RPSM11103160 - Technical Pages: Lifetime allowance: The process for testing: In member's lifetime: At or before BCE: Responsibility of the individual

Responsibility of the individual before a BCE

Before a BCE takes place the individual concerned

• must tell the scheme administrator about any enhanced lifetime allowance, enhanced protection or fixed protection entitlement they intend relying on at that BCE, and
• should provide a complete and accurate response to any questions or declaration the scheme administrator asks of them.

Where two or more BCEs are going to occur simultaneously under different arrangements or registered pension schemes the individual must make the decision as to the order the BCEs will be considered for lifetime allowance purposes - see RPSM11102030.

An enhanced lifetime allowance or entitlement to enhanced protection, or fixed protection

Where a member intends to rely on an entitlement to an enhanced lifetime allowance (or enhanced protection or fixed protection) at a BCE they must tell the scheme administrator before that BCE takes place that they are entitled to enhanced protection/give details of the lifetime allowance enhancement factors they are entitled to. This is required by the above regulation.

They must provide the scheme administrator with the reference number issued by HMRC on the certificate confirming that entitlement as evidence of the entitlement.

If the member fails to do this then they will be liable to penalties (see RPSM12100020) - in addition also see the comments below regarding fraudulent or negligent statements.

Responding to the scheme administrator generally

Other than to provide evidence in support of an enhanced lifetime allowance or enhanced protection, there are no specific provisions in the legislation requiring a scheme member to respond to any requests for information from the scheme administrator before a BCE. However, the consequence of not responding, or providing the information or evidence a scheme administrator asks for, will probably be that either benefits or a transfer payment will not be paid, or that the scheme administrator will assume everything crystallising constitutes a chargeable amount - see RPSM11103190 and RPSM11105350.

If the member responds, but provides either incomplete or incorrect information, or makes a false declaration, then the consequences may be severe - see RPSM11103170.