- funded unapproved retirement benefit scheme
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.