(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 restriction on the accrual of extra benefits must be
included in the scheme rules if a controlling director is a member.
Some rules permit controlling directors to be members even though
there may be none included at the outset. The restriction in
PSI9.2.16 is not required from the
start in these cases but the rules will need amendment if a
controlling director subject to the pre-Finance Act 1989 basis for
late retirement subsequently becomes a member, or an existing
member becomes one. (Regulation 8 of the Information Powers
Regulations requires the administrator to notify IR SPSS of the
admission of a controlling director to the scheme).
