ABSTRACT
Although a partnership is not allowed to set up an exempt approved pension scheme for the benefit of the partnership itself, it may do so for its employees. Naturally enough, it would only be worth doing so in the case of a partnership with a large number of employees, eg a city centre firm of accountants or solicitors. A partnership is not, of course, in law, a separate legal entity like a limited company under the Companies’ Acts. The employer will therefore be the equity or profit-sharing partners (not salaried partners who are employees, and may be beneficiaries under any pension scheme established by the partnership). The partners, should they decide to establish an exempt approved pension scheme for the benefit of their employees, must be careful whom they appoint as trustees of the scheme. Possibly, since the partners may well change from time to time, eg on retirement or leaving to join another firm, it may be advisable to set up a trustee company and make it sole trustee of the pension scheme.
