(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)
[PN12.8]
Scheme rules normally require the employee to exercise an
option to allocate before his or her own pension first becomes
payable. This is not, however, essential and scheme rules can
permit an employee to surrender part of his or her pension after it
has commenced, for example where the member married after
retirement. (It is unlikely that a scheme would give an own right
widow(er)’s pension in these circumstances).
Where the purchase of the annuity is deferred in accordance
with
PSI25.1.1 any allocation
should not take place until annuity purchase (see
PSI25.2.3).
