PSI25.1.4 - Flexibility in Pension Provision – Introduction - Contracted-Out Money Purchase Schemes

(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)

DWP rules currently prevent annuity purchase deferral/income drawdown from Contracted-out Money Purchase Schemes. This applies to any scheme with contracted-out liabilities even if the member concerned has no contracted-out benefits, or the scheme has a separate contracted-in section, or no longer has a contracting-out certificate. This includes section 32 buy-outs which hold protected rights and buy-out contracts with GMPs.