(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)
NRD should, as near as possible, be the age at which
employees normally retire in practice (see
PSI6.3.3). If an employer selected an
NRD that was unrealistically low, and employees subject to the
pre-Finance Act 1989 basis for late retirement (see
PSI9.1.15 and Section 2 Part
9) continued in service after that age, they could earn late
retirement benefits. This could lead to excessive benefits being
paid. Proposals to fix an NRD outside the acceptable range in
PSI6.3.3 must therefore be looked at
carefully.
