(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)
With a money purchase scheme we cannot apply our normal
limits on the amount of preserved benefit payable to the early
leaver (see
PSI13.3.9-12). It is
therefore necessary to ensure that the contributions paid into the
scheme are not excessive. The normal requirements about salary
progression (
PSI20.1.27) and net investment yields
(
PSI20.1.35) should be applied to all
self-administered schemes; but see Section 4 in relation to insured
money purchase or “proceeds of policy” schemes.
