PSI13.3.9 - Withdrawal from Service: Deferred Benefits - Money Purchase 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)

[PN10.13]

A scheme (or arrangement) which does not promise defined (final salary) benefits but gives the member an entitlement to whatever benefits the accumulated moneys can buy at NRD is known as a money purchase scheme (see PSI20.1.13). A "proceeds of policy" scheme is a particular type of insured money purchase scheme. It secures the member's benefits, using earmarked insurance policies, but the employer either does not specify the amount or rate of benefit payable, or makes a payment of specified benefits subject to the proceeds of the policies being adequate (see also PSI20.4.2).

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