PSI.Part8 - Lump Sum Benefits and Communication
(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)
Contents
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 |
