PSI11.2.1 - Benefits on Death in Service: Lump Sum Benefits - Limit on Lump Sum

(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 lump sum benefits that can be provided on an employee's death in service are:

1. £5,000 ,or, if greater
2. 4 times final remuneration (which in the case of Finance Act 1989 scheme members is subject to the permitted maximum see PSI11.1.9).

The limits at a. and b. apply to the aggregate of all such benefits from all approved or relevant statutory schemes of the employer and subject to PSI11.2.2should take account of any retained lump sum death in service benefits.