PSI25.1.8 - Flexibility in Pension Provision – Introduction - Adoption of the Flexibility Provisions

(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.