(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 revenue limit can best be expressed as "2/3rds of the
maximum aggregate retirement benefit that would have been payable
to the member had the member retired on grounds of incapacity on
the date of death and been entitled to no retained benefits from
previous employments. Where pensions are payable to more than one
dependant of the member, the aggregate of all dependants' pensions
payable in respect of the member under all relevant schemes shall
not exceed the full amount of the maximum aggregate retirement
benefit as described above", or words to that effect. Such a limit
rule is not appropriate where a pension debit must be taken into
account (see
PSI11.3.12).
