SCHEDULE 36Pension schemes etc: transitional provisions and savings
Part 2Pre-commencement rights: enhancement of allowances etc
“Primary protection”
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(1)
This paragraph applies where—
(a)
paragraph 7 F1applies in relation to an individual, and
(b)
on or after 6th April 2006, the rights of the individual under a relevant pension arrangement (see paragraph 8(2)) relating to the individual are reduced by becoming subject to a pension debit.
(2)
The primary protection factor (see F2paragraph 7(5)) is to be recalculated.
(3)
The recalculation involves reducing RR (see F3paragraph 7(5)) by the amount by which the individual’s rights are reduced and arriving at a revised primary protection factor.
(4)
The revised primary protection factor operates in relation to any F4relevant benefit crystallisation event occurring in relation to the individual after the time when the individual’s rights are reduced by becoming subject to the pension debit.
F5(5)
In this paragraph “relevant benefit crystallisation event” has the same meaning as in section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance).