Information for LSE Members
The Government’s 2024 Autumn Budget resulted in the removal of the lifetime allowance, which was a limit on the total amount of pension savings an individual could save over their lifetime without incurring tax charges. As a result of this change, the Government introduced two new lump sum allowances (i) the lump sum allowance and (ii) the lump sum and death benefit allowance which are limits on the amount of tax free lump sums that can be paid to you or your dependants in certain circumstances.
The Government has also introduced a lump sum called the pension commencement excess lump sum (PCELS). Where the lump sum allowances explained above have been used up, individuals may (if they meet a certain criteria), be able to access a PCELS (e.g. the individual must become entitled to a pension and the rules of a scheme must permit the payment of the PCELS).
Upon review of the trust deed and rules for the LSE section, on 10 March 2025 the Trustee decided to amend the rules of the LSE section of the Scheme to enable members to have access to a PCELS if they meet the relevant conditions in the future.
There is no action for you to take. If you are eligible for a PCELS going forward, the scheme administrators will contact you nearer your retirement date to gather more information from you and inform you of your options.
