PSI5.1.28 - Contributions By Employers: General - "Waiver of Premiums" Insurance

(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)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

A waiver of premium insurance is an arrangement whereby an employer pays a regular premium under a policy which indemnifies the employer against its liability to continue paying contributions in respect of a sick absence employee. Such an arrangement does not provide relevant benefits, it merely provides an alternative source of fund, to meet the employer's obligation to pay for relevant benefits. It is therefore not appropriate that a scheme bona fide established for the sole purpose of providing relevant benefits should include such an insurance arrangement for the benefit of the employer.