PSIPart20 - Funding and Surpluses
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(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)
Contents
Section 1 - Funding General
Section 2 - Self-Administered
Schemes
Section 3 - Insured Schemes:
General
Section 4 - Insured Schemes:
Earmarked Policies
Section 5 - Insured Schemes:
Common Trust Funds
Section 6 - Surpluses –
General
Section 7 - Sections 601-2 ICTA
1988
Section 8 - Section 603 & Sch
22 ICTA 1988 (Formerly Part II Sch 12 FA 86)
Section 9 - Scheme Mergers &
Winding-Up
Appendices
Section 1 - Funding General
| PSI20.1.1-3 | Introduction |
| PSI20.1.4-6 | Revenue concern |
| PSI20.1.9 | Classification of schemes by investment |
| PSI20.1.10-11 | Actuarial considerations |
| PSI20.1.12 | Final salary schemes |
| PSI20.1.13-16 | Money purchase schemes |
| PSI20.1.20-23 | Mortality tables |
| PSI20.1.26-27 | Salary growth |
| PSI20.1.28 | Permitted maximum |
| PSI20.1.30-31 | Increases of pensions in payment |
| PSI20.1.33-35 | Interest rates |
| PSI20.1.38 | Withdrawals |
| PSI20.1.39 | Future employees |
| PSI20.1.42-43 | Determination of contributions |
|
| Death benefits |
| PSI20.1.44-45 | - in service |
| PSI20.1.46 | : multiples of salary |
| PSI20.1.47 | - in retirement pension for widow, widower or dependants |
Section 2 - Self-Administered Schemes
| PSI20.2.1 | General |
| PSI20.2.2 | The actuary |
| PSI20.2.5-8 | Actuarial valuations |
| PSI20.2.9 | Form of actuarial reports |
| PSI20.2.10 | - the introductory data |
| (This text has been withheld because of exemptions in the Freedom of Information Act 2000) | (This text has been withheld because of exemptions in the Freedom of Information Act 2000) |
| PSI20.2.12-13 | - valuation basis: valuation of investment |
| PSI20.2.14 | : "Original Cost" |
| PSI20.2.15 | : "Market Value" |
| PSI20.2.18-21 | - valuation results |
| PSI20.2.22 | Actuarial solvency |
|
| Control on funding |
| PSI20.2.25 | - surpluses |
| PSI20.2.26 | - deficiencies |
| PSI20.2.27 | Split approval |
Section 3 - Insured Schemes: General
| PSI20.3.1-2 | Introduction |
| PSI20.3.3 | Actuarial valuations |
| PSI20.3.4(This text has been withheld because of exemptions in the Freedom of Information Act 2000) | Calculation of fund requirement |
| PSI20.3.10 | Methods of funding |
| PSI20.3.11-12 | - "single premium" or "current cost" method |
| PSI20.3.13-16 | - controlled funding |
| PSI20.3.21 | Types of policy |
Section 4 - Insured Schemes: Earmarked
Policies
| PSI20.4.1 | General |
| PSI20.4.2 | Basis of funding |
|
| ABI Guidance Notes |
| PSI20.4.3 | - application and transitional arrangements |
| PSI20.4.4 | Special contributions |
| PSI20.4.5 | Actuarial assumptions |
| PSI20.4.6 | Funding reviews |
| PSI20.4.7 | Death in service benefits |
| PSI20.4.8 | Checks on funding |
| PSI20.4.9 | Basis of selection |
| PSI20.4.10 | Mandatory approval |
| PSI20.4.11 | Earmarked schemes using Self Managed Funds |
Section 5 - Insured Schemes: Common Trust
Funds
| PSI20.5.1-3 | General |
| PSI20.5.7-10 | Methods of funding |
| (This text has been withheld because of exemptions in the Freedom of Information Act 2000) | (This text has been withheld because of exemptions in the Freedom of Information Act 2000) |
| PSI20.5.12-15 | Managed fund policies |
| PSI20.5.16 | - actuarial reports/certificates |
| (This text has been withheld because of exemptions in the Freedom of Information Act 2000) | (This text has been withheld because of exemptions in the Freedom of Information Act 2000) |
| PSI20.5.21-23 | Deposit administration |
| PSI20.5.24 | - procedure |
Section 6 - Surpluses – General
| PSI20.6.1-2 | Introduction |
| PSI20.6.3 | Governing legislation |
| PSI20.6.4-5 | Effective dates |
| PSI20.6.6-8 | Application of 40% tax |
| PSI20.6.9 | Control of surpluses |
| PSI20.6.10 | Unallocated or contingency funds |
| PSI20.6.11 | - actuarial valuations |
| PSI20.6.12 | - elimination |
| PSI20.6.13-15 | Limited price indexation |
| PSI20.6.16-19 | Cases working on interim documentation |
| PSI20.6.20 | - refunds |
| PSI20.6.22 | - authorisation of refunds |
| PSI20.6.23-24 | - AVRs and certificates |
Section 7 - Sections 601-2 Icta 1988
| PSI20.7.1-2 | General |
| PSI20.7.3 | Pension Scheme Surpluses (Administration) |
|
| Regulations 1987 [SI1987 No 352] |
| PSI20.7.4 | Payment of tax |
| PSI20.7.5 | - interest on tax paid late |
| PSI20.7.6 | - assessment |
| PSI20.7.7-8 | - form PFS1 |
| PSI20.7.9 | Excess policy proceeds |
| PSI20.7.10 | Discretionary practice |
| PSI20.7.11 | - concessional arrangement |
| PSI20.7.12-14 | Transfer of assets etc. |
|
| Payments not subject to tax at 40% |
| PSI20.7.15 | - employers entitled to tax exemptions |
| PSI20.7.16 | - excluded payments |
| PSI20.7.17 | - other payments not subject to the 40% tax charge |
| PSI20.7.18 | : winding-up on or before 18 March 1986 |
| PSI20.7.19-20 | : refunded contributions |
| PSI20.7.21 | : tax under £100 |
| PSI20.7.22 | : cancellation of approval |
| PSI20.7.23 | : scheme abandoned before approval |
Section 8 - Section 603 & Sch 22 ICTA 1988
(Formerly Part II Sch 12 FA 86)
| PSI20.8.1-4 | General |
| PSI20.8.5-8 | Schemes covered |
| PSI20.8.9 | Centralised schemes: non-associated employers |
| PSI20.8.10 | Centralised schemes: associated employers |
| PSI20.8.11 | - money purchase schemes |
| PSI20.8.12 | - deposit administration schemes |
|
| Actuarial valuations |
| PSI20.8.13-15 | - general |
| PSI20.8.16-18 | - frequency |
| PSI20.8.19 | - form |
| PSI20.8.20 | - signature of AVR/certificate |
| PSI20.8.21-22 | - submission of AVR/certificate |
| PSI20.8.23 | Prescribed basis for valuations |
| PSI20.8.24 | - additional voluntary contributions |
| PSI20.8.25 | - valuation of liabilities |
| PSI20.8.26 | : method |
| PSI20.8.27 | : death benefits |
| PSI20.8.28 | : pre-retirement yield |
| PSI20.8.29-34 | : post-retirement yield |
| PSI20.8.35-36 | : others |
| PSI20.8.37 | : changes |
|
| Valuation of assets |
| PSI20.8.38-45 | - general |
| PSI20.8.46-48 | - insurance policies |
|
| Reduction of surplus |
| PSI20.8.49-56 | - general |
| PSI20.8.57 | - special cases |
| PSI20.8.58-59 | - contribution holiday/reduction |
| PSI20.8.60-71 | - calculation of effect of proposals |
Section 9 - Scheme Mergers &
Winding-Up
| PSI20.9.1-3 | General |
| PSI20.9.4-6 | Block transfers |
| PSI20.9.7-11 | Re-organisation without refund |
| PSI20.9.12-17 | Refund to employer on winding-up |
| PSI20.9.18-24 | - definition of replacement scheme |
Appendices
| PSI20AppendixA | Funding and Surpluses: Compound Interest Tables - Growth Factors |
| PSI20AppendixB | Funding and Surpluses: Special Office Cases Aide Memoire |
