RPSM10105200 - Technical Pages: Death benefits: Lump sums pre 6 April 2011: Member dies aged under 75: An uncrystallised funds lump sum death benefit

This guidance only covers the position where the member died before 6 April 2011. If the member died on or after 6 April 2011 see RPSM10106000.

An uncrystallised funds lump sum death benefit

An uncrystallised funds lump sum death benefit can only be paid

• from a money purchase arrangement,
• where uncrystallised funds are held in the arrangement at the time the member died, and
• where the member died before reaching their 75^th birthday.

Must be paid within two years

An uncrystallised funds lump sum death benefit must be paid within two years of the earlier of the following two days

• the day the scheme administrator first knew of the member’s death,
• the day on which the scheme administrator could first reasonably be expected to have known of the member’s death.

If it is paid later than two years after the earlier of these two days, then it will not be an uncrystallised funds lump sum death benefit. Unless it falls within the definition of one of the other authorised lump sum death benefits it will be an unauthorised member payment.