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early exit charge

    117has the meaning given in section 137FBB(6) of the Act, which is, in summary:

      1. (a) a charge imposed on a member of a personal pension scheme or stakeholder pension scheme:
        1. (i) when that member, having reached normal minimum pension age, takes the action set out in (b); but
        1. (ii) which is only imposed, or only imposed to that extent, if the member takes that action before the member’s expected retirement date; and
      1. (b) the action is the member taking benefits, converting benefits into different benefits or transferring benefits to another pension scheme; and
      1. (c) in this definition:
        1. (i) a reference to “benefits” includes all or any part of the member’s benefits under the scheme;
        1. (ii) “charge” includes a reduction in the value of the member’s benefits under the scheme;
        1. (iii) “expected retirement date” means the date determined by or in accordance with the scheme as the date on which the member’s benefits under the scheme are expected to be taken; and
        1. (iv) “normal minimum pension age” has the meaning given in section 279(1) of the Finance Act 2004.
        [Note: the meaning of “normal minimum pension age” referred to in (c)(iv) above, is, in summary, in relation to dates on and after 6 April 2010, 55 and, in relation to dates before 6 April 2010, 50].