PSI13.4.8 - Withdrawal from Service: Deferred
Benefits under Individual Policies (Buy-Out Policies) - Discharge
of Liability
-
(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 contract should also contain a monetary limit (expressed
in terms of pension) on the leaver's retirement benefits if:
[PN10.41(a)]
- it contains a general provision allowing a
choice of any form of relevant benefit to be provided within the
relevant maximum approvable for or in respect of the member,
or
[PN10.41(b)]
- the contract proceeds consist of a single
lump sum to secure both the leaver’s benefits and
reversionary pension(s) for his/her widower/dependants, or
[PN10.41(c)]
- the contract secures from the outset a
separate reversionary widow(er)'s/dependant's pension which on the
death of that beneficiary before the leaver's pension commences,
will be applied to secure additional benefits for the leaver.
This monetary limit may be increased as in
PSI13.3.8.
Contact: | Date issued: | Next review:
