(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 a pension debit is included with a transfer (see
PSI14.2.56) to another scheme of the
same/associated employer or to a scheme where continuous service
applies, the pension debit must be aggregated with the actual
benefits paid to the employee in respect of the particular
employment to ensure that the total amount does not exceed what
could have been paid to the employee had the pension sharing on
divorce order not occurred.
Where the transfer is to a non-associated employer’s
scheme or a scheme where continuous service is not given, the
pension debit will be treated as a retained benefit together with
retained benefits actually payable, such as from transfer payment,
for the purpose of the maximum benefits that can be paid to the
employee from the receiving scheme in respect of the current
employment.
