PSI6.2.5 - Total Benefits On Retirement At Normal Retirement Age: Life Cover after Retirement - Life Cover After Retirement at NRD - Value Of Benefit for Revenue Limits Purposes

(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 value of the life cover is normally taken to be the single premium required at the employee's retirement to provide it. This cost is treated as a lump sum retirement benefit. If this amount, plus the member's commutation or other lump sum retirement benefit, exceeds Revenue limits, one or the other must be cut back.

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