PSI9.2.2 - Service after Normal Retirement Date: Benefits Deferred to Actual Retirement (Discretionary Practice Pre FA 89) - Methods of Giving Extra 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)

Scheme rules can give extra benefits in one of the following ways:

a. by treating the actual date of retirement as the member's NRD (see PSI9.2.3),

b. by giving additional N/60ths pension and 3N/80ths lump sum where total service exceeds 40 years (see PSI9.2.4),

c. by giving an actuarial or cost of living increase for the period of deferment (see PSI9.2.5).

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)

The maximum benefits under a., B. Or c. Above must be reduced by the amount of the pension debit.