RPSM09300050 - Scheme Administrator Pages: Member benefits: Pension benefits

Income withdrawal

If the member wishes to take advantage of income withdrawal, you should pay the unsecured pension direct from the arrangement. The funds continue to be held within the scheme itself.

The maximum amount of unsecured pension that can be paid is found by using GAD tables. GAD provide separate tables for men and women, reflecting the differences in annuity levels that may be obtained on the open market for the different sexes (due to the differences in life expectancy). They also provide a separate table for children, for use where a dependants’ unsecured pension is being paid to a child. The resulting pension figure is called the basis amount and the member will be entitled to be paid up to 120% of that figure per year.

These tables are designed to provide a measure of the annual amount of lifetime annuity income an unsecured pension fund can generate for the member at the point of calculation, assuming the annuity

• would provide a level income for the member,
• with no guarantee, and
• no provision for a continuing dependants’ annuity on their death, i.e. it is a single life rather than a joint-life contract.

This is referred to in the legislation as the level of ‘relevant annuity’ the fund could purchase for the member on that particular date.