PSI13.3.13 - Withdrawal from Service: Deferred Benefits - Retained Benefits

(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)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

As explained in PSI13.3.11, preservation does not require a scheme to provide the early leaver with more than he or she would have received had he or she stayed in the employer's service until normal pension age at the same level of remuneration. So where an employee has retained benefits from an earlier employment, the preserved short service benefit may need to be restricted to keep the aggregate benefits within two-thirds of the employee's final remuneration on leaving service. Examples showing how this restriction works in practice are set out in paragraphs 173-175 of Joint Office Memorandum No 78.