Where a member's lump sum rights in a registered pension scheme qualify for scheme specific protection of a lump sum of more than 25% , the member can retain that protection on transferring those rights out of that scheme, but only if the transfer is part of a block transfer to another registered pension scheme.
If this transfer is part of a block transfer, you would usually know. If you let the scheme administrator of the receiving scheme know that lump sum protection applies to the member, and what the lump sum rules are in your scheme, the new scheme administrator can then take this into account as appropriate when the member takes their lump sum under the rules of that scheme.
If the transfer is made in any other circumstances, the member loses their lump sum protection. Once you have made the transfer, the member's lump sum entitlement will be limited according to the rules of the receiving scheme. You do not need to provide any information about the lump sum entitlement under your scheme rules to the receiving scheme administrator in these circumstances.
| Glossary ( RPSM20000000) |
