A&O Shearman Pension Scheme

The contributions which you can choose to make in addition to any Ordinary Contributions. These contributions will not be matched by A&O Shearman and are subject to certain limits.

The Annual Allowance (AA) is the amount of pension savings that can be made tax-free in a single tax year. The AA for the 2025/26 tax year is £60,000 for most people, but it will be less for those whom the pensions tax regime deems to be on "high income". The Firm as your employer does not have visibility of all your income so you will need to calculate what your personal AA limit is. Please see the Money Purchase Annual Allowance and Tapered Annual Allowance definitions for further information on limits.

Once you start taking money out of your defined contribution (DC) pension pot using pension freedoms, you may be subject to the Money Purchase Annual Allowance (MPAA).

The MPAA reduces the amount of pension savings that can be made tax-free in a single tax year from £60,000 to £10,000 in the tax year in which you trigger it and in future years.  It applies to all the DC pension benefits you have, not just in the Scheme.

If you are still a contributing member and you are subject to the MPAA, you must pass this information on to our administrators, Fidelity as soon as possible. Learn more about the money purchase annual allowance.

If your income for the current tax year is  greater than £200,000 (which includes any taxable income from outside of your A&O Shearman employment), then the amount you can pay into your pension and receive tax relief on (your Annual Allowance) in this tax year may be reduced.

Anyone who has an 'Adjusted Income' over £260,000 will be affected. This means your allowance will decrease by £1 for every £2 that exceeds £260,000. Those with an 'Adjusted Income' of £360,000 or more will see their allowance reduced to a minimum of £10,000. Learn more about the tapered annual allowance.

For full information on the Tapered Annual Allowance, please visit the HMRC website.

The category of DC Section which applies to members whose membership of the  A&O Shearman Pension Scheme began before 1 April 2021 (except where they have chosen to move into Category B).

References to "Category A members" are to members within this membership category.

The category of DC Section which applies to members whose membership of the  A&O Shearman Pension Scheme began before 1 April 2021 (except where they have chosen to move into Category B).

References to "Category A members" are to members within this membership category.

The contributions that A&O Shearman credits to your pension savings on an age-related scale. Applicable to Category A only.

For Category A and Category B members, the basic contributions that you can make in order for A&O Shearman to pay Matching Contributions.

For Category A members the ordinary contributions are capped on an age-related scale.

For Category A members, the contributions that A&O Shearman pays to your pension savings, which will match your Ordinary Contributions.

For Category B members, the contributions that A&O Shearman pays to your pension savings, which will represent 2 x your Ordinary Contributions.

A cap on your Pensionable Salary for the purposes of your pension contributions. This is reviewed annually and for the year 2025 is £223,800.

A physical or mental deterioration which, in the Trustee’s opinion, is sufficiently serious to prevent the individual from following their normal employment, or which, in the opinion of the Trustee’s, seriously impairs the individual’s earning capacity. It does not mean simply a decline in energy or ability.

The minimum age of 55 under legislation that retirement benefits can be taken (other than on grounds of Incapacity or Serious Ill Health). This is due to rise to 57 in April 2028.

Is your 65th birthday. A DC member who joined the Scheme before 1 April 2010 has the right to retire at age 62.

Except maternity/paternity or adoption absence – is any period of absence authorised by A&O Shearman for any reason during which you receive remuneration from A&O Shearman. It does not include a period of membership during which you are in receipt of benefits from A&O Shearman's Group Income Protection (GIP) policy.

For Category A members: Pensionable Salary is fixed on 1st January each year for the following twelve months and is the annual rate of basic salary payable on that 1st January. This is based on your salary prior to any salary sacrifice, and includes premium hours payment, but excludes all other kinds of emolument including overtime, awards and bonus payments.Your Pensionable Salary each year must not exceed the Earnings Cap which applies on that 1st January. If you do not have a salary at 1st January, your Pensionable Salary will be the salary which applies to you on the first day or your employment. If you are on maternity/paternity or adoption leave (but not a Paid Absence) on 1st January, your Pensionable Salary will be the basic salary you would have been receiving had you not been on maternity/paternity or adoption leave.

For Category B members: Pensionable Salary is the total annual rate of basic salary on any given date, subject to the same Earnings Cap.  If you do not have a salary at 1st January, your Pensionable Salary will be the salary which applies to you on the first day of your employment.

The period that you have been an active member of the Scheme since your date of being auto-enrolled to the scheme, (or since you elected to join if before 1 May 2008).

The Pension Input Period is the period (PIP) in which contributions paid by you or on your behalf are assessed against the Annual Allowance. The PIP for the Scheme is from 6 April to 5 April in the following year.

The account set up for you as a member of the Scheme. Your contributions and contributions made by the Firm invested on your behalf, together with any investment return, which could be positive or negative, and after deduction of expenses (such as investment management expenses).

A members' widow, widower or civil partner at the date of their death provided that they were married to, or in civil partnership with the member before Pensionable Service ended. If a member is not survived by a Spouse the Trustee may, if A&O Shearman agrees, deem any person who in the Trustee's opinion was financially dependent upon the member, financially interdependent with the member, or dependent on the member because of a disability at the date of their death to be their  Spouse (except for an eligible child).