Drawing Pensions on Semi-Retirement

A recent Court of Appeal decision means that occupational pensions cannot be drawn while still working for the same employer - even in a different capacity.

Entitlement to benefits on "retirement" - when can pensions be drawn?

The case of Venables v Hornby was heard this year in the Court of Appeal. The effect of the decision, handed down on 18 September 2002, is that employees will not be able to draw a pension if they simply alter or reduce their role in the company.

The Court decided that, unless there is a strong indication of contrary intention in the pension scheme rules, the concept of retirement should be interpreted in line with the Income and Corporation Taxes Act 1988 (the "Taxes Act"). Although the word "retirement" is not specifically defined by the Taxes Act, the Venables case...