RPSM15104060 - Technical Pages: Special annual allowance: Protected inputs - new and re-activated: Benefits accruing on the same basis for 20 members - other money purchase

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

Benefits accruing on the same basis for 20 members with other money purchase arrangements

Whether there will be at least 20 members who are accruing benefits on the same basis (see RPSM15104040) will depend on how the contribution rates are set.

If, for example, the contribution options are very wide such that members can decide any level of personal contribution with, perhaps, employer matching contributions up to a certain amount then it would seem that there could be wide variations in the amount of contributions being paid by each member. There would have to be at least 20 members who have decided on the same option; it would not be enough for there to be at least 20 members with the same potential options.

Alternatively, if, for example, every member had to pay a set amount of contributions as a condition of membership but the amount of those contributions together with employer matching contributions in relation to those member contributions depended on the age of the member, there would be 20 members accruing benefits on the same basis if there were at least 20 members in the scheme overall even though there might not necessarily be 20 members in any one particular age range.