PSI13.4.15 - Withdrawal from Service: Deferred Benefits under Individual Policies (Buy-Out Policies) – Required Provisions - Pension Sharing on Divorce – Revaluation of Lump Sum

(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)

The payable lump sum expressed as a monetary amount, which has been reduced by the effects of a pension debit as a result of

• a pension sharing on divorce order in relation to the scheme that purchased the buy- out (see PSI13.4.13), or
• a pension sharing on divorce order made on the buy-out contract (see PSI13.4.14), or
• both of the above

may be increased

• in accordance with the rise in the Retail Prices Index during the period between the date of leaving pensionable service and NRD, or the date the member takes his or her benefits under the contract if earlier, and

[PN10.18]

• by an amount representing interest on the policy during the period between NRD and the date the member takes his or her benefits, if later.

Such an increase is not appropriate to any amount expressed as a multiple of the pension payable.