PSI1.3.9 - Establishment and Administration of Retirement Benefits Schemes: Exempt Approved Schemes and Conformity with Trust Law - Establishing By Deed

(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)

[PN2.4]

A trust deed establishing a retirement benefits scheme is usually in 2 parts:

10. the main body of the deed declaring the trust, its intentions and duration, and defining the duties and powers of the trustees, and
11. the rules which govern the scheme in regard to eligibility, contributions and benefits (sometimes found in a schedule to the deed).

This arrangement has some procedural advantages. For example, the rules may be amended by a trustees' resolution but alterations to the main body of the deed generally require a formal amending deed. Nevertheless this division is a matter of form only and the rules remain an integral part of the deed.