7.4
Where the concurrent employments are associated or the
schemes are connected, the retained benefit in full is set against
benefits from the employment which vest first and any unexhausted
balance is set against the benefits from the other employments
successively as they vest. If all the benefits vest together the
same principle applies but the sequence is immaterial. In this
context the vesting date is as defined in paragraph 16.20
7.4A
The requirements of paragraph 7.4 September 1991 version of
the IR12 Practice Notes were qualified for certain members of
retirement benefits schemes as a result of an administrative
easement introduced in 1991 under which it is no longer necessary
for retained benefits to be taken into account. The easement
applied to new members after August 1991:-
7.4B
Where a member joined a scheme of a new employer with an
accrual rate of N/60ths or lower, no retained benefits check was
necessary. The payment of additional voluntary contributions by the
member at a later date which takes the accrual rate above N/60ths
did not necessitate a retained benefits check provided the
member’s earnings for the first year following entry to the
scheme did not exceed ¼ of the permitted maximum calculated at
the date of entry. Where the payment of additional voluntary
contributions were commenced by a member who joined the scheme
prior to the introduction of the permitted maximum, earnings in the
year’s employment following commencement of the initial
additional voluntary contribution should have been used for the
purpose of the ¼ of the permitted maximum test.
