Some benefits taken before 6 April 2006 may have to be
considered for the purposes of the
lifetime allowance if further benefits are taken
from the same or another registered pension scheme on or after 6
April 2006.
If a
BCE occurs in a pension scheme of the individual
on or after 6 April 2006 then the value of any pensions in payment
should be taken into account when calculating the available
lifetime allowance. the pension in payment will be regarded as
using up some or all of the lifetime allowance. The amount used
will be calculated by considering the level of annual pension
immediately before the occurrence of the first BCE after 5 April
2006, that amount is then multiplied by 25 to arrive at the used up
lifetime allowance. Further information is given in
RPSM11102110.
When the pre A-day pension is in the form of a scheme
pension, any increases to the scheme pension will need to be
considered to see whether a BCE 3 has occurred. Further information
is given in
RPSM11104970.
| Glossary ( RPSM20000000) |
