PSI4.3.20 - Maximum Contributions: Pension Sharing on Divorce – Pension Credit Benefits

(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)

[PN4.6]

Where

• a scheme member’s benefit rights in a retirement benefits schemes are subject to a pension sharing on divorce order, and
• the member’s ex-spouse becomes a member of the scheme in his or her own right (see PSI3.5.1)

The ex-spouse cannot pay any contributions in respect of the pension credit being held in the scheme on his or her behalf.

If the ex-spouse

• is already a member of the scheme as a result of being an employee of a participating employer, or
• becomes an employee member in his or her own right at some later date due to an employment with a participating employer, or
• is an employee member of another retirement benefits scheme and the pension credit benefits is transferred to that scheme

the pension credit benefit could affect the amount of contributions that can be paid by the ex- spouse in his or her capacity as an employee member.