“(3A)

For the purposes of this Part a money purchase arrangement is a “collective money purchase arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are collective money purchase benefits.”

“(4A)

The reference in subsection (4) to an amount available for the provision of benefits to or in respect of the member includes, in relation to a collective money purchase arrangement, an amount available for the provision of benefits to or in respect of members collectively.”

“(5A)

In this Part “collective money purchase benefits” means benefits that are collective money purchase benefits within the meaning of Part 1 or 2 of the Pension Schemes Act 2021.”

“(10)

The varieties of benefits mentioned in subsections (8) and (9) are—

(a)

cash balance benefits,

(b)

collective money purchase benefits,

(c)

money purchase benefits that are neither cash balance benefits nor collective money purchase benefits, and

(d)

defined benefits.”

“(1A)

In this section “relevant arrangement” means an arrangement that—

(a)

is not a money purchase arrangement, or

(b)

is a collective money purchase arrangement.”

“(7)

If this subsection applies, the value of the member's uncrystallised rights under the arrangement on the date (“the hybrid value”) is to be calculated by taking the following steps—

• Step 1 In relation to each relevant variety of benefits, calculate (in accordance with the preceding provisions of this section) the value of the member's uncrystallised rights on the date, assuming that benefits of that variety are provided under the arrangement.

• Step 2 The hybrid value is the higher or highest of the amounts determined under step 1.”

(8)

For the purposes of this section a variety of benefits is “relevant” in relation to a hybrid arrangement if, in any circumstances, benefits of that variety may be provided under the arrangement.

(9)

In this section “variety of benefits” means a variety of benefits specified in section 152(10).”

“(9A)

In subsection (9), “relevant arrangement” means a money purchase arrangement that is not a collective money purchase arrangement.”

“(3A)

Input amount AA is what would be the pension input amount under section 233 if the benefits provided to or in respect of the individual under the arrangement were collective money purchase benefits.”

“(9)

Where, under a collective money purchase arrangement—

(a)

a scheme pension has become payable to the member, and

(b)

the member subsequently becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1),

the income so payable is to be treated for the purposes of this Part as a continuation of the scheme pension.

(10)

Where, under a collective money purchase arrangement—

(a)

the member becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1), and

(b)

no scheme pension was previously payable to the member,

the income so payable is to be treated for the purposes of this Part as a scheme pension.”

“(3A)

But for the purposes of sub-paragraph (2)(b), no substantial reduction occurs in the rate of a pension if—

(a)

the pension is payable in respect of a collective money purchase arrangement, and

(b)

the reduction is in accordance with the rules of the scheme.”

“A1

For the purposes of benefit crystallisation event 3 “excepted circumstances” exist if condition A or B is met.”

“(5)

Condition B is that—

(a)

the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is a collective money purchase arrangement, and

(b)

at the time when the annual rate of the individual's pension is increased, all the scheme pensions being paid under collective money purchase arrangements are increased at the same rate.”

“Benefit crystallisation events 5 and 5B: hybrid arrangements

14ZA

(1)

This paragraph applies where, immediately before the individual reaches the age of 75 (“the relevant time”), there is under any of the relevant pension schemes a hybrid arrangement relating to the individual.

(2)

If defined benefits or collective money purchase benefits are a relevant variety of benefits, benefit crystallisation event 5 applies in relation to that variety of benefits as if, at the relevant time, circumstances were such that benefits of that variety were to be provided under the arrangement.

(3)

If cash balance benefits, or money purchase benefits that are neither cash balance benefits nor collective money purchase benefits, are a relevant variety of benefits, benefit crystallisation event 5B applies in relation to that variety of benefits as if, at the relevant time, circumstances were such that benefits of that variety were to be provided under the arrangement.

(4)

The amount crystallised on the individual reaching the age of 75 is the greater or (as the case may be) greatest of the amounts crystallised by the benefit crystallisation event or events applying by virtue of sub-paragraphs (2) and (3).

(5)

For the purposes of this paragraph a variety of benefits is “relevant” in relation to a hybrid arrangement if, in any circumstances, benefits of that variety may be provided under the arrangement.

(6)

In this paragraph “variety of benefits” means a variety of benefits specified in section 152(10).”

“Benefit crystallisation event 5A: “amounts crystallised by benefit crystallisation event 1”

14ZB

In determining, for the purposes of benefit crystallisation event 5A, an amount crystallised by benefit crystallisation event 1 in relation to the arrangement and the individual, any reduction made for the purposes of that crystallisation event under paragraph 2B (prevention of overlap) is to be disregarded.”

“Section 216(1), benefit crystallisation event 5A (benefit crystallisation event on individual reaching the age of 75, having sums or assets designated as available for the payment of a drawdown pension)

To determine, for the purposes of benefit crystallisation event 5A, the aggregate of amounts crystallised by benefit crystallisation event 1 by reference to the old arrangement (so that, in an appropriate case, paragraph 14ZB of Schedule 32 applies).”