RPSM03101100 - Technical Pages: Protecting pension rights from tax charges: Valuing pension rights at 5 April 2006: Uncrystallised rights - hybrid arrangements

Uncrystallised pension rights: hybrid arrangements

In hybrid arrangements, an individual’s uncrystallised pension rights are valued on the basis of whichever rights have the highest or higher value.

For example, an individual may have rights in an arrangement to take benefits from their fund on a money purchase basis, or take benefits at say 1/100th of pensionable earnings for each year of service. The fund and the defined benefits right would both be valued as at 5 April 2006 and the higher value would apply for protection purposes.