The value of the lump sum is the amount that could have been
paid on 5 April 2006 to the member as a tax-free lump sum on the
assumption that the member had the right to receive it on that
date. Under HMRC rules for approved pension schemes at that date,
this was a maximum of 25% of the value of the member's arrangements
at 5 April 2006.
However, some
personal pension schemes (including stakeholder
pensions) may have had either a certificate showing a monetary
value for a lump sum, or a nil lump sum certificate, in respect of
an earlier transfer. (For example, a transfer from a non-commutable
additional voluntary contribution scheme (AVC) will have a nil lump
sum certificate.) In these cases, the lower value must be used.
Protected rights have a nil lump sum value.
| Glossary ( RPSM20000000) |
