Individuals who didn't opt for transitional protection, and had the right to more than 25% of their benefits value at 5 April 2006 as a tax-free cash lump, can have the higher percentage paid when they crystallise their benefits. They didn't have to register this unless they were also applying for primary or enhanced protection. The higher tax-free lump sum amount is based on the amount of tax-free lump sum at 6 April 2006 (A-Day) increased by 20% until such time as the lifetime allowance is greater than £1.8m when it will be indexed in line with the increases to the lifetime allowance.
Individuals must become entitled to all of their pension and lump sum rights (that were not in payment on 5 April 2006) under the scheme on the same day.
PTM63130: scheme-specific lump sum protection - overview