Information and administration: the member must provide information about any lifetime allowance protection they have
Regulation 11 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
A member may have a form of protection against the lifetime allowance as follows:
- primary protection - see PTM092300,
- enhanced protection - see PTM092400,
- fixed protection - see PTM093000,
- fixed protection 2014 - see PTM093000,
- fixed protection 2016 - see PTM093000,
- individual protection 2014 - see PTM094000,
- individual protection 20164 - see PTM094000,
- lifetime allowance factor following a transfer from a recognised overseas pension scheme - see PTM095400,
- lifetime allowance factor in relation to a relevant overseas individual - see PTM095300,
- lifetime allowance factor in respect of pension credit rights - see PTM095200.
If a member wants to rely on a form of lifetime allowance protection they must give the scheme administrator the reference number issued by HMRC in connection with the relevant form of lifetime allowance protection.
If a member who has individual protection 2014 (IP 2014) or individual protection 2016 (IP 2016) wants to rely on that form of protection they must also give the scheme administrator details of the relevant protected amount - see PTM094200 (for IP 2014) and PTM094210 (for IP 2016).
Scheme administrators may also choose to ask the member for:
- a copy of the relevant protection certificate, or
- details of the enhancement factor if the ember has primary protection or any other kind of lifetime allowance enhancement factor.
This requirement is not covered by the regulations but the scheme administrator will need this information to correctly calculate the amount liable to the lifetime allowance charge.
Section 261 Finance Act 2004
The member may be liable to a penalty if a member fraudulently or negligently:
- provides false information about lifetime allowance protection, or
- produces or makes available an inaccurate document or certificate in connection with their lifetime allowance protection
and as a result the member’s lifetime allowance or maximum pension commencement lump sum would be greater than it actually is.
PTM160800 gives more information about how the penalty is calculated.