(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 members of a money purchase scheme are not promised a set
fraction of final remuneration. Their benefits on retirement at NRD
depend on the size of the fund accumulated on their behalf
comprising contributions paid in and the yield obtained from
investment of those contributions subject to Revenue limits.
Although there is no guaranteed entitlement to a particular level
of benefit, schemes are often funded with a specific target in
mind, such as 2/3rds of final remuneration, (see also
PSI20.1.13).
