PSI12.1.18 - Benefits on Death after Retirement: Pension Benefits - Widow(er)s' and Dependants' own right pensions - Limit on Benefits – Pension Sharing on Divorce

(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)

Where a deceased member’s benefit entitlement in the scheme is

• permanently reduced by a pension sharing on divorce order (see PSI3.5.4), and
• the pension debit must be taken into account for Revenue limits purposes (see PSI6.5.89)

the amount of “own right” pension payable following the member’s death in retirement must not exceed 2/3rds of

• the maximum pension that could have been approved for the member at his/her retirement had there been no pension sharing on divorce order (see PSI12.1.15)

less

• the pension equivalent of the pension debit.

The pension debit is calculated in accordance with

PSI6.5.95-6 - where the deceased member retired at normal retirement date,
PSI7.1.20 - where the pension sharing on divorce order was applied to a pension in payment
PSI9.1.13 - where the deceased member retired after normal retirement date
PSI10.1.33 - where the deceased member retired before normal retirement date.