In an update to Pension
Schemes Newsletter 124, HMRC says the protected pension age easement
for certain pension scheme members re-employed as a result of coronavirus will
expire on 1 November 2020 and will not be extended further.
Some individuals who were members of pension schemes before 6
April 2006, including some police, firefighters and other uniformed service
personnel, have protected pension ages, meaning they are able to receive
pension benefits at an age below the normal minimum pension age of 55. Under
current legislation, those individuals with a protected pension age in the
range 50 to 54 would lose the benefit of their protected pension age and become
liable to unauthorised payment tax charges if they access their pension
benefits and either (i) continue to work without a break in service or (ii)
return immediately to service without a break of at least one month.
The government temporarily suspended these rules where such
individuals returned to work as part of the government’s response to
coronavirus (see Pension
Schemes Newsletter 119), for the period from 1 March to 1 November
2020.
In an update to Pension
Schemes Newsletter 124, HMRC says the protected pension age easement
for certain pension scheme members re-employed as a result of coronavirus will
expire on 1 November 2020 and will not be extended further.
Some individuals who were members of pension schemes before 6
April 2006, including some police, firefighters and other uniformed service
personnel, have protected pension ages, meaning they are able to receive
pension benefits at an age below the normal minimum pension age of 55. Under
current legislation, those individuals with a protected pension age in the
range 50 to 54 would lose the benefit of their protected pension age and become
liable to unauthorised payment tax charges if they access their pension
benefits and either (i) continue to work without a break in service or (ii)
return immediately to service without a break of at least one month.
The government temporarily suspended these rules where such
individuals returned to work as part of the government’s response to
coronavirus (see Pension
Schemes Newsletter 119), for the period from 1 March to 1 November
2020.
