PSI13.3.12 - Withdrawal from Service: Deferred Benefits - Money Purchase Schemes

(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)

The limits in PSI13.3.11should not be regarded as a funding target. Employer funding should be targeted for benefits at NRD which will not exceed Inland Revenue limits (see PSI10.1.10and PSI20.1.5). Furthermore, a power of augmentation in a scheme's rules cannot be used to increase an early leaver's total benefits up to the limits in PSI13.3.11. However, an increase in such benefits up to the limits set out in PSI10.1.7and PSI10.1.12(as appropriate) is permissible. The limits in PSI13.3.11are of course applicable only where the member has completed at least 2 years' qualifying service with the employer otherwise "normal" Inland Revenue limits of N/60ths, N/NS x P or N/30ths will apply.