RPSM10104740 – Technical Pages: Death benefits: Pensions: Dependants' alternatively secured pension

A dependants’ alternatively secured pension

A dependants’ alternatively secured pension may only be paid direct from the arrangement as income withdrawals. RPSM09102030 explains what income withdrawals are.

A dependant may become entitled to a dependants’ alternatively secured pension

• at some point after age 75 (following the death of the member), or
• at age 75, where already in receipt of a dependants’ unsecured pension.

When entitlement initially arises, funds are said to be designated to provide the dependant with a dependants’ alternatively secured pension. Those funds then become that dependant’s dependants’ alternatively secured pension fund (see RPSM10104730).

The dependants’ alternatively secured pension fund created at that time may in some circumstances be added to at a later date (see RPSM10104760).

A dependants’ alternatively secured pension can be paid at the same time as any continuing guarantee payments from the member’s alternatively secured pension fund. In such a case, the fund would have been split.

Taxation of a dependants’ alternatively secured pension

A dependants’ alternatively secured pension is taxable as pension income on the recipient through PAYE (see RPSM04101020).