5. Money Purchase Annual Allowance (MPAA)

Question 1

What Events trigger MPAA

Answer 1

When MEMBER (not dependents, survivor, etc.)
Taking an income from flexible drawdown
Taking an UFPLS
Converting capped drawdown in to flexi-access drawdown AND makes an income withdrawal from that fund
Takes more than the permitted max drawdown from capped drawdown
Receives a stand alone lump sum when entitled to Primary Protection where lump sum protection > £375k
Receives a payment from a lifetime annuity when annual rate of payment can be decreased in other than permitted circumstances
Receives a scheme pension from MPP where pension paid to < 12 members at time first payment made
One of above payments from o/s pension that has benefited from tax relief
Members who entered flexible drawdown pre-4/15 automaticall subject to MPAA rules from 04/15

Question 2

What events DO NOT trigger MPAA

Answer 2

Taking PCLS
Receiving trivial commutation lump sum
Receiving small pots sum
Receiving scheme pension from DB arrangement
Receiving scheme pension from MPP where >= 12 people already receiving scheme pension
Receiving scheme pension by way of annuity
In receipt of lifetime annuity where payments may not go down, except in prescribed circumstances (conventional lifetime annuity)
post 04/15 takes no more than the permitted maximum from capped drawdown pension fund