David Downie: Tackling the DB transfer 'appropriate limit' hurdle

Scrutiny from the FCA and rule changes now mean there is a lot to consider when advising on defined benefit (DB) transfers. In this climate, it is easy to overlook the extra hurdle of the ‘appropriate limit' rule when your client has enhanced protection. In 2006, ‘pensions simplification' came into force, replacing long-standing occupational pension rules relating to DB schemes. Some higher paid employees had built up pension benefits with a value that exceeded the lifetime allowance (LTA) in advance of the rules changing. 'Enhanced protection' was one of the options made available to...