RPSM03109022 - Technical Pages: Protecting pension rights from tax charges: Death benefits: Pre-commencement rights to death benefits

‘Pre-commencement rights to death benefits’

‘Pre-commencement rights to death benefits’ are prospective rights on 5 April 2006 to the payment of a lump sum death benefit from an arrangement under a scheme that becomes a registered pension scheme by virtue of paragraph 1(1) Schedule 36 FA 2004.

‘Pre-commencement rights to death benefits’ do not include

• a lump sum death benefit payable from a personal pension arrangement where the individual is already entitled to income withdrawal
• a lump sum death benefits payable under a 5 year (pension) guarantee or a lump sum payable under continued life cover provisions to an individual who is already entitled to retirement benefits under the arrangement.

See RPSM03109024 for guidance on the value of ‘pre-commencement rights to death benefits’.