(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)
Under individual arrangements and earmarked schemes a
separate policy is used to provide the benefits for each member. If
the actual rise in the Retail Prices Index is less than the
pensions increases which have been funded the rules should require
any surplus to be dealt with as in
PSI20.7.9. described in the
final parenthesis in
PSI7.1.9.). This problem does not arise
in a common trust fund where all premiums are pooled. Any surplus
arising will fall into the common pool and can be used for the
general purpose of the scheme.
