PSI20.3.2- Funding and Surpluses: Insured Schemes - General - Introduction

(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)

Whereas a self-administered scheme can be vulnerable to fluctuations in the value of its assets, a wholly insured scheme is generally protected from such risks. A Life Office receives premiums from a large number of pension schemes and these are invested in a more extensive portfolio of securities than most self-administered schemes can hope to build up. This minimises the effects of any loss suffered on individual investments.

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