Pre 6 April 2006 protection

Pensions legislation rapidly changed on 6 April 2006. However, it was possible to protect existing benefits.

Protecting benefits

It was possible for members of pension schemes set up before 6 April 2006 to protect the benefits that they already had. There were 2 types of protection - primary protection and enhanced protection.

Protecting tax-free cash

Members who had a right to more than 25% tax-free cash on 6 April 2006 and who didn't opt for protection (see above) may still have their tax-free cash entitlement protected. This is called scheme specific protection.

Tax-free cash protection on transfer

Protecting tax-free cash on transfer is, and always has been, one of the most popular queries we receive. More specifically, what happens if a member who is entitled to tax-free cash of more than 25% is transferring to another plan?

Last updated: 31 Mar 2015

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