PSI25.2.1 - Flexibility in Pension Provision – Annuity Deferral/Income Drawdown - Eligibility

(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)

Any member who has not yet purchased an annuity may (subject to the scheme rules) take advantage of the annuity purchase deferral / income drawdown facility. This includes:

• any member/dependant who is already in receipt of a pension directly from the scheme rules having deferred the purchase of an annuity. (At the time of the election there must be an immediate calculation of the maximum annual amount of pension payable in the form of income drawdown)
• any member who has deferred retirement beyond NRD even if this was prior to 30 June 1999
• any continued rights members who have taken tax free cash at NRD even if this was prior to 30 June 1999 and deferred taking the balance of the pension.