RPSM09104230 - Technical Pages:
Member benefits: Lump sums: Pension commencement lump sum: Maximum
amount: General: Protection of pre 6 April 2006 entitlements
Protection of pension commencement lump sum entitlements that
arose before 6 April 2006
In certain circumstances a
pension commencement lump sum may be paid that
exceeds the normal 25% applicable amount limit. This is where the
member was entitled (or prospectively entitled) to a higher lump
sum benefit on 5 April 2006. Here the permitted maximum is altered
to reflect this retained right.
RPSM03105000 onwards sets out the
different forms of protecting lump sum rights at 5 April 2006.
Where the member has primary protection and lump sum rights
of more than £375,000 on 5 April 2006 the available portion of
the member’s lump sum allowance will be replaced by a
different (higher) figure.
RPSM03105140 explains how primary
protection and protection of lump sum rights works.
Where the member has enhanced protection and lump sum rights
of more than £375,000 on 5 April 2006 the permitted maximum
will be the proportion of the fund that could have been taken as a
lump sum benefit on 5 April 2006.
RPSM03105200 gives the explanation
of how enhanced protection and protection of lump sum rights works.
RPSM03105520 onwards explains the
position for members who do not have primary or enhanced protection
and whose uncrystallised lump sum rights were more than 25% of
their uncrystallised pension rights on 5 April 2006.
