PSI3.1.8 - Membership of Schemes: Eligibility - Eligibility Rules - Examination of Eligibility Rules

(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)

Our main concern about eligibility rules is to see that membership is restricted to

• employees of the participating employer(s), and
• where an employee’s benefits are subject to a pension sharing on divorce order, the ex-spouse of such an employee.

The eligibility rule is, however, a useful guide to the degree of examination a case deserves. For example, a scheme for "works" employees seldom needs examination in depth; benefits are usually well short of acceptable maxima and the employer will not want to contribute more than is essential. But a scheme which includes controlling directors or highly paid executives often requires detailed examination. (See Part 22 Section 3).