Concurrency (Pensions) meaning

In pensions practice, concurrency means an individual being an active member of more than one pension scheme at the same time (for example, membership in two workplace schemes through multiple employments, or a workplace scheme alongside a personal pension). The term is descriptive rather than a defined statutory term, and its usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland. Concurrency is generally lawful. In the UK, each employer’s automatic enrolment duties apply per employment, so parallel active membership can arise. Tax relief and charges are assessed across all schemes taken together: HMRC applies the annual allowance (including any taper) and, where triggered, the money purchase annual allowance, on an aggregate basis. Scheme rules may contain additional limits or coordination provisions (particularly in some public sector schemes). In Ireland, there is no general prohibition on concurrent membership. Revenue limits on tax relief and maximum benefits apply in aggregate across all occupational schemes and PRSAs, and scheme rules may impose further constraints. Concurrency has practical significance for employers, trustees and advisers when assessing eligibility, administering auto-enrolment (UK), monitoring contributions and accrual, managing annual allowance positions, and advising on interactions between occupational and personal pensions.