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:

1. an approved scheme of a subsequent employer, or
2. an approved deferred annuity contract with a Life Office purchased in the member's name (buying-out), or
3. 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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