Amendments to the pension simplification regulations published just before A-Day, reveal only 25% of protected rights in a pension can be taken as a pension commencement lump sum (PCLS), even if the scheme member is entitled to a higher amount.
Now a Statutory Instrument, the Taxation of Pension Schemes (Consequential Amendments of Occupational and Personal Pension Schemes Legislation), set out a series of amendments to the pension simplification legislation. Among them was an amendment to the protected rights section of the Personal and Occupational Pension Schemes regulations of 1996 which states a PCLS can only be taken providing the scheme imposes a maximum limit on the amount to be taken. This limit has to be a maximum of 25% of the protected rights fund, or the percentage amount which represents the value of the protecte...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
