Discretionary benefits

Benefits that the trustees of a final salary scheme can grant to enhance a member’s retirement subject to IR maximum limits. The employer could ask the trustees to enhance a member’s retirement benefit on early retirement, redundancy, ill health or death in service benefits, or escalate the pension at a rate above LPI. The trustees can use their discretion to award a lump sum benefit on death to any individual, not necessarily the person nominated by the member.

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