(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)
[PN21.4]
The benefits that a centralised scheme for associated
employers may give are more generous than those allowed under a
scheme for non-associated employers. When the employers are
associated as explained in
PSI21.2.2we regard them as a single
trade or undertaking. In addition, where the participating
companies are associated as described in
PSI21.2.3, ordinary arms-length
employees are not usually employed by more than one participating
company at a time. In the type of association described in
PSI21.2.2benefits for all categories of
employee (viz including controlling directors) may therefore be
based on the employees’ final remuneration and total service
with the participating employers regardless of moves from one to
another. In the type of association described in
PSI21.2.3a distinction is made between
ordinary arms-length employees and controlling directors. For the
former category of employee benefits may be provided on the same
basis as applies to the
PSI21.2.2type of association. But for
controlling directors benefit provision must be on the basis
described in PSI21.2.8.
