RPSM14300090 - Scheme Administrator Pages: Transfers: Receiving a transfer payment in a registered pension scheme: Transfer is from a registered pension scheme - member has protection for a low pension age from an OPS

Transfer is from a registered pension scheme - member has protection for a low pension age from an occupational pension scheme

The member may be entitled to a protected low pension age from an occupational pension scheme on transferring to your scheme.

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

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

• their NRA under that scheme on 5 April 2006 was an age under 55, and
• the scheme rules on 10 December 2003 conferred this NRA on at least some members of the scheme, and
• this included the member now transferring into your scheme (or would have done if he had been a scheme member on that date), and
• the transfer is part of a block transfer.

But even if all those conditions are satisfied, if you pay benefits to the member at the earlier age it will be an unauthorised payment unless

• the member becomes entitled to all benefits (that were not in payment on 5 April 2006)under your scheme at the same time, and
• the member is not employed by a sponsoring employer after becoming entitled to a pension from your scheme where the conditions in RPSM03106062 are met.

You will only be able to determine this when the member actually reaches the NRA in question.

The tax rules do not oblige you to make any specific checks concerning low NRAs, 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).