PSI14.3.5 - Transfer Payments: Assignment of Policy to a New Employer - Assignment of Policy With Documents - Individual Arrangements

(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)

[PN10.33]

Assignments with documents are nearly always from one individual arrangement to another. Most individual arrangements contain no provision in the exchange letter and rules for the replacement of the employer by another. This means that if the employee moves from one employer to another, or the employee's job remains unchanged but his or her employer is taken over, merged, etc, with another employer, and the new employer wishes to continue with pension provision for the employee, a fresh exchange of letters between the new employer and the employee, adopting the existing rules is required and PSI14.3.4applies (but see PSI14.3.8). There may also be new rules which will supersede the earlier ones, but if the existing rules continue to apply they must be transferred to the new file. The parties concerned usually execute a Deed of Assignment to transfer ownership of the policy from the old employer to the new employer. Such a deed is not essential provided that the new arrangement is satisfactorily documented in all other respects.

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