RPSM03300030 - Scheme Administrator Pages: Protecting pension rights from tax charges: General introduction: What can be protected

What pension rights can be protected?

An individual can protect certain pension rights which they had before the tax system for pension schemes changed on 6 April 2006. These pension rights are the total of

• crystallised pension rights from ‘relevant existing pensions’ and
• uncrystallised pension and lump sum rights from ‘relevant pension arrangements’

taken at their values on 5 April 2006.

Crystallised pension rights do not include lump sums taken before 6 April 2006.

RPSM03300040 gives more information on whether benefits are crystallised or uncrystallised.

RPSM03301005 explains what pensions are classed as relevant existing pensions and so should be valued as crystallised benefits. Relevant existing pensions do not include a pension in payment that became payable on the death of another individual.

RPSM03301027 gives more information on what types of pension scheme are classed as ‘relevant pension arrangements’ and so should be included in the valuation of any uncrystallised pension or lump sum rights. Uncrystallised pension rights include a right to a separately calculated tax-free lump sum. A separately calculated lump sum usually occurs in public sector schemes.