RPSM03110230 - Technical Pages: Protecting pension rights from tax charges: Retained benefits practice before 6 April 2006: Drawdown June 1999

Benefits in payment under income drawdown – effective from 30 June 1999

It may be necessary to take into account as a Retained Benefit, a pension already in payment under a drawdown facility. Such a pension may arise from a personal pension scheme, an occupational money purchase scheme or a buy-out contract. In these circumstances the pension should be valued for Retained Benefit purposes.

• Where the pension is being paid from a Personal Pension Scheme, on the basis of the maximum amount which is currently capable of being withdrawn i.e. the 100% amount determined by the GAD Tables
• Where the pension is an employer funded benefit being paid from an approved scheme or a buy-out contract, on the basis of the maximum amount which is currently capable of being withdrawn
• Where the pension is being paid from an AVC fund, on the basis of the pension equivalent determined when benefits from the employer first become due and payable.