RPSM11300100 – Administrator
Pages: Lifetime allowance: How the lifetime allowance is
operated
What happens if an individual reaches age 75 but cannot be
contacted
If a
member has reached age 75, and
- as a result, a
benefit crystallisation event (BCE) has occurred;
this will be either a BCE 1 for uncrystallised rights in money
purchase arrangements, a BCE 5 for prospective rights in defined
benefit arrangements or a BCE 5A where the member has previously
designated funds as available for the payment of an unsecured
pension; and
- the member is untraceable or the
Scheme Administrator has been unable to contact
the member to obtain details of the available lifetime allowance
(but not including the situation where a member can be contacted
but fails to respond).
In an instance such as this, the Scheme Administrator is
entitled to make a commercial judgement based on the available
information and the particular circumstances of the case as to
whether a
lifetime allowance charge should apply.
In the event of any subsequent discovery that a lifetime
allowance charge was due but was not returned, APSS would need to
be satisfied that the judgement exercised by the Scheme
Administrator was appropriate in the circumstances in order to
operate the good faith discharge of tax liability.