PSI6.5.21 - Total Benefits on Retirement at Normal Retirement Age: Maximum Total Benefits - Subject To the Post-Finance Act 1989 Basis

(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)

Because of the change in discretionary practice on early, normal and late retirement for members who are also subject to the statutory changes introduced by Finance Act 89, we no longer object to a pension of N/30ths on retirement at any age between 50 and 75 (see PSI6.3.1) though this may not be pre-funded by the employer (see PSI20.1.5). It remains necessary to link funding for benefits to NRD and any enhancement of early benefits must be by augmentation; so if it is contended that a high accrual rate should be permitted which will give members a maximum entitlement of 2/3rds of final remuneration well before NRD, follow the procedure in 6.5.12-20.