PSI1.3.28 - Establishment and Administration of Retirement Benefits Schemes: Exempt Approved Schemes and Conformity with Trust Law - Interim deeds

(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)

[PN2.10]

Since the provisions of a pension scheme are usually lengthy some schemes are set up using a relatively short document called an interim deed (see PSIPart22 Section 3).

This declares the trust and outlines its provisions but provides for the full provisions to be adopted in due course by a definitive deed. Where a scheme is set up by an interim deed, that deed must, if it is to be acceptable:

26. declare the existence and intention of the trust,
27. appoint trustees,
28. declare the trust to be irrevocable (though we regard this requirement as met if the trust is not specifically stated to be revocable), and
29. state a period within which the employer must execute a definitive deed and rules confirming the establishment of a scheme capable of approval under Chapter I Part XIV ICTA 88.

The employees must also be given details of the proposed scheme (see PSI1.3.31).