PSI13.3.8 - Withdrawal from Service: Deferred Benefits Revaluation of Deferred Benefits

(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)

[PN10.12]

Deferred benefits calculated in accordance with PSI13.3.5-7 may be increased during the period of deferment at a fixed rate not exceeding 5% per annum compound, or by a greater percentage not exceeding the increase in the Retail Prices Index during the period of deferment. Where the scheme is contracted-out, Social Security legislation requires the GMP element of the deferred benefit to be revalued on a statutory basis (see paragraphs 95 to 102 of Joint Office Memorandum No 77). With such schemes the GMP element may therefore be increased on the statutory basis adopted, and the balance increased as explained above.

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