PSI6.5.20 - Total Benefits on Retirement at Normal Retirement Age: Maximum Total Benefits - Members Subject to Pre-Finance Act 1989 Basis for Early/Late Retirement

(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)

Where the scheme gives a pension on a specified basis after completion of a stated period of service, as in PSI6.5.18, the rules must clearly link entitlement to pension with:

1. ceasing to be in service at NRD, or
2. retiring at NRD.

There is otherwise the risk than an early leaver who had completed the stated period of service could be entitled to a deferred pension of 2/3rds of final remuneration calculated at the date of leaving.