RPSM12301090 – Scheme Administrator Pages: Information Requirements and Administration: Information the scheme administrator is required to provide to HMRC: The Event Report: Event number 7 - Pension commencement lump sum

Event number 7 - Pension commencement lump sum

[Reg. 3 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567, Paras 1 – 3 Sch 29]

Reportable event

A reportable event will arise when a pension commencement lump sum is paid to a member, and

• the value of this exceeds 25% of the total of the lump sum paid and the amount crystallised in connection with the associated pension. and
• the amount of the lump sum is more than 7.5% but less than 25% of the standard lifetime allowance for the tax year in which it is paid.

Where a lump sum payment is made before the member becomes entitled to it, the scheme administrator will not initially know whether the payment is a pension commencement lump sum or an unauthorised payment. Where the payment is a pension commencement lump sum (see RPSM09100340) it is reportable in relation to the tax year in which it was paid (which may be different from the tax year in which entitlement to it arose), where the bullet points above apply. Where the tax year of payment is different to the tax year of entitlement, the test (above) for whether the lump sum is reportable is made using the standard lifetime allowance for the tax year of payment.

Information required

The information required is

• the name of the member
• their address
• their date of birth
• their National Insurance number (if known)
• the amount of the lump sum
• the date of the lump sum and
• the amount crystallised on the member becoming entitled to the pension with which the lump sum is associated.