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Does PPF compensation count towards SLA & trigger MPAA?
Shylock
Posts: 63 Forumite
I took compensation from the Pension Protection Fund in 2016 at the age of 56. It was a tax free lump sum and an ongoing monthly payment for life.
Perhaps naively I understood this to be "compensation", rather than a Pension, so gave no thought to it affecting future pension arrangements.
I have checked with them previously and was told that it didn't reduce my MPAA but in response to a recent query they've said it DOES count towards my SLA and quoted me the percentage figure.
I'm a bit confused as to how it counts towards my SLA but didn't trigger a reduced MPAA? Have I understood correctly?
Perhaps naively I understood this to be "compensation", rather than a Pension, so gave no thought to it affecting future pension arrangements.
I have checked with them previously and was told that it didn't reduce my MPAA but in response to a recent query they've said it DOES count towards my SLA and quoted me the percentage figure.
I'm a bit confused as to how it counts towards my SLA but didn't trigger a reduced MPAA? Have I understood correctly?
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Comments
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It does count towards SLA.
It doesn't trigger the MPAA because any compensation paid via the PPF can only be paid in respect of a DB pension scheme - and you can't 'flexibly access' benefits under a DB scheme or as PPF compensation. It is only when you 'flexibly access' any part of a DC pension scheme that the MPAA is triggered.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
Ah..! Of course! That makes sense. Many thanks.Marcon said:It does count towards SLA.
It doesn't trigger the MPAA because any compensation paid via the PPF can only be paid in respect of a DB pension scheme - and you can't 'flexibly access' benefits under a DB scheme or as PPF compensation. It is only when you 'flexibly access' any part of a DC pension scheme that the MPAA is triggered.0
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