HMRC legislation states that benefits from a registered pension scheme should not be paid until, at the earliest, the date on which the member reaches normal minimumpension age. Normal minimum pension age is determined in the legislation for registered pension schemes and is
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 pension age of 55.
However, although these are the minimum ages according to
HMRC legislation, the scheme rules will determine the age
applicable to their particular scheme. These could be higher than
the ages set out above.
There is no requirement in the tax legislation that an
employee must finish working before they take their pension
benefits. Providing that the employee has reached normal minimum
pension age, the rules may allow benefits to be paid whilst they
continue to work, regardless of whether or not they remain with the
same employer doing the same job.
There are separate rules if an employee has to retire
through ill-health (see
RPSM08400050) or if the scheme rules
had a lower retirement age prior to 6 April 2006, for example
because of a particular profession.
| Glossary ( RPSM20000000) |
