RPSM09203020 – Member Pages: Member pages: Pension benefits from a hybrid pension arrangement

Not drawing benefits from a hybrid scheme until age 75

There is a slight qualification you should be aware of to the treatment where a member with a hybrid arrangement reaches age 75 without taking their entitlements under the arrangement. Here the benefits potentially provided under that arrangement are tested against the individual’s available lifetime allowance at that time, subject to specific rules. How this is done is explained more fully at RPSM11104650.

However briefly the lifetime allowance test is done on the assumption that each option available to the member had been exercised. The highest value of the options calculated will be treated as the figure which will be used in calculating the lifetime allowance. Therefore you may find that even if you ultimately decide to take advantage of the defined benefit underpin, your lifetime allowance may have been calculated on the basis that you are receiving an alternatively secured pension.