(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)
[PN7.44 & 8.33]
Many members subject to the pre-Finance Act 1989 basis for
late retirement take their lump sum at NRD and defer the pension
until later. By taking an employer funded benefit, pensionable
service and final remuneration are fixed at that point for the
purpose of calculating the maximum approvable total benefits. Later
service and salary increases cannot count towards further benefits
(see
PSI9.1.16). The deferred pension may be
increased actuarially or in line with the cost of living (see
PSI9.2.5) or it may be augmented to the
maximum approvable at the date benefits were first taken and then
the augmented element may be further increased in accordance with
PSI9.2.5.
