PSI.Part6 - Total Benefits on Retirement at Normal Retirement Date


(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)

Contents

Section 1 – General

Section 2 - Life Cover After Retirement

Section 3 - Normal Retirement Age

Section 4 - Pensionable Remuneration and Final Remuneration

Section 5 - Maximum Total Benefits

click here to return to contentsSection 1 – General

PSI6.1.1-2General
PSI6.1.3Other schemes of the employer
PSI6.1.4- aggregation for limits purposes
PSI6.1.9-11State pensions
PSI6.1.14Payment of pensions date of commencement
PSI6.1.15- pensions payable for life
PSI6.1.16- variable benefits
PSI6.1.17- reducing pensions
PSI6.1.18- terminating pensions
PSI6.1.22Pensions must not be surrendered, commuted or assigned
PSI6.1.23Pensions must not be surrendered, commuted or assigned
PSI6.1.24Forfeiture of benefits
PSI6.1.25- employer’s lien
PSI6.1.27Sex discrimination
PSI6.1.28- the barber case
PSI6.1.29Pension sharing on divorce

click here to return to contentsSection 2 - Life Cover After Retirement

PSI6.2.1. General
PSI6.2.2- availability
PSI6.2.3- exceptions
PSI6.2.4Revenue concern
PSI6.2.5-6Life cover after retirement at nrd value of benefit for revenue limits purposes
PSI6.2.7- amount of cover
PSI6.2.10Pension business considerations
PSI6.2.11-12 Inheritance tax considerations
PSI6.2.13Life cover in service after nrd
PSI6.2.14 Self-administered schemes

click here to return to contentsSection 3 - Normal Retirement Age

PSI6.3.1General
PSI6.3.2Normal retirement age and normal pension age distinguished
PSI6.3.3Establishing a normal retirement date
PSI6.3.4-5Directors/controlling directors
PSI6.3.6Scheme rules
PSI6.3.7Supplementary schemes
PSI6.3.12Re-prescription of nrd
PSI6.3.13-15Lowering of nrd
PSI6.3.26Variable nrds - other methods
PSI6.3.30-31Low nrds
PSI6.3.32-33- directors/controlling directors
PSI6.3.38High nrds

click here to return to contentsSection 4 - Pensionable Remuneration and Final Remuneration

PSI6.4.1.-2 General
PSI6.4.3-6Statutory definition
PSI6.4.7-8Permitted maximum
PSI6.4.9- relevant associated employments
PSI6.4.10-11- connected schemes
PSI6.4.13Scheme rules
PSI6.4.15Acceptable definitions
PSI6.4.16 Controlling directors
PSI6.4.17- scheme rules
PSI6.4.18- individual arrangements
PSI6.4.19- ceasing to be a controlling director
PSI6.4.20-21High earners
PSI6.4.22-23 Fluctuating emoluments general
PSI6.4.24Large salary increases shortly before retirement
PSI6.4.25-26 Directors’ fees general
PSI6.4.28- canalisation of directors’ fees
PSI6.4.33-34Adding for cost of living “dynamisation”
PSI6.4.35- acceptable indices
PSI6.4.36- scheme rules
PSI6.4.37-38- restriction on use of dynamised final remuneration
PSI6.4.39: money purchase schemes
PSI6.4.42Earnings which peak in mid-career
PSI6.4.43 Incapacity
PSI6.4.44Use of notional pay for final remuneration
PSI6.4.45Profit related pay (prp) schemes
PSI6.4.46Final remuneration not determined for tax purposes
PSI6.4.47Salary sacrifices

click here to return to contentsSection 5 - Maximum Total Benefits

PSI6.5.1-2General
PSI6.5.3Public sector type schemes
PSI6.5.4-5Final salary/defined benefit schemes
PSI6.5.6- uplifted 60ths
PSI6.5.7- augmentation
PSI6.5.8-9- n/30ths accrual f(no 2)a 1987
PSI6.5.10Finance act 1989 members
PSI6.5.11-12- high accrual rates
PSI6.5.13-20Members subject to pre-finance act 1989 basis for early/late retirement
PSI6.5.21Subject to the post-finance act 1989 basis
PSI6.5.27-28Money purchase schemes
PSI6.5.32Scheme rules
PSI6.5.35Specimen limits rule
PSI6.5.37- career average schemes
PSI6.5.51-52Retained benefits  disregard
PSI6.5.53-55Avcs paid subsequent to joining scheme
PSI6.5.56- valuation
PSI6.5.57-58Retained benefits paid or already in payment
PSI6.5.59-60Benefits under with-profits or investment-linked policies
PSI6.5.61Recalculation
PSI6.5.62- escalating pensions : fixed rate increases
PSI6.5.63: cost of living increases
PSI6.5.64(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
PSI6.5.65- armed forces benefits
PSI6.5.66- retirement annuities or personal pensions
PSI6.5.67- controlling directors
PSI6.5.68Retained benefits offering a choice of form
PSI6.5.69- concurrent employments
PSI6.5.70Pensionable service general
PSI6.5.71- Continuous service on change of employer
PSI6.5.72- Continuous service on change of employer - employers associated
PSI6.5.73- Continuous service on change of employer - take-overs/mergers/reconstructions
PSI6.5.74-75- aggregation of split service
PSI6.5.80Low normal retirement age restriction on benefits
PSI6.5.81- benefits at normal retirement age
PSI6.5.82- early retirement
PSI6.5.83-84- late retirement
PSI6.5.85- procedure
PSI6.5.86Previous expectations
PSI16.5.87-102Pension Sharing on Divorce