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Transfers in drawdown – Fund Splits
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The General Principles of transfers in
drawdown are explained in Transfers in
drawdown.
The fund split needs to be run even if
there is only 1 member. As well as
allocating the fund between different members, it allocates the total fund
value between each of the sub-funds or arrangements.
There can be a ‘native pre 2006 vested
fund’ and up to 5 TiD funds.
The fund split calculates the overall rate
of investment return – full details are explained in fund
split.
An existing TiD fund will be increased
with investment return for the period since the last fund split. The part of
the pension payments relating to each TiD fund are deducted (along with
annuities and transfers out) after allowing for investment return based on the dates
of each payment.
The ‘pre 2006 vested fund’ is
simply the native pre 2006 vested fund i.e. it excludes any pre 2006 vested TiD
funds.
In the results screen, if there is
more than one member, the fund split between the members is shown first with no
details of the subfunds. The workings are then shown for each member
separately, showing only the transactions that relate to that member and each
of the subfunds as separate columns.
On the ‘Members, Contributions and
Funds’ screen, the allocation of the fund value between all of the members is
shown in the right-hand grid. If a particular member is selected, the subfunds
for that member are shown. The ‘Normal Vested fund’ is the native fund being
used to provide pension benefits derived from BCEs after 5th April
2006, excluding the pre 2006 Vested Fund and the TiD funds. The TiDfunds are
only shown if they exist for a particular member.
There are hints if you hover over the
Vested Fund and Pre 2006 Vested Fund labels, to give more information.
See
also - Arrangements