NIM02715 - Earnings of employees and office holders: retirement benefits schemes from 6th April 2006 - registered pension schemes: definition

Regulation 1(2) of the Social Security (Contributions) Regulations 2001 (as inserted by regulation 3 of the Social Security (Contributions) (Amendment No. 2) Regulations 2006)

Section 150(2) Finance Act 2004

For NICs purposes, a “ registered pension scheme “ (“RPS”) has the same meaning as that for income tax purposes. Section 150(1) Finance Act 2004 defines “ pension scheme” as meaning:

“a scheme or other arrangements, comprised in one or other instruments or agreements, having or capable of having effect so as to provide benefits to or in respect of persons:

• on retirement
• on death
• on having reached a particular age
• on the onset of serious ill-health or incapacity; or
• in similar circumstances."

Section 150(2) defines a RPS as being a pension scheme which, at any time, is registered with HMRC (ie, with Audit and Pension Schemes Services, Nottingham). The scheme will be registered either because:

• the scheme administrator has applied for registration and HMRC has registered the scheme; or
• it is a pension scheme which, unless it has opted-out, was an approved scheme on 5th April 2006.

For further information about:

• registering with HMRC a pension scheme set up on or after 6th April 2006, see RPSM02101000 (contents)
• the type of approved pension scheme which, unless it has opted-out, is automatically treated as a RPS from that date, see RPSM02100020.