PSI8.1.3 – Maximum Lump Sum Benefits: Social Security Requirements

(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)

[PN8.9]

Generally speaking the preservation requirements of the Social Security Act 1973 do not directly apply to the provision by schemes of retirement benefits in commuted lump sum form because those requirements relate to the overall quantum rather than the form of benefits. Where, however, the scheme provides lump sum retirement benefits only or a separate lump sum, such lump sums are subject to the preservation requirements.

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