PSI13.3.6 - Withdrawal from Service: Deferred Benefits Opting Out of Scheme On or After NRD

(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)

[PN10.9]

The limit in PSI13.3.5 applies also to the category of member described in that paragraph who leaves his or her employer's scheme on or after NRD but remains in the employment (see also PSI13.2.5). In these circumstances final remuneration and service should be calculated only in respect of the period of pensionable service (viz while a scheme member). Any augmentation above the limit in PSI13.3.5when the member subsequently retires or leaves the employer's service, should not result in the augmented benefits, when aggregated with benefits from approved personal pension schemes (other than minimum contributions only schemes) or retirement annuity contracts based on relevant earnings from the employer during the period of deferment, exceeding the limit in PSI13.3.5by reference to service to and final remuneration at the date of retirement or leaving service as the case may be.

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