Phillips 66 Pension Allowance Modeller

Pension Allowance Modeller

Annual Allowance modeller

Restrictions on tax relief for those with high earnings or income took effect for all tax years from 6 April 2016.

Depending upon your income, the Annual Allowance of £40,000 may be cut back (or "tapered"). The amount of tapering applied will be based upon your actual income in the relevant tax year and the various thresholds and limits in place.

For the tax years 2020/21 onwards this will work as follows:

If your total income in the year is below £200,000 then you will receive the full £40,000 Annual Allowance.

If your total income is above £200,000, then you will need to also include your Pension Input Amount for the year, the resulting number will be your "Adjusted Annual Income".

If your Adjusted Annual Income is over £240,000 then the Annual Allowance for you will be reduced by £1 for every £2 of Adjusted Annual Income you have in excess of £240,000.

If your Adjusted Annual Income is over £312,000 then the Annual Allowance for you is tapered to the minimum of £4,000. The Annual Allowance cannot fall below this amount.

The reduced Annual Allowance, if it applies to you, is then known as your "Tapered Annual Allowance".

A detailed guide to the current tax allowances on your pension benefits which contains further information on the above and other aspects of tax on pensions can be found here.

Whilst we cannot predict for certain your taxable income this year, this modeller will allow you to input relevant information to assess your likely income for the year, and will use this amount and apply any tapering to your 2021/22 and 2022/23 Annual Allowance. You may wish to use your actual income figures from the prior tax year, or make an adjustment to reflect what you believe will be your income this year.

"Income" for the year relevant to the tapering test will come from a number of sources. Whilst the main, typical items are listed separately below, we would recommend that you check the HMRC website at Work Out Your Tappered Annual Allowance for full details of what should, and should not, be included in this calculation.

2021/22

£

Salary earned or estimated to be earned in the year
Required
£

Shift Allowance earned or estimated to be earned in the year
Required
£

RSUs earned or estimated to be earned in the year
Required
£

Bonus earned or estimated to be earned in the year
Required
£

This will be your taxable benefits for P11D purposes. This will include
company car allowance, fuel allowance, private medical insurance costs, childcare
vouchers, financial planning, etc.

Required
£

Income you receive from any rental properties.
Required
£

Taxable dividends received.
Required
£

Taxable interest received from any bank or building society accounts.
Required
£

If you have decreased your pension accrual via flex options for the first
time after 8 July 2015, the amount of income being received in lieu of pension
accrual needs to be entered.

Required
£

Please show here the sum of any other taxable income you may
have (e.g. pension income received). Please refer to the HMRC
website for a full list of relevant income.

Required
£
Required

2022/23

£

Salary earned or estimated to be earned in the year
Required
£

Shift Allowance earned or estimated to be earned in the year
Required
£

RSUs earned or estimated to be earned in the year
Required
£

Bonus earned or estimated to be earned in the year
Required
£

This will be your taxable benefits for P11D purposes. This will include
company car allowance, fuel allowance, private medical insurance costs, childcare
vouchers, financial planning, etc.

Required
£

Income you receive from any rental properties.
Required
£

Taxable dividends received.
Required
£

Taxable interest received from any bank or building society accounts.
Required
£

If you have decreased your pension accrual via flex options for the first
time after 8 July 2015, the amount of income being received in lieu of pension
accrual needs to be entered.

Required
£

Please show here the sum of any other taxable income you may
have (e.g. pension income received). Please refer to the HMRC
website for a full list of relevant income.

Required
£
Required
Copy previous years inputs
Proceed to modeller

Member Inputs

Use the drop down box to confirm whether you are a Heritage Conoco member,
i.e. were you a member of the Conoco Pension Plans prior to August 2002.

Required

Please confirm whether you are currently part-time. If you have
recently changed your working hours, or are about to change your hours,
the modeller may not be able to produce accurate results. If this is
the case please contact Capita for accurate calculations.

%

Please enter the percentage of full time hours you are currently working,
if this percentage has changed recently, or is about to change, the modeller
may not be able to produce accurate results. If this is the case please
contact Capita for accurate calculations.

Please note that any part time service up to 31/03/2021 has been captured by the tool.

Required

For the modeller to calculate your benefits correctly for the 2021/2022
and 2022/2023 Pension Input Periods you will need to complete your flex
choice as at July 2020 and July 2021, along with the flex rate you are thinking
of electing in July 2022.

Please enter the date you joined the pension plan. This can be found on your most
recent benefit statement under Your Personal Details.

Help
Required
£

Input your annual Pensionable Allowance (Shift Allowance) which can be found on
your most recent benefit statement under Your Personal Details.

Please note that Shift Rundown is not pensionable and should not be included.

Help
Required
Required

If you started receiving shift allowance in the current Pension Input Period (06/04/2021 to 05/04/2022)
please enter the date you first received this; if you commenced shift prior to 01/04/2021 there is no requirement
to enter a start date.

If you have ceased receiving shift allowance since 01/04/2021, or will be coming off shift in the near
future, please enter an end date.

Please note that the shift allowance end date can only be taken into account when calculating your pension
for the 2021/22 and 2022/23 pension input periods. Shift allowance pension will still be included in the
future pension amounts up to your Normal Retirement Date.

Required
£

Please enter your current base salary from the start of the period here, this will be your
basic salary as shown on your benefit statement; this does not include shift allowance or
any other fluctuating emoluments such as overtime or bonuses.

Help
Required
£

If you joined the pension plan after 1 August 2002, and you ceased receiving shift
allowance, or your shift allowance decreased, you will have accrued a Fixed Pension
Credit. You will need to enter this amount for the modeller to correctly reflect this
in the calculation of your benefits.

Please note that this is not applicable for the Heritage Conoco section of the pension plan.

Help
Required
£

Please enter your Final Pensionable Salary from your benefit statement.

Help
Required

All inputs on this tab are required in order to proceed.

Proceed

Annual Allowance Details

£

You need to enter the pension accrued at 05/04/2021 into the modeller, which is the plan pension - closing value on your benefit statement.

Help
Required
£
£
£

You should insert the Remaining Unused Allowance from your most recent benefit statement which is used to calculate any carry forward of your Annual Allowance.

Help

Projections 2021/222022/23

Required

The modeller assumes that your salary increases are applicable from 1 April.
You can enter a different date if applicable.

Please note that if you have received more than one salary increase in the year, you will
need to contact Capita for an estimate of your Annual Allowance and Lifetime Allowance values

Required
%
Required
%
Required

OR

Enter either the level of salary increase you received as a percentage or the amount your salary has increased to.
This is subject to a 10% maximum increase.

If no salary increase percentage or amount is entered, it is assumed that you did not receive a salary increase.

It is assumed that any level of salary increase inserted in the 2022/23 year, will be applied every year up to age 65.

OR

£
Required
£
Required
£
Required

Enter the value of AVC's you expect to pay over the tax year. Please note it is assumed
that any value inserted in the 2022/23 year, will be paid every year up to age 65.

£
Required
Required
%
Required

OR

£
Required
Return to Member Inputs Continue to Lifetime Allowance

Lifetime Allowance Details

The long term accrual is the option for you to gauge the potential impact of changing your accrual rate via flex.
The modeller will incorporate any positive, or negative, impact of flexing your pension benefits with effect from 6 April 2023.

Required
£

If you have Additional Voluntary Contributions (AVCs) within the Phillips 66 UK Pension Plan, please enter the current value here. If you do not know the current value,
you can obtain the value as at 31st March 2021 from your benefit statement.

Help
Required
%

This gives you the opportunity to enter the level of growth you believe your AVCs funds will receive over the long term to your Target Retirement Date (TRD).
Your AVC funds within the Phillips 66 UK Pension Plan have assumed growth rates incorporated onto your AVC statements, however the modeller does not take these
into account and you will need to enter any assumed growth rates manually. If you do not enter a long term investment return the modeller will not be able to
calculate a future value for your AVCs and will produce an amount of £0.00.

Permitted Range 0.00% to 8.00%
Required
£

Insert the current annual pension amount of any Defined Benefit pension external to the Phillips 66 UK Pension Plan.
Required
£

You can enter the value of any defined contribution benefits you have accrued outside of the Phillips 66 UK Pension Plan,
this includes, but is not limited to, other occupational schemes, personal pensions or stakeholder pensions.

The modeller incorporates the value into the calculation of your overall benefits to be tested against the Lifetime Allowance.

Required
%

You will need to enter any growth you believe may be received on any external defined contribution benefits here.

Permitted Range 0.00% to 8.00%
Required
Return to Annual Allowance
Annual Income Assumptions Calculate

Insufficient Data has been completed above to show you this graph, please check that all required fields have been completed.

2021/22

Annual Allowance limit is

  • Carry forward to 2022/23 in respect of 2019/20
  • Carry forward to 2022/23 in respect of 2020/21
  • Carry forward to 2022/23 in respect of 2021/22
  • Total

2022/23

Annual Allowance limit is

  • Carry forward to 2023/24 in respect of 2020/21
  • Carry forward to 2023/24 in respect of 2021/22
  • Carry forward to 2023/24 in respect of 2022/23
  • Total

2021/22

Lifetime Allowance

The assessed value of your benefit savings as at 5 April 2022 is shown below.

Due to you being aged 62 or older we are unable to calculate this part of the model due to you being near retirement age. For a more bespoke LTA quote please contact the admin team

Insufficient Data has been completed above to show you this graph, please check that all required fields have been completed.

2022/23

Lifetime Allowance

The assessed value of your benefit savings as at 5 April 2023 is shown below.

Due to you being aged 62 or older we are unable to calculate this part of the model due to you being near retirement age. For a more bespoke LTA quote please contact the admin team

Insufficient Data has been completed above to show you this graph, please check that all required fields have been completed.

Lifetime Allowance - Long term Projection

Based on the criteria input by you, your projected lifetime allowance is estimated at the ages shown below.

Insufficient Data has been completed above to show you this graph, please check that all required fields have been completed.

Due to you being over the age of 65 we are unable to calculate this part of the model due to you being near retirement age. For a more bespoke LTA quote please contact the admin team

Long term Pension Projection

Based on the criteria input by you, your projected pension is estimated at the ages shown below.

Insufficient Data has been completed above to show you this graph, please check that all required fields have been completed.

Due to you being over the age of 65 we are unable to calculate this part of the model due to you being near retirement age. For a more bespoke LTA quote please contact the admin team

Annual Allowance and Lifetime Allowance Modeller

This Online Pension Tool is aimed at helping you, as an active member of the Phillips 66 UK Pension Plan, manage your pension benefits and monitor any potential tax liability in relation to the Annual Allowance and Lifetime Allowance.

The Annual Allowance was introduced by the Government in 2006, the Annual Allowance makes you liable for a tax charge if the value of the pension that you earn in any year exceeds this limit, after accounting for any unused allowance amounts carried forward from the previous three years.

For the 2020/21 tax year the Annual Allowance starts at £40,000 and is "tapered" to an individual rate that is linked to your gross income from all sources over the tax year.

Depending upon your income, the Annual Allowance of £40,000 may be cut back (or "tapered"). The amount of tapering applied will be based upon your actual income in the year.

If your total income (known as "Threshold Income") in the year is below £200,000 then you will receive the full £40,000 Annual Allowance.

If your total income is above £200,000, then you will need to also include your Pension Input Amount for the year, the resulting number will be your "Adjusted Income".

If your Adjusted Income is over £240,000 then the Annual Allowance for you will be reduced by £1 for every £2 of Adjusted Income you have in excess of £240,000.

If your Adjusted Income is over £312,000 then the Annual Allowance for you is tapered to the minimum of £4,000. The Annual Allowance cannot fall below this amount.

Any contributions you make to any other pension arrangements during the year will also count towards your own Annual Allowance usage.

Any such contributions have not been allowed for in the results produced by the modeller. If you have made any pension contributions to an alternative pension arrangement please inform the pension administrators, Capita.

The results of this modeller are intended to give you an estimate of your pension input amount for the current and following tax year and an indication of how close you are to the Annual Allowance. In doing this, certain assumptions are used:

  • No allowance has been made for any Pension Sharing Order applied to your pension benefits with the Phillips 66 UK Pension Plan, please contact Capita directly for an accurate calculation of your Annual Allowance.
  • Inflation for revaluing the starting accrued pension is 0.5% for 2021/22 and 3.1% for 2022/2023.
  • Increases in shift allowance will be effective from 1 April each year.
  • Accrual rates, full/part time ratio, projected salary changes, AVC rates and Annual Allowance carry forward is used as input by you.
  • The Part time ratio entered will not change.
  • The modeller does not incorporate the State Pension Adjustment applicable to Heritage Conoco members. If you reach State Pension Age (SPA) before April 2021 you should assume that the modeller will not produce a useful result. If this is the case please contact the administration team at Capita for calculations.
  • You will remain a member of the Plan for the duration of the Pension Input Period.

In no circumstances should the results of this modeller be used as a promise or guarantee of the pension benefits that you will accrue within the Plan or of the Annual Allowance you will have available. In particular, if any assumptions made are not borne out in practice, then the results of the modeller would need to be adjusted accordingly.

Please note that the results are very sensitive to the data input fields so please take care that these are completed accurately.

As administrators of the Phillips 66 UK Pension Plan, Capita can assist you with any queries or calculations in relation to the Annual Allowance. You can contact Capita as follows:

This modeller does not constitute financial advice. Any decision that you make regarding your pension should be your own choice. If you need further guidance or advice we strongly recommend that you speak to an Independent Financial Adviser, a list of which can be found at www.unbiased.co.uk.

Please note that this Pension Modeller is operated by Capita, and neither Phillips 66 UK Pension Plan nor the Trustee(s) of the Plan has validated any results provided from this. Although neither Phillips 66 UK Pension Plan nor the Trustee(s) has any reason to doubt that the programme is valid, no liability is accepted by the Trustee(s) or Phillips 66 UK Pension Plan for any errors or omissions generated from the modeller.

The Lifetime Allowance, introduced in 2006, is the total value of pension you can receive at retirement without any additional tax charge. This limit applies not just to the Phillips 66 UK Pension Plan but to all pension benefits you may have earned during your working life, excluding any State pension benefits.

The value of your benefits as measured against the Lifetime Allowance is registered at the time you draw your benefits, and will be measured against the Lifetime Allowance in force at that time.

The results of this modeller are intended to give you an estimate of the value of your pension for the current and following tax year and an indication of how close you are to the Lifetime Allowance, as well as long term pension projections from age 55 to 65 along with the applicable Lifetime Allowance estimate. In doing this, certain assumptions are used:

  • The value of your accrued benefits in the Plan as modelled under the Annual Allowance section is used to assess your Lifetime Allowance value for the current and following tax year.
  • The value of the Lifetime Allowance for 2021/22 and 2022/23 is £1,073,100. As announced in March 2021, the Lifetime Allowance will remain at this level up to and including 2025/26. The Government has not satated whether the Lifetime Allowance will change from 2026/27 onwards and for the purpose of the illustrations the modeller assumes that the Lifetime Allowance remains at £1,073,100 until your retirement date.
  • For the current and following tax year your Lifetime Allowance results reflect the fully accrued benefit value; no correction has been made for any early retirement assumption in these results.
  • The long term pension and Lifetime Allowance projections between ages 55 and 65 incorporate the appropriate early retirement adjustment in the results.
  • Long term assumptions around accrual rate and investment return are used as input by you.
  • Full/part time ratio, projected salary changes and AVC rates are assumed to continue each year at the rates input by you for 2022/23 Annual Allowance modelling.
  • The Part time ratio entered will not change.
  • It is assumed that any Shift Allowance will increase at the rate of 2.5% each year.
  • Long term assumptions to ages 55 through to 65 use the relevant early retirement factors for the Plan currently in force. These are subject to review and may change in the future.
  • The modeller does not incorporate the State Pension Adjustment applicable to Heritage Conoco members. If your State Pension Age (SPA) is before age 65 you should assume that the modeller will not produce a useful result. If this is the case please contact the administration team at Capita for calculations.
  • Any other pension benefits from external Defined Benefit arrangements input by you will be revalued at 2.5% per annum, and will assume a normal retirement age of 65 with an assumed early retirement factor of 6% per annum simple.
  • A full month’s flex credit is given in the month of "retirement", irrespective of when the date falls in the month.
  • This modeller does not apply an approved Statutory Money Purchase Illustration; instead it uses the Defined Contribution investment returns as specified by you for simplicity.

In no circumstances should the results of this modeller be used as a promise or guarantee of the pension benefits that you will accrue within the Plan or of the Lifetime Allowance you will have available. In particular, if any assumptions made are not borne out in practice, then the results of the modeller would need to be adjusted accordingly.

Please note that the results are very sensitive to the data input fields so please take care that these are completed accurately.

As administrators of the Phillips 66 UK Pension Plan, Capita can assist you with any queries or calculations in relation to the Lifetime Allowance. You can contact Capita as follows:

This modeller does not constitute financial advice. Any decision that you make regarding your pension should be your own choice. If you need further guidance or advice we strongly recommend that you speak to an Independent Financial Adviser, a list of which can be found at www.unbiased.co.uk.

Please note that this Pension Allowance Modeller is operated by Capita, and neither Phillips 66 UK Pension Plan nor the Trustee(s) of the Plan has validated any results provided from this. Although neither Phillips 66 UK Pension Plan nor the Trustee(s) has any reason to doubt that the programme is valid, no liability is accepted by the Trustee(s) or Phillips 66 UK Pension Plan for any errors or omissions generated from the modeller.

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