Protection - Enhanced, Primary, Fixed and Individual

Question 1

What Protection is in place for Pensions?

Answer 1

4 Types

Primary - A Day

Enhanced - A Day

Fixed - 2012 / 2014 / 2016

Individual - 2014 / 2016

P & E held = E comes first

F & I held - F comes first

Question 2

When was A Day?

Answer 2

6 April 2006

Question 3

Primary Protection - how does it work?

Answer 3

£1.5m at A Day

Enhancement Value = (Value - 1.5M) /1.5M

Can continue contributions and accrual in DB and DC

Question 4

Enhanced Protection - how does it work?

Answer 4

Available to all with pre A Day benefits

DB - no further contibutions

DB - accrual ok as long as it is within appropriate limits

DC - no further contibutions

Unless providing DIS benefits

NO LTA charge at Crystallisation

Question 5

Fixed Protection - how does it work?

Answer 5

FP2012

NO DC contributions on / after 6.4.2012

NO DB Accrual - cease by 5.4.2012

FP2014

As above

DB Accrual not to exceed relevant % in tax year

FP2016

As FP2014 above

Question 6

Individual Protection - how does it work?

Answer 6

IND 2014

From 18.4.2014 - 5.4.2017 for those that hadnt applied for Primary Protection

No restrictions on contributions / accruals for DC and DB

IND 2016

Based on rights at 6.4.2016