(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)
Section 1 - Maximum Lump Sum Benefits
Section 2 - Commutation Factors
Section 3 - Commutation for Triviality or
Serious Ill Health
Section 1 - Maximum Lump Sum
Benefits
| PSI8.1.1-2 | General |
| PSI8.1.3 | Social Security requirements |
| PSI8.1.4 | Lump sum benefits include all non-pension benefits |
| PSI8.1.5 | Additional voluntary contributions |
| PSI8.1.6 | Time of commutation |
| PSI8.1.7-8 | - contracted-out schemes |
| PSI8.1.9 | - augmentation rule |
| PSI8.1.10 | Commuted lump sum must be paid to employee |
| PSI8.1.11 | Separate lump sum |
| PSI8.1.12 | Employer’s lien |
| PSI8.1.13 | Loans to employees |
| PSI8.1.15-17 | Final remuneration |
| PSI8.1.18 | - dynamised final remuneration |
| PSI8.1.21 | Maximum accrual rate |
| PSI8.1.22-23 | - uplifted lump sum benefits |
| PSI8.1.24 | - Finance (No 2) Act 1987 regime |
| PSI8.1.25-27 | - Finance Act 1989 |
| PSI8.1.28 | Previous expectations |
| PSI8.1.29 | Retained lump sum benefits |
| PSI8.1.31 | - definitions |
| PSI8.1.32 | - calculations |
| PSI8.1.33 | - not yet paid |
| PSI8.1.34 | - already paid |
| PSI8.1.35 | - controlling directors |
| PSI8.1.35 | : benefits from retirement annuity contracts and PPs |
| PSI8.1.37 | Low normal retirement age |
| PSI8.1.38 | Controlling directors |
| PSI8.1.39 | Part-time employment |
| PSI8.1.41-42 | Scheme rules |
| PSI8.1.43 | Ex-gratia lump sum retirement benefits |
| PSI8.1.44 | Pension Sharing on Divorce - General |
| PSI8.1.45 | - scheme rules |
| PSI8.1.46 | - simplified defined contribution schemes |
| PSI8.1.47 | - calculating pension debits |
| PSI8.1.48 | - pre and post Finance (No 2) Act 1987 members with lump sums by commutation of pension |
| PSI8.1.49 | - post Finance (No 2) Act 1987 |
| PSI8.1.50 | - pre Finance (No 2) Act 1987 |
| PSI8.1.51 | - lump sum only schemes |
Section 2 - Commutation
Factors
| PSI8.2.1-2 | General |
| PSI8.2.3 | Capital value |
| PSI8.2.4-5 | - mortality assumptions |
| PSI8.2.6 | : interest assumptions level pensions |
| PSI8.2.7 | : escalating pensions |
| PSI8.2.12 | Acceptable commutation factors |
| PSI8.2.13-14 | - fixed rate factors |
| PSI8.2.24-25 | : level pension ABI table |
| PSI8.2.26 | : Government Actuary’s advice |
| PSI8.2.27 | :escalating pensions enhanced commutation factors |
| PSI8.2.28-30 | Commitment to give post-retirement increases |
| PSI8.2.31 | : periodic review |
| PSI8.2.32 | : increases not given each year |
| PSI8.2.33-35 | : table of enhanced commutation factors |
| PSI8.2.40 | Procedure |
| PSI8.2.41 | - acceptable factors |
| PSI8.2.42-44 | - unacceptable factors |
| PSI8.2.45-49 | : post-retirement increases given |
| PSI8.2AppendixA | Tables of Acceptable Commutation Factors |
Section 3 - Commutation For
Triviality Or Serious Ill Health
| PSI8.3.1 | General |
| PSI8.3.2 | Triviality commutation |
| PSI8.3.3 | - aggregation of benefits |
| PSI8.3.4 | - time of commutation |
| PSI8.3.5 | - deferred benefits |
| PSI8.3.6 | - commutation of pensions in payment |
| PSI8.3.7 | - widows’/widowers’ and dependants’ pensions |
| PSI8.3.8 | - variable benefits |
| PSI8.3.9 | - scheme rules |
| PSI8.3.10 | Old Code Funds |
| PSI8.3.11 | Conditions |
| PSI8.3.15 | Serious ill health commutation |
| PSI8.3.16 | - time of commutation |
| PSI8.3.17 | - only the member’s benefits may be commuted |
| PSI8.3.18-19 | - leaving service on grounds of serious ill health |
| PSI8.3.20 | - scheme rules |
| PSI8.3.21-22 | - interpretation of serious ill health |
| PSI8.3.23 | Tax charge under section 599 ICTA 1988 |
