NIM02781 - Class 1 NICs: earnings of employees and office holders: retirement benefits schemes from 6 April 2006: employer-financed retirement benefits schemes: payments from such schemes: authorised member payments flowchart: pensions

You must read this page in conjunction with NIM02780 (first considerations).

Payment out of the EFRBS is a Pension.听

Step 1

If the scheme had been a registered pension scheme, would the payment satisfy pension rules:听

  • 1 and 3, and听

Yes听Go to step 2听

No Go to step4听


Step 2听

Is the pension payable until the employee鈥檚 death at least once a year?听

Yes听Go to step 3听

No Go to step 4听


Step 3听

Payment can be disregarded in the calculation of earnings. See NIM14510 for Class 1A position.听


Step 4

Payment cannot be disregarded in the calculation of earnings.


Flowchart.