RPSM13100490 - Technical Pages: International: Enhancement: Recognised overseas scheme transfer factor: The relevant relievable amount

How to calculate the relevant relievable amount

The relevant relievable amount relates to any part of the overseas arrangement active membership period during which the individual was not a relevant overseas individual (see RPSM13100430). If there is more than one part of the overseas arrangement active membership period where the individual was not a relevant overseas individual then that individual's relevant relievable amount is the total of the amounts relating to each of those part-periods.

The overseas arrangement active membership period is defined in section 224(7) and relates to membership of an arrangement under a recognised overseas pension scheme. It begins on the later of the following dates:

• the date when benefits first began to accrue to or in respect of an individual under the overseas arrangement, and
• 6 April 2006.

It ends on the earlier of the following dates:

• immediately before the transfer was made, and
• the date when benefits ceased to accrue to or in respect of the individual under the overseas arrangement.

The relevant relievable amount is calculated in a number of different ways depending on whether the individual's recognised overseas pension scheme arrangement is

• a cash balance arrangement (see RPSM13100500),
• an other money purchase arrangement ( see RPSM13100520),
• a defined benefits arrangement (see RPSM13100540), or
• a hybrid arrangement ( see RPSM13100570).

Normally there will be only one of those types of arrangement in a recognised overseas pension scheme. If that is the case there will be a single transfer and, if applicable, a single calculation of a relevant relievable amount. The basis of the calculation will be determined by the type of arrangement it is.

However, it is possible that an individual could be accruing benefits under different types of arrangement within a single recognised overseas pension scheme that has multiple arrangements. For example, a member of a defined benefits scheme could have two types of arrangement if they were making additional voluntary contributions to the scheme. That is because the additional voluntary contributions would be an other money purchase arrangement. Should that be the case, and if the total amount transferred from the recognised overseas pension scheme related to separate transfers from each of the arrangements, separate calculations of any relevant relievable amounts would need to be made.