PSI6.5.6 - Total Benefits On Retirement At Normal Retirement Age: Maximum Total Benefits - Final salary/defined benefit schemes - Uplifted 60ths
(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)
[PN7.29]
The most common way of giving the pre-17 March 1987 late
entrant continued rights member a pension in excess of N/60ths is
by use of uplifted 60ths (see
PSI6.5.5(b)). The uplift scale enables a
pension of 2/3rds final remuneration to be given after just 10
years’ service to NRD, subject of course to the final
paragraph of
PSI6.5.5.
The uplifted 60th scale is as follows:
Years of service to NRD |
Maximum pension expressed as a fraction of final remuneration |
| 1-5 | 1/60 for each year |
| 6 | 8/60 |
| 7 | 16/60 |
| 8 | 24/60 |
| 9 | 32/60 |
| 10 | 40/60 |
Note 1 Fractions of a year can be interpolated
into the scale.
Note 2 The maximum pension is before commutation
and includes:
- the annuity equivalent of any separate lump sum (see PSI6.5.3), and
- any pension earned by the employee’s additional voluntary contributions (AVCs) (see PSI4.1.3-4 and Section 4 of Part 4).
