PSI24.2.1 - Pension Credit Benefits – Limits on Benefits payable to ex-spouse – pension

(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)

[PN6A.7]

There is no limit on the amount of pension an ex-spouse member may receive from pension credit rights. The amount of pension that can be paid will be determined by

• the capital sum that represented the percentage reduction of the employee member’s cash equivalent transfer value as required under the pension sharing order, and
• the investment return on that capital sum between the time of the pension sharing order and the date that benefits are taken - if the pension credit rights are held on a money purchase basis whether in a money purchase scheme generally or a scheme giving defined benefits in respect of employee members, or
• a defined benefit based on the capital sum that represented the percentage reduction of the employee member’s cash equivalent transfer value as required under the pension sharing order – this might happen if an internal transfer (see PSI24.1.2) occurs in a defined benefit scheme.

The pension can be guaranteed (see PSI12.2.15).