If a person was entitled to claim primary protection for pension
rights in a pension scheme of which they were a member at 5 April
2006, but later transfers their pension rights out of that pension
scheme, they may retain primary protection for those pension
rights. They may also retain primary protection on any subsequent
transfer.
If you receive a transfer of pension rights or funds which
the member says qualify for primary protection, you do not need to
take any special action at that time.
However, at the time of a
benefit crystallisation event for the member in
your scheme. the
standard lifetime allowance at the time the
protected benefits are crystallised should be increased by the same
proportion as that by which the individual's pension rights
exceeded £1,500,000 on 5 April 2006. The member should
register his right to primary protection with HMRC and obtain a
certificate as evidence of this – see RPSM03202060.
| Glossary ( RPSM20000000) |
