RPSM11102070 - Technical Pages: Lifetime allowance: When you test for the lifetime allowance: Age 75

Testing against the lifetime allowance at age 75

Benefits held in a registered pension scheme in respect of a scheme member will always have been tested against that member’s lifetime allowance by their 75^th birthday, whether or not those benefits have been drawn by that point. If benefits have not been drawn by the member’s 75^th birthday they are valued and tested for lifetime allowance purposes at that point.

The only BCE that can be triggered after an individual’s 75^th birthday is where a scheme pension in payment is increased beyond the permitted margin (so through BCE 3).

RPSM11102080 explains what happens at age 75 under a money purchase (including a cash balance arrangement).

RPSM11102090 explains what happens at age 75 under a defined benefits arrangement and under a hybrid arrangement.

RPSM11104640 explains what happens at age 75 when the member has a previously designated drawdown (before 6 April 2011 unsecured) pension fund which has not been fully applied to a scheme pension or lifetime annuity.