| [Para 13 Sch 36] |
Whether ‘relevant benefit accrual’ occurs depends on the type of arrangement under which the individual’s benefits are being provided. There are different rules for
RPSM03104510 explains when "relevant
benefit accrual" occurs in a money purchase arrangement
that is an other money purchase arrangement. RPSM03104520
explains when relevant benefit accrual occurs in a defined benefits or cash
balance arrangement.
Essentially the relevant benefit accrual test for other money
purchase arrangements is an input test. So payment of benefits from
this type of arrangement will not trigger loss of enhanced
protection
The relevant benefit accrual test for defined benefits or
cash balance arrangements is an output test. So contributions to
these types of arrangement will not trigger loss of enhanced
protection but the payment or transfer of benefits may cause loss
of enhanced protection.
| Glossary ( RPSM20000000) |
