The amount of pension savings/Pension Input Amount under a Defined Benefits arrangement is the increase in the value of the individual’s promised benefits over the Pension Input Period (PIP).
The increase is the difference between the value of the individual’s benefits immediately before the start of the PIP (the opening value) and the value of the individual’s benefits at the end of the PIP (the closing value).
The Defined Benefit Pension Input Amount calculator will provide an indication of the opening value and the closing value to determine the Pension Input Amount for a selected tax year.
This is calculated either by the input of;
– the individual’s benefits, or
– details of the individual’s pensionable salary, service and scheme accrual rate.
If the difference is a negative amount for a PIP then the individual’s pension savings (or Pension Input Amount) for the arrangement is £0 for that PIP
The calculation assumes no adjustments need to be made to the client’s closing value as, during the PIP, they have not had any transfers in or out, benefit crystallisation events (BCEs), pension debits or pension credits, or reduction in benefits
because the scheme has paid an annual allowance charge for the client.
