Frequently Asked Questions

With some pension schemes, you choose how to invest your money and these are usually referred to as 'Money Purchase' or ‘Defined Contribution’ (DC) pension schemes.  DC pension schemes work by taking all the money paid in – by you, the company and the government (in the form of tax relief) – and investing it for your future. The idea is that the investments will grow over time to give you money to support you when you retire. The LifeSight Master Trust is a DC pension scheme. 

If you are a member of the LifeSight Master Trust, you have your own pot of money, which is used to provide an income for retirement. The size of the pot mostly depends on how much has been paid in and how well the investments have performed.

‘Defined Benefit’ (DB) schemes work in a different way, with the amount paid at retirement depending on your service in the scheme and your pensionable salary when you retire. People who joined the pension scheme before April 2006 are likely to be members of the DB Scheme. 

Like many things in life, saving is a whole lot easier if you don’t have to do it alone. With a pension it isn’t just you saving for your retirement; it’s you, the company and the government (in the form of tax relief). 

The amount you’ll get will depend on whether you’re a member of the LifeSight Master Trust or the Defined Benefit (DB) Scheme. 

If you're a member of the LifeSight Master Trust, login to your LifeSight Account and read the 'Plan Guide' on your bookshelf for more information.

For more information on the DB benefits at retirement please read the  DB Members’ Guide. 

The Annual Allowance (AA) is a limit on the amount of pension savings you can make into your scheme(s) (you may have more than one) in any given tax year. If you exceed your AA, you may be charged tax on the excess.

The AA is currently £60,000, although a lower allowance applies to high earners. If your taxable income is more than £200,000, you should learn more about the tapered Annual Allowance as it may affect you.

You can carry forward any unused Annual Allowance from the past three years.

A lower allowance of £10,000 may apply to any future pension savings you make to Defined Contribution pension arrangements if you’ve taken money out of your pension pot. This is known as the ‘Money Purchase Annual Allowance’.

The Lifetime Allowance (LTA) for most people was £1,073,100 in the tax year 2023/24. Historically it was the maximum amount you could save into all your pensions throughout your working life before you had to pay tax. The Lifetime Allowance was abolished in April 2024.

From 6 April 2024, there is a limit of £268,275 on the amount you can take as a lump sum when you take your pension. This limit won’t affect you if you have Lifetime Allowance protections.

You can read more about the AA and LTA at www.gov.uk/tax-on-your-private-pension.

You are responsible for monitoring your AA and LTA and reporting any excess to Her Majesty’s Revenue & Customs (HMRC).

The Pension tax limits page features videos on the above allowances – watch them here for more information. 

Your Benefit Statement will give you an indication of how much of the Annual Allowance you have used. 

If you exceed the Annual Allowance in any given year the Pension Scheme Administrator will also send you a pension savings statement. Railpen is the administrator if you are a DB member and LifeSight is the administrator if you have DC benefits. 

If you are a DB member and pay DC Additional Voluntary Contributions (AVCs) or have sacrificed your bonus, you will receive a benefit statement from each administrator. You will need to add together your Pension Input Amount on your DB statement and the Total Contributions Paid to LifeSight Master Trust to work out how much of your Annual Allowance you have used in any tax year.

You are responsible for reporting any excess in your benefits over the Annual Allowance (after using up any carry forward) via self-assessment. The amount of Annual Allowance charge will be included in your tax calculation and you would normally have to pay any charges by the usual self-assessment payment deadlines. 

The pension Scheme also has a responsibility to notify HMRC via Event Reporting if someone exceeds the Annual Allowance.

A member can request use of the ‘Scheme Pays’ facility in order to meet the tax charge. Contact the Pensions Team for more details. 

Retirement is no longer seen as ‘the end of the road’. Why not take the time to think about what you want for your retirement so you can start planning for it today?

The Lifestyle Calculator can help you get an idea of what your lifestyle in retirement might cost and how much income you might need.

You can always pay more into the Scheme by increasing your contributions through Additional Voluntary Contributions (AVCs).See the ‘Saving more’ page for more information.

The Pension Saver scheme allows you to make your pension contributions in a more effective way.  Pension Saver is open to all members.

Under Pension Saver the Company pay pension contributions for you, and in return your salary will be reduced by the same amount. This will result in you paying lower National Insurance contributions, and therefore increases your net pay.

Read the Pension Saver page to find out more.

If you’re not sure whether you’re already in the Pension Saver scheme, contact the Pensions Team.

Additional Voluntary Contributions (AVCs) are extra payments you can make towards your pension.

If you’re a member of the LifeSight Master Trust the AVCs are paid into your LifeSight Account along with your normal contributions. If you’re a DB member the AVCs are paid on a defined contribution (DC) basis to LifeSight Master Trust and go into your LifeSight Account. This is a separate fund to your normal Scheme contributions.

For more information on AVCs visit the ‘Saving more’ page. 

No. The Trustee, the pension administrators, and the Company are not authorised to offer advice. Any information provided by them should not be relied on as advice about your individual circumstances.

You might want to get independent advice before making any decisions about your financial future.

If you get divorced or dissolve a civil partnership, your pension assets should be taken into account in the settlement. Your former spouse or civil partner may become entitled to part of your pension (or its equivalent value) as part of your settlement.

Your solicitor will confirm with the court what should happen with your pension.  If your solicitor needs further information about your pension they should contact the pension scheme administrator.

Contact details can be found on the Get in Touch page.

If, for any reason, you feel unable to manage your own affairs, you can make legal arrangements to pass the responsibility to a family member or someone else close to you.

You, or your chosen representative, will then need to tell the administrator. You can find contact information on the Get in touch page.

These are the possible benefits you could leave behind for loved ones if you die.

It’s important the Trustee understands where you’d like these benefits to go. Therefore, we strongly advise you to complete an expression of wish form so the Trustee can consider your wishes.

Make sure that you complete a new expression of wish form if your circumstances change.

You can find more information on the expression of wish page.

You should update your expression of wish details to tell the Trustee where you’d like any lump sums to be paid to.

You can find more information on the expression of wish page.