RPSM09103105 - Technical Pages: Member benefits: An alternatively secured pension: Pre 6 April 2006 entitlement

This guidance only covers members who became entitled to an alternatively secured pension before 6 April 2011. If the member reached age 75 between 22 June 2010 and 5 April 2011 you should also read the guidance in RPSM17100000 onwards.

If the member reached age 75 on or after 6 April 2011 then see the guidance at RPSM09103500.

Alternatively secured pension fund arising from a pre 6 April 2006 benefit entitlement

[Article 31 of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (SI 2006 No 572)]

Benefits not in payment before 6 April 2006

An individual age 75 or over who has a prospective entitlement to benefits, i.e. they are not yet in payment, on 6 April 2006 who

• is a member of scheme that automatically became a registered pension scheme on 6 April 2006 because it was

• • a retirement benefits scheme, or
  • an annuity contract (not providing for the immediate payment of benefits) used to secure benefits provided under a retirement benefits scheme, and

• the arrangement providing the pension rights is an other money purchase arrangement 

will have an alternatively secured pension fund created for them on 6 April 2006.

Annuity purchase deferral in a small self administered scheme

A member who on 6 April 2006 is

• aged 75 or over, and
• taking benefits under annuity purchase deferral rules of a small self administered pension scheme approved under Chapter 1 Part 14 ICTA 1988 that is a money purchase arrangement and the rules of the scheme at 5 April 2006 did not require the purchase of an annuity.

will have an alternatively secured pension fund created for them on 6 April 2006 and will be in receipt of an alternatively secured pension.