Individuals with rights at 5 April 2006 can protect them from
the
lifetime allowance charge when these rights come
into payment (crystallise) after 5 April 2006.
Rights are pension rights plus any separate lump sum rights.
Such lump sum rights usually occur in public sector pension
schemes. Lump sums by commutation of pension form part of an
individual’s pension rights - they are not separate lump sum
rights.
Death benefits are not similarly protected because they are
contingent benefits to which the individual does not have an
absolute entitlement. However, death benefits may be paid within
the protected limits for pension benefits.
Unlike primary protection, individuals can claim enhanced
protection regardless of the value of their pension rights.
| Glossary ( RPSM20000000) |
