(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)
[6A.27]
Where pension credit rights are transferred to a scheme in
which the ex-spouse has rights as an employee member, their
treatment will depend on whether or not the scheme treats the
pension credit rights as provided separately from any employee
benefit rights in respect of the same person.
If the pension credit rights are treated as provided
separately from employee benefit rights, benefits from the pension
credit rights do not have to be aggregated with the benefits from
the employee membership when applying the normal Revenue limits to
the employee benefits (see
PSI24.1.7).
If the pension credit rights are not treated as provided
separately from employee benefit rights, benefits from the pension
credit rights must be aggregated with the benefits from the
employee membership when applying the normal Revenue limits to the
employee benefits (see
PSI24.1.7).
[6A.28]
Where an ex-spouse member also has benefits in the same
scheme as a result of being an employee of a participating
employer, the pension credit rights can be transferred
independently of the employee benefit rights (see
PSI24.4.1). In circumstances where the
scheme does not treat any pension credit rights as provided
separately from any employee benefit rights, the transferred
pension credit continues to be treated as an aggregable benefit. If
the pension credit and employee benefit rights are transferred
together they may only be transferred in a manner acceptable to the
transfer of employee benefit rights generally (see PSI Part
14).
