LTA Fixed Protection and Final Salary payments

GoGas

When the LTA drops from £1.8m to £1.5 in April 2012 you can maintain the £1.8m level by registering for “Fixed protection” to . The rules state you cannot make any ”money purchase contributions” after April 2012. In the case where you have both a PPP and an ongoing Final Salary Scheme to which you continue to contribute, ff you stop paying into the PPP at April 2012 can you continue paying into the Final Salary Scheme after April 2012 and keep the Fixed protection so that the £1.8m can be the LTA value used when the combined worth of PP and the Final Salary Scheme is assessed on retirement?

This is stated in one place

For those without EP or PP on 5 April 2012, a new form of protection will be available, "fixed protection" (FP). Anyone can register for FP by that date, to be granted a personal LTA of £1.8m (again, this will increase if the standard £1.5m limit ever overtakes the £1.8m). FP will however be lost if, after 5 April 2012:

• Any money purchase contributions are made
• Defined benefits rights grow by more than the leaver revaluation rate stated in the pension scheme rules at 9 December 2010 or CPI, if higher
• a new arrangement is set up other than to receive a "permitted transfer" (broadly meaning transfer of accrued rights to another registered scheme for benefits on a money purchase basis, or in relation to certain business transactions)

What does anybody know what the Defined benefits rights grow by more than the leaver revaluation rate stated in the pension scheme rules at 9 December 2010 or CPI, if higher means? IS this that if soembody who leaves the scheme has an uplift of % by CPI providing soembody registered for Fixed protection who is continung to work (and contribute to Final Salary) will be able to maintain the FP and £1.8m providing their pension does not increase in the year they work by more than CPI e.g. if they had pay freeze and then the vlaue would increase but only the extra year they had worked.

Am I being optimistic?


thanks