PSI14.2.7 - Transfer Payments: Benefits from Transfer Payments Calculation of Benefits in the Receiving Scheme

(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)

In theory a transfer payment provides the benefits which the member would have received from his or her former scheme. In practice, however, the benefits will differ because the transfer payment becomes subject to the receiving scheme's rules. There are two ways in which schemes can give benefits from transfer payments:

1. on a money purchase basis (see PSI14.2.8-25),or
2. in the form of "added years" (see PSI14.2.37-53). The "added years" basis is not common in private sector occupational pension schemes.

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