Running the numbers on DB pension allowances and charges

A little while ago my interest was piqued by an article in the national press, which appeared to allude to the unfairness of public sector defined benefit pension schemes with regard to the annual allowance and lifetime allowance. In the article, there was an example given of someone potentially caught by an annual allowance charge due to a promotion in the 2020/21 tax year, where their pensionable salary increased from £25,000 to £40,000. The example worked through how the ‘opening value' and ‘closing value' were calculated with the outcome being a pension input amount of just shy of...