PSI14.2.55 - Transfer Payments: Benefits from Transfer Payments - Benefits for Added Years - Death In Service

(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)

The receipt of a transfer value by a scheme does not affect the amount of death in service lump sum payable by that scheme. Once a transfer value has been taken into a scheme it is governed solely by the rules of that scheme. So if, after payment of the maximum lump sum death benefit permitted by the rules, part of the transfer value remains it may, if the rules permit, be used to provide pensions for the member's widow(er) and/or dependants without limitation. If no such beneficiaries exist, the remainder of the transfer value should be treated as surplus (see also PSI13.3.31).