Introduction New section 213K Adjustment of closing pension and lump sum
53.New section 213K(1) provides for adjustment to be made to the value of the closing pension and lump sum when working out the pension savings amount under defined benefits arrangements.
54.New section 213K(2) provides for the closing pension and/or closing lump sum to be increased by the amount of any pension debit during the year.
55.New section 213K(3) provides for the amount of the closing pension and/or closing lump sum to be reduced by any pension credit deriving from a registered pension scheme.
56.New section 213K(4) provides that where there is a transfer of rights out of the scheme to another registered pension scheme or qualifying registered overseas pension scheme that leads to a reduction in pension or lump sum payable to the individual, then the closing pension and/or closing lump sum are to be increased by the amount of the transfer.
57.New section 213K(5) provides that where there is a transfer in of rights from another pension scheme that leads to an increase in pension or lump sum, then the amount of the increase is to be subtracted from the closing pension and/or closing lump sum.
58.New section 213K(6) provides that where an individual has exercised an option to commute, allocate or otherwise surrender any of their benefits then the closing pension and/or closing lump sum are to be increased by the amount of the reduction.
59.New section 213K(7) provides that where the individual becomes entitled to a pension or lump sum, the amount of the benefits drawn apart from by commutation of lump sum or of pension is to be added back to the closing pension or closing lump sum.