PSI8.1.23 - Lump Sum Benefits and
Communication: Maximum Lump Sum Benefits - Uplifted Lump Sum
Benefits
-
(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)
Uplifted lump sum benefits in
PSI8.1.22cannot be given for very short
periods of service. Employees who can complete no more than 8
years’ service to NRD are limited to a lump sum on the
3N/80ths accrual scale. Beyond that point the permissible uplifted
lump sum benefit escalates steadily as shown in the table below:
[PN8.22]
| Years of Service | 80ths of Final Remuneration |
| 1 to 8 years | 3 for each year |
| 9 | 30 |
| 10 | 36 |
| 11 | 42 |
| 12 | 48 |
| 13 | 54 |
| 14 | 63 |
| 15 | 72 |
| 16 | 81 |
| 17 | 90 |
| 18 | 99 |
| 19 | 108 |
| 20 or more years | 120 |
Where actual service includes parts of a year the
appropriate fractions may be interpolated into the scale. For
members with pre-17 March 1987 continued rights the aggregate of
the value of non-pension retirement benefits provided on an
uplifted basis in respect of service with the current employer and
any retained lump sum retirement benefits (see
PSI8.1.31) must not exceed 1½
times final remuneration.
Contact: | Date issued: | Next review:
