(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
[PN6.3]
Very few occupations have a retirement age over 70 as a
matter of course. Most cases will relate to controlling directors
of small companies and very often the director concerned will
already be fairly old when the scheme is set up. Such a high NRD is
acceptable as long as it is the best estimate than can be made of
the date at which the person will actually retire. Where the NRD is
fixed at 75 or higher, all benefits must be taken no later than
that NRD. It is not permissible to include provision for late
retirement (see
PSI9.1.4) in these
circumstances. The rules must be worded accordingly. For members
subject to the post-Finance Act 1989 basis for early/late
retirement benefits must come into payment no later than attainment
of age 75 (see
PSI9.1.9). Where retirement
benefits are to be provided for such a member who has already
attained that age, they must commence immediately via a "Hancock"
annuity (see
PSI9.1.4).
