Glossary and Definitions

Scheme Terms

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There are currently 2 names in this directory beginning with the letter L.
Lifetime Allowance (LTA)
An amount introduced by HM Revenue & Customs as part of the Finance Act 2004 against which retirement and death benefits will be tested, once they are brought into payment, to determine whether an additional tax charge will be levied. Find out more about the Lifetime Allowance here https://www.gov.uk/tax-on-your-private-pension/lifetime-allowance.
Limited Price Indexing (LPI)
For pension earned before 6 April 2006, an annual increase based on either the movement in the Retail Prices Index or five per cent, whichever is lower. For pension earned after this date, the increase is capped at 2.5 per cent.