(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)
This Part deals with the maximum total benefits payable by an
approved scheme to members who retire at NRD. The limit is normally
2/3rds of the member’s final remuneration (see Section 5 of
this part) provided that sufficient service has been completed, and
is our most important control over the retirement benefits which
may be given. Before Finance Act 1989 it was also the basis for
establishing the maximum benefits payable on early or late
retirement. Also, pension sharing on divorce (see
PSI3.5.4) might have an affect
on the maximum benefits that can be paid to a scheme member. By
limiting the benefits payable we indirectly control the
contributions payable to the scheme and the tax relief given on
those contributions and on the scheme’s investment
income.
