RPSM06300030 - Scheme Administrator pages: Annual allowance: Employer contributions to fund previously unfunded promise of benefits

Unfunded promises of benefits

You may receive a contribution from an employer relating to the discharge of unfunded promise of benefits. Employers have three months i.e. to 7 July 2006 to fund an unfunded promise (relating to period before 6 April 2006 without the amount being tested against the annual allowance for 2006 –2007.

It shall be borne in mind that the first pension input will not end (if no nomination is made) until the anniversary of the start date. So, a period starting on 6 April 2006 will end on the 6 April 2007 and relate to the tax year 2007 – 2008. To ensure the provision for funding on unfunded promise is considered by reference to the tax year 2006 – 2007 you may wish to make a nomination to end the pension input period within 2006 - 2007