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Pensions Tax Manual

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Information and administration: information requirements when a member flexibly accesses their benefits: action a member must take if they receive a flexible access statement

Glossary PTM000001
   

 

Where the member has received a flexible access statement from a

 

  • scheme administrator of a registered pension scheme or
  • the scheme manager of a qualifying recognised overseas pension scheme (QROPS) or former QROPS

they must pass on information about the flexible access statement to other schemes under which they are an ‘accruing member’.

Requirement to pass on information about a flexible access statement received from a scheme administrator
Requirement to pass on information about a flexible access statement received from the scheme manager of a QROPS or former QROPS
What is an accruing member
What is the relevant 13 week period

Requirement to pass on information about a flexible access statement received from a scheme administrator

Regulation 14ZB The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

The member must pass on information about the flexible access statement to the scheme administrator of every registered pension scheme, under which the individual is already an ‘accruing member’. See ‘What is an accruing member’ below for the definition of an accruing member.

If the individual is an accruing member when they receive the flexible access statement, by the end of the ‘relevant 13 week period’ the member must:

  • give the scheme administrator or scheme manager a copy of the flexible access statement or
  • tell the scheme administrator or scheme manager that they have received a flexible access statement, and either the date of the relevant event or, where applicable, that the relevant event occurred more than two years before the start of the relevant 13 week period.

See ‘What is the relevant 13 week period’ below for the definition of the relevant 13 week period.

If the member becomes an accruing member of another registered pension scheme after the start of their 13 week notification period then within 91 days beginning with the date they became an accruing member the member must:

  • give the scheme administrator or scheme manager a copy of the flexible access statement or
  • tell the scheme administrator or scheme manager that they have received a flexible access statement, and either the date of the relevant event or, where applicable, that the relevant event occurred more than two years before the start of the relevant 13 week period.

However the member does not need to do this if the member joined the new scheme as a result of a recognised transfer from another registered pension scheme, QROPS or former QROPS after the date of the relevant event.

When the member does not have to pass information on

The member does not have to notify the scheme administrator of the scheme that sent them the flexible access statement.

The member also does not have to pass on information about receiving a flexible access statement to a scheme administrator if they have already told them that they have flexibly accessed their pension right under:

  • this provision
  • regulation 14ZD, building up pension rights following pre 6 April 2015 flexible drawdown (see PTM166500), or
  • regulation 14ZE, conversion of capped drawdown to flexi-access drawdown (see PTM166600).

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Requirement to pass on information about a flexible access statement received from the scheme manager of a QROPS or former QROPS

Regulation 3AB The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

Where the member receives a flexible access statement from a scheme manager of a QROPS or former QROPS they must notify the

  • scheme administrator of every registered pension scheme, and
  • scheme manager of every QROPS or former QROP

under which they are an accruing member that they have received a flexible access statement. See ‘What is an accruing member’ below for the definition of an accruing member.

If the individual is an accruing member when they receive the flexible access statement, by the end of the ‘relevant 13 week period’ the member must:

  • give the scheme administrator or scheme manager (as the case may be) a copy of the flexible access statement or
  • tell the scheme administrator/scheme manager that they have received a flexible access statement, and either the date of the relevant event or where applicable that the relevant event occurred more than two years before the start of the relevant 13 week period.

See ‘What is the relevant 13 week period’ below for the definition of the relevant 13 week period.

If the member becomes an accruing member of another scheme after the start of their 13 week notification period then within 91 days beginning with the date they became an accruing member the member must:

  • give the scheme administrator or scheme manager (as the case may be) a copy of the flexible access statement or
  • tell the scheme administrator/scheme manager that they have received a flexible access statement, and either the date of the relevant event or where applicable that the relevant event occurred more than two years before the start of the relevant 13 week period.

However the member doesn’t need to do this if after the date of the relevant event the member joined the new scheme as a result of:

  • a recognised transfer from a registered pension scheme, or
  • a transfer that includes a relevant transfer fund (see PTM113230).

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What is an accruing member

An individual is an ‘accruing member’ is on any particular day if they are accruing benefits under a money purchase arrangement or a hybrid arrangement. Accruing benefits in this context means:

  • In the case of an other money purchase arrangement:

    • a relievable contributions has been paid by or on behalf of the member
    • an employer has paid a contribution in respect of the member, or
    • a contribution made by an employer of the member but not in respect of the member, subsequently becomes held for the purposes of an other money purchase arrangement for the member.
  • In the case of a cash balance or hybrid arrangement there are presently arrangement for the accrual of benefits in respect of the member under the arrangement.

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What is the relevant 13 week period

Following receipt of a flexible access statement from a scheme administrator

The relevant 13 week period is a period of 91 days starting with:

  • If the member was an accruing member of any registered pension scheme in the period starting with the relevant event and ending with the date of receipt of the flexible access statement from the scheme administrator:

The date of receipt of the flexible access statement from the scheme administrator

  • If the member was not an accruing member of any registered scheme in that period:

The date the member became an accruing member of a registered pension scheme.

Following receipt of a flexible access statement from a scheme administrator

The relevant 13 week period is a period of 91 days starting with:

  • If the member was an accruing member of any registered pension scheme, QROPS or former QROPS in the period starting with the relevant event and ending with the date of receipt of the flexible access statement from the scheme manager:

The date of receipt of the flexible access statement from the scheme manager

  • If the member was not an accruing member of any registered scheme, QROPS or former QROPS in that period:

The date the member became an accruing member of a registered pension scheme.

Only one relevant 13 week period can apply to a member.

The second definition of the relevant 13 week period time limit will only apply if on the date of the relevant event the member was not accruing benefits under any money purchase or hybrid arrangement under any registered pension scheme (or registered pension scheme, QROPS or former QROPS if the flexible access statement was provided by a scheme manager).

Example of the relevant 13 week period

Zita is a member of three money purchase schemes:

  • Scheme A: Zita is a deferred member, she designates into flexi-access drawdown on 1 July 2015
  • Scheme B: Zita is an accruing member of this scheme throughout
  • Scheme C: Zita becomes an accruing member on 15 October 2015

As Zita has flexibly accessed benefit under scheme A, the scheme administrator sends Zita a flexible access statement on 31 July 2015. Zita receives the statement on 4 August 2015.

Zita must pass on details of this flexible access statement to the scheme administrator of every scheme of which she is an accruing member.

As Zita was an accruing member between 1 July 2015 (the date of the relevant event) and 4 August 2015 (the date she received the flexible access statement from scheme administrator A) her relevant 13 week period starts on 4 August 2015. Zita has 91 days (until 2 November 2015) to tell the other schemes that she is an accruing member of at the start of the relevant period that she has flexibly accessed her pension rights.

However Zita does not start accruing benefits under scheme C until after her relevant period has started. For this scheme Zita has 91 days from the date the scheme started accruing benefits under the scheme (so until 13 January 2016) to tell that scheme administrator that she has received a flexible access statement as she has flexibly accessed her pension rights under scheme A.