PSI12.2.8 - Benefits on Death after Retirement:
Lump Sum Benefits and Pension Guarantees - Guarantee Payments -
Refund of Member’s Contributions (Continued Rights Members
Only)
-
(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)
A guaranteed refund of the member’s contributions is
not often met because it is much less generous than a continuation
of the member’s pension. In the case of a member of an
existing approved scheme with continued rights we permit a refund
to be made with reasonable interest where the benefits actually
paid are less than the member’s contribution to the scheme.
The guarantee may be given in relation to:
- total benefits paid to the member up to his
or her death, or
- all types of personal and other benefits
paid in respect of the member (including widow(er)’s and
dependants’ pensions), or
- where there is an allocated
widow(er)’s or dependant’s pension, the aggregate
benefits paid to this person and the member.
A guarantee payment under b. or c. is not payable until the
member
and the widow(er) have died.
Contact: | Date issued: | Next review:
