(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)
[PN3.2]
There are two basic types of eligibility rules; those where
entry to scheme membership is discretionary (subject to the
principle of equal access) and those where it is not. Most small
schemes, whether insured or self-administered, have a rule which
allows the employer to decide which employees will be offered
membership. Commonly this discretion also extends to the type and
amount of benefits to be provided for each member. Most of these
discretionary schemes are set up for directors. Extending scheme
membership to include the ex-spouses of members whose benefits are
subject to a pension sharing on divorce order (see
PSI3.1.1) can also be on a discretionary
basis.
