RPSM04104680 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Valuing uncrystallised rights - cash balance arrangements

Valuing uncrystallised member rights in a cash balance arrangement

The value of a member’s uncrystallised rights under a cash balance arrangement is the amount that would be available for the provision of immediate benefit if the member was entitled to them on the valuation date, subject to two valuation assumptions.

The two valuation assumptions are that

• where the amount of the immediate benefit would be reduced because the member had not reached a specified age, the benefit should be calculated assuming the member has reached the specified age; and
• the member is deemed to be in good physical and mental health.