Small pots and lifetime allowance protection

Suse1969

Discussion here - can you take small pots if you have LTA protection? Looking at OMW and their 3 x £10k option.

richallum

@Suse1969 first thought is that LTA protection is lost with additional accrual not by taking benefits so can't see any problem with that. Am I missing something?

arongunningham

I think it's fine so long as the small pot isn't 'manufactured' after the protection was applied

Suse1969

We've found the answer (OMW application)

"OMW will not pay a small pension fund lump sum from your account if you have enhanced protection, fixed protection (2012 2014 or 2016), or intend to apply for fixed 2016"

So individual is ok. And it may be OMW that has this rule with their 3 x £10k option.

So it answers my OMW question, but I'm still looking for something in the rules. I'll post if I find it.

Suse1969

@arongunningham said:
I think it's fine so long as the small pot isn't 'manufactured' after the protection was applied

That's what OMW effectively do as you transfer into 3 x £10k pots.

Suse1969

And Pru have something in their tech library.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/small-pots-defined-benefit-trivial-commutations/

"funds in excess of the commutation limit"