RPSM09203020 - Member Pages: Member pages: Pension benefits from a hybrid pension arrangement
This guidance only covers pension entitlements that arose 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 pension entitlement arose on or after 6 April 2011 see RPSM09103500.
Not drawing benefits from a hybrid scheme until age 75
There is a slight qualification you should be aware of to the treatment where a member with a hybrid arrangement reaches age 75 without taking their entitlements under the arrangement. Here the benefits potentially provided under that arrangement are tested against the individual’s available lifetime allowance at that time, subject to specific rules. How this is done is explained more fully at RPSM11104650.
However briefly the lifetime allowance test is done on the assumption that each option available to the member had been exercised. The highest value of the options calculated will be treated as the figure which will be used in calculating the lifetime allowance. Therefore you may find that even if you ultimately decide to take advantage of the defined benefit underpin, your lifetime allowance may have been calculated on the basis that you are receiving an alternatively secured pension.