SCHEDULE 28Registered pension schemes: authorised pensions—supplementary
Part 1Pension rules
Member’s unsecured pension fund
8
(1)
For the purposes of this Part the member’s unsecured pension fund in respect of an arrangement consists of such of the sums or assets held for the purposes of the arrangement F1as are member-designated funds.
F2(1A)
For the purposes of this Part sums or assets held for the purposes of an arrangement are member-designated funds if they—
(a)
have been designated at any time under the arrangement as available for the payment of unsecured pension, or
(b)
arise, or (directly or indirectly) derive, from sums or assets which have been so designated or which so arise or derive,
and have not been applied towards the provision of a scheme pension.
(2)
When the member reaches the age of 75, any relevant uncrystallised funds are to be treated as having been designated under the arrangement as available for the payment of unsecured pension immediately before the member reached that age.
(3)
“Relevant uncrystallised funds” means
F3(a)
if the arrangement is a cash balance arrangement, a sum equal to what would, on the valuation assumption in section 277(a), be available for the provision of benefits to or in respect of the member if the member became entitled to them on reaching the age of 75, and
(b)
if it is not, such of the sums and assets held for the purposes of the arrangement as are not member-designated funds and have not been applied towards the provision of a scheme pension or a dependants' scheme pension.
F4(4)
If any sums or assets representing the member's unsecured pension fund in respect of an arrangement under the pension scheme would (apart from this sub-paragraph) come to be taken to represent another unsecured pension fund of his under the pension scheme, or a dependant's unsecured pension fund of his under the pension scheme, they are to be treated as not doing so.