[The Auditors Institute Ltd]

Hello Phuong

Thanks for the question.

As there is no maximum amount that can be withdrawn within an income year for an Account Based Pension (ABP), it is certainly possible to pay out a member’s balance in full.  Naturally, the ABP will cease to exist once this has occurred.

Whilst this might not be common practice, it is not improper.

Assuming there is sufficient evidence that the fund member being 60, had retired, therefore satisfy a condition of release to commence the ABP, then this situation should be ok from an audit perspective.

Happy to hear the thoughts of other auditors on this matter.

Best regards

The Auditors Institute