RPSM13100160 - Technical Pages: International: Enhancement: Non-residence factor: Pension scheme arrangements

Pension scheme arrangements

The non-residence factor (see RPSM13100120) is calculated in one of a number of different ways depending on whether the individual's arrangement under the registered pension scheme is

• a cash balance arrangement (see RPSM13100240),
• an other money purchase arrangement (see RPSM13100260),
• a defined benefits arrangement ( see RPSM13100280), or
• a hybrid arrangement (see RPSM13100310).

Normally there will be only one type of arrangement in a registered pension scheme. If that is the case the basis of calculation of the individual's non-residence factor will be determined by which of the above types of arrangement it is. However, an individual could be accruing benefits under different types of arrangement within a single registered pension scheme that has multiple arrangements. For example, a member of a defined benefits scheme could have two types of arrangement if they were paying additional voluntary contributions, one being a defined benefit arrangement and the other a money purchase arrangement. If that is the case separate non- residence factors will need to be calculated for each of the types of arrangement under which the individual is accruing benefits.