Section 236ZA Defined benefits arrangements: public service pension schemesF1

(1)

Subsection (2) applies where—

(a)

at the end of a pension input period, an individual has rights under—

(i)

a reformed public service pension scheme arrangement (“the reformed arrangement”), and

(ii)

a corresponding legacy public service pension scheme arrangement (“the legacy arrangement”), and

(b)

the opening value of the individual’s rights under the legacy arrangement for the period (as determined for the purposes of section 234) exceeds the closing value of the individual’s rights under that arrangement for that period (as so determined).

(2)

The pension input amount in respect of the reformed arrangement for the tax year in which the pension input period ends is to be reduced (but not below zero) by the amount of the excess mentioned in subsection (1)(b).

(3)

For the purposes of this section an arrangement “corresponds” with another arrangement if—

(a)

the arrangements are under pension schemes that are connected, and

(b)

a final salary link applies in relation to the individual’s service under those schemes.

(4)

In this section—

(a)

“reformed public service pension scheme arrangement” means an arrangement under a scheme established by—

(i)

regulations under section 1 of the Public Service Pensions Act 2013 (“the 2013 Act”), or

(ii)

regulations under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (“the 2014 Act”);

(b)

“legacy public service pension scheme arrangement” means an arrangement under a scheme listed in—

(i)

Schedule 5 to the 2013 Act, or

(ii)

Schedule 5 to the 2014 Act;

(c)

“connected”, in relation to a pension scheme, has the same meaning as in—

(i)

the 2013 Act (see section 4(6) of that Act), or

(ii)

the 2014 Act (see section 4(6) of that Act);

(d)

a “final salary link” applies in relation to an individual’s service under two pension schemes if, pursuant to—

(i)

paragraph 1 or 2 of Schedule 7 to the 2013 Act, or

(ii)

paragraph 1 or 2 of Schedule 7 to the 2014 Act,

the determination of the individual’s final salary for the purposes of one of those schemes is determined (to any extent) by reference to their service in the other scheme.

Annotations

Textual amendments

F1: S. 236ZA inserted (6.4.2024 with effect for the tax year 2023-24 and subsequent tax years) by The Finance Act 2004 (Registered Pension Schemes and Annual Allowance Charge) Order 2024 (S.I. 2024/357), arts. 1(1), 2(2) (with art. 1(2))

Notes on Part 4

Modifications

C1: Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103
C2: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
C3: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
C4: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
C5: Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
C6: Pt. 4 modified (31.12.2007) by Police and Justice Act 2006 (c. 48), s. 53(1), Sch. 3 para. 7; S.I. 2007/3203, art. 3(b)
C7: Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)
C8: Pt. 4 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), reg. 5A (as inserted (6.4.2006) by S.I. 2008/2990, arts. 1(1), 3)
C9: Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
C10: Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
C11: Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)
C12: Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)
C13: Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)
C14: Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1
C15: Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)
C16: Pt. 4 modified (with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 6
C17: Pt. 4 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10

Notes on Chapter 5

Modifications

C1: Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
C2: Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
C3: Pt. 4 modified (with effect in relation to the tax year 2024-25 and subsequent tax years) by The MPs’, Senedd and Assembly Pension Schemes (Tax) Regulations 2025 (S.I. 2025/52), regs. 1(2)(3), 6