PSI9.1.10 - Service after Normal Retirement Date: General - Post FA 89 basis - Maximum Benefits

(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)

The maximum approvable total benefit for members subject to the post-Finance Act 1989 basis for late retirement (see PSI9.1.1) is N/30ths of final remuneration (subject to the permitted maximum) for each year of total service, including service after NRD. Except to the extent necessary to comply with Social Security legislation, increases for late retirement are limited to N/30ths to bring total benefits up to 20/30ths of final remuneration (subject to the permitted maximum). Final remuneration (subject to the permitted maximum) may be calculated as at the date of actual retirement when it is higher than that at NRD. This limit is modified (see PSI9.1.12) where a member’s benefit entitlement in the scheme is

• permanently reduced by a pension sharing on divorce order (see PSI3.5.4), and
• the pension debit must be taken into account for Revenue limits purposes (see PSI6.5.89).