(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
If it is to be approved, a retirement benefits scheme must
provide only "relevant benefits" as defined in section 612(1) ICTA
88. They include all financial benefits given on the termination of
an employee's service with an employer and may be ex-gratia.
Examples are pensions and lump sums given on, or after, retirement
from service or following an employee's death in service or
retirement and AVC benefits paid before the commencement of the
member's employer funded benefits in accordance with the terms set
out in
PSI25.3.1.
Where a scheme member’s benefits are subject to a
pension sharing order (see
PSI3.5.4), relevant benefits
can also include pension and lump sum benefits payable to the
ex-spouse of the scheme member or following the ex-spouse’s
death.
