RPSM12305010 - Scheme Administrator Pages: Information Requirements and Administration: Information a scheme administrator is required to provide to another scheme administrator: Transfers of crystallised rights

Transfers of crystallised rights

Where part or all of a member’s crystallised pension rights are transferred to another registered pension scheme, the administrator of the scheme making the transfer must provide the following information to the administrator of the scheme receiving the transfer.

The information to be provided is the total percentage of the standard lifetime allowance expended by

• all benefit crystallisation events in respect of the transferring scheme in connection with the sums and assets represented by the transfer, and
• where the transferring scheme has previously received (directly or indirectly) a transfer payment in respect of the member, any BCE prior to the transfer in connection with the sums or assets represented by the transfer, including ongoing investments from sums or assets represented by the transfer.

The information is required to enable the receiving scheme to provide the member with an annual statement under regulation 14 and should be provided within 3 months of the date of the transfer. It should be based on the position at the date of the statement.

The percentage of standard lifetime allowance expended on the happening of each relevant benefit crystallisation event for these purposes is found using the following formula

AE means the amount of lifetime allowance expended on the happening of the benefit crystallisation event. This is found by adding AC and SFTP (see below).

AC = the amount crystallised by the benefit crystallisation event

SFTP = the amount covered by a scheme-funded tax payment (see RPSM11105200) in relation to that benefit crystallisation event

RSLA = the relevant standard lifetime allowance at the time of that event.

The total percentage of standard lifetime allowance expended in relation to a member is the sum of all the percentages calculated using the formula above for each relevant benefit crystallisation event in respect of the member.