PSI21.3.24 - Centralised Schemes:
Non-Associated Employers - Scheme Rules - Augmentation of Basic
Benefits
-
(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)
There is no objection to the basic benefits being increased
beyond the limits in
PSI21.3.23if the rules contain a
suitable power of augmentation. But the administrator must obtain
our prior agreement on each occasion. You may permit augmentation
where:
- the proposed benefits are not more than the
maximum we would have been prepared to approve if each employer had
set up its own separate scheme viz using the successive slice
method explained in PSI21.3.21, and
- the costs of providing the augmented
benefits do not fall disproportionately on the final employer. The
final employer should have to pay no more than is necessary to
provide benefits for the period of service with it.
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