Regulation 8 Early retirement or deferred retirement

(1)

The scheme may provide benefits that are different from those required to constitute short service benefit as regards amount, recipient and the time at which they are payable. The benefits must, however, include a benefit that is payable to the member.

F1(2)

The member’s benefit must not be payable before normal pension age except in the circumstances where the member has either—

(a)

met the ill-health condition specified in paragraph 1 of Schedule 28 to the Finance Act 2004 (registered pension schemes – defined benefits and money purchase arrangements – ill health condition) immediately before he became entitled to the benefit under the scheme; or

(b)

attained normal minimum pension age as defined in section 279 of that Act (other definitions).

(3)

Benefits consisting of, or including, a benefit that becomes payable to the member before normal pension age may be provided without the member’s consent where—

(a)

the member’s earning capacity is destroyed or seriously impaired by physical or mental infirmity, and

(b)

in the opinion of the trustees or managers of the scheme, the member is incapable of deciding whether it is in his interests to consent.

(4)

Any scheme rule that allows the alternative described in this regulation must require the trustees or managers of the scheme to be reasonably satisfied that, when the member’s benefit becomes payable, the total value of the benefits to be provided under this regulation is at least equal to the amount described in regulation 11.

Annotations

Textual amendments

F1: Reg. 8(2) substituted (6.4.2007) by Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/814), regs. 1, 3(3)