Automatic Enrolment Retirement Savings System Act 2024 section 86

Redemption of units for early payment

Section 86 sets out the process the Authority must follow to redeem a participant's investment units and make funds available for withdrawal once an early access application on grounds of incapacity or exceptional ill-health has been allowed.

• Once an early access application is allowed (whether initially, on review, or on appeal), the Authority must identify the participant's units, instruct the investment manager to redeem them, credit the proceeds (less any fees) to the participant's account, and notify the participant that the balance is available for withdrawal.
• In a straightforward case, the amount credited is the redemption value of the units at the date the application is allowed, after deducting any applicable fees.
• Where an application was initially refused but later allowed on review or appeal, the participant is protected against any fall in unit value during the delay — the amount credited is the higher of the redemption value at the date of refusal and the redemption value at the date the application is finally allowed (for units held at the refusal date), or the higher of the original acquisition price and the redemption value at the date finally allowed (for units acquired after the refusal date).
• The "acquisition price" of a unit means the amount originally transferred to the investment management provider to purchase that unit.