PSI13.3.20 - Withdrawal from Service: Deferred Benefits - Mixed Benefits - General

(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)

Normally when an employee chooses to take a refund of contributions (which is exceptional nowadays) this discharges his or her entitlement under the scheme so that he or she cannot benefit from the employer's contribution paid on his or her behalf (see Section 2 of this Part).

But in certain circumstances, where preservation permits, a refund of contributions may be given for one period of service and deferred benefits for the other period. These "mixed benefits" situations are mainly the result of Social Security legislation (see PSI13.2.2) and are very rare these days. PSI13.3.21-22 explain two situations in which "mixed benefits" can arise. Further information can be found in paragraph 216 and Appendix 3 of Joint Office Memorandum No 78.

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