Where a member has received a lump sum or has a pension in
payment (including pensions being paid via income
withdrawal/drawdown), benefits have crystallised. Benefits are
uncrystallised where the individual has a right to benefits, but
they are not yet in payment.
Where an individual has taken a lump sum before 6 April 2006
and has chosen to defer entitlement to the connected pension until
after 5 April 2006 the lump sum is not included in the valuation of
crystallised lump sum rights. (However where the election to defer
entitlement to the connected pension is made after 26 July 2004 and
so the lump sum paid before 6 April 2006 is deemed to crystallise
on 6 April 2006 - see
RPSM09104542 – the lump sum
should be classed as uncrystallised.)
If benefits have crystallised, you can find details on how
lump sum rights are valued at
RPSM03302020.
If they have not crystallised, then how the lump sum rights
are valued will depend on the type of scheme. Details can be found
in
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 s278 Finance Act
2004.
Detailed technical guidance on the valuation of lump sum
rights can be found at
RPSM03105030 to
RPSM03105130.
| Glossary ( RPSM20000000) |
