Family Pension Trust

Benefits after age 77

Pension

Any pension taken from the fund will be treated as earned income and will therefore be liable to income tax. Pension income may be taken as listed below.

A scheme pension, paid to the member by the scheme over the member's lifetime.

A lifetime annuity purchased from a life assurance company. The annuity must be payable up to the member's death or the end of any guarantee period should the member die within this period.

An alternatively secured pension, which is similar to drawing income from the fund before age 77 as an unsecured pension. The amount of pension that can be drawn down is between 55% and 90% of the amount of annuity that could be provided using the Government Actuary's Department's annuity rate applicable for a person age 75. The level of alternatively secured pension must be reviewed annually.

Protected Rights Benefits

Until 2012, protected rights benefits taken at retirement must include specific provisions for the payment of income to a spouse or civil partner in the event of the member's death. If the member chooses to take an annuity, the whole of their protected rights fund must also be used to provide benefits.