When a
member takes benefits from a
registered pension scheme they use up a portion of
their
lifetime allowance. This is calculated as a
percentage of the standard lifetime allowance at the time that the
benefits were taken. The percentage of the standard lifetime
allowance that the benefits represented would depending on the
amount leave a residual percentage, or fully use up the available
lifetime allowance.
You should note that the percentage of the lifetime allowance
is always expressed by reference to the standard lifetime
allowance.
This will apply even where the member has notified you of an
enhanced lifetime allowance. It is possible, therefore, that an
individual may use more than 100% of the standard lifetime
allowance without necessarily incurring a lifetime allowance
charge.
| Glossary ( RPSM20000000) |
