PSI14.2.47 - Transfer Payments: Benefits from Transfer Payments - Benefits for Added Years - Pension Benefits

(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)

Pension benefits are often limited to an even scale, such as N/60ths. The risks of excessive total benefits being provided are then remote. Even where pension benefits for future service are given on an uplifted scale the added years will not necessarily result in excessive total benefits. But if it appears that excessive total benefits could arise you must specify the maximum pension that the scheme can give without prejudicing approval. This will be the appropriate uplifted total benefits according to the regime to which the employee is subject (see PSI6.5.6, 6.5.8 and 6.5.10) for that employee's prospective service to NRD plus the actual amount of pension that the transfer payment is sufficient to buy in the receiving scheme. This is subject to the aggregate benefits not exceeding 2/3rds of final remuneration less any retained benefits from other earlier occupations, or N60ths for future service plus transfer benefits. The trustees must then qualify their promise of added years to enable them to restrict the pension within our limits if the need arises.