After paragraph 14 insert—

“Benefit crystallisation event 5B: meaning of “remaining unused funds”

14A

For the purposes of benefit crystallisation event 5B “remaining unused funds” means—

(a)

in relation to 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)

in relation to any other arrangement, 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.”

After paragraph 15 insert—

“Benefit crystallisation event 6: prevention of overlap with other events

15A

Benefit crystallisation event 6 does not apply in relation to a pension commencement lump sum paid in respect of a money purchase arrangement if—

(a)

the individual becomes entitled to it before reaching the age of 75, but

(b)

it is not paid to the individual until after the individual has reached that age.”