PSI1.3.6 - Establishment and Administration of Retirement Benefits Schemes: Exempt Approved Schemes and Conformity with Trust Law - Methods Of Establishing A Retirement Benefits Scheme

(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)

Most schemes are established under a formal trust deed executed by the employer and the trustees, but this is not essential. A valid trust can be created by resolution of a company's board of directors, or simply by the formal adoption of a set of rules as long as there is a clear intention to create a trust. Examples of the creation of a trust without a formal deed are:

8. in individual arrangements, in the letter sent by the employer to the employee, or
9. a declaration of trust in writing but not under seal, whereby the employer establishes the scheme and declares himself to be a trustee of the fund or other assets.