(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)
If following this comparison you consider that the added
years give an excessive lump sum for past service, tell the
administrator of the receiving scheme the maximum lump sum that can
be paid. This is the appropriate uplifted 3N/80ths (see
PSI8.1.23-24) in respect of
prospective service and final remuneration at NRD with the new
employer plus the amount attributable to the transfer payment based
on the employee's service and final remuneration in the previous
employment. The aggregate must not of course exceed 1½ times
final remuneration, less in the case of a member with pre-17 March
1987 continued rights (see
PSI8.1.29), retained benefits
from earlier employments/occupations. Alternatively, if to the
member's advantage and scheme rules permit, the member can have
3N/80ths for future service plus the amount attributable to the
previous employment without applying the 1½ times
restriction.
