PSI13.3.32 - Withdrawal from Service: Maximum
Deferred Benefits – Pension Sharing on Divorce
(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 an employee’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)
the maximum permissible total pension benefit for the employee
must not exceed
- the amount of pension benefit that could
have been paid to the employee had there been no pension sharing on
divorce order where the limit in
PSI13.3.5 applies for defined benefit
scheme or the limit in
PSI13.3.11 applies for a money
purchase scheme
less
- the pension equivalent of the pension
debit (see
PSI13.3.33).
Note that where the N/NS x P limit applies (see
PSI13.3.7) the pension equivalent of
the pension debit is deducted from P before N/NS is applied.
