Dependants' alternatively secured pension fund meaning

The fund of cash or other assets in a defined contribution (money purchase) pension that, after a member’s death, is formally set aside to pay an alternatively secured pension to a dependant aged 75 or over. This was a statutory construct under the Finance Act 2004. Scheme administrators had to designate the relevant assets as the dependant’s alternatively secured pension fund and pay income only within the ASP limits then set by HMRC guidance and GAD rates. The ring‑fenced fund was used to provide income rather than to buy an annuity, and was subject to specific pensions tax rules on income, transfers and death benefits. The regime was abolished with effect from 6 April 2011 by the Finance Act 2011. No new designations can now be made. Pre‑2011 arrangements were transitioned into capped drawdown and, since 2015, may have been moved to flexi‑access drawdown. The term survives mainly in legacy scheme rules, historical tax analysis and disputes about past administration. Meaning was uniform across England and Wales, Scotland and Northern Ireland because it derived from UK pensions tax legislation. There is no direct Irish equivalent: Irish pensions operate ARF/AMRF and PRSA structures under separate Irish tax rules.