PSI8.1.33 - Lump Sum Benefits and Communication: Maximum Lump Sum Benefits - Retained Lump Sum Benefits - Not Yet Paid

(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)

[PN16.22]

Sometimes a retained lump sum benefit from a previous employment or occupation is payable from a date later than the employee's retirement from the current scheme. In this situation the retained lump sum may be discounted to its value at the current scheme retirement date. This discounted value then becomes the retained benefit for limits purposes in the final employer's scheme. The discounted value should be calculated by the Life Office or a consulting actuary.

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