(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 text has been withheld because of exemptions in the
Freedom of Information Act 2000)
[PN7.38]
Some schemes continue to give lump sum life insurance cover
after retirement or 'deemed' retirement (ie after the employee has
taken a benefit under the scheme (see
PSI9.1.16)). This Section
deals with life cover that continues after NRD. Part 10 deals with
such cover continuing after early retirement. Continued life cover
is generally regarded as a retirement benefit which must be taken
into account when calculating the member's maximum approvable total
and lump sum benefits (but see
PSI10.2.19 where the member
retires early because of incapacity and
PSI6.2.3 where the lump sum death in
retirement benefit does not exceed £2,500). Restriction of the
member's scheme benefits is necessary only if the aggregate
benefits payable, including the value of the life insurance cover,
would otherwise exceed Revenue limits.
