PSI13.1.9 - Withdrawal from Service: General
Alternatives to SSB - Cash Equivalent
-
(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)
[PN10.6]
Schedule 1A to the Social Security Pensions Act 1975 gives a
member leaving pensionable service who is entitled to preserved
benefits a right, if the revaluation condition is satisfied, to
require the cash equivalent of his or her revalued benefits to be
applied as a transfer value to secure benefits under:
- an approved scheme of a subsequent
employer, or
- an approved deferred annuity contract with
a Life Office purchased in the member's name (buying-out), or
- an approved personal pension scheme.
Where a member opts for a cash equivalent as an alternative to
SSB, the cash equivalent should, in the case of a scheme approved
on or after 29 November 1991 (the publication date of the 1991
edition of PN), be calculated having regard to the relevant
limitations set out in Section 3 of this Part.
For schemes approved prior to 29 November 1991 the cash
equivalent should not exceed the member's actuarial interest in the
scheme (see also
PSI14.1.4).
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