The lifetime allowance (LTA) is the total amount of pension you can build up from all your pension savings over your lifetime before you have to pay a tax charge.

The current limit of £1,073,100 will remain until the tax year beginning 6 April 2026.

This includes:

  • your Derbyshire Pension Fund benefits
  • pensions you hold with other LGPS funds
  • pension benefits you may have in other tax registered pension arrangements

It doesn't include your State Pension or dependant’s pensions.

Exceeding the LTA

The LTA won’t affect most members. If you’re a high earner, or have a lot of LGPS membership in terms of the years that you’ve been in the scheme, you might be at risk of exceeding the limit.

The annual benefit statement we send you each year includes the amount of LTA used for that pension as a percentage up to 31 March. We base these figures on the LGPS pension and lump sum you’ve built up with us. The percentage won’t include any additional voluntary contributions (AVCs) you've paid for.

More information

You can read the 'lifetime allowance factsheet' on the national LGPS member website where a quick check calculator is also available.

Video: Your lifetime allowance

This video explains pension growth, how to calculate your current value, tax charges and available protections. For subtitles select ‘CC’ (closed captions).

Links to useful documents