Defined benefit pension schemes beyond 6 April 2015

The transitional rules on triviality and small pots will continue to apply to defined benefit pension schemes beyond 6 April 2015. The minimum age for accessing pension savings in this way will reduce from 60 to 55.

 

This only applies if a member is taking their pension commencement lump sum (sometimes called a ‘tax-free lump sum’) before 6 April 2015 and the associated pension before 6 October 2015. For the lump sum to be paid tax-free, the member must, within certain time limits, have a pension associated with the lump sum.

Depending on how they want to access their remaining pension savings after taking a lump sum, they may have to wait until further new rules take effect from 6 April 2015. This does not cover the changes that will take effect from 6 April 2015.