If the trustees of a Money Purchase pension scheme want to allow members to take 25% out of their pension fund when they "are entitled to the pension" are they allowed to within the law.
NB The key point is when "entitled to" rather than "when taking " pension.
The rules of the scheme are that members can take their pension when they are 60 if they so wish - even if they are still working.
So, can the trustees permit someone to take 25% out of the fund tax-free when they reach 60 (ie they are entitled to the pension but may not actually be buying an annuity at that time - and may continue working)?
I have read/heard numerous views on this. If you believe you know the answer - please can you point at the relevant part of the Finance Act
2004 (or elsewhere) which explains this; (obviously interested in pov as well)TAI.