RPSM09102030 - Technical Pages: Member benefits: An unsecured pension: Overview: Income withdrawals

This guidance only covers members who became entitled to an unsecured pension 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 member became entitled to their pension on or after 6 April 2011 then see the guidance at RPSM09103500.

Income withdrawal

With income withdrawal, the scheme administrator pays the unsecured pension direct from the arrangement.

At the point benefits are taken, all of the funds held in the arrangement continue to be held (and invested) within the registered pension scheme as the unsecured pension fund, with the pension paid out of these funds to the member as and when (within given limits).

Unlike where the unsecured pension is secured through a short-term annuity contract, income withdrawal may continue under an arrangement beyond the member’s 75^th birthday, but only as an alternatively secured pension (and therefore within more stringent rules).