PSI13.3.19 - Withdrawal from Service: Deferred Benefits - Permissible Dates of Payment of Deferred Benefits

(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)

[PN10.8]

Benefits deferred within an approved scheme may, in relation to a member subject to the post- Finance Act 1989 discretionary regime for leaving service, early/late retirement (see PSI9.1.1), come into payment at any time between the attainment of age 50 (or earlier on grounds of incapacity (see PSI10.2.2)) and the attainment of age 75, subject to:

3. the member having left the employment to which the benefits relate (but see PSI25.3.1 in relation to AVC benefits), and
4. DSS requirements.

This age range is further restricted:

16. for an employee subject to the pre-Finance Act 1989 basis for leaving service, early/late retirement under the scheme, to preclude the deferment of benefits beyond the later of NRD under the scheme in which the benefits are secured, the NRD under the last employer's scheme and the cessation of all employment (but see PSI25.3.1 in relation to AVC benefits);
17. for an employee with a low NRD (see PSI6.3.30-33), to meet any restrictions applied in accordance with PSI6.5.80-85, and
18. as required to meet contracting-out conditions.

If the date in (a) is later than the NRD in the scheme providing the deferred benefit, an actuarial increase may be given on the pension as explained in PSI9.2.5 and PSI9.2.9. The lump sum may be increased as explained in PSI9.2.6.

Where an employee entitled to a short service benefit retires early see PSI10.1.14.