The Registered Pension Schemes (Uprating Percentages for Defined Benefits Arrangements and Enhanced Protection Limits) Regulations 2006

Percentage increases in enhanced protection limits

3.—(1) For the purposes of paragraph 15(5)(b) of Schedule 36 (relevant indexation percentage for the purposes of the appropriate limit in relation to a relevant event), the annual percentage rate referred to in these Regulations is found by the formula—

(2) In paragraph (1)—

• terms defined in regulation 2(3) bear the same meaning as they do there;

• MRE is the number of complete tax months which have elapsed since 6^th April 2006 at the time when the relevant event occurs; and

• PP is the greater of—

  (a)

  an annual rate of 5% for the period beginning on 6^th April 2006 and ending with the last day of the tax month in which the relevant event occurs, or

  (b)

  the percentage (if any) by which the retail prices index for the month in which the relevant event occurs is higher than it was for April 2006;

(3) For the purposes of paragraphs 16(5A)(b) and 17(6)(b) of Schedule 36 (relevant indexation percentages for the purposes of limit on post-commencement earnings) the annual percentage rate referred to in these Regulations is that which would be found by the formula in paragraph (1) if—

(a) for MRE there were substituted MBE, where MBE is the number of complete tax months between the date on which the appropriate three year period ends and the date of the first relevant event; and

(b) in the definition of PP—

(i) in paragraph (a) for “6^th April 2006” there were substituted “the first day of the tax month in which the appropriate period ends”; and

(ii) in paragraph (b) for “April 2006” there were substituted “the month in which the appropriate period ends”.

(4) In this regulation “tax month” means the period beginning on the 6th day of a calendar month and ending on the 5th day of the following calendar month.