PSI6.2.3 - Total Benefits On Retirement At Normal Retirement Age: Life Cover after Retirement - General- Exceptions

(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 7.26]

As an exception to PSI6.2.2, continued life cover providing a lump sum death benefit in retirement of up to a maximum of £2,500 may be provided for any member without any of the restrictions referred to in PSI6.2.4being applied.

In addition, where death in service life cover is renewed on its anniversary for a period of one year in the normal expectation of continued employment but prior to the end of that period the employee retires, the cover may be allowed to continue for one year. In these circumstances the cover which continues after retirement will not be regarded as a retirement benefit and so similarly will not be subject to any of the restrictions in PSI6.2.4.

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