(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)
If, when the member/survivor's pension was first drawn, it fell
short of the maximum allowed under the scheme's tax approved rules,
the employer may pay further contributions to the scheme at any
time to augment benefits within normal limits. If augmentation
takes place after the original benefits have been secured by the
purchase of an annuity, it will (subject to the requirements and/or
conditions of this Part) be acceptable to defer the purchase of an
annuity in respect of these additional benefits and drawdown income
on those benefits. Additional benefits include any post-retirement
increases subsequently awarded in respect of those additional
benefits and the pension already secured. It should be noted that
these principles apply equally to SSASs.
It will not normally be possible to augment existing
annuities or buy–out contracts (see
PSI13.4.5) but additional
policies may be purchased and income drawdown provided on them.
Once a member has elected to take income drawdown no further
employee contributions will be permissible except where permitted
under
PSI4.1.12.
