LTA and Transitional Protection

Question 1

Current Protection Regimes - Hasn’t been tested for a while

Answer 1

Fixed Protection 2016

FIXED so no ongoing accrual after 5/4/16
No minimum
Secures LTA of £1.25 million
Cannot hold FP12, FP14 or Primary or enhanced (They provide better protection anyway!)

Individual Protection 2016

Benefits more than £1 million as at 5/4/16
Can contribute or accrue benefits (NOT FIXED!)
Value of benefits at 5/4/16 to a max of £1.25 million
Cannot hold Primary or IP14

Question 2

Primary / Enhanced

Answer 2

Primary

available to individuals with pension rights in excess of £1.5 million at 5/4/2006
Given a factor above this now measure to highest LTA of £1.8 million

Enhanced

No limit
Protects full fund measured at 5/4/06
No accrual or contributions