Reductions in the Annual Allowance and Lifetime Allowance mean that more of your employees may be breaching their pension limits. This can result in significant tax increases for them.
This is most likely to affect your executive team, but it can also impact longer-serving staff with significant service in defined benefit schemes, and should be considered as part of your regular pay review process.
The annual allowance can come as a surprise for pension scheme members. This is because in a defined benefit pension scheme, the additional pension earned each year also depends on any increase in pensionable salary, not just the extra year of service.