RPSM04104720 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Valuing uncrystallised rights – hybrid arrangements

Valuing uncrystallised member rights in a hybrid arrangement

In hybrid arrangements, a member’s uncrystallised pension rights are valued on the basis of whichever rights have the highest or higher value.

For example, Paul has rights in an arrangement to take benefits from his fund on a money purchase basis, or take benefits at 1/100th of pensionable earnings for each year of service. The fund and the defined benefit right would both be valued on the valuation date and the higher value would apply for the calculation of the unauthorised payments percentage.