Introduction New section 213J Defined benefits arrangements
44.New section 213J(1) defines the pension savings amount for a defined benefits arrangement by reference to the increase in value of the pension and any lump sum. A defined benefits arrangement relating to a member is defined in section 152(6) and (7) of FA 2004. They are arrangements where the benefits provided are not money purchase benefits, but which are instead calculated by reference to any factor other than an amount available for the provision of benefits.
45.New section 213J(2) defines the pension increase by reference to the difference between the opening and closing pension multiplied by age-related factors.
46.New section 213J(3) defines the amount of the closing pension.
47.New section 213J(4) defines the amount of the opening pension.
48.New section 213J(5) defines the lump sum increase by reference to the difference between the opening and closing lump sums multiplied by age-related factors.
49.New section 213J(6) defines the amount of the closing lump sum.
50.New section 213J(7) defines the amount of the opening lump sum.
51.New section 213J(8) provides that the pension savings amount in connection with a defined benefits arrangement does not include minimum payments or amounts recovered under section 8 of PSA or section 4 of PSNIA.
52.New section 213J(9) provides for the pension savings amount to be treated as nil in a tax year where the individual becomes entitled to a serious ill-health lump sum or dies.