Pre-commencement lump sum death benefits20

1

In the case of an individual who dies on or after 6th April 2006 and meets the conditions in paragraph (2) paragraph (3) applies.

2

The conditions are—

  • Condition A

    The individual had an actual right to one or more pre-commencement pensions immediately before his death.

  • Condition B

    No benefit crystallisation event has occurred in relation to the individual before his death.

  • Condition C

    After the individual’s death a single benefit crystallisation event occurs in relation to that individual by reason of the payment of a lump sum death benefit in respect of that individual.

3

Paragraph 20(2)(b) of Schedule 36 is to be treated as providing that the amount crystallised was the value of the individual’s pre-commencement pension rights immediately before the individual’s death.