Annual Benefit Statement

As an Active member of the Fund we issue an annual benefit statement to you by post but it is also available on the Pension Web Portal.  This year the statements will be going out slightly later than usual so that we can take into account the recently paid 2023 pay award when calculating your figures.

We include a checklist in your statement to show the key actions you need to take. 

Additional Voluntary Contributions:

• Check you are investing in funds appropriate to you 
• If you are paying AVCs under the lifestyle option, check your AVCs are targeting the age you intend to retire 

Expression of Wish: 

• Have you completed an Expression of Wish Form?
• If you have is it up to date?

Pension Input: 

• Check whether your pensions savings have exceeded the Annual Allowance
• If your pensions savings have exceed your Annual Allowance you need to take action as a tax charge may be payable.  
• If you are a high earner, check your Annual Allowance is not reduced

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Pensionable Salary

This is not necessarily your current rate of salary; it is your pensionable salary over the 12 months to the statement date.  

Pensionable salary is your Basic or Contractual Salary and may include permanent allowances where agreed with your employer and the Trustees but excludes overtime earnings, less for those who joined the Fund after 1 April 1989, the lower earnings limit which is currently £6,417.  

For example, if you joined the Fund after 1 April 1989 and your Basic Salary over the year to the statement date was £40,000, your pensionable salary will be £33,583, in other words £40,000 less £6,417.

For those who joined the Fund on or after 1 June 1989, Pensionable Salary is restricted to a maximum of the Scheme Earnings Cap which for the year to the statement date was £205,200.  

If you have worked part time during the 12 months to the statement date, the Pensionable Salary will be the full time equivalent.  

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Pensionable Service  

This is the period of time you earn benefits from the Fund as a contributing member.

Your pensionable service began when you joined the Fund and builds to when you retire or stop paying contributions, whichever is the earlier.

If you have worked part time your pensionable service is pro-rated to convert your pensionable service to the full time equivalent.

For example one year working at half of full time hours would count as six months pensionable service.

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Additional Voluntary Contributions

If you pay AVCs you would have been provided with separate AVC statement(s) from the AVC provider(s).  

• We offer a range of funds in which you can choose to invest your AVCs, please visit the AVC section on this website for more details and review whether you are currently investing your AVCs in funds appropriate for you
• If you wish to view your latest fund value, change your investment choice or, if your AVCs are invested under the Lifestyle option your retirement target age, you can do this online through Legal & General’s online portal ‘Manage Your Account’ at www.legalandgeneral.com/mya
• Legal & General can also be contacted by:

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Expression of Wish  

The Trustees decide who will receive payment of the lump sum in the event of death. Although it does not bind them, it is helpful to keep the Trustees updated about your preferred beneficiaries. 

If you have not completed an Expression of Wish form or need to update yours, you can do this:

• Through the Pension Web Portal
• By downloading a form from the forms section at the bottom of this page

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Annual Allowance 

HM Revenue & Customs set the basis on which your pension savings are valued for Annual Allowance purposes; the value of these savings is called your Pension Input Amount.

• For defined benefits savings such as the TfL Pension Fund, the increase in your accrued pension over the year, after allowing for the increase in the Consumer Price Index (CPI), is calculated then multiplied by 16.
• For defined contribution savings such as Additional Voluntary Contributions (AVCs) the value is the total value of all contributions paid in the year.
• If you are a high earner or have total taxable income in excess of £200,000 you should ascertain whether your Annual Allowance has been reduced and if so whether your Pensions Input has exceeded the Annual Allowance.

It is important that you read this section of your statement and take action if you have exceeded the Annual Allowance as you may be liable to a tax charge.

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Annual Allowance Tax Charge 

If you have exceeded the Annual Allowance:

• Check whether you have any unused Annual Allowance from the last three tax years
• If you have made pension savings in another pension arrangement during the year you also need to take those into account
• If you have exceeded the Annual Allowance and need to pay an Annual Allowance charge, you may be able to pay this through the Fund, please contact the Fund Office for further information.