PSI16.2.15 - Discontinuance of Schemes: Winding-Up – Form of benefits on Winding-Up - Individual Policies

(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)

The winding-up rule should expressly state that the individual policies are to be non- assignable and that they should show when the benefits may commence and the extent to which they may be taken in lump sum form on retirement or death. In other words, a policy issued on winding-up should be subject to the same conditions required in an individual policy issued on leaving service (see Part 13 Section 4). Where the wound-up scheme was contracted-out the individual policy must also satisfy DSS requirements.

Contact: | Date issued: | Next review: