Warning No 2 - Lumpy assets supporting account-based pensions.

The Determination notes that where the market value of segregated assets exceeds the pension account balance, the excess assets cannot qualify as segregated assets.  

This may happen if a pension is only partly supported by one segregated lumpy asset (eg real estate) and the payments from the pension interest during the year result in the pension account balance at year end being less than the market value of the segregated lumpy asset.  

In this situation the lumpy asset will cease to be segregated.  If the pension has been supported by two or more segregated assets, the trustee may be able to identify the excess as being entirely constituted by one or more segregated assets, thereby saving the lumpy asset from “de-segregation”.