PSI3.3.1 - Membership of Schemes: Directors - General

(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)

Company directors may be members of an approved occupational pension scheme just like any other employee. Directors who have no family connections with, or significant shareholding interests in, the company which employs them are in much the same position as ordinary employees, that is to say they are "at arms-length". Although their remuneration may be substantial and their retirement benefits more generous than those for other employees, they cannot usually manipulate the scheme because they are not in a position of influence. We do not therefore impose any special conditions on the benefits payable to non-controlling director members. Controlling directors are in a very different position and are the main subject of this section of the instructions.

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