RPSM11104090 - Technical Pages: Lifetime allowance: Valuing benefits on BCEs: Unsecured pension - BCE 1: Uncrystallised funds in a money purchase arrangement when member reached age 75 before 6 April 2011

Note: Following the repeal of paragraph 8(2) of Schedule 28, this page has no application where a member reached age 75 on or after 6 April 2011 (see RPSM11104095).

Uncrystallised funds held in a money purchase arrangement when member reached age 75 before 6 April 2011

Prior to 6 April 2011, where uncrystallised funds were still held under a money purchase arrangement when the member reached age 75 those funds automatically became absorbed into the unsecured pension fund (so there was a deemed designation at that point). This is explained on RPSM09102080 and is covered in the example on RPSM11104130.

This deemed designation triggered a lifetime allowance test in the same way as where the member actually made the designation themselves, i.e. it is within the scope of BCE 1.

The effective point of designation was immediately before the member reached age 75 - so just before midnight (23:59 hrs) the day before that birthday - see RPSM11102080.

Paragraph 8(2) of Schedule 28 was repealed with effect from 6 April 2011. Since 6 April 2011, where a member has uncrystallised funds held under a money purchase arrangement when they reach age 75 these funds are known as remaining unused funds. BCE 5B is triggered in relation to the remaining unused funds when the member reaches age 75 (see RPSM11102080).