PSI.Part11 - Benefits on Death in Service


(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)

Contents

Section 1 - General

Section 2 - Lump Sum Benefits

Section 3 - Widow(er)s' And Dependants' Pensions

Section 4 - Death In Service After Normal Retirement Date

click here to return to contentsSection 1 – General

PSI11.1.1Introduction
PSI11.1.2Types of benefit
PSI11.1.3Relevant benefits
PSI11.1.4-5Non-relevant benefits
PSI11.1.6Key-man insurance
PSI11.1.8-9Final remuneration
PSI11.1.10Permitted maximum
PSI11.1.11- reduction in salary following long-term illness
PSI11.1.12Continuation of cover following redundancy
PSI11.1.13Controlling directors – continuous service
PSI11.1.14Ex-gratia lump sum death in service benefits
PSI11.1.15Continued rights
PSI11.1.16Pension sharing on divorce – scheme rules
PSI11.1.17Death of member while receiving additional voluntary contribution income drawdown

click here to return to contentsSection 2 - Lump Sum Benefits

PSI11.2.1Limit on lump sum
PSI11.2.2-3- retained benefits
PSI11.2.4Alternative limit
PSI11.2.5- scheme rules
PSI11.2.6- pension sharing on divorce
PSI11.2.15-17Refund of contributions
PSI11.2.22Disposal of death benefits
PSI11.2.23Nominated beneficiaries
PSI11.2.24Discretionary distribution
PSI11.2.25Disposal of death benefit within 2 years
PSI11.2.26Interest on delayed payment of lump sum death benefit
PSI11.2.27Employer's lien
PSI11.2.39-42Controlling directors
PSI11.2.43Scheme set up after death or benefits funded by large special contributions
PSI11.2.50Directors with a life appointment

click here to return to contentsSection 3 - Widow(er)s' And Dependants' Pensions

PSI11.3.1General
PSI11.3.2Beneficiary
PSI11.3.3Meaning of dependant
PSI11.3.4Number of pensions which may be paid
PSI11.3.5Pensions for widows of polygamous marriages
PSI11.3.6Deferment of widow(er)s' benefit
PSI11.3.7-9Termination of pensions
PSI11.3.11Limit on benefit final remuneration
PSI11.3.12Limit on pension
PSI11.3.13Separate lump sum
PSI11.3.19-20Limit rule

click here to return to contentsSection 4 - Death In Service After Normal Retirement Date

PSI11.4.1General
PSI11.4.2Pre-Finance Act 1989 regime
PSI11.4.3Death in retirement benefits already taken
PSI11.4.4- benefits not yet taken
PSI11.4.5Post-Finance Act 1989 regime
PSI11.4.6Employer's lien
PSI11.4.7Controlling directors