RPSM15104040 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated: Different forms of protected input amount

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

Different forms of protected pension input amount

Pension inputs made under an arrangement 

• newly set up on or after 22 April 2009 / on or after 9 December 2009, or
• re-activated on or after 22 April 2009 / on or after 9 December 2009

will be protected pension input amounts where the following conditions are met:

• the arrangement is under a pension scheme that is

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

• the arrangement, except in relation to membership of a public service pension scheme, relates to an employment of the individual;
• where the arrangement is under an occupational pension scheme or forms part of a group personal pension scheme, the provision of benefits under the arrangement is part of the same normal pattern of pension provision made by the person who is the employer in relation to the employment of the individual as that for the employees of that employer generally;
• the contributions under the arrangement are not additional voluntary contributions or contributions for the purpose of purchasing added years;
• there are at least 20 members with arrangements under the same scheme and the benefits under all of those arrangements accrue on the same basis as that for the new, or re-activated, arrangement of the individual for the ‘relevant period’;
• where the arrangement is under an occupational pension scheme or forms part of a group personal pension scheme, those 20 or more members are employees of the employer who is the employer in relation to the arrangement of the individual, and
• there is no material change to the pension scheme rules under which benefits are calculated under the arrangement in the ‘relevant period’, or, if there is a material change in the ‘relevant period’ the material change applies to at least 50 active members of the pension scheme.

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

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).