The following Pensions guidance note provides comprehensive and up to date legal information covering:
Hybrid schemes are schemes which provide both defined benefits and money purchase benefits. Special rules apply to hybrid schemes in relation to meeting the requirements for a qualifying scheme under the auto-enrolment legislation (the quality requirements). Those rules are based on the quality requirements for defined benefit schemes and money purchase schemes.
For further information on the quality requirements for defined benefit schemes and money purchase schemes (also referred to as defined contribution schemes), see Practice Note: Auto-enrolment—what types of scheme may be used?
A hybrid scheme that has its main administration in the UK will satisfy the quality requirement in relation to a jobholder if it satisfies the requirements of whichever is the appropriate of:
the quality requirements for a money purchase scheme (under the Pensions Act 2008, s 20 (PenA 2008)), subject to any prescribed modifications
the quality requirements for a defined benefits scheme (under the PenA 2008, ss 21–23—also known as the test scheme standard), subject to any prescribed modifications, or
a combination of the above where different quality requirements are appropriate for different provisions of the scheme
The appropriate requirements which apply depend on the type of hybrid scheme and are set out in the Hybrid Schemes Quality Requirements Rules 2016 (the Hybrid Schemes Rules). The requirements may be subject to prescribed
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