PSI14.2.49 - 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)

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.