(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 an employee is a member of a scheme established prior to
17 March 1987 which provides benefits for death in service only,
and on or after 17 March 1987 that scheme is amended to include
retirement benefits, or the employee becomes a member of another
scheme of the employer or an associated employer which provides
retirement benefits, that member
cannot claim pre-Finance (No2) Act 1987 "continued
rights", under The Occupational Pension Schemes (Transitional
Provisions) Regulations 1988 or by asking the PSO to agree to
entitlement to such rights (see
PSI2.3.23), by virtue of membership of
the death in service only scheme.
The position is, however, different so far as the Finance Act
1989 changes are concerned. If, before 1 June 1989, an employee
became a member of a scheme established prior to 14 March 1989
which provides benefits for death in service only, and on or after
14 March 1989 that scheme is amended to include retirement
benefits, or the employee becomes a member of another scheme of the
employer or an associated employer which provides retirement
benefits, that member can claim pre-Finance Act 1989 "continued
rights".
