RPSM11101200 - Technical Pages: Lifetime allowance: Level of lifetime allowance: Reduction for benefits in payment before 6 April 2006

Reduction in available lifetime allowance on a first BCE when there are pensions in payment that started before 6 April 2006

Where a member is in receipt of a pension that came into payment before 6 April 2006 (what the legislation calls a pre-commencement pension), the level of the member’s lifetime allowance is not changed due to the existence of such a pension in payment.

However because of that pension, the level of lifetime allowance the member has available is reduced the first time a BCE test is triggered on or after 6 April 2006. The level of this reduction is based on the value of that pension in payment immediately before that BCE.

This is all explained in RPSM11102110 and RPSM11104910 to RPSM11104960.