(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)
The 3N/80ths scale is the maximum for employees who can
complete 40 years’ service. But as explained in
PSI6.5.5, few employees remain
with an employer that long. For members with pre- 17 March 1987
continued rights (see
PSI2.3.22-23), the maximum
lump sum benefit may be paid after 20 years’ service to NRD.
This contrasts with the 10 years’ service to NRD required for
the maximum pension (see
PSI6.5.6). A modified limit
applies where an employee’s benefit rights in the scheme are
reduced by a pension sharing on divorce order and the pension debit
must be taken into account for Revenue limits purposes (see
PSI8.1.44).
