Earnings cap: Difference between revisions
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''Pensions''. | ''Pensions''. | ||
A former limit (in the UK) on the amount of pensionable remuneration on which the benefits and contributions of a member could be based, which applied to periods up to April 2006. | A former limit (in the UK) on the amount of pensionable remuneration on which the benefits and contributions of a pension scheme member could be based, which applied to periods up to April 2006. | ||
The earnings cap | The earnings cap was replaced by the lifetime allowance and the annual allowance limits. | ||
However, many company and public sector defined benefit pension schemes may continue to use the earnings cap in order to restrict pension contributions and pension benefits payable. Other employers and pension schemes may choose to set their own earnings caps, resulting in similar effective restrictions. | However, many company and public sector defined benefit pension schemes may continue to use the earnings cap in order to restrict pension contributions and pension benefits payable. Other employers and pension schemes may choose to set their own earnings caps, resulting in similar effective restrictions. | ||
== See also == | == See also == | ||
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* [[Lower earnings limit]] | * [[Lower earnings limit]] | ||
* [[Pensionable salary]] | * [[Pensionable salary]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 07:44, 28 January 2022
Pensions.
A former limit (in the UK) on the amount of pensionable remuneration on which the benefits and contributions of a pension scheme member could be based, which applied to periods up to April 2006.
The earnings cap was replaced by the lifetime allowance and the annual allowance limits.
However, many company and public sector defined benefit pension schemes may continue to use the earnings cap in order to restrict pension contributions and pension benefits payable. Other employers and pension schemes may choose to set their own earnings caps, resulting in similar effective restrictions.
