Enhanced Protection Versus Individual Protection 2014

Lucky_Loser

It would appear that when you transfer out of a DB Pension to a SIPP you lose Enhanced Protection because at CETV figures your pension will be worth more than the notional 20 x annual pension used in BCE tests. However you can then fall back on previously dormant but registered individual protection 2014.

Is my interpretation correct as far as you know? The HMRC pages are challenging to interpret!

Thanks in anticipation of any answers and sorry for such a geeky first question.

Tcquins

Hi,

You dont lose enhanced protection through at DB to SIPP transfer, as long as its a recognised pension transfer.

the 20x benefit calculation is relevant though, with you being more likely to limited in a DC scheme.

Also depends on what type of enhanced protection certificate you have. If there's no mentioned of lum sum protection on the certificate then you'll be able to crystallise your pension fund up to the LTA but then are limited on the TFC you can take in your SIPP- you can crystallise more but it will just go into your drawdown pot, no further TFC