Royal London’s Drawdown Governance Service (DGS) & the MPAA

31 January 2017
The DGS is more than just a pretty website, it can help you to target those clients who are most likely to be affected by the proposed cut in the Money Purchase Annual Allowance MPAA).

Clients who have triggered the MPAA

When it was launched Royal London automatically uploaded all drawdown clients who were currently taking income from their plan onto the DGS. This means  you can assume that every client in Flexi-Access Drawdown (FAD) on the system will have triggered the MPAA.

The only exceptions are those who are:

  • Clients who are taking income within their GAD limit from a capped drawdown plan. These clients will be on the DGS will not have triggered the MPAA (should they exceed the GAD limit they will automatically convert to a FAD policy).
  • Clients who are not taking income but you have chosen to add to the system yourself. Clients who have never withdrawn income (i.e. in excess of 25% of the fund) will not have triggered the MPAA.

Clients who are still contributing to their pension plan

It gets better. The data held in the DGS allows you to specifically target those clients who have triggered the MPAA and are also currently contributing. While you will want to consider writing to all your drawdown clients these are the ones most likely to be affected by the MPAA cut.

All you need to do is bring up the list of your Royal London drawdown clients and click on the “more info” button on the right hand side of the screen. The data sheet that this opens contains a column regarding contributions; you can then set the criteria to identify those clients who are contributing and explain that they most likely have one last chance to contribute £10,000 before the change comes in, in April.


Of course this does only apply to those clients lucky enough to be with Royal London …


Further information

For more information about the proposed changes visit Reducing the money purchase annual allowance

About the author

Fiona Tait

Pension Specialist

Fiona joined the life and pensions industry in 1989. She is a Fellow of the Personal Finance Society, an Associate of the Chartered Insurance Institute and is currently Vice-President of The Insurance Society of Edinburgh. Fiona specialises in the areas of at retirement planning and pensions and divorce.

Last updated: 31 Jan 2017

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.