(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)
[PN6.10]
The NRD specified in scheme documentation should be changed
if it becomes unrealistic following an alteration in the employer's
retirement policy. If a new scheme is set up with a different NRD
from that under an existing scheme covering the same member or
members, the NRDs under the two schemes must be brought into line.
It is usual for the existing scheme NRD to be re-prescribed on the
assumption that the new scheme NRD is a more accurate reflection of
retirement intentions (see however
PSI6.3.7 about supplementary schemes).
The NRD of a member under an individual arrangement or
discretionary scheme who is subject to the post-Finance Act 1989
basis for early/late retirement (see
PSI9.1.1 and
PSI10.1.7) may be altered if
the parties agree. Because, as explained in
PSI6.3.1, our limits for such members
are not geared to NRD, there is much more flexibility available to
provide retirement benefits (at any age between 50 and 75). A
change in the NRD for this category of member is therefore of much
less concern to us than for a member subject to the pre-Finance Act
1989 basis for early/late retirement (see
PSI6.3.14 and
PSI10.1.12). Provided the
new NRD is within the acceptable age range set out in
PSI6.3.3, it is not necessary in the
case of a member subject to the post-Finance Act 1989 basis for
early/late retirement, to report the change to us. It is not,
however, acceptable to alter a member's NRD once it has been
attained.
