RPSM09102610 - Technical Pages: Member benefits: An unsecured pension: Applying the unsecured pension limit in practice: Income withdrawal only

Applying the unsecured pension limit in practice with income withdrawal payments

The scheme administrator must ensure that any income withdrawal payments made are within limits. To do so they must consider earlier income withdrawal payments paid from the unsecured pension fund in that pension year.

The member is free to vary the amounts paid year by year within the specified limits. The amounts withdrawn may be paid at regular intervals or on an annual basis, either in advance or in arrears, or on an ad-hoc basis. Within these parameters, the degree of flexibility available to members under a particular scheme is a matter for the scheme to decide.

RPSM09102130 deals with the taxation position where the limit is breached in a pension year.