PSI14.2.48 - Transfer Payments: Benefits from Transfer Payments - Benefits for Added Years - Lump Sum Benefits - Member with Continued Rights

(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 members are provided with benefits in their new scheme on a post-Finance Act 1989 basis, the maximum lump sum benefit (inclusive of that derived from the added years credit) will be the 2.25 multiple (see PSI14.2.40). Where, however, the member is entitled to continued rights, the lump sum should not be "unacceptably high" having regard to the employee's length of service and final remuneration with his or her former employer. The easiest way to check is to compare the proposed added years benefits (based on starting salary with the new employer) with the maximum lump sum certifiable under PSI14.2.17.

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