Drawdown before 6 April 2011
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Drawdown before 6 April 2011

The following Pensions practice note Produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Drawdown before 6 April 2011
  • What is a drawdown pension?
  • Unsecured Pension
  • Income withdrawal
  • Short-term annuity
  • Payment of a pension commencement lump sum (PCLS) in connection with an unsecured pension
  • Unsecured pensions and death benefits
  • Taxation of an unsecured pension
  • Age 75 and alternatively secured pensions
  • Individuals who reached age 75 between 22 June 2010 and 5 April 2011


This Practice Note looks at the legal regime applicable to drawdown arrangements under registered pension schemes entered into before 6 April 2011.

For information on the legal regimes applicable to drawdown arrangements on or after 6 April 2011, see Practice Notes:

  1. Drawdown between 6 April 2011 and 5 April 2015

  2. Drawdown from 6 April 2015

  3. Drawdown and death benefits from 6 April 2015

What is a drawdown pension?

The A-day tax simplification changes, which came into force on 6 April 2006 introduced a new drawdown regime for registered pension schemes which replaced the limited ability to drawdown pensions which existed prior to that date. The A-day changes introduced the concept of the ‘unsecured pension’ and the ‘alternatively secured pension’. The term ‘drawdown pension’ replaced these terms following changes which were made to the drawdown regime on and after 6 April 2011.

For more information on the A-day changes, see Practice Note: The Finance Act 2004, A-day and the pensions tax regime.

Unsecured Pension

An unsecured pension could only be paid from a money purchase arrangement while the member was under the age of 75. A money purchase arrangement could be used to provide a member with an unsecured pension in one of two ways. These were either:

  1. direct from the scheme through income withdrawal, or

  2. indirectly through the

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