RPSM11104095 - Technical Pages: Lifetime allowance: Valuing benefits on BCEs: Unsecured pension - BCE 5B: Uncrystallised funds in a money purchase arrangement when member reached age 75 on or after 6 April 2011

Note: This page has no application where a member reached age 75 before 6 April 2011 (see RPSM11104090).

Uncrystallised funds held in a money purchase arrangement when member reached aged 75 on or after 6 April 2011

Where a member has uncrystallised funds held under a money purchase arrangement and they reach age 75 on or after 6 April 2011, 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. BCE 5B applies to remaining unused funds in an arrangement whether or not some of the funds in the arrangement were crystallised before age 75 e.g. part of the funds were designated as available for the provision of drawdown ( before 6 April 2011 unsecured) pension. At the time the funds were designated a BCE 1 will have occurred see RPSM11104060) and at age 75 a BCE 5A will occur (see RPSM11104640). The amount which counts as remaining unused funds for the LTA test under BCE 5B is those sums and assets held for the purposes of the arrangement which have not been designated as available for the provision of drawdown pension and which have not been applied towards the provision of a scheme pension or a dependants’ scheme pension.