(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 only limitation on the amount of life cover for an
employee is that its cost must not exceed the maximum approvable
lump sum retirement benefit payable to that employee under the
scheme. The greater the cover the larger the cost and so the
greater will be the impact on both the employee's maximum approval
total benefits and lump sum retirement benefit.
