(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)
The majority of applications for approval are for insured
schemes in which the cost is worked out individually for each
member. They generally take the form of individual arrangements
(see
PSI1.1.16) and discretionary
earmarked schemes (see
PSI1.1.18) under which the
benefits for each employee are secured by separate insurance
polices (or, in some schemes, an identifiable interest in a group
policy). The policy proceeds can be used only to provide benefits
for the particular individual for whom they have been
“earmarked”.
