Pension Input Period Print
A PIP is the period over which the amount of pension saving (pension input amount) under an arrangement is measured. The measurement is based on the principle of how much was saved from the start of the PIP to the end of the PIP.
Since 9th July 2015, a PIP for an arrangement under a registered pension scheme follows the tax year. Prior to this date the PIP did not have to be exactly the same as the tax year.
Prior to 9th July 2015 an individual could have more than one PIP. For example an individual could have:
A different PIP for each scheme that the individual is a member of, or
Different PIPs for each arrangement the individual has under the same registered pension scheme.
Prior to 9th July 2015 the PIP normally ran for a year, for example from 1 January to 31 December. A PIP could also be less than a year. The first PIP for an arrangement could not be longer than 12 months but a subsequent PIP for that arrangement could have been longer than 12 months.
An individual could not have more than one PIP relating to the same arrangement ending in the same tax year.
The first PIP will start from the date that the first contribution is paid to the arrangement.
Prior to 9 July 2015, that first PIP would end on the following 5 April unless an earlier or later end date was nominated. That nominated end date must have been within 12 months of the starting date of the PIP. A nomination for an end date later than 5 April could have been made after 5 April but this could not be a date before the nomination is made.
Now the system has been simplified PIPs are straightforward. Care must be taken when assessing unused relief from previous PIPs to carry forward.