Business Services Organisation
*UPDATE* Lifetime Allowance Fixed Protection
Following the Firefighters Pension Update 06 that was sent via email on 16 March 2022, the Finance Department received a number of queries in relation to the information contained.
The update from E-Bulletin 06 (Lifetime Allowance Fixed Protection) will only affect you if you have a special historical arrangement in place with HMRC to protect your lifetime allowance.
If, as a member of a pension scheme, you think that you hold a form of fixed or enhanced protection from lifetime allowance charges, you must take action before 1 April 2022 if you want to avoid losing your protection.
This is a special arrangement that you would have applied for independently to HMRC. We do not expect this issue to have a widespread impact amongst members of the Firefighters’ pension scheme and you should only be concerned if in the past, you have made a special arrangement with HMRC to protect your lifetime allowance.
Action required
The pensions’ department does not hold any information regarding your HMRC record and won’t be able to advise if you have a fixed protection arrangement in place – this is a personal arrangement between you and HMRC. You can check with HMRC directly if you think that this may apply to you.
If you have a financial advisor, they may be able to advise on whether or not you have a fixed protection arrangement in place with HMRC.
If you do not have a special historical arrangement in place with HMRC then there is no action required.
If you think that you have a fixed protection arrangement in place with HMRC, please contact pensions@nifrs.org urgently.
Members should think carefully before taking a decision to opt out of the pension scheme and may wish to seek independent financial advice to help them to understand the impacts and decide the best course of action regarding protections from lifetime allowance charges.