RPSM04104670 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Valuing uncrystallised member rights

Valuing uncrystallised member rights when calculating the unauthorised payments percentage

Uncrystallised rights are rights to benefits that the member is not currently entitled to have in payment.

Uncrystallised rights do not include the sums and assets making up an unsecured pension fund or alternatively secured pension fund. This is because even if a member chooses not to draw benefits from those funds the member still has the right to the actual payment of an unsecured pension or alternatively secured pension.

How uncrystallised rights are valued depends on the form of the benefits being provided by an arrangement, i.e. is the arrangement

• a cash balance arrangement (see RPSM04104680),
• an other money purchase arrangement (see RPSM04104690),
• a defined benefit arrangement (see RPSM04104700), or
• a hybrid arrangement (see RPSM04104720).

RPSM04104680 to RPSM04104720 set out how uncrystallised member’s rights are valued for each type of arrangement.