Pre A Day benefits
A different calculation is used when benefits were already in payment before 6th April 2006
A standard 25:1 valuation factor is used for pre-A-Day income benefits from a DB pension or annuity.
Income from a drawdown pension is more complicated.
The calculation that is carried out is determined by the form of the drawdown fund when the BCE occurs
Remember: this only applies where the drawdown pension was in payment prior to 6 April 2006 and the first BCE has occurred on or after 6 April 2015.
Note: the ‘maximum annual amount’ referred to here is equal to the basis amount × 150%. Therefore it’s 150% x 80% = 120%
