PSI6.1.3 - Total Benefits On Retirement At Normal Retirement Age: General: Other occupational pension schemes of the employer

(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)

Section 590(8) ICTA 1988 requires, in relation to mandatory approval (see PSI2.3.6-7), that all approved occupational pension schemes of an employer, including schemes awaiting our approval, for a particular employee or class of employee must be considered together. This principle is equally relevant to approval under our discretionary powers (see PSI2.3.13) and is applied to all consideration of whether or not a scheme is approvable. We have three main concerns when considering an employer’s occupational pension scheme for approval where that employer has other approved occupational pension schemes.

[PN7.25]

1. What is the effect on the approval of the employer’s existing occupational pension schemes?
2. Are aggregate benefits including any pension debits where applicable (see PSI6.5.89) and benefits in payment in the form of income drawdown (see PSI Part 25 Section 2) from all employer’s approved occupational pension schemes, including old code schemes, occupational pension schemes, to which the employer has contributed and free-standing additional voluntary contribution schemes, within normal limits?
3. Does each category of employee have a consistent normal retirement age under the different schemes?

In practice we would not approve any occupational pension scheme which would prejudice the approval of an existing approved scheme. Since Finance Act 1989, however, the existence of a non-approved top-up scheme (see PSI1.2.3-4) does not affect the approved status of other schemes.