PSI6.1.9 - 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)

The definition of a “retirement benefits scheme” in section 611 ICTA 1988 excludes any “national scheme” (see PSI1.1.5). When the maximum benefits payable under an occupational scheme are calculated there is no need to take into account the following State pensions:

1. the State “flat rate” retirement pension and the “graduated” pension payable under the National Insurance Acts,
2. the basic pension payable under the Social Security Act 1973 (which replaced the National Insurance Acts from 6 April 1975), or
3. the State pension payable under the Social Security Pensions Acts 1975, which will always include a “basic component” and may also include an earnings-related “additional component” for non contracted-out service after 5 April 1978.