Entitlement to lump sums exceeding 25% of uncrystallised rights
32(1)Subject to sub-paragraph (2), the value of the individual’s uncrystallised lump sum rights under the pension scheme on 5th April 2006 is the aggregate of the value of the individual’s uncrystallised lump sum rights under each arrangement in respect of the individual under the pension scheme, calculated in accordance with paragraph 25(5), on that date.
(2)If the pension scheme is a relevant pension scheme, the value of the individual’s uncrystallised lump sum rights on 5th April 2006 under an arrangement—
(a)which relates to a particular employment, and
(b)in relation to which the excess lump sum condition is met (see sub-paragraph (5) or (6)),
is the amount arrived at in accordance with sub-paragraph (7) or (8).
(3)A pension scheme is a relevant pension scheme if it falls within paragraph 1(1)(a) to (d).
(4)Whether an arrangement relating to the individual relates to a particular employment is to be determined in accordance with paragraph 9(6).
(5)If no other arrangement relating to the individual under a relevant pension scheme relates to the employment to which the arrangement relates, the excess lump sum condition is met in relation to the arrangement if—
(a)the value of the individual’s uncrystallised lump sum rights under the arrangement calculated in accordance with paragraph 25(5), exceeds
(b)the amount arrived at in relation to the arrangement in accordance with paragraph 26.
(6)If one or more other arrangements relating to the individual under a relevant pension scheme or relevant pension schemes relates or relate to the employment to which the arrangement relates, the excess lump sum condition is met in relation to the arrangement if—
(a)the aggregate of the values of the individual’s uncrystallised lump sum rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 25(5), exceeds
(b)the amount arrived at in relation to those arrangements in accordance with paragraph 26;
and the amount by which the aggregate of those values exceeds that amount is the “lump sum excess”.
(7)Where the excess lump sum condition is met by virtue of sub-paragraph (5), the value of the individual’s uncrystallised lump sum rights under the arrangement is the amount arrived at in accordance with paragraph 26.
(8)Where the excess lump sum condition is met by virtue of sub-paragraph (6), the value of the individual’s uncrystallised lump sum rights under the arrangement is the value of those rights calculated in accordance with paragraph 25(5), less the appropriate proportion of the lump sum excess.
(9)The appropriate proportion of the lump sum excess is—
where—
V is the value of the individual’s uncrystallised lump sum rights under the arrangement, calculated in accordance with paragraph 25(5), and
AV is the aggregate of the values of the individual’s uncrystallised lump sum rights under the arrangement and the other arrangement or arrangements, calculated in accordance with paragraph 25(5).