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Another LSDBA query (off back of defined benefits paperwork)

PippaOPippaO Member
in Technical stuff

Hi again,

Client will be crystallising a DB scheme in 23/24 TY (March 2024) age 62, using c15.5% of LTA.
Already used 65.47% of LTA in 21/21 & has another DB scheme crystallising age 65 (c12.79% LTA) + uncrystallised DC funds c£438k.

The DB Scheme paperwork is asking her to confirm the following:
"My total pension benefits are likely to exceed the Lifetime Allowance (£1,073,100 at 2023/24). I wish to protect my 5 year guarantee and opt for a pension protection lump sum death benefit".

Does it make any odds whether she opts for the 5 year guarantee or a pension protection LSDB? Don't both types of lump sum death benefit use up the LSDBA? Or would it be classed as a lump sum from pre-April 24 crystallised rights, therefore it's an excluded amount anyway?

Advice much appreciated.

Thanks.

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Comments

  • les_cameronles_cameron Member

    The guarantee continues in payment I think not a lump sum. If they become entitled to the pension before 6 April 2024 then you are correct the PPLSDB would be exempt.

    Unless my arithmetic fails me they are not going over 100% so not sure why the statement is relevant.

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