PSI6.2.14 - Total Benefits on Retirement at Normal Retirement Age: Life Cover after Retirement - Self- Administered Schemes

(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)

The previous paragraphs in this Section are mainly about insured schemes but the same general principles also apply to self-administered schemes. A self-administered scheme may give continued life cover in one of the following ways as an alternative to purchasing individual policies:

1. by direct payment by the employer to the scheme trustees when the need arises (the scheme rules must make the employer liable to pay contributions to the scheme for this express purpose), or
2. by the trustees holding, as an investment, a group term life policy which produces precisely the money they need to pay the death benefit due under the rules.