Transfers in drawdown – Fund Splits
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