The following Pensions guidance note Produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:
THIS PRACTICE NOTE RELATES TO DRAWDOWN PENSIONS COMMENCING BETWEEN 6 APRIL 2011 AND 5 APRIL 2015 (INCLUSIVE)
This Practice Note looks at the legal regime applicable to drawdown arrangements entered into on or after 6 April 2011 and before 6 April 2015.
For information on the legal regime applicable to drawdown arrangements entered into on or after 6 April 2015, see Practice Notes: Drawdown from 6 April 2015 and Drawdown and death benefits from 6 April 2015.
The term ‘drawdown pension’ replaces the terms ‘unsecured pension’ and ‘alternatively secured pension’ which were used before 6 April 2011.
Before 6 April 2015, drawdown pension referred to the pension payment process which permitted members who were:
already in receipt of benefits from a pension arrangement (whether in the form of a pension payable by the scheme or an annuity purchased with the member’s scheme funds), and
entitled to benefits in other pension arrangements, being money purchase or cash balance arrangements
to choose for themselves (within certain limits) the annual amount of pension they wished to receive from those other arrangements.
The annual amount of pension chosen under a drawdown pension can vary over time, thus avoiding the need to produce a lifetime annuity.
A member can request a drawdown pension by designating part, or all of their funds under the other pension
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