(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
If any prescribed members (see paragraph PSI26.1.18) are involved in the conversion, the trustees must carry out valuations on their funds. If any member’s fund fails the test, that member and their fund must not form part of the conversion. The member would have to either transfer to another Chapter I scheme, have their benefits bought out in a deferred annuity, or remain in the original scheme under Chapter I (the scheme would thus become a dual approval scheme). In a partial conversion, if a re-allocation has taken place in accordance with Pensions Update 121 paragraphs 10 and 11, then the prescribed member may join the Chapter IV scheme.
