PSI6.4.16 - Total Benefits on Retirement at Normal Retirement Age: Pensionable Remuneration and Final Remuneration - Controlling Directors

(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 Glossary]

The ability to select one or other of the alternative definitions in PSI6.4.15is not available to everyone. One of the restrictions for schemes for or including controlling directors is that final remuneration must be based on the formula in PSI6.4.15(b): the alternative in PSI6.4.15(a) is not permissible. This prevents such a director from gaining an unreasonably high pension by inflating his or her pay for the final year or two of service.

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