A new PNB Circular has been published (see document below) which enables Superintendents/Chief Superintendents who are required to perform Temporary ACC/Commander duties to elect whether to take a pensionable temporary salary or a non-pensionable, but taxable, honorarium as an alternative.
Since the changes to Annual Allowance, which resulted in the threshold being reduced from £250,000 to £50,000 in 2010 and then reduced further to £40,000 in April 2014, members who were promoted to ACC/Commander rank (either substantively or temporarily) have been vulnerable to exceeding the AA limit. For those members not in their last three years of service this could have resulted in them incurring a tax liability on the increased value of their pension without actually deriving any pensionable benefit.
This new arrangement, which is effective from 1st April 2014, will provide members with the flexibility to choose whether to take a pensionable temporary salary or an honorarium to suit their individual circumstances. Please contact National Office if you have any questions about this.