PSI14.1.11 - Transfer Payments: General - Fragmentation

(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)

Partial transfer payments are likely where for example:

1. a contracted-out defined benefit scheme has to safeguard accrued rights to GMPs. The rules of such a scheme may therefore permit the transfer of only the excess over the GMP;
2. any early leaver exercises his or her right under Social Security legislation to have his or her "cash equivalent" applied partly as a transfer payment to another scheme and partly to purchase one or more deferred benefit policies (buy-outs - see Section 4 of Part 13).

Contact: | Date issued: | Next review: