SCHEDULE 36Pension schemes etc: transitional provisions and savings
Part 2Pre-commencement rights: enhancement of allowances etc
F1Non-residence: determination of lump sum and death benefit allowance enhancement factor (money purchase arrangements)
20C
F2(1)
This paragraph contains provision for determining the lump sum and death benefit allowance enhancement factor mentioned in paragraph 20B(2A) in the case of an arrangement that is a money purchase arrangement.
(2)
The lump sum and death benefit allowance enhancement factor is—
(a)
if the arrangement is a cash balance arrangement, the cash balance arrangement non-residence factor (see sub-paragraphs (3) to (5)), and
(b)
in any other case, the other money purchase arrangement non-residence factor (see sub-paragraphs (6) and (7)).
(3)
The cash balance arrangement non-residence factor is—
(a)
the factor arrived at by the application of sub-paragraph (4) in relation to the part of the active membership period during which the individual was a relevant overseas individual, or
(b)
if there have been two or more parts of that period during which the individual was a relevant overseas individual, the aggregate of the factors arrived at by the application of sub-paragraph (4) in relation to each of those parts of that period.
(4)
F3The factor arrived at by the application of this subsection in relation to any part of the active membership period is—
where—
A is the closing value of the individual’s rights under the arrangement;
B is the opening value of the individual’s rights under the arrangement.
F4SLA is the standard lifetime allowance for the tax year in which that part of that period ended.
(5)
For the purposes of sub-paragraph (4)—
(a)
the closing value of the individual's rights under the arrangement is the amount which would, on the valuation assumptions (see section 277), be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the end of that part of that period, and
(b)
the opening value of the individual's rights under the arrangement is the amount which would, on the valuation assumptions, be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the beginning of that part of that period.
(6)
The other money purchase arrangement non-residence factor is—
(a)
the factor arrived at by the application of sub-paragraph (7) in relation to the part of the active membership period during which the individual was a relevant overseas individual, or
(b)
if there have been two or more parts of that period during which the individual was a relevant overseas individual, the aggregate of the factors arrived at by the application of sub-paragraph (7) in relation to each of those parts of that period.
(7)
F5The factor arrived at by the application of this sub-paragraph in relation to any part of the active membership period is—
where C is the amount of the contributions made under the arrangement by or in respect of the individual in any part of the active membership period during which the individual is a relevant overseas individual.
F6SLA is the standard lifetime allowance for the tax year in which that part of that period ended.
F7(8)
A reference in this paragraph to the standard lifetime allowance for a tax year is to the standard lifetime allowance as determined under section 218, as it had effect for that tax year.