Can anyone clarify the basis on which the standard capitalisation factor (SCF = 20) is determined to convert a DB pension into an equivalent lump sum for the application of the Standard Fund Threshold.
Does it assume that subsequently the pension is index linked or has a spousal protection element?
If one doesnt have such features in ones DB plan then surely a lower cap factor would apply and is this a basis for challenging the fairness of the application of the SCF in such an indiscriminate manner ... if so who would one challenge it with ? ... is there an ombudsman that one can approach for such revenue related issues? ( I am assuming that the pensions ombudsman has no jurisdiction over the issue)
Any thoughts?
Does it assume that subsequently the pension is index linked or has a spousal protection element?
If one doesnt have such features in ones DB plan then surely a lower cap factor would apply and is this a basis for challenging the fairness of the application of the SCF in such an indiscriminate manner ... if so who would one challenge it with ? ... is there an ombudsman that one can approach for such revenue related issues? ( I am assuming that the pensions ombudsman has no jurisdiction over the issue)
Any thoughts?
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