RPSM13100260 - Technical Pages: International: Enhancement: Non-residence factor: Other money purchase arrangement

How to calculate the non-residence factor for an other money purchase arrangement

For each part of an active membership period (see RPSM13100130) during which the individual is a relevant overseas individual (see RPSM13100140), the other money purchase arrangement non-residence factor is calculated in the following way.

Establish the total amount of contributions made by or in respect of the individual to the other money purchase arrangement between the dates determined as follows

• the latest of the following dates:
• • the date when the individual became a relevant overseas individual
  • the date when benefits first began to accrue to or in respect of the individual under the other money purchase arrangement, and
  • 6 April 2006.

• the earliest of the following dates:
• • immediately before the benefit crystallisation event,
  • the date when the individual ceased to be a relevant overseas individual, and
  • the date when benefits ceased to accrue to or in respect of the individual under the other money purchase arrangement.

Express the resulting amount as a factor of the standard lifetime allowance as at the date under the second set of bullets above.

If there was an earlier part of the active membership period relating to the arrangement during which the individual was a relevant overseas individual the two factors for the two part-periods should be aggregated.

RPSM13100270 gives an example of how to calculate the non-residence factor for an other money purchase arrangement.