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If any of your members wish to protect their local government pension benefits from the lifetime allowance under Individual Protection 2014, they must do so by 5 April 2017.

We advise sending a reminder to all your relevant members.

Individual Protection 2014 was introduced when the lifetime allowance was reduced to £1.25m with effect from 6 April 2014 and allows individuals to maintain a Lifetime Allowance of the lower of £1.5 million OR the value of benefits at 5 April 2014. Individuals must have had pension savings of at least £1.25 million on 5 April 2014 to apply.

Members who want to apply for IP2014 protection must do this through the Lifetime Allowance online service, accessed through the guide Protect your lifetime allowance.

To apply, members will need an HMRC Online Services account. To create an account, or to login to an existing one, they should go to HMRC services: sign in or register.

Other members might be interested in applying for Individual Protection 2016 or Fixed Protection 2016. Individual Protection 2016 allows someone whose pension rights at 5 April 2016 were valued over £1 million (the Lifetime Allowance from 6 April 2016) to protect those rights, subject to an overall maximum of £1.25 million. There’s no deadline for applying for Individual Protection 2016.

Fixed Protection 2016 allows employees to maintain a Lifetime Allowance of £1.25m, although it places strict limits on how members build up future pension. There is also no deadline for applying for Fixed Protection 2016. For further information for your members please visit our member website page on Tax Allowances.