Check youra pension scheme member’smember's protected allowancesallowance and enhanced protection

Overview

From​​​On 6 April 2024, the lifetime allowance was abolished.abolished.​

You’llTo needhold toa sendprotected anallowance Eventor Reportenhanced evenprotection, ifpension thescheme membermembers ismust relyinghave onapplied protectedand allowancesbeen andapproved bothon ofor thebefore follow5 apply: April 2025.​

• the

  As a scheme administrator hasof madea registered pension scheme, you’ll need to check if a paymentpension ofscheme member has a lumpprotected sumallowance or lumpenhanced sumprotection.

  You deathmust benefitsubmit relatedan event report to HMRC if a relevantmember:

  • crystallises benefitbenefits crystallisationand eventrelies on a protected allowance or enhanced protection
  • the member has exceededa theirlump availablesum or lump sum death benefit that exceeds their available allowance (even if they have a protected allowance)

  You’llYou’ll also also need to make sure you you give the right information to your members.

  ProtectionProtected beforeallowances 2016and reductionenhanced protections

  BeforeA 2016member yourcan members could hold one active protection but may have multiple enhancements which increase the value of the lump sum allowances.

  Protected allowance

  ​​​Your member could hold the following protections:protected allowances:

  • enhanced protectionprotection​​
  • primary protection​​
  • fixed protection​​
  • individual protection 2014​​
  • fixed protection 2014​​
  • individual protection 20142016​​
  • fixed protection 20142016​​

  Enhanced protection

  Your​Your membersmember shouldcan givehold youmore thethan pensionone schemeenhanced administratorprotection. referenceFor numberexample:​​

  • ​​​non-residence factor for theira protectiontransfer andfrom you’llan needoverseas topension usescheme​​
  • non-residence thisfactor whenfor testinga theirrelevant benefits.

    Youroverseas membersindividual​​

  • pension cancredit findfactor theirfor referencepre-commencement numberpension oncredit theirrights​​
  • pension protectioncredit certificatefactor orfor confirmationpreviously letter.crystallised Additionally,rights​​

  A mostmember’s membersenhanced protection will begive ablethem tothe viewright itto onlinean throughenhancement theirfactor. GovernmentThis Gatewaywill userincrease ID.

  Youthe mayvalue decide to ask your member for a copy of their protectionlump certificatesum soallowance youif can confirm the valueprotection ofis theirstill protected allowances.active.

  ProtectionBefore fromyou 2016 reductioncheck 

  TheYou protectionmust notificationregister numberfor isthe inmanaging thepension format:schemes service.

  • FP16

    How followedto bycheck

    To 10use digitsthe and‘check 1a letter,pension forscheme member’s protections fixedand protectionenhancements’ service  2016you’ll (forneed examplethe FP161234567890A)

  • IP16sign followedin bydetails 10linked digitsto andyour 1scheme letter,administrator for individual protection 2016 (for example IP161234567890B)
  ID.

  TemporaryIf you’re already referencesigned numbersin areto nothe managing longerpension valid.schemes Ifservice, youryou membercan hasselect onethe they’ll‘check needa topension applyscheme member’s protections forand aenhancements’ permanenttile protectionto notificationaccess number.directly.

  Protected

  allowancesStart look-upcheck service

  ToOnline checkservices ifmay yourbe memberslow hasduring protectedbusy theirtimes. allowances,Check youif canthere useare theany problems protectedwith allowancesthis scheme administrator look-up service.

  To

  After useyou’ve thecompleted look-up service, you’ll need:

  • your member’s National Insurance number
  • your member’s surname
  • your member’s protection notification number
  • your member’s pension scheme administrator check reference number

  InAfter mostchecking cases, your membersmember’s canprotected findallowance theseand referenceenhanced numbersprotection, throughyou their Governmentmay Gatewayneed userto ID,send evenan ifevent they did not apply for lifetime allowance protection online.report.

  IfFind yourout membershow loseto theirsend protectedan allowances,event they must tell HMRC immediately.report.