PSI7.1.8 - Increases of Pensions in Payment: General - Employee's Option

(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)

[PN9.6]

Scheme rules may offer employees an alternative method of protecting their pensions from inflation by providing an option for them to exchange a non-increasing or limited increase pension for a smaller initial pension, with a greater rate of increase attached to it, but which is of equal actuarial value.

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