Reducing the money purchase annual allowance consultation
23 November 2016
When a person has accessed pension savings flexibly if they then wish to make further contributions to a defined contribution pension scheme the tax relieved contributions are to be restricted to an MPAA of £4,000.
There are two questions which the government is seeking stakeholder views from this consultation:
Question 1: Do you agree that a £4,000 MPAA would minimise re-cycling pension savings and that, coupled with ongoing monitoring, the new MPAA will allow the continued successful roll-out of automatic enrolment?
Question 2: Is there any evidence that setting the MPAA at £4,000 would impact disproportionately on particular groups?
Responses to this consultation will help to inform in legislative changes.