would go about calculating this. I need to get a handle on what, if any, headroom is available to make some SIPP contributions for general tax reasons.

Cheers, Russ

[Rufus Stone]

Ask your pension provider for a pension savings statement. This will detail the information you require.

[mrmistoffelees]

https://www.gov.uk/hmrc-internal-manuals/pensions-... details how to do this, but broadly, assuming it's TPS and the usual 1/57th accrual rate:

((1/57th) * salary * 16) + any increase in lump sum

So if your lump sum was 20k at the start of the year and will be 22k at the end, and you're on 35k a year, then:

((1/57) * 35000 * 16) + 2000 = £11824 used.

[Rodintee]

Thanks for both of those.

I have a Benefit Statement Summary but it seems to provide every bit of information under the sun apart from the notional value used in a given year.

I'll have a look at the calculation tonight. This is my wife's pension so maybe she's simply not looked in the right place.

Thanks again

[Rufus Stone]

Rodintee said:

Thanks for both of those.

I have a Benefit Statement Summary but it seems to provide every bit of information under the sun apart from the notional value used in a given year.

I'll have a look at the calculation tonight. This is my wife's pension so maybe she's simply not looked in the right place.

Thanks again

That's because a benefit statement is not a pension savings statement.

[Rodintee]

I did wonder about that.