From 6 April 2006 a special lump sum death benefits charge will
arise where lump sum death payments are paid as a
pension protection lump sum death benefit, an
annuity protection lump sum death benefit or an
unsecured pension fund lump sum death benefit.
RPSM10105150,
RPSM10105160, and
RPSM10105230 provide more
information about these types of death benefits.
All these lump sums can only be paid after an individual has
crystallised pension rights and act as a form of pension guarantee.
These lump sums can only be paid if the individual dies before
their 75th birthday.
However, protection is available for an individual of an
approved
retirement benefit scheme who on 5 April 2006 was
in receipt of a pre-commencement pension which had a 5 year
guarantee attached. See
RPSM03107020.
| Glossary ( RPSM20000000) |
