RPSM10104760 - Technical Pages: Death benefits: Pensions: Dependants' alternatively secured pension: Additional funds brought in after initial designation 

This guidance only covers individuals who became entitled to dependants’ pension before 6 April 2011.

If an individual became entitled to their pension on or after 6 April 2011 then see the guidance on dependants’ drawdown pensions at RPSM10104850.

Where additional funds are brought into the dependants’ alternatively secured pension fund after the initial designation

There will be circumstances where additional funds are brought into an existing dependants’ alternatively secured pension fund held under an arrangement.

This may happen, for example, where

• the dependant is permitted to stagger the designation of funds allocated to him or her under the arrangement (although, as no lump sum is paid on designation, and no minimum dependants’ alternatively secured pension need be drawn, this is unlikely to be an option the dependant would choose),
• for some reason the allocation of funds under the arrangement between dependants is staggered, perhaps because of a dispute,
• further funds are allocated to the dependant under the arrangement because another dependant of the member has died leaving a residual dependants’ unsecured pension fund or dependants’ alternatively secured pension fund (see RPSM10104530 and RPSM10104770), or
• the dependant transfers a pension credit into the arrangement and their dependants’ alternatively secured pension fund.

Such additional fund designation does not trigger a review of the existing maximum. The maximum should however be re-calculated at the beginning of the next pension year.