Compensation & Benefits: Normal minimum pension age set to rise to 55 from 6 April 2010

January 3, 2010

As a general rule a member of a UK registered pension scheme must
reach a specified age before he can draw his pension, the normal minimum
pension age (“NMPA”).  This will rise from 50 to 55 on 6 April 2010.

The rise in the NMPA will mean that any pension payment to a member
from a pension scheme prior to the NMPA on or after 6 April 2010 will
amount to an unauthorised payment.  The member will be liable to income
tax on such payment.

Two exceptions allow payments from a pension scheme to be made to
member before he has reached the NMPA:


Protected Pension Ages


Employers and trustees should be aware of the change and review
scheme documentation to establish whether any members have protected
pension ages.  Employers should also consider amending their schemes to
note the new NMPA where necessary and inform appropriate members of the
NMPA change and its effect

For further information or to discuss the issues raised, please
contact Guy Abbiss (
or Colina Greenway (
on +44 (0) 203 051 5711.


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Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

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