(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 may not be appropriate where the
member has a low normal retirement age. For example, many sports
men and women have a normal retirement age between 35 and 40. When
they retire from their sporting careers they still have many years
of employment ahead of them. Lump sum benefits for such people
should generally be limited to strict 3N/80ths (including the
effects of a pension debit where necessary – see
PSI8.1.44. See
PSI6.5.80 et seq for a more
detailed description of our practice on low normal retirement
ages.
