PSI13.1.3 - Withdrawal from Service: General - Choices Available to Early Leavers
(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)
Our practice relating to the approval of schemes and to
Social Security legislation permits four main ways of providing for
an early leaver's benefit rights. They are:
- by the provision of a deferred pension (and/or deferred lump sum) within the scheme or, subject to scheme rules, immediate benefits on early retirement (see Section 3 of this Part) - whether by the purchase of an annuity or under income drawdown,
[PN10.2]
- by the payment of a transfer value to the scheme of a subsequent employer or a personal pension scheme (see Part 14),
- by the purchase of a deferred annuity (and/or deferred lump sum) from a Life Office or Friendly Society (see Section 4 of this Part), and
- in certain circumstances (very limited nowadays) a refund of the member's own contributions (see Section 2 of this Part).
