PSI21.3.30 - Centralised Schemes: Non-Associated Employers - Funding - Money Purchase

(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)

[PN21.15]

If a centralised scheme for non-associated employers is to be approvable we need to be satisfied that the financial arrangements adopted are sound. The schemes are normally funded on a money purchase basis, each employer’s contributions being made solely for the benefit of its own employees. This is the most suitable basis from a Revenue viewpoint because it clearly satisfies the terms of section 592 (5) ICTA 1988 (see PSI21.3.21).

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