PSI14.2.52 - Transfer Payments: Benefits from Transfer Payments - Benefits for Added Years: Member with continued rights - Subsequent Benefits on Early Retirement

(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 the employee retires from his or her new employer's scheme before NRD the position is essentially the same as described above. There is no need to recalculate the number of added years granted when the transfer payment was accepted. The final remuneration will, in all likelihood, be lower than the member would have expected to have received at NRD and hence the amount of benefit payable will also be lower. The benefits given by the final employer in respect of service with it can be based on normal rules. (The added years given for the transfer payment are not included in the calculation except as may be necessary in the calculation of P where, exceptionally, the N/NS formula applies.) The total scheme benefit is thus the sum of the benefits in respect of the final employment and either the added years benefit described above or, if desired, the immediate annuity equivalent of the transfer payment plus interest.

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