(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)
[PN10.4]
Once an early leaver has qualified for preservation he or she
is entitled to short service benefit (SSB), and this must represent
a fair proportion of his or her prospective benefits at normal
pension age (see
PSI13.1.5). This fair proportion can
often be determined under the scheme rules (see
PSI13.3.3) but in other cases the
benefit rules may be framed in a way that makes this approach
neither practicable nor equitable. SSB must then be calculated on
the basis of "uniform accrual" (see
PSI13.3.4). The fair proportion
requirement can prevent us from imposing normal Revenue limits of
N/NS x P or N30ths on the amount of the preserved benefits (see
also
PSI10.1.14). This latter
situation generally arises in relation to money purchase schemes
(see
PSI13.3.9-12).
