chapter 3

Question 1

primary protection

Answer 1

• people had had pension entitlement of more than 1.5 million.
• could continue to accrue benefit
• to calculate you need to find the primary protection factor
• ## value of benefits - 1.5 million1.5 million
• 25 x pension for crystallised ones
• after 2016 the factor was under as the underpin of 1.8 million (1.8 million x factor )
• if they had tax feee cash below 25% of lifetime allowance then it wasn’t protected. However they could still take 25% of the original allowance limit

Question 2

enhanced

Answer 2

• it was available for anyone with benefits
• Appropriate for those whose benefits were below the lifetime allowance but where there was a possibility that the lifetime allowance may be breached.
• No accrural was allowed
• Defined benefit had to stay within the appropriate limit

Question 3

fixed protection 2012

Answer 3

• reduced from 1.8 million to 1.5 million on 6 April 2012.
• those without enhanced or primary protection who had accrued or expected to accrue pension rights in excess of 1.5 million could apply
• could not apply if applied for primary/ enhanced.
• under his protected up to 1.8 million
• PCLS protected up to 1.8 million
• no accrual between 6 April 2006 and 5 April 2023
• could have accrued benefits in line with scheme rules, CPI, life cover or transfer a pension
• could not set up any other
• can now recommence

Question 4

fixed protection 2014

Answer 4

The lifetime allowance was reduced from 1.5 million to 1.25 million.
- if they had not applied for other could have it.
- protected PCLS up to amount
no accrual between 6 April 2006 and 5 April 2023
- could have accrued benefits in line with scheme rules, CPI, life cover or transfer a pension
- could not set up any other
- can now recommence

Question 5

Fixed protection 2016

Answer 5

• 6 April 2016 nee lifetime allowance was 1 million.
• could apply and have a protected amount of 1.25 million
• could not accrue.
• no accrual between 6 April 2006 and 5 April 2023
• could have accrued benefits in line with scheme rules, CPI, life cover or transfer a pension
• could not set up any other
• can now recommence.
• anyone who applied for it after March 2023 will loose the protection for accruing benefits.

Question 6

age 75 taking an UFPLS

Answer 6

• must have some remaining LTA
• must be uncrystallised

Question 7

private pension age

Answer 7

• it is changing to 57 in april 2028 and will affect people who were born after 5 april 1973

Question 8

dependant

Answer 8

-married or in the eyes of administrator was in relationship with financial mutual dependence

-under 23

• married

Question 9

primary protection persona allowance

Answer 9

• those who have cystallised are valued via 25:1
• for uncrysattlossed you

-take away 1.5milliom and divide it by the same. This will give you a percentage point

• for 2023 you then add it to the 1.8 through 1.8 million + (1.8 million x uplift)