Updates to annual allowance, 85 year rule and ABS technical guides

Version 3.1 of the annual allowance guide has been published incorporating the below main changes:

Paragraph 34: AVCs for life assurance are NOT to be included in the Closing Value
Paragraph 71: The effect of a scheme pays election
Paragraph 68 (and footnote 81) and paragraphs 163, 179, 180, 181, 182, 202, 218 and 223: Treatment of Voluntary Scheme Pays requests
Paragraph 173 (and footnote 141 on pages 158/159): Treatment of reportable events 22 and 23
Annex 1: a new definition has been added to the Glossary to explain what is meant by the references in the guide to ‘Standard’ annual allowance
Annex 3: Example 39 has been substantially updated
Annex 3: New examples 47 to 57 have been added to explain the effect on the annual allowance calculation of Club transfers. Note that examples 48, 50, 52, 53, 54, 55A, 55B, 56A and 56B represent the LGPC Secretariat’s view on how the cases in those examples should be valued for annual allowance purposes. However, although we feel reasonably confident that the examples are correct, the Secretariat is checking with the Cabinet Office, GAD and the Public Sector Pensions Forum to see whether or not they agree with the calculations. Confirmation, either way, will be provided to administering authorities as soon as a response has been received.

Minor updates have also been made to both the 85 year rule technical guide (now issued as version 1.11) and the ABS technical guide (now issued as version 1.11).

The updated documents can be found as tracked and clean versions on our Guides and sample documents page.