(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)
If the
PSI6.5.18 formula is used instead of a
constant accrual rate the short service benefit of an employee who
comes within category a., c. or d. will be calculated on the
uniform accrual basis (see
PSI13.3.4). We can therefore,
where appropriate (see
PSI10.1.12 and
PSI13.3.16), apply the N/NS
x P limit. The short service benefit for an early leaver whose
potential service to NRD is more than 7 years will, at the scheme
accrual rate, not exceed N/NS x P. The basic accrual rate is
therefore acceptable for early leavers within category b.
Similarly, there are no problems for early leavers within category
e.
