explains that the tax rules may allow the member to take an
additional element to their
pension commencement lump sum without incurring an
unauthorised payments charge, based on the
increase in the value of their pension rights after 5 April 2006.
However, if the value of the rights in the member's fund at
the time of the benefit crystallisation event has not increased at
a higher rate than the increase in the standard lifetime allowance
since 6 April 2006, no additional lump sum may be paid. (For
example if the
standard lifetime allowance increases by 20% by
the date of the
benefitcrystallisation event, but the fund value only
increases by 10% there will be no additional lump sum amount for
the period after 5 April 2006.)
The member will however, still be entitled to take any
indexed protected lump sum from the value of their rights as at 5
April 2006.
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| Glossary ( RPSM20000000) |
