I have received a Fund to audit for 2022. This Fund had a member that commenced a pension in 2021 year - a formal valuation for the property held by the Fund was carried out as at the date of pension commencement that valued the commercial property held at 1,150,000 (May 2021). The valuation obtained was actually done on the date of pension commencement (was not obtained after the fact when financials for 2021 were processed). All members way under pension cap as a result of this valuation so 100% pension fund.

Ten months later, the property has been sold for 3.8 million. I have queried the valuatuon obtained as at pension date (ten months earlier) to see if the trustees will have it revised and 2021 year amended - leading to TSB of over 4 million. Way over pension cap, so big ramifications there - fairly so I believe.

Every instinct tells me this is pension cap manipulation - the trustees' postion is that they only decided to sell 6 months after commcening the pension when a similar commercial property sold and relaised an incredibly large gain - and this has lead to a market adjustment then (not in May 2021). I maintain that this porperty did not increase by this amount in ten months and that valuation obtained was unfortunately proven incorrect.

Anyone else experienced this at all?