RPSM03302040 - Scheme Administrator Pages: Protecting pension rights from tax charges: Valuing lump sums: Uncrystallised lump sums - RACs

How are uncrystallised lump sums valued - retirement annuity contracts?

The value of the member's lump sum rights is taken as 25% of the fund value in the retirement annuity contract on 5 April 2006.

Note that this amount is set by the legislation and may be different from the amount of lump sum that amount could have been paid under the pre 6 April 2006 rules.

Glossary ( RPSM20000000)