The Superannuation Arrangements of the University of London



Pensioner Members ► The lifetime allowance



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There is a lifetime allowance for each individual’s pension benefits from all registered pension schemes.  This includes SAUL, pension benefits from previous employers and any personal pensions you may have - but doesn’t include State benefits. The lifetime allowance is currently £1.8 million and will be reduced to £1.5 million from April 2012. If your total benefits are valued at more than the lifetime allowance, then a tax charge is payable.

To value your SAUL benefits against the lifetime allowance you multiply your pension by 20 and add the value of the lump sum. For example a member who retires with a SAUL pension of £15,000 and a lump sum of £45,000 will take up £345,000 of their lifetime allowance with their SAUL benefits (15,000 multiplied by 20 plus 45,000 = 345,000).

If you bring benefits into payment from other pension schemes, you will need to tell them how much of your lifetime allowance was taken up by your SAUL benefits at retirement – we’ll give you this information when you retire and annually thereafter.

In reality very few SAUL members will be affected by the lifetime allowance however we will ask you to declare that the value of all your pension benefits does not exceed this level at retirement. We will tell you the percentage of your lifetime allowance taken up by your SAUL benefits when you retire or if you ask us for a quotation. The administrators of other schemes will tell you how much you’ve used already if you ask them.



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