PSI20.5.12 - Funding and Surpluses: Insured Schemes - Common Trust Funds - Managed Fund Policies

(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 premiums paid under managed fund policies are generally calculated on a controlled funding basis as a percentage of the employer’s payroll. They are converted into a given number of “benefit units” depending on the unit value at the time of payment. The units are normally revalued monthly and their value will increase or decrease to reflect the success or otherwise of the fund’s policy holders’ accounts according to the number of units held, instead of being included in periodic revaluations.

Contact: | Date issued: | Next review: