(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]
There is, however, no objection to the use of controlled
funding even though some cross-subsidy between employers may happen
because of the pooling of contributions. Controlled funding is
described in
PSI20.3.13-16. The main
condition for its use is that the participating employers are aware
of its implications and know that substantial cross-subsidies will
not occur. In practice it is unlikely that employers would
participate in a scheme if the costs were not shared fairly between
them.
