Automatic Enrolment Retirement Savings System Act 2024 section 87

Making of early payment

Section 87 requires the Authority to promptly pay out or transfer a participant's savings balance once it has issued a notification of early withdrawal under section 86.

• Once the Authority has notified a participant that their savings balance falls below the minimum threshold, it must act promptly to release the funds.
• The default option is to pay the full balance directly to the participant as a lump sum.
• Alternatively, where regulations made under section 80 apply, the Authority may transfer the balance in accordance with those regulations for the payment of benefits to or in respect of the participant.
• The section ensures that once a decision to allow early withdrawal has been communicated, the participant receives their funds without unnecessary delay.