RPSM09103080 - Technical Pages: Member benefits: An alternatively secured pension: additional funds designated after age 75

Where additional funds are added to the alternatively secured pension fund after age 75

In rare circumstances new funds or rights may be brought into the arrangement after the member’s 75th birthday. These funds will automatically be brought into (or designated into) any alternatively secured pension fund that exists under the arrangement.

Such circumstances could be

• where the member becomes entitled to a pension credit after the age of 75, and they choose to introduce those rights into the arrangement providing them with the alternatively secured pension (see RPSM09103100), or
• where the member benefits from the payment of a transfer lump sum death benefit following the death of another member of the same registered pension scheme.

A transfer of alternatively secured pension fund from another registered pension scheme is not such a circumstance. This is because such a transfer must be to a new arrangement (where no other funds are held). See RPSM09103160 for more details.

There is no review of alternatively secured pension limits where additional funds are brought in to an existing alternatively secured pension fund after age 75. The limit will always be reviewed at the beginning of the next pension year. This is unlike the position with an unsecured pension fund, where a review of maximum pension levels is triggered where additional fund designation occurs or an annuity is purchased.