A method of making a preloaded bearing arrangement and a preloaded bearing arrangement are provided. The method comprises the steps of placing a bearing around a shaft and then placing a frustoconical disc spring around the shaft such that a portion of the disc spring abuts the bearing. A deformable cup is placed around the shaft, and an annular section of the deformable cup is spaced apart from the frustoconical disc spring and the cup is held at a fixed position along the shaft. A split shim is inserted between the annular section of the deformable cup and the disc spring to apply a preload to the disc spring. The deformable cup is then deformed such that a sidewall of the deformable cup extends around the split shim to hold the split shim in place relative to the shaft.