NIM02784 - 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: serious ill-health lump sums
You must read this page in conjunction with NIM02780 (first considerations) and NIM02782 (lump sums).
Payment out of the EFRBS is a serious ill-health lump sum.
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Step 1听听听
Before the payment is made, has the 鈥渞esponsible person鈥� (NIM02765) received written evidence from a registered medical practitioner that the employee is expected to live for less that one year?
Yes Go to step 2
No Go to step 5
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Step 2听听
Does the lump sum extinguish the individuals entitlement to benefits under the arrangement (NIM02771)?
Yes Go to step 3
No Go to step 5
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Step 3
Is the lump sum paid before the individual is aged 75?
Yes Go to step 4
No Go to step 5
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Step 4听听
Payment can be disregarded in the calculation of earnings. See NIM14510 for Class 1A position.
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Step 5听听
Payment cannot be disregarded in the calculation of earnings.
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