Funded Unapproved Retirement Benefit Schemes are essentially a scheme that involves the employer making a promise and providing security for that promise by setting aside a sum of money to pay benefits to an employee when they become due.
Unlike company pension schemes, there are no limits to the level of benefits provided i.e. benefits can be provided above the level of benefits set by the earnings cap, however, the tax and National Insurance treatment of such schemes are significantly different to Approved Pension Schemes.FURBS are often used to provide benefits for higher paid employees over and above the earnings cap, whereby the full fund can be taken as cash at retirement rather than there be a necessity to buy a pension.
|  | | | As a consequence, FURBS do not offer the restrictions imposed on Exempt Approved Schemes, such as SSAS and SIPPS thereby having the power to invest in anything which is permitted by the Trustee or law generally. However, the contributions paid into such schemes are treated as a benefit in kind by the Inland Revenue and are taxed thereon and in addition, National Insurance contributions are charged on the grossed up level of contributions.
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