DB transfers could lose enhanced protection

Following A-Day the most common ways of members losing enhanced protection, where a fund which exceeds the Lifetime Allowance (LTA) is protected from a 55% tax charge, is if members make a contribution to a defined contribution (DC) scheme, or accrue relevant benefits under a DB scheme. But Standard Life say they have come across a number of cases in recent weeks where members have lost protection simply by transferring from a DB scheme to a personal pension, such as a Self Invested Personal Pension (Sipp), even if they haven’t been an active member. They say if an individual in a DB sc...