RPSM03302080 - Scheme Administrator Pages: Protecting pension rights from tax charges: Valuing lump sums: Maximum permitted lump sum – pre 14/3/89 statutory scheme

The maximum permitted lump sum: statutory schemes set up before 14 March 1989

The value of the maximum permitted lump sum for arrangements under statutory schemes that were set up before 14 March 1989 is the maximum lump sum that the scheme could pay the individual on 5 April 2006. It should be assumed that the individual left employment on or before 5 April 2006 and that no reduction is applied to the individual’s lump sum on account of their age on 5 April 2006. Further, the individual should be assumed to be in good physical and mental health.