(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)
[PN12.1]
If however any benefits are taken before actual retirement
(excludes AVCs taken before employer funded benefits - see
PSI25.3.11), the only death
benefits which may be paid are those appropriate to death in
retirement. The lump sum benefit will be restricted to any payment
due under a pension guarantee (see
PSI12.2.7). Where the
employer has provided continued life cover for the employee during
his or her service after NRD the sum assured may be paid in
addition to the pension guarantee payment. Its cost will already
have been taken into account as a retirement benefit. Continued
life cover which is provided in these circumstances is dealt with
in
PSI6.2.13.
