RPSM12306004 - Scheme Administrator Pages: Information Requirements and Administration: Scheme pension or lifetime annuity provided by insurance company: Unsecured pension funds - information provided by the insurance company to the pensioner or annuitant

Unsecured pension funds - information provided by the insurance company to the pensioner or annuitant

Where amounts derived from unsecured pension funds have been received by an insurance company and secured by the provision of a lifetime annuity or a schemepension for a member, the insurance company must provide a statement to the recipient at least once in each tax year.

Annual statement - only part of the unsecured pension fund has been used

The statement must show the percentage of the standard lifetime allowance expended at the date of the statement in respect of that scheme pension or lifetime annuity.

Details of how to find the percentage of standard lifetime allowance expended on the happening of a benefit crystallisation event are on page RPSM12306030.

However, there is no need to provide a statement if the percentage is 'nil'. This might happen if, by the operation of the overlap rules (see RPSM11104540), no amount crystallised arises on the current BCE2 or BCE4.

Annual statement - the entire remaining unsecured pension fund has been used

The statement must show the sum of the percentages of the standard lifetime allowance expended. In arriving at this figure you should count

• benefit crystallisation events in respect of the scheme from which the unsecured pension funds were received to the extent that the sums and assets subject to those events have not been the subject of a transfer to another registered pensionscheme, and
• benefit crystallisation events in respect of a scheme pension after the pensioner first became entitled to it, and
• where the scheme from which the unsecured pension funds were received has received (directly or indirectly) a transfer in respect of the member in question, any benefit crystallisation event prior to the transfer in connection with the sums and assets represented by the transfer and sums and assets which were replaced by the sums and assets included at the first bullet point above,

but you should not count any of the following

• benefit crystallisation events which have been the subject of a statement under regulation 17(2) (see guidance under the heading "Only part of the member's unsecured pension scheme has been used" on page RPSM12306002), or
• benefit crystallisation events which have been the subject of a statement under regulation 16(3) (see RPSM12306020), or
• benefit crystallisation events which are referable to sums or assets which continue to be held by the scheme from which the unsecured pension funds in question were received.

Details of how to find the percentage of standard lifetime allowance expended on the happening of a benefit crystallisation event are on page RPSM12306030. The percentage expressed on the statement should go to two decimal places (e.g. 25.55%). This should be a rounded down figure, so 25.558% becomes 25.55%.