NIM02783 - 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: pension commencement lump sums
You must read this page in conjunction with NIM02780 (first considerations) and NIM02782 (lump sums).
Payment out of EFRBS is a pension commencement lump sum (PCLS).
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Step 1听听听
If the scheme has been a registered pension scheme, does the individual become entitled to the PCLS in connection with becoming entitled to a 鈥渞elevant person鈥� under the same scheme (NIM02769)?
Yes Go to step 2
No Go to step 7
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Step 2听听
Is the payment made within three months of the individual becoming entitled to it?
Yes Go to step 3
No Go to step 7
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Step 3听听听听
Is the lump sum paid:
- when the individual has reached normal minimum pension age (NIM02769); or
- the ill-health condition is satisfied (NIM02769)?
Yes Go to step 4
No Go to step 7
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Step 4听听
Is the payment made before the individual is aged 75?
Yes Go to step 5
No Go to step 7
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Step 5听听
Does the amount exceed the permitted lump sum (NIM02770)?
Yes Go to step 7
No Go to step 6
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Payment can be disregarded in the calculation of earnings. See NIM14510 for Class 1A position.听
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Step 7 听听
Payment cannot be disregarded in the calculation of earnings.
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