PART 2RESTRICTIONS ON CHARGES

F1CHAPTER  2RESTRICTIONS ON EARLY EXIT CHARGES

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Early exit charges13A

1

For the purposes of this Chapter an early exit charge in relation to a member of a relevant scheme is a charge which—

a

is imposed under the scheme or a relevant contract when a member who has reached normal minimum pension age takes the action mentioned in subsection (2); but

b

is only imposed, or only imposed to that extent, if the member takes that action before the member’s normal pension age.

2

The action is the member taking benefits under the scheme, converting benefits under the scheme into different benefits or transferring benefits to another pension scheme.

3

For the purposes of this regulation—

  • “normal minimum pension age” has the meaning given in section 279(1) of the Finance Act 2004;

  • “normal pension age” means the earliest age at which, or the earliest occasion on which, the member is entitled to receive the benefit without adjustment for taking it early or late (disregarding any special provision as to early payment on the grounds of ill-health or otherwise and any administration charges); and

    a reference to “benefits” includes any part or all of those benefits.