RPSM14300080 - Scheme Administrator Pages: Transfers: Receiving a transfer payment in a registered pension scheme: Transfer is from a registered pension scheme - member claims protection for a low pension age

Transfer is from a registered pension scheme - member claims protection for a low pension age under a personal pension scheme or retirement annuity contract

A member may be entitled to low pension age protection.

The member qualifies to retain their low pension age after transferring into your scheme if

• the transferring scheme, before 6 April 2006, was either

• the low pension age which applied to them on 5 April 2006 was an age less than 50, and
• the member's occupation on 5 April 2006 was, or had been, a prescribed occupation, and
• the transfer is part of a block transfer.

But even if the above conditions are satisfied, the member will be treated as receiving an unauthorised payment on crystallisation at the earlier age, unless he becomes entitled to all benefits (that were not already in payment on 5 April 2006) under your scheme at the same time. This will not be determined until he actually reaches the early pension age.

The tax rules do not oblige you to make any specific checks concerning early pension ages, but it is likely that you will want to satisfy yourself as to whether in paying benefits earlier than the normal minimum pension age you are making an unauthorised payment. The scheme administrator is liable to a scheme sanction charge on any unauthorised payment they make. The scheme administrator can apply for discharge from that liability on certain specific grounds (see RPSM04302020).