RPSM12303040 - Scheme Administrator Pages: Information Requirements and Administration: Information the scheme administrator is required to provide to the scheme member: Calculating SLA percentage
Calculating the percentage of standard lifetime allowance expended on the happening of a benefit crystallisation event
[Regulation 7 of The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567]
Individuals without fixed protection when they have a benefit crystallisation event (BCE)
The percentage of standard lifetime allowance expended on the happening of each relevant benefit crystallisation event for these purposes is found using the following formula
| AE | x | 100 |
| RSLA | 1 |
AE means the amount of lifetime allowance expended on the happening of the benefit crystallisation event. This is found by adding AC and SFTP (see below).
AC = the amount crystallised on the happening of the benefit crystallisation event
SFTP = the amount covered by a scheme-funded tax payment (see RPSM11105200) in relation to that benefit crystallisation event
RSLA = the relevant standard lifetime allowance at the time of that event
The total percentage of standard lifetime allowance expended in relation to a member is the sum of all the percentages calculated using the formula above for each relevant benefit crystallisation event in respect of the member.
The percentage expressed on the statement should go to two decimal places (i.e. 25.55%). This should be a rounded down figure, so 25.558% becomes 25.55%.
Individuals with fixed protection when they have a BCE on or after 6 April 2012
The calculation is carried out in the same way as described above, but instead of using the relevant standard lifetime allowance you use £1.8 million in the calculation where the standard lifetime allowance at the time of the BCE is not more than £1.8 million.
If the standard lifetime allowance becomes more than £1.8 million you use the relevant standard lifetime allowance in the calculation.
| Glossary (RPSM20000000) |
