Income Tax (Earnings and Pensions) Act 2003 section 393A

Employer-financed retirement benefits scheme

Section 393A defines what an "employer-financed retirement benefits scheme" is and identifies which types of pension arrangement fall outside that definition.

• An employer-financed retirement benefits scheme is any scheme set up to provide relevant benefits (retirement benefits) to employees or former employees of an employer.
• Registered pension schemes and superannuation funds covered by section 615(3) of ICTA are specifically excluded from this definition.
• The term "scheme" is defined broadly and includes deeds, agreements, a series of agreements, or any other arrangements.
• The distinction matters because benefits paid from an employer-financed retirement benefits scheme are subject to separate tax rules under this chapter, unlike benefits from registered pension schemes.