PSI4.1.2 – General: Types of Contribution

(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)

Many ordinary scheme members are required to make a direct contribution towards the cost of their benefits. On the other hand, controlling directors tend not to contribute since, as they are in a sense both employer and employee, shared funding is rather hypothetical. Contributions are normally of a fixed amount or a fixed percentage of earnings and (apart from free-standing additional voluntary contributions schemes (FSAVCs) contributions) are deducted at source from pay.

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