PSI11.2.2 - Benefits on Death in Service: Lump Sum Benefits - Limit on Lump Sum - Retained 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)

[PN11.2 and Glossary]

For all new members (including those with continued rights) joining schemes on or after 31 August 1991 retained benefits do not have to be taken into account in calculating the maximum lump sum death in service benefit provided that:

1. the member is not, and has not been in the 10 years prior to joining the scheme, a controlling director in respect of the employment in relation to which the benefits are being provided and
2. the member's remuneration in the first year's employment following entry into the scheme does not exceed ¼ of the permitted maximum determined at its level on entry (see also PSI6.5.51).