RPSM13100500 - Technical Pages: International:
Enhancement: Recognised overseas scheme transfer factor:
Cash balance arrangement relevant relievable
amount
How to calculate the relevant relievable amount for a cash
balance arrangement
Where the individual's arrangement under their
recognised overseas pension scheme is a
cash balance arrangement, the cash balance
relevant relievable amount is established as follows:
- obtain the value of the individual's rights in the cash balance
arrangement as at the latest of the following dates:
- the date that the individual became
someone who is not a
relevant overseas individual (see
RPSM13100430)
- the date that benefits first began to
accrue to or in respect of the individual under the cash balance
arrangement, and
- 6 April 2006.
- obtain the value of the individual's rights in the cash balance
arrangement as at the earliest of the following dates:
- immediately before the transfer was
made,
- the date that the individual ceased to be
someone who is not a relevant overseas individual, and
- the date that benefits ceased to accrue to
or in respect of the individual under the cash balance
arrangement.
- deduct the result of a. from the result of b.
- If the individual had not been a relevant overseas individual
during another part of the
overseas arrangement active membership period (see
RPSM13100490) relating to the same
cash balance arrangement then the amount calculated in the same way
in respect of that other part-period should be added to the amount
at c.
The individual's rights under the cash balance arrangement is
the amount which would be available to provide benefits to or in
respect of the individual if they became entitled to them at the
applicable date (as determined under a or b above). The rights are
established using the
valuation assumptions set out in section 277. They
are as follows:
- the individual concerned has reached any
designated age as must have been reached to avoid any reduction in
their benefits on account of their age, and
- their benefits should be valued on the
basis that they are not physically or mentally impaired.
RPSM13100510 gives an example.
