RPSM06105050 - Technical Pages: Annual allowance: From 6 April 2011: Enhanced protection

Enhanced protection

From 6 April 2011 individuals who have enhanced protection will no longer have protection from any annual allowance charge.

An individual who has enhanced protection will also be fully liable to the annual allowance charge. This is primarily a consideration for individuals with a defined benefits, cash balance or hybrid arrangement as the individual could continue to meet the conditions for enhanced protection but still have pension input amounts to measure against the annual allowance.

For members with an other money purchase arrangement, enhanced protection would be lost immediately a relievable pension contribution is paid.