PSI13.3.17 - Withdrawal from Service: Deferred Benefits - Revaluation of Deferred Lump Sums

(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)

[PN10.18]

Lump sum benefits for pre-17 March 1987 continued rights members and pre-1 June 1989 continued rights members (subject in the case of the latter to the lump sum being calculated in accordance with PSI8.1.24 at the date of termination of pensionable service) may be increased:

14. in the period between the date of leaving pensionable service and NRD in accordance with the rise in the Retail Prices Index, and
15. in the period between NRD and the date the lump sum benefit is paid by the addition of interest as in PSI9.2.6-7.

See PSI13.3.34 where a member’s benefit entitlement in the scheme is

• permanently reduced by a pension sharing on divorce order (see PSI3.5.4), and
• the pension debit must be taken into account for Revenue limits purposes (see PSI6.5.89).