PSI20.6.13 - Funding and Surpluses: Surpluses -
General - Limited Price Indexation
-
(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)
Occupational pension schemes other than public service
pension schemes and money purchase schemes will be required to
provide pension increases in line with the rise in prices up to a
ceiling of 5% per annum in respect of
- future pensionable service, and
- past pensionable service,
out of any surpluses which may occur following actuarial
valuation. As from 17 August 1990 such schemes are precluded (with
certain exceptions) from making payments to the employer until
provision has been made in the scheme rules for every current and
future pension to be increased at the above level.
Contact: | Date issued: | Next review:
