PSI13.3.3 - Withdrawal from Service: Deferred Benefits - Short Service Benefits - Even Accrual

(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)

Where the scheme rules can be used to calculate the fair proportion this is known as "even accrual". It applies where the pension is based on a scale with a steady rate of accrual such as 1/60th or some other fraction of final remuneration for each year of service (see PSI6.5.4). You should ensure that members cannot become entitled to a two-thirds pension well before NRD. Follow the procedure described in PSI6.5.18. (For schemes with high accrual rates see PSI6.5.11-17).