TAKING BENEFITS. 7.1 You can take benefits from the normal minimum pension age under the Finance Act in either or both of the following ways by instructing us in writing:
TAKING BENEFITS. Please refer to Section A – Key Features for further details in respect of how you can take your benefits.
TAKING BENEFITS. 7.1 You can take benefits from the normal minimum pension age under the Finance Act in either or both of the following ways by instructing us in writing:
7.2 buy a lifetime annuity from an annuity provider in your name with the balance of all or part of a pension fund (after any pension commencement lump sum as described in section 7.2 below); • take drawdown pension with the balance of all or part of a pension fund (after any pension commencement lump sum as described in section 7.2 below) — see section P8. Each option can be taken with or without a pension commencement lump sum. Normally, the maximum lump sum will be 25% of the value of the part of your plan being used to provide these benefits. A higher or lower amount might be available if you had transitional rights in respect of benefits earned before 6 April 2006 under schedule 36 of the Finance Act and you meet the conditions under it. Tax will not normally be payable on the lump sum. The lump sum will be paid once cash is available in your designated account.
7.3 When you commence taking benefits from your plan, the value of the part of your plan being used for benefits must be tested against the lifetime allowance, as set by the Finance Act. A test against the lifetime allowance will also be made in other circumstances set by the Finance Act. If the lifetime allowance is exceeded, there is a tax charge. ESL will deduct the tax charge from your plan. You must provide us with the information necessary for ESL to calculate the tax charge. You are responsible for any further tax charges that may arise as a result of that information being incorrect or failing to be provided.
7.4 You may be able to take benefits before the normal minimum pension age: • if ESL is satisfied that you are in ill health, as defined in the Finance Act; • if you had transitional rights at 6 April 2006 to a protected pension age under Schedule 36 of the Finance Act and you satisfy the conditions; or • as a serious ill health lump sum, if you satisfy the conditions in the Finance Act for a serious ill health lump sum. The tax treatment of a serious ill health lump sum is set by the Finance Act. You are responsible for ensuring that there is enough cleared money in the designated account available in good time to pay any benefits you have chosen to take. If there is not enough cleared money in the designated account to pay the benefits ESL will instruct the sale of assets within your plan under the procedure described in sectio...
TAKING BENEFITS. Please refer to Section A – Key Features for further details in respect of how you can take your benefits. If you are able to access your pension via Capped Income Drawdown from your True Potential Pension, then following the payment of pension commencement lump sum the balance of the benefits crystallised will be used to calculate a maximum amount of pension income that can be taken each year. Alternatively, you may choose to access your pension income through Flexi Access Drawdown, meaning that following the payment of your pension commencement lump sum the balance of benefits crystallised are able to be paid as pension income. Up to the value of the crystallised benefits, without being subject to a maximum amount. We may require additional documentation in order to process an Income Drawdown request. We will only pay 25% of the fund value at the time of the benefit crystallisation event as pension commencement lump sum unless informed that a greater pension commencement lump sum entitlement is available and upon receipt of relevant certification documentation. We will require written confirmation if you wish to sacrifice a pension commencement lump sum entitlement in favour of a higher pension income. In respect of Capped Drawdown designations there will be one arrangement and one maximum limit set for this arrangement. Should further designations take place from uncrystallised funds then this limit will be recalculated.The benefit crystallisation event valuation date will be the latest of either; • The date upon which we receive the benefit crystallisation event request; • The date of receipt of the final transfer in or contribution inclusive of tax relief as stipulated upon initial application tothe True Potential Pension or • Or the date you reach the minimum retirement age. Where you have requested to crystallise benefits upon receipt of multiple transfers, the transfer proceeds will be invested until the final transfer is received unless otherwise instructed by you to retain the cash in the trustee bank account. Where pension commencement lump sum has been paid, we will not permit the recycling of pension commencement lump sum. Your pension income will be subject to income tax, which is paid through Pay as you earn (PAYE). Pension income is currently not currently subject to National Insurance.We will only make payments net of any Lifetime Allowance charge or PAYE due to the HMRC. Regular pension income payments will be made on the 1st working day ...
