What is a pension input period?Fri Jan 08 13:04:00 GMT 2016
It’s a period of time, usually 12 months, which is used to measure the benefits accrued or contributions paid by or on behalf of a member against the annual allowance (and money purchase annual allowance if an individual has flexibly accessed any of their pension benefits since 6 April 2015). Any benefits accrued or contributions paid in a PIP are counted towards the pension input amount for the PIP.
It was announced in the Summer Budget Statement of 8 July 2015 that there was to be an immediate change to the PIP rules. In summary, this means that:
• For existing arrangements, all PIPs that were open on 8 July 2015 were immediately closed on that date. The next PIP will run from 9 July 2015 and will end on 5 April 2016. PIPs will then run in line with tax years from 6 April 2016 onwards.
• Any new arrangements that will have their first PIP starting on or after 9 July 2015 and before 6 April 2016, will see that PIP end on 5 April 2016. PIPs will then run in line with tax years from 6 April 2016 onwards.
• Any new arrangements that will have their first PIP starting in the 2016/17 tax year will see that PIP end on 5 April 2017. PIPs will then run in line with tax years from 6 April 2017 onwards.
• It will not now be possible for an individual or a scheme administrator to vary the end date of a PIP.
If you think you are affected by these changes please speak to a financial adviser.