If you’re a member of a public service pension scheme and have had a benefit crystallisation event within the scheme, you may have a change to the amount of lifetime allowance used up by that event, as a result of the public service pensions remedy.

Your public service pension scheme will work out any changes and send you an updated benefit crystallisation event statement if you’re affected. You must share this statement with any other pension scheme providers you have under which you have had a benefit crystallisation event, as the scheme may also be affected.

You can:

Before 6 April 2023, if you exceeded your pension lifetime allowance and had a lifetime allowance charge, you and the scheme administrator are both liable to pay this charge.

Your pension scheme administrator can apply to HMRC for a ‘discharge’ of their liability under certain circumstances, meaning you will be solely liable for the charge — you cannot apply to be discharged of your liability.

If there’s an increase in the amount of the benefit crystallisation event, this may result in a new or increased lifetime allowance charge for a private sector pension. If it’s a result of the public service pensions remedy your private sector scheme administrator will be able to apply for a discharge to this liability.

If your private sector pension scheme administrator is discharged from their liability to the new or increased charge, we will issue an assessment to you for the new lifetime allowance charge.

You can either:

If you ask your public service pension scheme to pay the charge, we will collect the additional tax due from that scheme administrator. Once the public service pension scheme administrator pays the charge, they will adjust your pension benefits accordingly.

Published 5 October 2023
Last updated 27 February 2025 + show all updates