PSI1.1.18 - Establishment and Administration of Retirement Benefits Schemes: Retirement Benefits Schemes - Earmarked Schemes

(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 earmarked scheme is a collection of individual arrangements set up under a single trust. The benefits for each member are secured by separate insurance policies or an identifiable interest in part of a group policy. The policy proceeds can be used only to provide benefits for the individual for whom they are earmarked (hence the description) and cannot be used to enhance the benefits of any other members. The scheme documentation must limit the trustees to investment in insurance policies.