(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)
Similarly, as explained in
PSI6.4.2, the Finance (No 2) Act 1987
introduced an averaging requirement in respect of the final
remuneration of high earners. In relation to retirements on or
after 17 March 1987 (see
PSI6.4.6), they, like controlling
directors, must also be restricted to the definition in
PSI6.4.15 (b) for the calculation of
benefits.
[PN Glossary]
This applies where final remuneration is based on years
beginning on or after 6 April 1987, and would exceed £100,000
(or such higher figure as the Treasury may prescribe). The
restriction is applied in the manner and circumstances described in
PSI6.4.6. Paragraph 5 of Schedule 23 was
modified in its effect by Regulation 9 of The Occupational Pension
Schemes (Transitional Provisions) Regulations 1988 [SI 1988 No
1436] (see
PSI2.3.23) and discretionary
practice altered accordingly. Where final remuneration calculated
in accordance with
PSI6.4.15 (b) is less than
£100,000, the figure of £100,000 may be substituted.
