On 5 April 2008 Joan receives an
unauthorised member payment from her
defined benefits arrangement. She has received no
other benefits and has no other arrangement under the registered
pension scheme.
The value of Joan’s uncrystallised rights in the
arrangement needs to be established to work out
what percentage of the fund the unauthorised payment represents.
The arrangement provides Joan’s with benefits of 1/40th
of pensionable earnings for each year in the scheme. No separate
lump sum is provided.
On 5 April 2008 Joan has pensionable earnings of £90,000
and has completed 20 years pensionable service.
This gives an annual pension of £45,000 (20/40 x
£90,000).
The value of Joan’s uncrystallised rights using the
(RVF x ARP) + LS formula is £900,000.
(20 x £45,000) + £0 = £900,000
| Glossary ( RPSM20000000) |
