PSI6.5.55 - Total Benefits on Retirement at Normal Retirement Age: Retained Benefits

(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)

Retained benefits include:-

16. pensions in payment, including any pension already in payment under a drawdown facility from an approved occupational pension scheme, or a scheme seeking approval, or a relevant statutory scheme including a FSAVCS, and from any overseas scheme accepted as corresponding (see PSI15.1.8),
17. deferred pensions, including any part of a deferred pension which is commutable, from any approved scheme, or a scheme seeking approval, or a relevant statutory scheme including a FSAVCS, and from any overseas scheme accepted as corresponding (see PSI15.1.8),
18. the annuity equivalent of lump sums received or receivable, including any already received in commutation of pension,
19. annuities, income withdrawals and the annuity equivalent of lump sums, from personal pension schemes related to current (except in the case of controlling directors without continued rights - see PSI6.5.67) or an earlier employment, or from previous periods of self-employment (whether alone or in partnership), or from periods of eligibility for the personal pension under s632A (see PSI3.1.25) but excluding those in relation to a wholly concurrent occupation. (Personal pension schemes to which only minimum contributions may be paid during a period of membership of a non-contracted-out occupational pension scheme, see PSI3.1.24 are not treated as retained benefits, and neither are benefits arising from contributions made during a period of eligibility for the personal pension under s632B “concurrency”, see PSI3.1.26),
20. retirement annuities, before any commutation, related to current (except in the case of controlling directors without continued rights - see PSI6.5.67) or an earlier employment, or from previous periods of self-employment (whether alone or in partnership) but excluding those in relation to a wholly concurrent occupation,
21. benefits from funds to which Section 608 ICTA 1988 applies, and
22. transfer payments from overseas schemes held in an approved retirement benefit scheme or one seeking approval, a relevant statutory scheme, a personal pension scheme as in c. above, or a retirement annuity contract as in d. above, and
23. where applicable, pension debits held in any of the sources described in a. to g. above (see PSI6.5.89).

Benefits from any of the sources described in a. to f. Above which have been transferred to another scheme (whether or not that scheme is in the UK) or have been bought-out continue to be regarded as retained benefits. If the transferred benefits are subject to and take into account a pension debit in the transferring scheme, the pension debit must also be included as a retained benefit (see PSI14.2.56).

If the aggregate of retained benefits from all sources does not exceed £260 per annum it may be ignored.