PSI9.1.1 - Service after Normal Retirement Date: General

(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)

Many employees continue to work for the same employer beyond the scheme NRD, a situation commonly referred to as "late retirement". Changes in discretionary practice linked to the statutory changes introduced by Finance Act 1989 have simplified our requirements in this area to recognise the concept of retirement at any time between the ages of 50 and 75. The simplified requirements apply to Finance Act 1989 members (see PSI9.1.10 -12) of schemes approved on or after 27 July 1989. For these members, the maximum total benefits approvable on retirement or on leaving service of the employer at any time between the ages of 50 and 75 are N/30ths of final remuneration for each year of service up to a maximum of 20/30ths. Employer funded benefits must come into payment immediately on retirement or on leaving the employer's service at or after NRD, or at age 75 if earlier (see PSI9.1.9). See PSI25.3.1 in relation to the deferral of AVC benefits. Finance Act 1989 members of schemes approved before 27 July 1989 and all members with continued rights (irrespective of the scheme's approval date) retain the pre- Finance Act 1989 basis for late retirement (see PSI9.1.15) unless they wish to opt for the Finance Act 1989 basis (see PSI9.1.11).