PSI13.1.7 - Withdrawal from Service: General - Preservation - Short Service Benefit

(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)

[PN10.4]

The principal requirement of preservation is that an employee who has qualified for preservation under 13.1.6 above must be entitled to Short Service Benefit (SSB) if he or she leaves pensionable service before normal pension age for any reason other than death.

The SSB should normally be calculated on the same basis as the benefits to which the member would have become entitled had he or she remained in pensionable service until normal pension age. Where the calculation produces an SSB (before statutory revaluation if appropriate) greater than the Inland Revenue maximum leaving service benefit, the SSB will take precedence (but see PSI13.3.9- 12). The benefit may be a deferred benefit payable at normal pension age (see PSI13.1.3a).

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