PSI8.1.23 - Lump Sum Benefits and Communication: Maximum Lump Sum Benefits - Uplifted Lump Sum Benefits
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(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.
