PSI13.3.30 - Withdrawal from Service: Deferred Benefits Death Benefits During Period of Deferment

(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)

[PN10.19]

Some schemes preserve a right to death benefits if the employee dies before the deferred benefits become payable from the scheme. These death benefits are subject to normal Inland Revenue limits relating to death in service benefits (see Part 11). When calculating the maximum benefits:

1. the lump sum should be based on the employee's final remuneration at the date of leaving pensionable service, and
2. the limit on widow(er)s' and dependants' pensions should be calculated on the basis set out in PSI11.3.12.