Dear TPAS
I write further to a telephone conversation I had with someone
on your helpline a few weeks ago.
I've been told by a colleague that I can take my pension and carry
on working. However, my employer won't allow it. He says it is up
to him and he can refuse to let it happen. He's being really
unhelpful.
I'm 62 and due to retire in 3 years time. I can't afford to stop
working but I need extra income to sort out some personal problems
I have. In short, I've had to re-mortgage my house and I'm having
problems meeting the repayments.
If I can get the cash and pension, I will be able to sort this
problem out and not have to worry so much.
Can my employer refuse to follow this new law? If he can, what can
I do? Is there any way he can bend the rules for me because of my
situation?
Answer
You are right that rules allowing flexible retirement have
recently been introduced. As a result, from 6 April 2006, schemes
are permitted to pay early retirement benefits to a member who
continues in active employment.
Although this allowance has been introduced by HM Revenue &
Customs, it is not prescriptive. This means that an employer has
the choice of whether to adopt it or not. If he does, it must be
incorporated into the scheme's rules.
I suggest you contact your scheme trustees and ask what the rules
say. If there is no plan to adopt the new rule, I'm afraid there is
little you can do. Your employer, for whatever reason, has decided
not to allow members to draw benefits and continue working. I can
only suggest you speak to your employer in the hope of persuading
him to make a change.
You can call our helpline on 0845 601 2923 if you would like to discuss any of the issues related here.
