SE66600 - Tax treatment of mineworkers: compensation on retirement

Mineworkers are subject to a normal retirement age of 62. Such a worker may opt to join the Mineworkers' Pension Scheme.

Benefits under this scheme are a lump sum payment and a weekly pension.

The lump sum payment should not be regarded as chargeable to tax. However the pension is taxable (see SE74001).

This scheme (and the British Coal Staff Superannuation Scheme) stopped accepting new members from December 1994.