Protected PCLS

Post-April 2006, clients may be entitled to Pension Commencement Lump Sum (PCLS) of 25% of their fund value – subject to a maximum fund of their Standard Lifetime allowance.

Protected PCLS

However, at A Day (6th April 2006), certain clients they may have had a PCLS entitlement of more than 25% of their fund, or have Primary or Enhanced protection. They may also be considering Fixed Protection.

The maximum amount of the scheme-specific lump sum payable as a PCLS will be the amount of Tax-Free Cash on 5 April 2006 increased by 20% (providing the SLA does not exceed £1.8 million), plus

An additional lump sum relates to any increase in the value of the individual’s benefits that has occurred from 6 April 2006 onwards.

See PTM063130

Depending upon the client’s situation, the Pension Commencement Lump Sum calculator will provide an indication of the client’s projected PCLS entitlement at retirement.