Introduction New section 213N Hybrid arrangements
72.New section 213N(1) and (2) define the total pension savings amount in relation to hybrid arrangements. A hybrid arrangement is one under a registered pension scheme in which the ultimate form of benefits is uncertain. The ultimate form of those benefits may be either an exclusively defined benefit, an exclusively cash balance benefit, or an exclusively other money purchase benefit. Hybrid arrangements are defined in section 152(8) of FA 2004. The pension savings amount in respect of such an arrangement is the greater or greatest of the relevant amounts found by applying each of the provisions in new section 213N(3) to (5).
73.New section 213N(3) to (5) provide how to determine the pension savings amount in respect of a hybrid arrangement by applying to it whichever of the provisions in new sections 213G to 213J are appropriate.