| [Para 9(3) Sch 36] |
There is a limit on the amount of benefit which could be paid to
the individual for each employment which has generated pension
rights at 5 April 2006 under approved schemes listed in paragraph
9(1) Schedule 36 Finance Act 2004. This limit is defined in
paragraph 9 Schedule 36 Finance Act 2004 as the maximum permitted
pension (MPP).
The value under paragraph 9 Schedule 36 is 20 times MPP. How
MPP is valued depends on whether or not the scheme is a statutory
scheme set up before 14 March 1989.
RPSM03101532 describes what MPP is
for statutory schemes established before 14 March 1989 and how the
value for paragraph 9 Schedule 36 is calculated.
RPSM03101531 describes what MPP is
for any other type of retirement benefits scheme or deferred
annuity contract (section 32 policy). This includes statutory
schemes established on or after 14 March 1989.
Where the value of an individual’s pension rights
relating to an employment, as valued by paragraph 8 Schedule 36,
exceeds the value under paragraph 9 Schedule 36 (20 times the value
of the MPP), the value under paragraph 9 Schedule 36 becomes the
value for those rights which may be protected. The total value for
the individual’s uncrystallised pension rights must then be
adjusted accordingly.
| Glossary ( RPSM20000000) |
