RPSM15103610 - Technical Pages: Special annual allowance: Protected inputs - existing: Other money purchase - not OPS, public service & GPP:

This guidance only applies for the 2009-10 and 2010-11 tax years.

Conditions for a protected input under an other money purchase arrangement that is not under an occupational, public service or group personal pension scheme

A pension input to an other money purchase arrangement under a pension scheme that is not

• an occupational pension scheme,
• a public service pension scheme, or
• part of a group personal pension scheme,

is a protected pension input amount where the following conditions are met:

• the individual has been an active member in relation to the arrangement since before 22 April 2009 / since before 9 December 2009 and ending on the ‘relevant end date’, which is

• • for the purpose of the 2009-2010 tax year, 5 April 2010,
  • for the purpose of the 2010-2011 tax year, 5 April 2011
  • an earlier date in either the 2009-2010 or 2010-2011 tax years that the individual ceased to be an active member in relation to the arrangement

• on or after 22 April 2009 / 9 December 2009, the rate at which contributions are being paid under the arrangement does not increase otherwise than in accordance with an agreement made before 22 April 2009 / made before 9 December 2009
• the payment of contributions under the arrangement have been made on a quarterly or more regular basis since before 22 April 2009 / since before 9 December 2009, and
• on or after 22 April 2009 / 9 December 2009 there has been no failure to pay the contributions on a quarterly or more frequent basis, or where there has been any failure to pay the contributions on a quarterly or more regular basis, the number of such failures is insignificant. In practice, this can be taken to mean that a small number of occasions (no more than two occasions) of inadvertently missed contributions that do not signify the end of accruing benefits will be accepted as not being a failure for this purpose.

For this purpose, contributions being paid under the arrangement means contributions paid

• by the individual
• on behalf of the individual, and
• in respect of the individual by the individual’s employer, or
• by any combination of the above.

Where the above applies for a particular tax year in respect of an individual (because that individual’s relevant income is £130,000 or more for the tax year concerned), the references to 22 April 2009 apply in relation to an individual who has relevant income of £150,000 or more for 2009-2010. Otherwise the above would still apply but the references to 9 December 2009 apply instead (see RPSM15103025 for more details).