PSI1.1.16 - Establishment and Administration of Retirement Benefits Schemes: Retirement Benefits Schemes - Individual Arrangements

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

An individual arrangement is the simplest example of a retirement benefits scheme which has advance funding to provide the benefits. The employer sets up an arrangement to benefit one, named, employee and pays premiums to a Life

Office to secure the benefits. These arrangements are commonly established by an exchange of letters between the employer and the employee which sets up a trust and outlines the benefits to be provided. The letter is often supplemented by a schedule which contains the rules governing the arrangement.