Scheme pension | Practical Law
Scheme pension
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Scheme pension
Practical Law UK Glossary 9-422-1507
(Approx. 3 pages)
Glossary
Scheme pension
Under the Finance Act 2004, the only type of pension that can be drawn by a member of a
registered pension scheme
that is a
defined benefit scheme
. In a
money purchase scheme
, the member must be offered the choice to buy a
lifetime annuity
. Among other conditions, a scheme pension must be payable for life and payments must be made at least annually. Starting to draw a scheme pension counts as a
benefit crystallisation event 2
.