PP & IP Flashcards
For PP how are Pre 2012 BCE’s revalued?
BCE x (1.5m/SLA @BCE)
For PP how are Post 2012 BCE’s Revalued
Not revalued - SLA was £1.8m underpinned
For PP what happens to the crystallised LTA and TFC when revalued?
LTA - goes down (SLA always lower than £1.5m)
TFC - goes up
Primary Protection TFC options (3)
25% of £1.5m
SSTFC > 25% of FV (Scheme!)
RTFC > £375k (Nottingham!!)
With PP how does RTFC increase?
Growth in the SLA between A day and BCE - £1.8m underpin
PP - How is TFC pre 2012 revalued if taken in stages?
Need to revalue the previous TFC: TFC x (£1.8m/SLA @ TFC withdrawal)
This brings the TFC up to current SLA level.
TFC amount therefore increased.
IP14 - How are pre 06/04/14 benefits valued?
BCE value x (£1.5m/SLA at time of BCE)
This uprates the original BCE to £1.5m level to see if they qualify for IP14
Max TFC under IP 14 or 16?
25% of personalised LTA unless SSTFC applies
IP can be lost or reduced by a pension debit after 2014. What is the reduction?
5% for each complete tax year from 2013/14. Discount the debit back to 13/14 value.
E.g £400k debit after 4 years would reduce by £80k. If this takes the value below £1.5 (IP14) or £1.25 (IP16) the protection is lost
IP16 - How are pre 06/04/16 benefits valued?
BCE value x (£1.25m/SLA at time of BCE)
This uprates the original BCE to £1.25m level to see if they qualify for IP16