(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]
A late retirement rule is not acceptable in a scheme where
the normal retirement age is 75 or higher. Such schemes are not
common and those cases that do arise are normally for controlling
directors. The inclusion of a late retirement rule would cast
doubts on the scheme's bona fides because it implies that the
employee may not really intend to retire at all. Where retirement
benefits are provided for an employee after he or she has attained
age 75, they must commence immediately on the establishment of the
scheme ie the benefits constitute a Hancock Annuity (see
PSI1.1.17).
