Dear TPAS
I have been a member of my employer's scheme for 25 years. I was
planning to take my pension in 2012 when I reach 50 and move to
Australia with my family. The booklet I received from my employer
when I joined the company back in 1981 says pensions can be taken
from 50 onwards.
I always knew that my employer's consent would be needed for my
pension to be paid early but I never considered it to be a problem.
They have never rejected an early retirement application in the
past.
However, my company has now told me that they will not be able to
pay my pension until I'm at least 55. They say this is out of their
hands because the Inland Revenue has recently changed the
law.
I am really annoyed because my plans to emigrate have been ruined.
I will now have to wait an extra 5 years because I cannot afford to
do it without the lump sum and pension.
Is there anything I can do?
Answer
New tax rules on pensions came into force on 6 April 2006. One
of the changes introduced was to increase the minimum retirement
age from 50 to 55. This change affects all pension schemes.
Pension providers and trustees had until 6 April 2010 to
introduce this change into their rules. After that date,
unfortunately, your scheme will not be able to pay pension benefits
to a member under 55 unless he is:
- in poor health and meets the ill health early retirement
provisions set out in the rules; or
- had a contractual right to draw retirement benefits as at 5
April 2006 to benefits prior to age 55.
If you have a contract promising pension rights before 55,
contact your employer. Otherwise, unless you are in poor health and
entitled to an ill health pension, there is no right for you to
have your pension before 55.
You can call our helpline on 0845 601 2923 if you would like to discuss any of the issues related here.
