PSI21.2.25 - Centralised Schemes: Associated Employers - Service or Management Companies

(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)

[PN21.8]

Some groups of companies designate one particular company to act as the employer for all the staff of the group. This service or management company then seconds employees to the various operating companies within the group in return for a service fee covering pay and pension contributions. This normally presents no problems but any retirement benefits scheme set up by the service or management company is not a centralised scheme of the type referred to in this Part. The service or management company is the sole employer and consequently it is not appropriate for any of the other group companies to adhere to the scheme.

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