RPSM03109010 - Technical Pages: Protecting pension rights from tax charges: Death benefits: No lifetime allowance charge

Primary and enhanced protection: death benefits that cannot trigger a lifetime allowance charge

Dependants’ pension benefits

The payment of a pension for a dependant of a deceased member is not a benefit crystallisation event. The payment of pension to a dependant does not use up lifetime allowance and is not subject to the lifetime allowance charge.

Lump sum death benefits

The payment of the following lump sum death benefits is not a benefit crystallisation event and so these lump sum death benefits will not be subject to a lifetime allowance charge;

• a pension protection lump sum death benefit,
• an annuity protection lump sum death benefit,
• an unsecured pension fund lump sum death benefit,
• a charity lump sum death benefit,
• a transfer lump sum death benefit,
• a trivial commutation lump sum death benefit or
• a winding up lump sum death benefit.