(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)
These facilities are not compulsory; it is entirely a matter for
the trustees of the scheme to decide whether to adopt the
provisions of the flexibility package. Similarly in the case of
buy-out contracts, it is for the Life Office and the parties to the
contract to decide whether or not to offer the facilities.
Trustees/Life Offices may choose to adopt any one or more of
the permitted options, e.g. they may choose to permit only the
option of annuity deferral of benefits from additional voluntary
contribution funds.
Scheme rules must be suitably amended in accordance with
PSI25.1.9-12. It may also be necessary
for any policy(ies) underwriting the scheme to reflect the scheme
rule amendments if the premiums are to qualify as pensions
business.
Trustees must issue announcements to the members stating
which options have been chosen.
