Practical Law UK Glossary 3-380-7480 (Approx. 3 pages)
Glossary
BCE 3
A benefit crystallisation event (BCE) that triggers a test against the lifetime allowance available to a member of a registered pension scheme. BCE 3 occurs when the member's scheme pension is increased by an amount that exceeds a prescribed limit. In most cases, the limit is the greater of the increase in the retail prices index and 5%. Broadly speaking, the amount crystallised is calculated by multiplying the increased annual pension by a factor of 20. BCE 3 is not triggered in schemes with more than 50 pensioner members if the same increase is awarded to at least 20 pensioners. BCE 3 is the only sort of event that constitutes a BCE in the case of a member who has reached the age of 75. (Section 216, Finance Act 2004.)