(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)
[PN7.40-41]
As explained in
PSI4.12 (Introduction),
the Finance (No 2) Act 1987 introduced a change to the rate of
accelerated accrual by placing a maximum rate of n30ths on the
total benefits which may be provided for each year of pensionable
service to NRD up to a maximum of 20/30ths (2/3rds) again subject
to the final paragraph of
PSI6.5.5. Employees affected cannot
therefore obtain a maximum pension until they have completed at
least 20 years’ pensionable service to NRD unlike their
pre-17 March 1987 continued rights counterparts who can be provided
with such a pension after 10 years’ pensionable service to
NRD (see
PSI6.5.6). A pension accruing at a rate
of N/30ths might have to be reduced where an employee’s
benefit rights are reduced by a pension sharing on divorce order
and the pension debit must be taken into account for Revenue limits
purposes (see
PSI6.5.89).
