F1SCHEDULE 35Pensions: special annual allowance charge
Protected pension input amounts: new and re-activated arrangements
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(1)
This paragraph applies in respect of an arrangement if—
(a)
the arrangement is made or re-activated on or after 22 April 2009,
(b)
the arrangement—
(i)
is under an occupational pension scheme or forms part of a group personal pension scheme and (in either case) relates to an employment of the individual, or
(ii)
is a public service pension scheme,
(c)
there is no material change in the rules of the pension scheme under which benefits are calculated under the arrangement in the relevant period or any such material change in the relevant period affects at least 50 active members of the pension scheme, and
(d)
throughout the relevant period there are at least 20 persons in respect of whom arrangements subsist under the pension scheme under which benefits are accruing on the same basis as those under the arrangement.
(2)
If the arrangement falls within sub-paragraph (1)(b)(i), this paragraph does not apply in respect of it if—
(a)
the provision of benefits under it is not part of the normal pattern of pension provision made by the person who is the employer in relation to the employment of the individual for the employees of the employer generally, or
(b)
the persons mentioned in sub-paragraph (1)(d) are not employees of that person.
(3)
“The relevant period” is the period—
(a)
beginning when the arrangement is made or re-activated, and
(b)
ending at the same time as the tax year or, if earlier, the time when the individual ceases to be an active member of the pension scheme by reference to the arrangement.
(4)
The amount arrived at under paragraph 3(2) in relation to the arrangement is a protected pension input amount except to the extent that it is attributable to the payment of added years contributions or additional voluntary contributions.
(5)
“Added years contributions” are contributions paid with a view to securing that the calculation of benefits under the arrangement is by reference to a period of service in excess of pensionable service by the individual.
(6)
An arrangement relates to an employment of the individual if—
(a)
the earnings by reference to which benefits under the arrangement are calculated are earnings from the employment, or
(b)
the person who is the employer in relation to the employment pays contributions under the arrangement in respect of the individual.
(7)
An arrangement is “re-activated” if the individual, having ceased to be an active member of the pension scheme by reference to the arrangement, again becomes such a member.