PSI6.1.10 - Total Benefits on Retirement at Normal Retirement Age: General - State pensions

(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)

[PN7.18]

Each member of a salary related contracted-out scheme is entitled to a Guaranteed Minimum Pension (GMP). We cannot impose limits which restrict the member’s scheme benefits below his or her GMP. This applies also to early leavers from contracted-out schemes. Their scheme benefits must not fall below their revalued GMP unless this liability is taken over by the State, after the payment of a State Scheme Premium. In practice the GMP requirement is of little significance to us because our benefit limits are normally much greater than a member’s GMP.

Contact: | Date issued: | Next review: