The New Lifetime Allowance: Standard Information for A-Day

The New Lifetime Allowance: Standard Information for A-Day

In the run-up to April 6th , 2006 (A Day for the new pension taxation regime) SPC expects scheme administrators to be dealing with significant numbers of requests for benefit information from members, seeking to assess what action they might take in relation to primary and enhanced protection of existing benefits in relation to the lifetime allowance under the new regime.

SPC’s Administration Committee has prepared an information statement which it hopes scheme administrators will find helpful as a basis for channelling in broadly the right direction members’ requests for information, given that the knowledge base of the member him or herself might be basic.

We have tried to keep the statement as simple as possible. The Committee therefore did not aim to set out an authoritative and comprehensive explanation of the working of enhanced and primary protection, and has not done so. The statement is also based on the Committee’s current understanding of the Finance legislation, which might change before A Day. This means that the figures included are provisional.

The statement is not designed to replace independent financial advice to individuals on their own position in relation to the rules of their specific scheme.

Any comments on the statement will be gratefully received.

Lifetime Allowance