RPSM08300020 - Scheme Administrator Pages: Pension age: When can I pay a member their benefits?

When can I pay a member their benefits?

HMRC legislation states that you should not pay pension scheme benefits from a registered pension scheme until at the earliest, the date on which the member reaches the normal minimum pension age. The normal minimum pension age is determined in the legislation for registered pension schemes and is

• before 6 April 2010 – age 50
• on or after 6 April 2010 – age 55.

Where a member starts to take benefits after reaching the normal minimum pensionage of 50 before 6 April 2010 but they are not yet age 55 by 6 April 2010 those benefits can still continue to be paid as authorised payments. If the member wishes to crystallise further benefits after 5 April 2010, to be authorised payments the member must have reached the normal minimum retirement age of 55.

However, although these are the minimum ages according to HMRC legislation, the scheme rules will determine the age applicable to the particular scheme. These could be higher than the ages set out above.

There are separate rules if a member has to retire through ill-health (see RPSM08300080) or if your scheme rules had a lower retirement age prior to 6 April 2006, for example because of a particular profession. (See RPSM08300070).