PSI10.1.8 - Retirement before Normal Retirement Date: General - Limit On Benefits-Post-FA 1989 Discretionary Basis

(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 limits in PSI10.1.7 apply to the same category of membership as in PSI9.1.10-11, ie,

• where the scheme was approved on or after 27 July 1989;

1. all non-continued rights members of schemes established on or after 14 March 1989,

[PN6.1 and 6.3]

1. all members of schemes established before 14 March 1989, who join the scheme on or after 1 June 1989 and do not have continued rights, and
2. those continued rights members who opt for the Finance Act 1989 "package" (see PSI9.1.11) before the earliest of benefits commencing (does not apply to the payment of AVC benefits before employer funded benefits - see PSI25.3.1), commencing, being bought- out or otherwise transferred outside the employer's scheme(s), or the attainment of age 75.

• where the scheme was approved prior to 27 July 1989;

1. those members who opt for the FA 1989 "package" (see PSI9.1.11, not to be confused with the statutory election under paragraph 29, Schedule 6, Finance Act 1989, see PSI8.1.27) within the timescales described in (iii) above. Schemes approved before 27 July 1989 will have early retirement rules on the pre-Finance Act 1989 basis for all members (viz. including Finance Act 1989 members).