This Practice Note focuses on the meanings of 'flexible benefit', 'safeguarded benefit' and ‘safeguarded-flexible benefit’ for the purpose of the pension freedoms introduced on 6 April 2015 (for further information on which, see Practice Note: Pension freedoms—an introduction [Archived]). Why does the distinction matter? It is important to distinguish between flexible benefits and safeguarded benefits because the pension freedoms introduced on 6 April 2015 apply to the former but not the latter. In other words, an individual with only safeguarded benefits will not be able to take advantage of the pension freedoms, at least not without taking steps to transform their safeguarded benefits into flexible benefits (eg by transferring them out into flexible benefit schemes or converting them into flexible benefits). The government had originally contemplated the idea of consulting on proposals to extend some pension freedoms to safeguarded benefits in July 2014 but did not take this forward. In any event, schemes with safeguarded benefits would have been expected to reject such proposals due to the administration and actuarial difficulties that the scheme would have faced

Flexible loan structures Following the financial crisis, the real estate finance market saw a retreat of conventional bank lending and an influx of non-bank lenders (NBLs) including insurers and real estate debt funds. Through 2012 and 2013, the absence of bank lending enabled these NBLs to strengthen their position and become established players in the market. With the return to confidence in the real estate investment market and bank lending from 2014, some NBLs, in particular real estate debt funds, are moving up the risk curve away from the senior debt space. This has resulted in a competitive market for real estate debt across the capital stack. Banks, insurers and debt funds have different strategies and focus on optimum deal size, asset class and loan purpose. Four commonly used flexible loan structures are: • flexible senior loans • stretched senior loans • mezzanine loans, and • preferred equity loans Flexible senior loans Banks have a strong presence in this area along with some insurers, albeit the senior

Flexible annuities were not uncommon before A-Day, but their continuance was in doubt after pensions tax simplification. Subsequent legislation later permitted them (SI 2006/568).

This is the ability to continue working for an employer but simultaneously draw some or all of the pension benefits from that employer’s scheme.

THIS PRACTICE NOTE RELATES MAINLY TO REGISTERED OCCUPATIONAL PENSION SCHEMES One consequence of the recent pensions legislation reforms, including the introduction of anti-age discrimination legislation (for further information, see Practice Note: Age discrimination for pension lawyers), has been to allow the introduction of a new and greater flexibility in the ability of members of registered pension schemes to accrue and ultimately receive benefits from such schemes. In particular, recent years have seen the development of the concept of ‘flexible retirement’. Concept of flexible retirement Broadly speaking, flexible retirement encapsulates the ability of members to: • commence receipt of benefits from registered pension schemes while remaining in active service with the sponsoring employer of their pension arrangements, and • continue to accrue benefits if they so wish after normal pension date (typically age 65) and in ways that comply with the age discrimination legislation Legislative framework Since A Day (on 6 April 2006), registered pension schemes have not been required to maintain a normal retirement date. Instead, the Finance Act 2004 (FA 2004) refers

What is a flexible tenancy? Introduced by the Localism Act 2011 (LA 2011), flexible tenancies can be granted by a local authority (LA) where: • the tenant has previously occupied a council property under a family intervention, demoted or introductory tenancy • prior written notice has been served stating that the tenancy will be flexible • a secure tenancy has been granted by a landlord for a term certain of not less than two years Once an LA has adopted a tenancy strategy or interim policy it can grant flexible tenancies rather than periodic secure tenancies. It is up to each individual LA to decide whether it will grant flexible tenancies and in what circumstances: • a flexible tenancy is a type of secure tenancy granted for a fixed term of a minimum of five years except in exceptional circumstances when it can be granted for a minimum of two years • the main difference between a flexible secure tenancy and a periodic secure tenancy is that a flexible tenancy is granted for a fixed duration The landlord

ARCHIVED: This Practice Note has been archived and is not maintained. What is a flexible tenancy? Introduced by the Localism Act 2011 (LA 2011), flexible tenancies can be granted by a local authority (LA) where: • the tenant has previously occupied a council property under a family intervention, demoted or introductory tenancy • prior written notice has been served stating that the tenancy will be flexible • a secure tenancy has been granted by a landlord for a term certain of not less than two years Once an LA has adopted a tenancy strategy or interim policy it can grant flexible tenancies rather than periodic secure tenancies. It is up to each individual LA to decide whether it will grant flexible tenancies and in what circumstances: • a flexible tenancy is a type of secure tenancy granted for a fixed term of a minimum of five years except in exceptional circumstances when it can be granted for a minimum of two years • the main difference between a flexible secure tenancy and a periodic secure tenancy

There is no cap on the amount of money that can be taken out of a pension scheme where the individual has a minimum annual pension income of £20,000 (including state pension).

When an employer operates a flexible working arrangement with its employees such as job share; part time work; seasonal work; home working; term time working.

FORTHCOMING CHANGES: When it is commenced, section 9 of the Employment Rights Act 2025 will amend section 80G of the Employment Rights Act 1996 to introduce a substantive reasonableness requirement into a refusal of a request for flexible working, require the employer to explain why refusal is reasonable on the statutory ground(s), and permit regulations specifying consultation steps. Section 9 was commenced on 6 January 2026 but only for regulation-making purposes. The substantive reforms are intended to take effect in 2027. On 15 September 2026, the government published its response to its flexible-working consultation which ran between 5 February 2026 and 30 April 2026, see: LNB News 05/02/2026 44 and LNB News 16/09/2026 8. An employee has the statutory right under section 80F of the Employment Rights Act 1996 (ERA 1996) to apply to their employer for certain, specified, changes to their terms and conditions of employment (ie make a request for flexible working). The key principles forming the substance of this right are explained, below. The statutory flexible working scheme is set out in sections 80F to

EU jargon for the aim of balancing employment security with the need to be able to sack people to allow employment competitiveness

Dispute Resolution analysis: The court struck out a claim brought by Ms Smyth as class representative for people booked on a delayed or cancelled flight with BA or Easyjet (to or from the UK) between 2016 and 2022, for compensation under EU Regulation 261/2004. The court held the claimant and claimant class did not have the ‘same interest’ in the claim, and that this was required under CPR 19.8. The court also ruled that as a matter of discretion, it would not have allowed the claim to proceed as a representative claim anyway because the dominant motive for the claim was the financial interests of its backers, not the interests of consumers. The judgment contains an interesting analysis of the authorities on the ‘same interest’ test. It also considers the difficulties inherent in distributing damages to represented parties and the entitlement of the representative to first deduct payments due to third parties. Written by Harriet Campbell, senior knowledge lawyer at Penningtons Manches Cooper LLP.