Treatment of lump sums to which persons become entitled at age 75
8(1)If there are any remaining uncrystallised funds at the end of the period referred to in paragraph 1(1)(c) of Schedule 29 to FA 2004 (period for payment of pension commencement lump sum), they are to be treated, for the purposes of paragraph 8 of Schedule 28 to that Act, as having been designated under the arrangement as available for the payment of unsecured pension at that time.
(2)If the person dies before the end of that period, any remaining uncrystallised funds are to be treated, for the purposes of paragraph 8 of Schedule 28 to FA 2004, as having been designated under the arrangement as available for the payment of unsecured pension immediately before the person’s death.
(3)“Remaining uncrystallised funds” means 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.