PSI21.3.7 - Centralised Schemes: Non-Associated Employers - Main Requirements

(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 are certain additional administrative requirements that must be satisfied if a centralised scheme for non-associated employers is to be approvable. They are:

[PN21.14]

1. we must be satisfied that the sponsor and its staff are suitably experienced and capable of administering a scheme of this type satisfactorily (see PSI21.3.10).
2. Each participating employer must bind itself to observe the rules (see PSI21.1.4) and we must be notified of each employer’s admission and supplied with the necessary information and documentation in accordance with PSI21.1.5.
3. The scheme rules must not allow any self-investment or loans to employers or members
4. The scheme rules must specifically exclude from membership any employee who is accruing benefits under another scheme of the participating employer, except where those other benefits arise in the circumstances described in PN21.14(d)(i) to (v).
5. the scheme should adopt a conventional NRD within the age range set out in PSI6.3.3. It may, however, be possible for a scheme which is established exclusively for a category of employees to whom PSI6.3.31 applies, to be approved.
6. the rules must provide for an employer’s withdrawal (see PSI21.1.3) and if the employer goes into liquidation, for the winding-up of the relevant part of the scheme (see PSI16.2.35).
7. the rules should be complete in themselves and not allow individual participating employers to adopt their own special rules which qualify the general rules of the scheme. We do not object, however, to the rules consisting from the outset of general rules together with a range of special rules from which the individual employer may choose on entry to the scheme. But any subsequent extension of the range of special rules would constitute an amendment to the scheme (see PSI19.1.1 and Part 22, Section 3).

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