PSI6.4.8 - Total Benefits on Retirement at Normal Retirement Age: Pensionable Remuneration and Final Remuneration - Permitted Maximum


(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 permitted maximum may be increased annually by Treasury Order as provided by section 590C in accordance with a formula which takes account of increases in the cost of living measured by the Retail Prices Index. It was introduced for the first 2 years 1988/89 and 1989/90 at a level of £60,000. For subsequent years it has been set at the following levels:

1990-91£64,800
1991-92£71,400
1992-93£75,000
1993-94£75,000
1994-95£76,800
1995-96£78,600