This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

National Insurance Manual

Earnings of employees and office holders: retirement benefits schemes from 6th April 2006 - overseas pension schemes: superannuation funds to which section 615 ICTA applies: payments out of such funds

Paragraph 11 of Part 6 of Schedule 3 to the Social Security (Contributions)Regulations 2001 (as amended by regulation 8(7) of the Social Security (Contributions)(Amendment No. 2) Regulations 2006, and regulation 4 of the Social Security(Contributions) (Amendment No.5) Regulations 2006)

Section 615(3) ICTA 1988


NIM02741]( explains the meaning of a “section 615” scheme.

A payment by way of:

  • a pension; or
  • an annuity

from a section 615 scheme is disregarded in the calculation of earnings for Class 1NICs purposes.


Although the pension disregard in regulation 4 was only introduced from 16th November2006, do not enforce NICs due on payments made from a section 615 scheme on or after 6thApril 2006.

For details of:

  • the Class 1A NICs position, see NIM14510
  • the income tax position on lump sum payments from such schemes, see EIM15064.