(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 annuity purchase deferral/income drawdown facility is not
appropriate for use by defined benefit schemes because the level of
benefit is specified in the scheme rules.
However, the facility may be offered by a scheme which
provides separate money purchase (contracted in) and defined
benefit elements, but only to the extent that one element is not
underpinning the other. For example, a scheme which consists of two
separate sections (one pure money purchase and the other pure
defined benefits) or a scheme which provides defined benefits up to
a particular date and money purchase benefits thereafter, will be
able to offer these facilities.
