Finance Act 2021

2 (1) Section 152 (meaning of “arrangement”) is amended as follows.

(2) In subsection (2), after “cash balance benefits” insert “, collective money purchase benefits”.

(3) After subsection (3) insert—

“(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.”

(4) After subsection (4) insert—

“(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.”

(5) In subsection (5)—

(a) the words after “means benefits” become paragraph (a);

(b) at the end of that paragraph insert “, and”;

(c) after that paragraph insert—

“(b) that are not collective money purchase benefits.”

(6) After that subsection insert—

“(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.”

(7) In subsection (8), for the words from “two or three” to the end substitute “two, three or four of the varieties specified in subsection (10)”.

(8) In subsection (9)—

(a) for “those varieties of benefits” substitute “the varieties of benefits specified in subsection (10)”;

(b) for “two or three” (in both places those words occur) substitute “two, three or four”.

(9) After that subsection insert—

“(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.”