RPSM03300040 - Scheme Administrator Pages: Protecting pension rights from tax charges: General introduction: How are rights valued

How are rights valued?

Have benefits crystallised?

Where a member has received a lump sum or has a pension in payment, benefits have already crystallised. Benefits are uncrystallised where the individual has a right to benefits, but they are not yet in payment. But note that where pension is to be paid in arrears, for example annually, benefits have crystallised at the start of the arrears period even if the first payment has not yet been made.

You can find details on how crystallised pension rights are valued at RPSM03301000.

The valuation of uncrystallised rights depends on the type of arrangement providing the potential benefits. Details can be found in these pages.

Please note that the value of any asset in a money purchase arrangement should be established in accordance with its market value as defined in section 278 Finance Act 2004.