New section 213G Money purchase arrangements other than cash balance arrangements
26.New section 213G(1) defines the pension saving amount in respect of an “other” money purchase arrangement, i.e. one that is not a cash balance arrangement. Money purchase arrangements in general, are defined in section 152(2) and (4) of FA 2004. “Other” money purchase arrangements are simply those money purchase arrangements that are not “cash balance arrangements” (which are defined in section 152(3) and (5) of FA 2004). They are arrangements where the rate or amount of benefits is calculated by reference to an amount available for the provision of benefits, where that available amount is in turn calculated by reference to payments made under the pension scheme. The pension savings amount in respect of such an arrangement is the total of the pension contributions paid by or on behalf of the individual and the employer contributions in respect of the individual in the tax year.
27.New section 213G(2) provides that the pension savings amount in respect of an other money purchase arrangement does not include minimum payments or amounts recovered under section 8 of the Pension Schemes Act 1993 (PSA) or section 4 of the Pension Schemes (Northern Ireland) Act 1993 (PSNIA).
28.New section 213G(3) provides rules for dealing with unallocated employer pension contributions that subsequently become allocated to a particular individual.
29.New section 213G(4) provides for the pension savings amount to be treated as nil in a tax year where the individual becomes entitled to a serious ill-health lump sum or dies.
