PSI6.1.2 - Total Benefits On Retirement At Normal Retirement Age: General: General

(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)

To calculate a member’s maximum benefits a scheme administrator needs to take account of,

1. the member’s normal retirement age (see Section 4 of this Part),
2. the final remuneration (see Section 4 of this Part),
3. the length of service with the employer (see Section 6 of this Part),
4. Whether the member has benefits due from any other scheme of the employer (see Part 22), and finally

and in certain circumstances whether

5. the member’s benefits are subject to a pension debit following a pension sharing on divorce order (see PSI6.5.89)
6. the member has any pension credit benefits in the scheme following a pension sharing on divorce order (see PSI24.1.6-7)
7. in certain circumstances whether the member has any retained benefits from previous employments or periods of self employment either in occupational or personal pension schemes or in buy-out policies (see Section 5 of this Part).

Some of the details necessary, such as the normal retirement age, definition of final remuneration and benefit scale are set out in the scheme documentation. But the administrator must also keep separate records for each member so as to be able to calculate the individual benefits payable under the rules and check that they are within Revenue limits.