PSI14.2.10 - Transfer Payments: Benefits from Transfer Payments - Transferred Benefits on a Money Purchase Basis - Total Benefits at 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)

The maximum total benefits payable by the receiving scheme at NRD are:

1. the maximum benefits appropriate to the member's final remuneration (see Section 4 of Part 6) and service with the new employer (see Section 5 of Part 6), plus
2. the additional benefits which can be bought with the transfer payment and the yield on its investment, at that time.

The receiving scheme may provide benefits which do not exceed N/60ths of final remuneration for each year of service with the new employer, even if total benefits from a. plus b. exceed two-thirds of final remuneration. If the new employer proposes to give benefits in excess of N/60ths, then the total of a. plus b. must not exceed two- thirds of the employee's final remuneration less (where appropriate see PSI6.5.51) any retained benefits from other earlier occupations. But any such cut back should not reduce the benefit payable by the new employer below N/60ths.