RPSM03106030 - Technical Pages: Protecting pension rights from tax charges: Taking benefits before normal minimum pension age: RACs and PPs benefits before age 50

Retirement annuity contracts and personal pensions: members with a right to take benefits before age 50

[Paras 21 & 23 Sch 36 & Reg 3 The Registered Pension Schemes (Prescribed Schemes and Occupations) Regulations 2005 – SI 2005/3451]

Some members of retirement annuity contracts or personal pension schemes will also be able to protect their right to take pension and lump sum benefits at their request before the normal minimum pension age.

In order to exercise this right, the member must on 5 April 2006

• be or have been in a prescribed occupation (one prescribed by Regulation 3 of The Registered Pension Schemes (Prescribed Schemes and Occupations) Regulations 2005 – SI 2005/3451 – see RPSM03106035 for more information), and
• have had an unqualified right to take a pension before the age of 50 (an unqualified right is when no other party need consent to the individual’s request before it becomes binding upon the scheme or contract holder).

The age at which the member has the right to take a pension on 5 April 2006 will become their protected pension age.

Where pension benefits are taken before age 50, the member’s lifetime allowance may be reduced (see RPSM03106080).

See RPSM03106060 to RPSM03106072 for other conditions that apply to taking benefits before normal minimum pension age.