If a person was entitled to primary protection in relation to
pension rights in a pension scheme of which they were a
member at 5 April 2006, but transfers their
pension rights out of that pension scheme, they may retain any
primary protection obtained in relation to those pension rights.
This retention of primary protection also applies on any subsequent
transfer.
This means that when the member crystallises benefits from
the receiving scheme, the
standard lifetime allowance at the time the
benefits that have primary protection are crystallised should be
increased by the same proportion as that by which the individual's
benefits exceeded £1,500,000 on 5 April 2006.
If you make a transfer from your scheme of pension rights or
funds which qualify for primary protection, you do not need to take
any special action. The higher lifetime allowance will be applied
when the member produces some form of evidence of their
registration for protection to whichever scheme holds the pension
rights they want to crystallise, at the time of the
benefit crystallisation event.
You can make the transfer (in accordance with your scheme
rules) and the transfer does not have to be reported to HMRC.
| Glossary ( RPSM20000000) |
