RPSM12306002 - Scheme Administrator Pages: Information Requirements and Administration: Scheme pension or lifetime annuity provided by insurance company: Drawdown pension funds - information provided by the scheme administrator

Drawdown pension funds (previously unsecured pension funds) - information provided by the scheme administrator to the insurance company

[Reg 17 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567 

When a registered pension scheme has used sums or assets from a drawdown pension fund to secure a scheme pension or lifetime annuity from an insurance company, the scheme administrator of the registered pension scheme must provide the insurance company with a statement containing the following information.

Only part of the member's drawdown pension fund has been used

The information to be provided is the percentage of the standard lifetime allowance expended by the member becoming entitled to the 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.

There will of course be no pension commencement lump sum payable at this time because any such lump sum will have been paid when the member originally designated under BCE1.

The statement must be provided within 3 months of the purchase of the pension or annuity.

Entire drawdown pension fund has been used

The information to be provided is 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, to the extent that the sums and assets subject to those events have not been the subject of a transfer to another registered pension scheme, and
• if the scheme has received (directly or indirectly) a transfer in respect of that member, 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 in the bullet point above

but you should not count any of the following

• benefit crystallisation events which have earlier been notified to an insurance company where lifetime annuity or scheme pension has been purchased from a drawdown pension fund (see guidance under the heading "Only part of the member's drawdown pension scheme has been used" earlier on this page), or
• benefit crystallisation events which have earlier been notified to an insurance company where lifetime annuity or scheme pension has been purchased from uncrystallised rights (see RPSM12306010), or
• benefit crystallisation events which are referable to sums or assets which continue to be held by the scheme (this might be from other drawdown pension funds or scheme pensions paid by the scheme).

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 statement must be provided within 3 months of the purchase of the scheme pension or lifetime annuity. This is to enable the insurance company to provide a statement to the pensioner or annuitant (see RPSM12306004).