Case studies

"The forms and precedents section is essential so that I can quickly and easily look up provisions to include in templates or bespoke project contracts."

RWE

Access all 1 documents on Basis amount

GET ACCESS NOW

GLOSSARY

Basis amount definition

Published by a LexisNexis Pensions expert

What does Basis amount mean?

The basis amount is the base calculation for determining the maximum level of drawdown/unsecured pension or alternatively secured pension (and the dependant equivalents) payable from a money purchase arrangement.

The basis amount represents the annual amount of lifetime annuity (or relevant annuity) income the unsecured pension fund or alternatively secured funds (etc) could purchase at the initial calculation and review points.

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

Drawdown from 6 April 2015

THIS PRACTICE NOTE APPLIES IN RELATION TO MONEY PURCHASE ARRANGEMENTS FROM 6 APRIL 2015On 6 April 2015, pension flexibilities were introduced to widen the retirement options available to DC members and other members with 'flexible benefits' (essentially money purchase and/or cash balance benefits). As part of the flexibilities introduced, drawdown became more widely available.For more information on the pension flexibilities introduced on 6 April 2015, see Practice Note: Pension freedoms—an introduction.This Practice Note focuses on the legal regime applicable to drawdown arrangements created on and from 6 April 2015. It also considers the treatment of pre-April 2015 drawdown arrangements on and from that date.For information on the legal regime that applied to drawdown arrangements before 6 April 2015, see Practice Note: Drawdown between 6 April 2011 and 5 April 2015 [Archived].What is drawdown?The term ‘drawdown pension’ (sometimes referred to as 'flexible income') replaces the terms ‘unsecured pension’ and ‘alternatively secured pension’ which were used before 6 April 2011.Drawdown pension refers to the pension payment process which permits members to choose...

Discover our 1 Practice Notes on Basis amount