PSI14.1.7 - Transfers at or after NRD


(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)

Transfers cannot be made out of a scheme/arrangement once the member has reached or passed NRD except where:

a) the member left pensionable service prior to NRD and

  • has deferred the receipt of benefits from the scheme in accordance with PSI 13.3.19, and
  • the circumstances which permit the deferment of the payment of benefits beyond the NRD still apply at the time of the transfer request, and
  • there are appropriate provisions in the scheme rules to enable transfers to proceed at or after NRD

or

b) the member left pensionable service at or after NRD but

  • continues in the service of the employer to which the pensionable service related, and
  • is still in the service of the employer when the transfer request is made, and
  • no main scheme benefits have been paid to the member in relation to that pensionable service (excludes AVC benefits that are paid in advance of the main scheme benefits - Appendix XII of PN refers), and
  • there are appropriate provisions in the scheme rules to enable transfers to proceed at or after NRD

or

c) the transfer is part of a restructuring of the employer's pension arrangements (see 14.1.9 below)

Timing of the transfer request

The transfer request should be made before any date at which a transfer could no longer be made. Provided the request is properly made before a particular 'cut-off' date there would be no objection to the transfer being completed after that cut-off date. For example, where an employee

  • - is in pensionable service, and
  • - is approaching the NRD for that pensionable service, and
  • - will leave the employer's service at the NRD

the transfer can be completed after the NRD provided that the member opted out of pensionable service and requested the transfer before the NRD.

Any transfer that can be made at or after NRD must meet all other tax approval requirements on making transfers generally set out in this part of PSI.


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