- FURBS
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Companies may provide retirement benefits greater than the Inland Revenue limits. Such top-up benefits schemes may be funded through either a FURBS (funded unapproved retirement benefits scheme) or an URBS (unfunded unapproved retirement benefits scheme). The employee will pay tax on the unapproved contribution. The benefits, if taken as a lump sum are not taxed but if converted into a pension are taxed as income. The existence of a top up scheme must be reported to the Inland Revenue. An Inland Revenue booklet explains the treatment of FURBS.
Easyform Glossary of Law Terms. — UK law terms.
- FURBS
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1) Now known as employer-financed retirement benefit schemes (EFRBS), unapproved occupational pension schemes that employers used to set up to provide top-up benefits for employees who were caught by the pensions cap. No new FURBS can be set up since 6 April 2005. The employer entered into a contractual commitment to pay a pension at retirement, and made payments to fund that pension promise. FURBS were not capable of being approved by HM Revenue & Customs (HMRC), and attracted only limited tax relief. See also unfunded unapproved retirement benefit schemes.2) Unapproved occupational pension schemes set up by employers to provide top-up benefits for employees who are caught by the pensions cap. They will usually involve the employer contributing to a trust during employment to fund the pension after retirement. As they are unapproved they do not attract any beneficial tax treatment (in comparison to approved pension schemes).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
