PSI6.2.2 - Total Benefits On Retirement At Normal Retirement Age: Life Cover after Retirement - General- Availability

(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)

[PN 7.37]

The scope to provide continued life cover was limited following the simplification of Inland Revenue practice announced in August 1991. With the exception of members entitled to continued rights (see PSI2.3.23) and those who joined their scheme prior to 1 October 1991, the provision of continued life cover is no longer approvable except where:

13. scheme members retire early on incapacity grounds (see PSI10.2.19) or
14. The member continues in the employer's service after having taken employer funded benefits at or after NRD, but before actual retirement (see PSI9.1.16).

In practice "b" applies only to continued rights members and Finance Act 1989 members of schemes approved prior to 27 July 1989 who retain the pre-Finance Act 1989 basis for late retirement (see PSI9.1.1).