PSI11.2.3 - 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)

The retained benefits referred to in PSI11.2.1 that may have to be taken into account for those members who do not satisfy the conditions in PSI11.2.2 are:

8. lump sum death in service benefits arising under relevant schemes of previous employers. In this context relevant schemes are approved occupational pension schemes, relevant statutory schemes and schemes accepted as corresponding for the purposes of section 596(2)(b);
9. lump sums on death payable under a personal pension scheme arising from contributions made during a period when eligibility for the personal pension was under s632A (see PSI3.1.25), but see h. below
10. lump sums on death payable under a retirement annuity contract or trust scheme relating to non-pensionable service with the current or an earlier employer, or previous periods of self-employment, (whether alone or in partnership), and
11. death benefits from FSAVCSs relating to previous employments (see PSI4.4.1-4).

The following may, however, be ignored:

12. refunds of the employee's own contributions, plus any interest,
13. lump sums not exceeding £2,500 in aggregate,
14. a return of fund under personal pension schemes or retirement annuity contracts, and
15. any lump sums payable from sources which relate to wholly concurrent employments.
16. any lump sums on death from a personal pension scheme arising from contributions made during a period when eligibility for the personal pension was under s632B (see PSI3.1.26).