PSI4.3.4 - Maximum Contributions: Scheme Rule
Requirements
-
(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)
The wording currently suggested in the Standards conversion
packages issued on 2 July 1990 covers all our requirements in
relation to contributions by post-Finance Act 1989 members (the
permitted maximum being covered by the definition of "Remuneration"
elsewhere in the rules):
Members' Contributions (Contributory Scheme)
- Each member is required to contribute [
percent of his pensionable salary] [at such rate as determined by
the employer and notified in writing to the member. No rate of
contribution determined under this sub-rule may be altered before
the expiry of a period of 12 months from the date on which the
first payment at the current rate became due without the specific
agreement of the Board of Inland Revenue].
- In addition the member may make voluntary
contributions to the scheme to secure additional benefits for
himself/herself and/or his/her dependants. Any retirement benefits
so secured must be in the form of non- commutable pension except to
the extent to which the provisions of the scheme allow commutation
of trivial pensions or on the grounds of exceptional circumstances
of serious ill-health.
- The total contributions paid by the member
in a year of assessment to this and any relevant scheme providing
benefits by virtue of service shall not exceed 15% of his or her
remuneration for that year in respect of that service.
Members' Contributions (Non-Contributory
Scheme)
A member is not required to contribute to the scheme but may
make voluntary contributions to secure additional benefits for
himself/herself and/or his/her dependants. Any retirement benefits
so secured must be in the form of non- commutable pension except to
the extent to which the provisions of the scheme allow commutation
of trivial pensions or on the grounds of exceptional circumstances
of serious ill-health.
The total contributions paid by the member in a year of
assessment to this and any relevant scheme providing benefits by
virtue of service shall not exceed 15% of his or her remuneration
for that year in respect of that service. (See
PSI4.3.14to 4.3.16 in respect of
surplus AVCs.)
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