PSI3.4.6 - Membership of Schemes: Temporary Absence and Secondment - Incapacity

(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)

[PN3.13]

Where an employee is absent from work because of incapacity whether or not drawing pay under a sick pay or permanent health insurance scheme, scheme membership may be retained for more than 10 years and we do not need to look for an expectation of return. In these circumstances the employee may remain a full member of the scheme until normal retirement date, at which time the sick pay, if any, will be replaced by a scheme pension. Alternatively the employee may retire early on incapacity grounds if the scheme rules permit.

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