RPSM02102020 - Technical pages: Registering a pension scheme with HMRC: conditions for registration: Occupational pension schemes

Occupational pension schemes

The following examples are all occupational pension schemes under the tax regime for registered pension schemes from 6 April 2006.

• An employer (or employers) establishing a pension scheme may specify, for example, that the membership is for employees in a group of companies plus self- employed individuals who work with them.
• A representative body that is itself an employer may establish a pension scheme for people who are employees in a particular industry.
• One or more employers within a geographical area may set up a pension scheme for employees of theirs within that geographical area.

There is no HMRC requirement about the way that any employer, which is not the establishing employer, is allowed under the scheme rules to participate in an occupational pension scheme. But the employer will be recognised as a ‘ sponsoring employer’ under section 150(6) Finance Act 2004 where one or more of its employees are members and the scheme benefits for those members are directly related to their employment with the employers in question.