PSI14.2.43 - Transfer Payments: Benefits from Transfer Payments - Benefits for Added Years - Permitted Maximum

(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)

Where transfer benefits are calculated on the added years basis and a transfer is made from a scheme where the member was not subject to the permitted maximum (ie entitled to pre-1 June 1989 continued rights) to a scheme where the member's benefits are to be calculated by reference to the permitted maximum (ie the member ceases to be entitled to continued rights), final remuneration for the purpose of calculating the appropriate number of added years to be given, should be estimated without regard to the permitted maximum. An example of how added years are calculated in these circumstances is set out in PN 10.27.

Contact: | Date issued: | Next review: