(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)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
There may be difficulty over the use of enhanced commutation
factors where post- retirement increases are not given annually.
For example, a pension which is increased at three yearly intervals
by 9% does not have the same actuarial value as one which increases
annually by 3%. Any cases in which increases are expected only at
intervals of 2 or more years will need conversion to their annual
equivalent compound rate of increase. Consult the Section Manager
in such a case.
