Scheme pension | Practical Law

Scheme pension | Practical Law

Scheme pension

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.