Did you have lump sum rights exceeding £375,000 on 5 April 2006

When you notify your intention to rely on enhanced protection for your pension rights, transitional protection will also be available where you have lump sum rights of more than £375,000 on 5 April 2006.

The amount of your lump sum rights on 5 April 2006 is the aggregate of your crystallised lump sum rights in relevant existing pensions and your lump sum rights that have not yet come into payment (uncrystallised) in relevant pension arrangements.

If you notify HMRC of your intention to rely on enhanced protection you will be able to take your lump sum rights as a percentage of the total value of the lump sum plus residual pension that come into payment on or after 6 April 2006. The percentage will be derived from the value of your uncrystallised lump sum rights on 5 April 2006 and the value of your uncrystallised pension rights. This percentage will be shown on the HMRC certificate.

Refer to the Registered Pension Schemes Manual at RPSM 03105190 for further guidance on protection of lump sum rights of more than £375,000. You can access the manual using the link in the left hand side bar.