RPSM03110230 - Technical Pages: Protecting
pension rights from tax charges: Retained benefits practice before
6 April 2006: Drawdown June 1999
Benefits in payment under income drawdown – effective
from 30 June 1999
It may be necessary to take into account as a Retained Benefit,
a pension already in payment under a drawdown facility. Such a
pension may arise from a personal pension scheme, an occupational
money purchase scheme or a buy-out contract. In these circumstances
the pension should be valued for Retained Benefit purposes.
- Where the pension is being paid from a
Personal Pension Scheme, on the basis of the maximum amount which
is currently capable of being withdrawn i.e. the 100% amount
determined by the GAD Tables
- Where the pension is an employer funded
benefit being paid from an approved scheme or a buy-out contract,
on the basis of the maximum amount which is currently capable of
being withdrawn
- Where the pension is being paid from an
AVC fund, on the basis of the pension equivalent determined when
benefits from the employer first become due and payable.
