Legalize / United Kingdom / Scotland / Scottish-Statutory-Instrument

The National Health Service Pension Schemes (Remediable Service) (Scotland) Regulations 2023

Type Scottish-Statutory-Instrument

Publication 2023-09-05

Last updated 2025-10-31

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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Reform history JSON API

Pension debits: valuation of pension benefits before 1 October 2023: active and deferred members (immediate alternative debit of appropriate amount)

26

(1) This regulation applies to a corresponding pension debit member[^f00030] (“DM”) where—

(a) DM has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b) on 30 September 2023, DM was an active or deferred member of the 2015 scheme in respect of remediable service[^f00031];

(c) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations[^f00032] (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits); and

(d) on or after 1 April 2015, DM became subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights.

(2) Where this regulation applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(3) The scheme manager must make the adjustment referred to in paragraph (2)—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act[^f00033] (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 July 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(4) Where paragraph (3)(a) applies, the scheme manager must send a notice in writing to DM specifying the adjusted debit of the appropriate amount in the legacy scheme.

(5) The scheme manager must send the notice to DM within one month beginning with the day after making the adjustment under paragraph (2)(b).

Pension debits: valuation of pension benefits before 1 October 2023: immediate choice election for 2015 scheme benefits: pensioner and deceased members

27

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30September 2023, DM was a pensioner remedy member, or a deceased member of the legacy scheme or the 2015 scheme in respect of remediable service, and

(b) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations[^f00034] (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is not pensionable service by virtue of section 2(1) of the PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, the scheme manager must adjust all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(4) Paragraph (5) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is pensionable service by virtue of section 2(1) of PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(5) Where this paragraph applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) must be treated by the scheme manager as a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(6) Paragraphs (3) and (5) have effect—

(a) where paragraph (2)(c)(i) or (4)(c)(i) applies, at the operative time;

(b) where paragraph (2)(c)(ii) or (4)(c)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(7) Where paragraph (2)(c)(ii) or 4(c)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the 2015 scheme on the transfer day.

(8) The scheme manager must send the notice mentioned in paragraph (7) to DM within one month beginning with the day after paragraph (3) or (5) (whichever is relevant) has effect in accordance with paragraph (6)(b) or (c).

Pension debits: no immediate choice election for 2015 scheme benefits: pensioner and deceased members

28

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30September 2023, DM was a pensioner remedy member, or a deceased member of the 2015 scheme in respect of remediable service, and

(b) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations.

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) does not make an immediate choice election for 2015 scheme benefits under regulation 9 before the end of the immediate choice election period and such an election is not treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is pensionable service by virtue of section 2(1) of PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time,

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) at the operative time, where paragraph (2)(c)(i) applies, or

(b) on such later date as the scheme manager considers reasonable in all the circumstances of the case.

(5) Where paragraph (2)(c)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the legacy scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after paragraph (3) has effect in accordance with paragraph (4).

Pension debits: deferred choice election for 2015 scheme benefits: active and deferred members

29

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) DM has remediable service in the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022;

(b) on 30 September 2023, DM was an active or deferred member of the legacy scheme or the 2015 scheme in respect of remediable service;

(c) under regulation 12, DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes a deferred choice for 2015 scheme benefits or such an election is treated by the scheme manager as having been made in accordance with regulation 12(6); and

(d) DM is subject to—

(i) an adjustment to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day under regulation 26(2);

(ii) a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights at or before the operative time;

(iii) a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights after the operative time.

(2) Where this regulation applies, the scheme manager must adjust all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights to an equivalent value to the debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(3) Paragraph (2) has effect—

(a) where paragraph (1)(d)(i) or (ii) applies, at the operative time;

(b) where paragraph (1)(d)(iii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(4) Where paragraph (1)(d)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the 2015 scheme on the transfer day.

(5) The scheme manager must send the notice mentioned in paragraph (4) to DM within one month beginning with the day after paragraph (2) has effect in accordance with paragraph (3)(b) or (c).

Valuation of pension benefits on or after 1 October 2023

30

(1) This regulation applies to a remedy member (“RM”) where—

(a) on 30 September 2023, the RM was an active or deferred member of the legacy scheme or the 2015 scheme or a pensioner remedy member, and

(b) after these Regulations come into force, the scheme manager receives a request in writing for a valuation of pension benefits, under regulation 2 of the 2000 Regulations[^f00035] (basic information about pensions and divorce or dissolution of a civil partnership), in respect of remediable service shareable rights.

(2) Paragraph (3) applies where on the valuation day—

(a) the scheme manager has not received an immediate choice election under regulation 9 or a deferred choice election under regulation 12 in respect of those rights, and

(b) the immediate choice election period or the deferred choice election period has not ended.

(3) The scheme manager must determine—

(a) an aggregated legacy scheme valuation of pension benefits in respect of—

(i) non-remediable service shareable rights, and

(ii) remediable service shareable rights, and

(b) where relevant, a 2015 scheme valuation of pension benefits in respect of non-remediable service shareable rights.

(4) For the purposes of paragraph (3)(a)(ii), the scheme manager must determine the legacy scheme valuation of pensions benefits as if the RM’s remediable service on the valuation day was in—

(a) the legacy scheme, and

(b) the 2015 scheme.

(5) The scheme manager must provide—

(a) an aggregated legacy scheme valuation of pension benefits determined under paragraph (3)(a) using the higher of the two valuations determined under paragraph (4), and

(b) where relevant, a 2015 scheme valuation of pension benefits determined under paragraph (3)(b),

in accordance with regulation 2 of the 2000 Regulations.

(6) Paragraph (7) applies where on the valuation day—

(a) the scheme manager has received an immediate choice election under regulation 9 or a deferred choice election under regulation 12 in respect of those rights, or

(b) no such election has been received and the immediate choice election period or the deferred choice election period has ended.

(7) The scheme manager must determine the legacy scheme valuation of pension benefits in respect of remediable service shareable rights as if RM’s remediable service on the valuation day were in—

(a) the legacy scheme, where—

(i) the scheme manager has not received an immediate choice election for 2015 scheme benefits under regulation 9 or a deferred choice election for 2015 scheme benefits under regulation 12 by the end of the immediate choice election period or the deferred choice election period (whichever is relevant), and

(ii) such a choice is not treated as having been made in accordance with regulation 9(6) or regulation 12(6) (whichever is relevant); or

(b) the 2015 scheme, where—

(i) the scheme manager has received an immediate choice election for 2015 scheme benefits under regulation 9 or a deferred choice election under regulation 12 (whichever is relevant), or

(ii) such an election is treated by the scheme manager as having been made in accordance with regulation 9(6) or 12(6) (whichever is relevant).

Pension debits: valuation of pension benefits on or after 1 October 2023: immediate choice election for 2015 scheme benefits: pensioner members

31

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30 September 2023, DM was a pensioner remedy member, and

(b) after these Regulations have come into force, the scheme manager provides an aggregated legacy scheme valuation of pension benefits determined under regulation 30(3)(a) taking into account the higher of the two valuations determined under regulation 30(4).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6), and

(b) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) where paragraph (2)(b)(i) applies, at the operative time;

(b) where paragraph (2)(b)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(5) Where paragraph (2)(b)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme, that DM would have had in the 2015 scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after (3) has effect in accordance with paragraph (4)(b) or (c).

Pension debits: valuation of pension benefits on or after 1st October 2023: no immediate choice election for 2015 scheme benefits: pensioner members

32

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30 September 2023, DM was a pensioner remedy member, and

(b) after these Regulations have come into force, the scheme manager provides an aggregated legacy scheme valuation of pension benefits determined under regulation 30(3)(a) taking into account the higher of the two valuations determined under regulation 30(4).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) does not make an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) before the end of the immediate choice election period and such an election is not treated by the scheme manager as having been made in accordance with regulation 9(6), and

(b) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) where paragraph (2)(b)(i) applies, at the operative time;

(b) where paragraph (2)(b)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(5) Where paragraph (2)(b)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme, that DM would have had in the legacy scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after paragraph (3) has effect in accordance with paragraph (4)(b) or (c).

Pension credits: valuation of pension benefits before 1st October 2023: pension credit adjustment: remediable service shareable rights in the legacy scheme only or the 2015 scheme only

33

(1) This regulation applies to a relevant pension credit member[^f00036] (“CM”) where—

(a) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service[^f00037] shareable rights, under regulation 3 of the 2000 Regulations[^f00038] (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits), and

(b) in respect of the corresponding pension debit member’s (“DM”) remediable service shareable rights, CM has a pension credit[^f00039] solely in—

(i) the legacy scheme, or

(ii) the 2015 scheme.

(2) Paragraphs (3) and (4) apply where CM has a pension credit, in respect of DM’s remediable service shareable rights, in the legacy scheme but does not have a pension credit, in respect of DM’s remediable service shareable rights, in the 2015 scheme.

(3) Where this paragraph applies, the scheme manager, after having regard to the advice of the scheme actuary, must determine a valuation of pension benefits, in respect of DM’s remediable service shareable rights, as though DM’s remediable service on or before the day before the transfer day had been in the 2015 scheme.

(4) Where—

(a) the valuation of pension benefits determined under paragraph (3) is greater than

(b) the valuation of pension benefits, in respect of DM’s remediable service shareable rights in the legacy scheme on or before the day before the transfer day,

the scheme manager, after having regard to the advice of the scheme actuary, must adjust CM’s legacy scheme pension credit to take account of the difference between the valuations referred to in sub-paragraphs (a) and (b).

(5) Paragraphs (6) and (7) apply where CM has a pension credit, in respect of DM’s remediable service shareable rights in the 2015 scheme but does not have a pension credit, in respect of DM’s remediable service shareable rights, in the legacy scheme.

(6) Where this paragraph applies, the scheme manager, after having regard to the advice of the scheme actuary, must determine a valuation of pension benefits, in respect of DM’s remediable service shareable rights, as though DM’s remediable service on or before the day before the transfer day had been in the legacy scheme.

(7) Where—

(a) the valuation of pension benefits determined under paragraph (6) is greater than

(b) the valuation of pension benefits, in respect of DM’s remediable service shareable rights in the 2015 scheme on or before the day before the transfer day,

(8) An adjustment made under paragraph (4) or (7) has effect as though it had been made on the transfer day.

(9) The scheme manager must make the adjustment referred to in paragraph (4) or (7) (whichever is relevant)—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 October 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(10) Where paragraph (9) applies, the scheme manager must send a notice in writing to CM specifying—

(a) the adjusted pension credit, and

(b) in which scheme the adjusted pension credit is retained.

(11) The scheme manager must send the notice referred to in paragraph (10) to CM within one month beginning with the day after the day on which the scheme manager made the adjustment under paragraph (4) or (7).

Pension credits: valuation of pension benefits before 1 October 2023: pension credit adjustment: remediable service shareable rights in the legacy scheme and the 2015 scheme

34

(1) This regulation applies to a relevant pension credit member[^f00040] (“CM”) where—

(a) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits), and

(b) CM has a pension credit, in respect of the corresponding pension debit member’s (“DM”) remediable service shareable rights, in the legacy scheme and the 2015 scheme.

(2) Where this regulation applies, CM’s pension credit in respect of DM’s remediable service shareable rights must, by virtue of section 19(5) of PSPJOA 2022, be retained solely in the legacy scheme or solely in the 2015 scheme.

(3) The scheme manager must, after having regard to the advice of the scheme actuary, determine—

(a) a valuation of pension benefits, in respect of DM’s remediable service shareable rights and the legacy scheme corresponding pension credit, under section 29(1) of the 1999 Act (creation of pension debits and credits), as though all DM’s remediable service on or before the day before the transfer day were pensionable service in the legacy scheme, and

(b) a valuation of pension benefits, in respect of DM’s remediable service shareable rights, and the 2015 scheme corresponding pension credit, under section 29(1) of the 1999 Act, as though all DM’s remediable service on or before the day before the transfer day were pensionable service in the 2015 scheme.

(4) CM must make an election to choose one of the pension credits, in respect of DM’s remediable service shareable rights, determined under paragraph (3).

(5) The election referred to in paragraph (4) must—

(a) be made by CM in writing;

(b) be received by the scheme manager within a period—

(i) of three months, beginning with the day after the scheme manager provides the notice referred to in paragraph (6), or

(ii) that the scheme manager considers reasonable in all the circumstances of the case; and

(6) The scheme manager must inform CM of the right to make an election under paragraph (5) in a notice in writing to CM—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 October 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(7) The notice referred to in paragraph (6) must specify—

(a) the valuation of pension benefits and corresponding pension credits calculated by the scheme manager, determined under paragraph (3);

(b) the date by which an election under this regulation must be received by the scheme manager;

(8) Where the scheme manager accepts such an election—

(a) the pension credit, in respect of DM’s remediable service shareable rights, in whichever of the legacy scheme and the 2015 scheme CM identified in the election is retained, and

(b) any pension credit, in respect of DM’s remediable service shareable rights, in whichever of the legacy scheme and the 2015 scheme CM did not identify in the election is extinguished.

(9) The pension credit—

(a) retained under paragraph (8)(a) has effect as though it had been retained in that scheme on the transfer day,

(b) extinguished under paragraph (8)(b) has effect as though it had been extinguished in that scheme on the transfer day.

(10) The personal representatives of CM may make an election under paragraph (4) where CM dies before making such an election.

(11) Where the scheme manager does not receive an election within the period specified in paragraph (5)(b), the pension credit, in respect of DM’s remediable service shareable rights, is to be retained in whichever of the legacy scheme or the 2015 scheme the scheme manager, after having regard to the advice of the scheme actuary, deems would be most beneficial to CM.

(12) Where paragraph (8) applies, the scheme manager must send a notice in writing to CM specifying—

(a) the adjusted pension credit, in respect of DM’s remediable service shareable rights;

(b) in which scheme that adjusted pension credit is retained;

(13) The scheme manager must send the notice mentioned in paragraph (12) to CM within one month beginning with the day after the day on which the scheme manager accepts an election under paragraph (8).

Pension credits: pensioner and deceased relevant pension credit members

35

(1) This regulation applies where the relevant pension credit member (“CM”) is—

(a) a pensioner pension credit member before—

(i) the adjustment is made under regulation 33(4) or 33(7), or

(ii) receiving the notice sent by the scheme manager under regulation 34(6), or

(b) a deceased member, where the personal representatives of CM make an election under regulation 34(10).

(2) Where this regulation applies, subsections (3) to (8) of section 14 of PSPJOA 2022 apply in relation to CM as they apply in relation to a relevant member (“M”) described in subsection (1) of that section with the following modifications—

(a) the references to “M’s remediable service in the employment or office” in subsections (3)(a) and (5)(a) are to be read as references to CM’s pension credit;

(b) the references to “the effect, if any, of sections 2(1) and 6(4) and (5)” in subsections (3)(b) and (5)(b) are to be read as references to the effect, if any, of this regulation; and

(i) the adjustment mentioned in regulation 33(4) or regulation 33(7) has effect, or

(ii) the pension credit mentioned in regulation 34(8)(a) has effect.

Pension credits: valuation of pension benefits on or after 1 October 2023: creation of a pension credit

36

(1) This regulation applies to a relevant pension credit member[^f00041] (“CM”) where—

(a) on or after these Regulations came into force, the scheme manager provided an aggregated legacy scheme valuation of pension benefits, determined under regulation 30(3)(a) and the higher of the two valuations determined under regulation 30(4); and

(b) the corresponding pension debit member (“DM”) is subject to a legacy scheme debit of the appropriate amount in respect of remediable service shareable rights.

(2) Where this regulation applies the scheme manager, having regard to the advice of the scheme actuary, must determine the legacy pension credit, determined under section 29(1) of the 1999 Act, by means of the aggregated legacy scheme valuation calculated under paragraph (1)(a), which is recalculated to the day before the transfer day.

(3) Where paragraph (2) applies, the scheme manager must send a notice in writing to CM specifying the legacy scheme pension credit.

(4) The scheme manager must send the notice mentioned in paragraph (3) to CM as soon as reasonably practicable after the day on which the scheme manager discharges their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit).

PART 6 — Transfers

Interpretation of Part 6

37

(1) In this part—

“2011 regulation N1” means regulation N1 of the 2011 Regulations[^f00042] (member’s right to transfer accrued rights to benefits to this Section of the scheme);

“2011 regulation N4” means regulation N4 of the 2011 Regulations[^f00043] (transfers that are not made under the Public Sector Transfer Arrangements);

“2013 regulation 2.F.9” means regulation 2.F.9 of the 2013 Regulations[^f00044] (procedure for applications under regulation 2.F.8);

“2013 regulation 2.F.11” means regulation 2.F.11 of the 2013 Regulations (calculation of transferred–in pensionable service);

“2013 regulation 3.F.9” means regulation 3.F.9 of the 2013 Regulations[^f00045] (procedure for applications under regulation 3.F.8);

“2013 regulation 3.F.11” means regulation 3.F.11 of the 2013 Regulations (calculation of increase to pensionable earnings as the result of a transfer–in);

“2015 regulation 142” means regulation 142 of the 2015 Regulations (acceptance of transfer value payment);

“2015 scheme joining date” means the date on which the member became eligible to be an active member of the 2015 scheme for the purpose of regulation 141(1)(c)(i) of the 2015 Regulations (application procedure);

“legacy scheme remediable cash equivalent”, in relation to a member, means the use by the scheme manager of the cash equivalent of rights in the legacy scheme to acquire rights in the 2015 scheme under— regulation M7A of the 2011 Regulations[^f00046] (member’s right to transfer a preserved pension to the 2015 Scheme), or regulation 2.F.18 or regulation 3.F.18 of the 2013 Regulations[^f00047] (right to transfer a deferred pension to the 2015 Scheme), so far as the cash equivalent relates to the member’s remediable rights;

“Public Sector Transfer Arrangements” means the arrangements applying to certain public sector and other schemes under which a common basis for transfer payments is applied by the scheme and those other participating schemes;

“receiving scheme”, in relation to a remediable value, means the scheme to which the remediable value was, or is to be, paid;

“reformed public service pension scheme” means— a Chapter 1 scheme; a judicial scheme within the meaning of section 70(1) of PSPJOA 2022; a local government scheme within the meaning of section 86(1) of PSPJOA 2022;

“remediable benefits” means the benefits payable to or in respect of a member in relation to that member’s remediable service;

“remediable club transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of— a transfer value under Part M (Transfer-out Arrangements and buy-outs) or Part N (Transfers from Other Pension Arrangements) of the 2011 Regulations in accordance with the public sector transfer arrangements (within the meaning given to that term by regulation A2 of those Regulations); a transfer value payment under Chapter 2.F of the 2013 Regulations (Transfers) in accordance with the public sector transfer arrangements (within the meaning given to that term by regulation 2.A.1 of those Regulations); a transfer value payment under Chapter 3.F of the 2013 Regulations (Transfers) under the public sector transfer arrangements (within the meaning given to that term by regulation 3.A.1 of those Regulations); a club transfer value under Part 7 of the 2015 Regulations (Transfers) (within the meaning given to that term by regulation 131 of those Regulations) so far as the transfer value or transfer value payment relates to the member’s remediable rights;

“remediable rights”, in relation to a member, means the member’s rights to benefits under a reformed public service pension scheme secured by virtue of the member’s remediable service;

“remediable transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of a transfer value or transfer value payment other than— a legacy scheme remediable cash equivalent, or a remediable club transfer value under— Part M or Part N of the 2011 Regulations; Chapter 2.F or 3.F of the 2013 Regulations; or Part 7 of the 2015 Regulations. so far as the transfer value or transfer value payment relates to the member’s remediable rights;

“remediable value” means a remediable club transfer value or a remediable transfer value;

“sending scheme”, in relation to a remediable value, means the scheme which paid, or is to pay, the remediable value.

(2) Where a provision of this Part requires the scheme manager to calculate a transfer value (including a remediable club transfer value or a remediable transfer value) in relation to rights secured in the legacy scheme or the 2015 scheme, that value is to be calculated in accordance with—

(a) the provisions of the legacy scheme or the 2015 scheme which apply to the calculation of values of that type, and

(b) the guidance and tables provided by the Government Actuary for the purpose of calculating such values that were, or are, in use on the date used for the original calculation.

Treatment of transfer and transfer value payments made to the 1995 Section or the 2008 Section that are not made under public sector transfer arrangements

38

(1) This regulation applies to a relevant transfer member who has remediable service in the 1995 Section or the 2008 Section and was on 30 September 2023 an active, deferred or pensioner member of that Section in respect of that service where one of the following has occurred in relation to that member—

(a) an immediate choice election has been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with paragraph (6) of regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members); or

(b) a deferred choice election has been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with paragraph (6) of regulation 12 (deferred choice election for 2015 scheme benefits: active, deferred and deceased members).

(2) For the purposes of paragraph (1), a member is a relevant transfer member if—

(a) the scheme manager has accepted—

(i) a transfer payment and in respect of that payment—

(aa) the member is credited with a period of pensionable service calculated in accordance with 2011 regulation N4, or

(bb) the member is entitled to an increase in the member’s pensionable earnings calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations (medical and dental practitioners: transfers from other pension arrangements), or

(ii) a transfer value payment and in respect of that payment—

(aa) the member is entitled to an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(bb) the member is entitled to count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11; and

(b) the member’s legacy scheme joining date in relation to the transfer payment or transfer value payment referred to in sub-paragraph (a) falls within the period of that member’s remediable service.

(3) Where this regulation applies and the scheme manager determines that the benefits payable in respect of the member’s remediable service are 2015 scheme benefits, the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (2) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

(4) In this regulation, “legacy scheme joining date” means—

(a) the date on which the member joined the 1995 Section for the purposes of paragraph (1) of 2011 regulation N1, or

(b) the date on which the member became eligible to be an active member of the 2008 Section for the purposes of paragraph (1)(c)(i) of 2013 regulation 2.F.9 or 2013 regulation 3.F.9.

Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treatment as transfer payments under the 1995 Section or transfer value payments under the 2008 Section active and deferred members

39

(1) This regulation applies to a remedy member who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022 and was an active or deferred member of the 2015 scheme on 30 September 2023 in respect of that service where—

(a) the scheme manager has accepted a transfer value payment in relation to the member that is a non-club transfer[^f00048] for the purposes of 2015 regulation 142;

(b) in respect of that payment, the member is entitled to an increase in the member’s pensionable earnings and has been credited with a period of pensionable service under paragraph (2) of that regulation; and

(c) the member’s 2015 scheme joining date in relation to the transfer value payment falls within the period of that member’s remediable service.

(2) Where this regulation applies—

(a) all the remedy member’s rights secured by the transfer value payment mentioned in paragraph (1) are extinguished;

(b) the scheme manager must treat the payment as if it had been accepted for the purposes of—

(i) 2011 regulation N4 where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations, or

(ii) 2013 regulation 2.F.11 or 2013 regulation 3.F.11 (whichever is relevant) where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations; and

(c) in respect of the payment, the member is entitled to count the pensionable service or increase in pensionable earnings set out in paragraph (3) or (4) (whichever is relevant).

(3) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of 2011 regulation N4, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with 2011 regulation N4, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations (medical and dental practitioners: transfers from other pension arrangements).

(4) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 2013 Regulations, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11.

(5) The scheme manager must send a notification in writing to the remedy member specifying the additional period of pensionable service or increase in pensionable earnings that the member is entitled to count under paragraph (3) or (4) of this regulation.

(6) The notification must be sent to the remedy member before 1 October 2024 or such earlier date as the scheme manager determines, after having regard to all the circumstances of the case.

Transfer value payments treated in accordance with regulation 39: variation of the member’s rights on the making of a deferred choice election

40

(1) This regulation applies to a remedy member who—

(a) is entitled to an additional period of pensionable service or an increase in pensionable earnings in the 1995 Section under paragraph (3), or in the 2008 Section under paragraph (4), of regulation 39, and

(b) makes a deferred choice election for 2015 scheme benefits under regulation 12.

(2) Where this regulation applies and the scheme manager determines that the benefits to be paid to or in respect of the remedy member for the member’s remediable service are to be determined in accordance with the 2015 Regulations, the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (1) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treated as if accepted under the legacy scheme: pensioner and deceased members

41

(1) This regulation applies to a remedy member—

(a) who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b) who on 30 September 2023—

(i) was a pensioner member with regard to benefits paid in respect of remediable service in the 2015 scheme, or

(ii) was deceased;

(i) an immediate choice election may be made or treated by the scheme manager as having been made in accordance with regulation 9;

(ii) the scheme manager has accepted a transfer value payment that is in relation to the member that is a non-club transfer for the purposes of 2015 regulation 142 and, in respect of that payment, the member is entitled to an increase in the member’s pensionable earnings and has been credited with a period of pensionable service under paragraph (2) of that regulation; and

(iii) the 2015 scheme joining date in relation to the transfer value payment referred to in paragraph (ii) falls within the period of that member’s remediable service.

(2) Where this regulation applies, on the acceptance of an election referred to in paragraph (1)(c)(i) in respect of a member or at the end of the immediate choice election period if no such election is accepted—

(a) all the remedy member’s rights secured by the transfer payment or transfer value payment mentioned in paragraph (1)(c)(ii) are extinguished;

(b) the scheme manager must treat the payment as if it had been accepted for the purposes of—

(i) 2011 regulation N4 where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations, or

(ii) 2013 regulation 2.F.11 or 2013 regulation 3.F.11 (whichever is relevant) where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations;

(c) in respect of the payment, the member is entitled to count the pensionable service or increase in pensionable earnings set out in paragraph (3) or (4) (whichever is relevant); and

(d) paragraph (5) applies if the scheme manager determines that the benefits payable in respect of the member’s remediable service are 2015 scheme benefits.

(3) If the scheme manager treats the transfer payment as if it had been accepted for the purposes of the 2011 regulation N4, in respect of the payment the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with 2011 regulation N4, or

(b) an increase in the member’s pensionable earnings in respect of the payment calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations.

(4) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 2013 Regulations, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11.

(5) Where this paragraph applies (see paragraph (2)(d)), the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (3) or (4) (whichever is relevant) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

Treatment of transfer and transfer value payments and statements accepted from other and corresponding health service schemes

42

(1) This regulation applies to a member who—

(a) is credited with a period of pensionable service (together with the rights attaching to that service) in accordance with regulation R7(2) or (6) of the 2011 Regulations (Former members of health service schemes) in respect of a transfer payment made by a health service scheme;

(b) is entitled to count a period of pensionable service in accordance with paragraph (6) of 2013 regulation 2.F.11 or entitled to count an increase in pensionable earnings in accordance with paragraph (6) of 2013 regulation 3.F.11 in respect of a transfer value payment made by a corresponding 2008 Section; or

(c) is entitled to count an increase in pensionable earnings in accordance with regulation 145(5) of the 2015 Regulations (calculation of increase to pensionable earnings) in respect of a transfer value statement accepted from a corresponding scheme.

(2) Where this regulation applies and the scheme manager determines that the payment or transfer value statement referred to in paragraph (1) represents any rights in respect of a period of pensionable service that is remediable service in another health service scheme, a corresponding 2008 scheme or a corresponding scheme, the scheme manager must treat that period of pensionable service as a period of pensionable service that is remediable service in the 1995 Section, the 2008 Section or the 2015 scheme (whichever is relevant).

(3) In this regulation—

“corresponding 2008 scheme” means a scheme as so defined in regulation 2.A.1(1) of the 2013 Regulations;

“corresponding scheme” means a scheme as so defined in schedule 13 of the 2015 Regulations;

“health service scheme” means a scheme as so defined in regulation R7(1) of the 2011 Regulations.

Transferred out remediable service statements

43

Where a remedy member has transferred any rights in respect of remediable service out of the legacy scheme or the 2015 scheme, the scheme manager must provide a transferred out remediable service statement in accordance with direction 6(2) to (4) of the 2022 Directions (Transfers) (and direction 6(4) applies as if the reference to “any provision made by virtue of section 29(1) of PSPJOA 2022” were a reference to regulation 6 of these Regulations).

Remediable transfer value payments made before 1 October 2023

44

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager paid a remediable transfer value before 1 October 2023.

(2) Where this regulation applies, the scheme manager must, after having regard to the advice of the scheme actuary, must calculate the transfer value of M’s remediable rights as if they had been secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) The scheme manager must notify the receiving scheme of the results of the calculation mentioned in paragraph (2).

(4) Where—

(a) the greater of the amounts calculated under paragraph (2) (“x”) is greater than

(b) the amount of the remediable transfer value (“y”),

the scheme manager must take reasonable steps to pay the receiving scheme an amount equal to x – y (“top-up transfer value payment”).

(5) Where the greater of the amounts calculated under paragraph (2) (“x”) is less than the amount of the remediable transfer value (“y”), the scheme manager must waive any overpayment.

(6) A top-up transfer value payment made under paragraph (4) is subject to the same conditions as the remediable transfer value.

(7) Where a receiving scheme, other than a reformed public service scheme, cannot accept the top-up transfer value payment, the scheme manager may—

(a) pay the top-up transfer value payment to another nominated registered pension scheme, or

(b) pay an amount of compensation to the member in accordance with direction 6(5) of the 2022 Directions.

(8) Where, if the amount of compensation under paragraph (7)(b) had been paid immediately after the requirement to pay it arose, the payment—

(a) would have been a payment described in regulation 6 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (“the 2009 Regulations”) (payment after relevant accretion) as if regulation 6(1)(a) of those Regulations had been omitted, the amount of compensation is to be reduced by the amount equal to the income tax that would be chargeable on it as if regulation 3(b) of the 2009 Regulations applied to;

(b) would not have been a payment so described, the amount of compensation is to be reduced by an amount equal to the income tax that would be charged on the amount at M’s marginal tax rate under the Income Tax Acts.

(9) In this regulation, a “nominated registered pension scheme” means a pension scheme registered under Chapter 2 of Part 4 of the Finance Act 2004, that—

(a) is chosen by M;

(b) agrees to accept the top-up transfer value payment; and

Remediable transfer value payments on or after 1 October 2023 that are not made under the public sector transfer arrangements

45

(1) This regulation applies in relation to a member (“M”) in respect of whom the scheme manager has made a remediable transfer value payment on or after 1 October 2023.

(2) Where this regulation applies, the scheme manager must, after having regard to the advice of the scheme actuary, calculate the transfer value of M’s remediable rights as if those rights had been secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) The amount of the remediable transfer value is the greater of the amounts calculated under paragraph (2).

Transfers of remediable rights in the legacy scheme to the 2015 scheme before 1 October 2023

46

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager has used a legacy scheme remediable cash equivalent to acquire rights in the 2015 scheme before 1 October 2023.

(2) Where this regulation applies, the scheme manager, after having regard to the advice of the scheme actuary, must calculate the cash equivalent of M’s remediable rights as if they were secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) Where—

(a) the greater of the amounts calculated under paragraph (2) (“x”) is greater than

(b) the legacy scheme remediable cash equivalent (“y”),

the scheme manager must, after having regard to the advice of the scheme actuary, must use an amount equal to x – y to acquire further rights in the 2015 scheme in respect of the member on the same terms as the legacy scheme remediable cash equivalent.

Transfers of remediable rights in the legacy scheme to the 2015 scheme on or after 1 October 2023

47

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager uses a legacy scheme remediable cash equivalent to acquire rights in the 2015 scheme on or after 1 October 2023.

(2) Where this regulation applies, the scheme manager, after having regard to the advice of the scheme actuary, must calculate the cash equivalent of M’s remediable rights as if they were secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) The amount of the legacy scheme remediable cash equivalent is the greater of the amounts calculated under paragraph (2).

Remediable transfer values payments accepted from other public service schemes but not accepted under the public sector transfer arrangements

48

(1) This regulation applies in relation to each payment of a remediable transfer value in respect of a member (“M”).

(2) Where this regulation applies the scheme manager must, after having regard to the advice of the scheme actuary, determine M’s remediable benefits if the transfer value, together with any adjustment payment accepted under paragraph (3), were applied in respect of rights in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) Where the remediable transfer value was accepted by the scheme manager before 1 October 2023 and the sending scheme is a reformed public service pension scheme, the scheme manager may accept an adjustment in the value of a remediable transfer value—

(a) in respect of the remediable rights to which the payment relates, and

(b) which is made by the sending scheme pursuant to, or to provision made under, PSPJOA 2022.

(4) An adjustment payment accepted under paragraph (3) is to be used for the purpose of determining M’s benefits under the legacy scheme or the 2015 scheme on the same terms as the remediable transfer value.

Remediable club transfer value payments made before 1 October 2023

49

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager paid a remediable club transfer value before 1 October 2023.

(2) Where this regulation applies, the scheme manager must calculate the transfer value of M’s remediable rights as if they had been secured in —

(a) the 1995 Section or the 2008 Section (whichever is relevant), and, separately

(b) the 2015 Scheme.

(3) The scheme manager must provide to the receiving scheme—

(a) the result of the calculations mentioned in paragraph (2); and

(b) such further information as the receiving scheme may require in relation to M’s remediable rights.

(4) Where the receiving scheme is a local government pension scheme (within the meaning of section 86(1) of PSPJOA 2022), and—

(a) the greater of the amounts calculated under paragraph (2) (“x”) is greater than

(b) the amount of the remediable club transfer value (“y”),

the scheme manager must pay the receiving scheme an amount equal to x – y.

(5) A payment made under paragraph (4) is subject to the same conditions as the remediable club transfer value.

Remediable club transfer value payments made on or after 1 October 2023

50

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager is to make a remediable club transfer value payment on or after 1 October 2023.

(2) The scheme manager must calculate the transfer value of M’s remediable rights as if they had all been secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) The amount of the remediable club transfer value is the greater of the amounts calculated under paragraph (2).

(4) The scheme manager must provide to the receiving scheme—

(a) the result of the calculations mentioned in paragraph (2); and

(b) such further information as the receiving scheme may require in relation to M’s remediable rights.

Remediable club transfer value payments accepted before 1 October 2023

51

(1) This regulation applies in relation to a member (“M”) in respect of whom the scheme manager has accepted a remediable club transfer value before 1 October 2023.

(2) Where this regulation applies and the sending scheme is a local government pension scheme (within the meaning of section 86(1) of PSPJOA 2022), and the scheme manager may accept an adjustment in the value of a remediable club transfer value—

(a) in respect of the remediable rights to which the remediable club transfer value payment relates, and

(b) which is made by the sending scheme pursuant to, or to provision made under, PSPJOA 2022.

(3) The scheme manager must determine M’s remediable benefits if the transfer value, together with any payment adjustment accepted under paragraph (2), were applied in respect of rights secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

Remediable club transfer value payments accepted on or after 1 October 2023

52

(1) This regulation applies in relation to a member (“M”) in respect of whom the scheme manager has accepted a remediable club transfer value payment on or after 1 October 2023.

(2) Where this regulation applies, the scheme manager, must determine M’s remediable benefits as if the remediable club transfer value payments were applied in respect of rights secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

Application and interpretation of regulations 54 to 56

53

(1) Regulations 54 to 56 apply in relation to a member (“M”) in respect of whom the scheme manager has accepted either or both of the following —

(a) a remediable transfer value payment, together with any payment accepted under regulation 48(3);

(b) a remediable club transfer value payment, together with any adjustment accepted under regulation 51(2).

(2) In regulations 54 to 56—

“relevant Section of the legacy scheme” means— the 1995 Section if M has pensionable service in that Section; the 2008 Section if M has pensionable service in that Section; otherwise, the 2008 Section;

“transferred in remediable rights” means M’s remediable rights in the legacy scheme or the 2015 scheme secured by virtue of a remediable value together with any payment or, as the case may be, adjustment under regulation 48(3) or regulation 51(2).

Transferred in remediable rights treated as being the legacy scheme

54

(1) Where this regulation applies (see regulation 53) and the transferred in remediable rights of a member (“M”) would, apart from this regulation, be rights to benefits under the 2015 scheme, the rights—

(a) are not, and are treated as never having been, rights under the 2015 scheme, and

(b) are treated as being, and as always having been, rights under the relevant Section of the legacy scheme.

(2) Paragraph (1) has effect—

(a) for the purposes of determining which Section of the legacy scheme is (or at any time was) required to pay benefits to or in respect of M’s transferred in remediable rights, and

(b) subject to regulation 56, for all other purposes.

Varying the value of benefits secured by virtue of transferred in remediable rights

55

(1) Where this regulation applies (see regulation 53) and—

(a) a member is an active or deferred remedy member (“M”), and

(b) M’s transferred in remediable rights are treated as rights to benefits under the relevant Section of the legacy scheme by virtue of regulation 54,

the scheme manager must vary the value of those rights so that they are of an equivalent value to rights M would have secured under the relevant Section of the legacy scheme if the rights had been transferred into that Section.

(2) A variation under paragraph (1) is to be treated as having taken effect when these Regulations come into force.

(3) Where—

(a) M is a pensioner remedy member or a remedy member who died before 1 October 2023, and the end of the immediate choice election period has passed in relation to M and no election has been made (or treated by the scheme manager as having been made) under regulation 9 in relation to M’s remediable service, and

(b) M’s transferred in remediable rights are treated as rights to benefits under the relevant Section of the legacy scheme by virtue of regulation 54,

the scheme manager must vary the value of those rights so that they are of an equivalent value to the rights M would have secured under the relevant Section of the legacy scheme if the rights had been transferred into that Section.

(4) A variation under paragraph (3) is to be treated as having taken effect at the end of the immediate choice election period.

(5) Where—

(a) the benefits payable to or in respect of M’s remediable service are 2015 scheme benefits by virtue of an immediate choice election under regulation 9 or a deferred choice election under regulation 12 (including such an election which the scheme manger treats as having been made under either of those regulations), and

(b) the benefits payable in relation to M’s transferred in remediable rights would otherwise be benefits in the relevant Section of the legacy scheme,

the scheme manager must vary the value of those rights so that they are of an equivalent value to rights M would have secured under the 2015 scheme if the rights had been transferred into that scheme.

(6) Where the scheme manager is required to vary the value of any rights under this regulation so that they are equivalent to rights that would have been secured in another scheme (“the alternative scheme”), the scheme manager must, after having regard to the advice of the scheme actuary, calculate the varied rights as if the remediable transfer value which originally secured the rights had been paid to the alternative scheme or Section of the scheme in the scheme year the payment was received by the scheme manager.

(7) In paragraph (6), “scheme year” means a period of one year beginning on 1 April and ending with 31 March.

Benefits already paid in relation to transferred in remediable rights

56

(1) Where this regulation applies (see regulation 53), paragraph (2) applies in relation to any benefits (“the paid benefits”) that have at any time been paid to a person (“P”) from the 2015 scheme so far as—

(a) they are calculated by reference to P’s, or any other person’s, transferred in remediable rights, and

(b) they are benefits that, as a result of regulation 54(1)(a), P was not entitled to receive from the 2015 scheme.

(2) The paid benefits are to be treated for all purposes—

(a) as not having been paid to P by the 2015 scheme, but

(b) as having been paid to P instead by the relevant Section of the legacy scheme.

PART 7 — Taxation

Interpretation of Part 7

57

In this Part—

“2023 Regulations” means the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023[^f00049];

“annual allowance charge” has the same meaning as in section 227(1) (annual allowance charge) of the 2004 Act[^f00050];

“relevant rectification provision” has the same meaning as in regulation 2(1) of the 2023 Regulations.

Scheme administrator to be liable where private sector scheme administrator’s liability is discharged

58

(1) This regulation applies in the circumstances described in paragraph (2) in relation to a remedy member (“M”) who—

(a) has remediable service in the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022, and

(b) on 30 September 2023 was a pensioner or deceased member of the legacy scheme or the 2015 scheme in respect of remediable service.

(2) The circumstances are that—

(a) before these Regulations came into force, a benefit crystallisation event in accordance with section 216 (benefit crystallisation events and amounts crystallised) of the 2004 Act occurred in connection with M’s entitlement to any benefits under the legacy scheme or the 2015 scheme;

(b) a later benefit crystallisation event (“later BCE”) occurs in relation to M’s entitlement to any benefits under a pension scheme that is not a public service pension scheme (“private sector scheme”);

(c) a lifetime allowance charge, or any part of such a charge, is charged in connection with the later BCE that is attributable to a relevant rectification provision; and

(d) the scheme administrator of the private sector scheme makes a successful application under section 267(lifetime allowance charge) of the 2004 Act in respect of their liability for the lifetime allowance charge, or part of such a charge.

(3) The scheme administrator is jointly and severally liable in accordance with regulation 36(3) of the 2023 Regulations (public service scheme to be liable where private sector scheme discharged) for the lifetime allowance charge or part of such a charge mentioned in paragraph (2)(d).

(4) M’s present and future benefits must be reduced by an amount that fully reflects the amount of the lifetime allowance charge, or part of such a charge, paid by the scheme administrator and is to be calculated by reference to advice provided by the scheme actuary for that purpose.

(5) In this regulation, “lifetime allowance charge” has the same meaning as in section 214 (lifetime allowance charge) of the 2004 Act.

Scheme pays

59

(1) This regulation applies in relation to a remedy member (“M”)—

(a) who is not a deceased member;

(b) who has remediable service in the legacy scheme that is pensionable under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022;

(c) who has an annual allowance charge in one or more of the tax years 2019-20 to 2022-23 attributable to a relevant rectification provision; and

(d) in respect of whom the time limit referred to in section 237BA (time limit for notices under section 237B) of the 2004 Act[^f00051] has ended.

(2) M may give a notice in writing to the scheme administrator requesting that the scheme administrator pay the annual allowance charge on behalf of the member.

(3) Upon receipt of the notice mentioned in paragraph (2), the scheme administrator must pay the annual allowance charge arising in that tax year.

(4) M’s present or future benefits in respect of which that charge arises must be adjusted in accordance with section 237E of the 2004 Act[^f00052] (consequential benefit adjustments to be reasonable etc) and must be calculated by reference to advice provided by the scheme actuary for that purpose.

(5) The scheme administrator must provide information to M in relation to the process for making a request under paragraph (2) and the consequences of such a request.

PART 8 — Compensation

Applications for compensation or indirect compensation

60

(1) Where paragraph (2) applies, the scheme manager may pay an amount by way of compensation under section 23(1) of PSPJOA 2022 and in accordance with direction 8 of the 2022 Directions or an increase to benefits by way of indirect compensation under regulation 61 unless paragraph (2) applies.

(2) This paragraph applies where—

(a) an application is made in accordance with direction 18(1) and (2) of the 2022 Directions;

(b) the application is accompanied by such information as the scheme manager may by written notice require a person to provide in relation to the compensation which is—

(i) information within the person’s possession, or

(ii) information which the person may reasonably be expected to obtain; and

(3) The following apply in relation to a determination under direction 18(3) of the 2022 Directions—

(a) direction 18(4) (provision of explanation), and

(b) direction 18(5) and (6) (appeals).

Indirect compensation

61

(1) This regulation applies where pursuant to an application under regulation 60 the scheme manager determines that a person has incurred a compensatable loss under section 23 of PSPJOA 2022 that is a Part 4 of the Finance Act 2004 tax loss as defined in subsection (9) of that section (“relevant loss”) and the relevant loss is a reduction of benefit.

(2) The amount of benefit payable under the legacy scheme or the 2015 scheme—

(a) must not be paid under section 23 of PSPJOA 2022 by way of compensation in respect of the relevant loss, and

(b) must be increased to reflect the amount of the relevant loss in such manner as is determined by the scheme manager in accordance with direction 10(2) to (4) of the 2022 Directions.

PART 9 — Interest and the payment, reduction or waiver of liabilities

Application and interpretation of Part 9

62

(1) This Part applies in respect of relevant amounts (and any interest on them) payable by a person to the legacy scheme or by that scheme to a person under or by virtue of Chapter 1 of PSPJOA 2022.

(2) In this Part, a reference to a direction is a reference to that direction in the 2022 Directions.

Interest and process

63

(1) The scheme manager must calculate interest on any amount described in directions 14 (Interest: rates), 15 (Interest: periods) or 16 (Interest: other) in accordance with the provisions of whichever of those directions is relevant to that amount.

(2) Where an amount is described in paragraphs (4), (5), (6), (7) or (8), the scheme manager must calculate interest on it in accordance with whichever paragraph is relevant.

(3) Direction 14(6) applies where the rate of interest has varied during a period for which interest is to be calculated.

(4) Where amounts are owed under regulation 3, interest must be calculated and applied in accordance with the 2022 Directions as if those amounts were owed under section 16 of PSPJOA 2022 (pension contributions: active and deferred members (immediate correction)).

(5) Where amounts are owed under regulation 4, interest must be calculated and applied in accordance with the 2022 Directions as if those amounts were owed under section 15 of PSPJOA 2022 (Pension contributions: pensioner and deceased members).

(6) Where amounts are owed under regulation 5, interest must be calculated and applied in accordance with the 2022 Directions as if those amounts were owed under section 17 of PSPJOA 2022 (Pension contributions: active and deferred members (deferred correction)).

(7) Where amounts are owed under regulation 10, 13 or 35, interest must be calculated and applied in accordance with the 2022 Directions as if those amounts were owed under section 14 of PSPJOA 2022 (Pension benefits and lump sum benefits: pensioner and deceased members).

(8) Where compensation is owed under regulation 18 and that liability is waived by virtue of regulation 18(3) and that waiver subsequently ceases to have effect, interest must be calculated in the form and applied at the rate specified—

(a) in direction 14(5) from the mid-point date described in direction 15(16) to the date 28 days after a remediable service statement is first issued, and

(b) in direction 14(4) from the date 29 days after a remediable service statement is first issued to the date of payment.

Interest not payable under the 2011 Regulations or the 2013 Regulations

64

(1) This regulation applies in respect of any relevant amount payable by the legacy scheme to a person under or by virtue of Chapter 1 of PSPJOA 2022 where the scheme manager must calculate interest on that amount in accordance with regulation 63.

(2) Where this regulation applies, the scheme manager must treat the relevant amount as if—

(a) it is not a qualifying payment for the purposes of regulation T10 of the 2011 Regulations (interest on late payment of benefits), or

(b) it is not an unpaid amount for the purposes of regulation 2.J.10 or regulation 3.J.10 of the 2013 Regulations (interest on late payment of benefits and refunds of contributions),

where it would be such a qualifying payment or unpaid amount but for this regulation.

Netting off of liabilities

65

The scheme manager must net off relevant amounts (and any interest owed on them) which are owed by the scheme to a person or by a person to the scheme (as the case may be) in accordance with direction 19 (process: netting off).

Payments of amounts owed to the scheme

66

(1) This regulation applies where a person (“P”) owes a net liability to the scheme after taking into account regulation 65.

(2) The scheme manager must send a notice in writing to P that the net liability must be paid.

(3) P must pay the amount of the net liability to the scheme manager—

(a) on or before a date determined by the scheme manager as being reasonable after having regard to all the circumstances of the case, or

(b) in accordance with an agreement under paragraph (4).

(4) P and the scheme manager may agree that the net liability is paid in part or in full—

(a) by instalments;

(b) by way of deductions from any benefits (including a lump sum benefit) to which P is entitled under the legacy scheme or the 2015 scheme; or

(5) But where the net liability includes amounts owed as a consequence of an election under regulation 8(1) and P is not a pensioner member, the scheme manager may not agree that the net liability is paid in part or in full accordance with paragraph (4)(b) or (c).

(6) P and the scheme manager may agree to vary an agreement made in accordance with paragraph (4).

(7) Where P does not pay the amount that P is required to pay under paragraph (3), the scheme manager may, after providing notice in writing to P, deduct such sums from benefits payable to P from the legacy scheme or the 2015 scheme as the scheme manager considers reasonable for the purpose of discharging P’s liability.

Payment of amounts owed to a person

67

(1) This regulation applies where the scheme owes a net liability to a person (“P”) after taking into account regulation 65

(2) The scheme manager must pay the amount of the net liability to P as soon as reasonably practicable—

(a) after the scheme manager determines the amount of the net liability, or

(b) where the scheme manager requires P to make an application in accordance with paragraph (3), after receipt of that application.

(3) Before paying the amount of a net liability owed to P, the scheme manager may by notice in writing require P to make an application which is—

(a) in a form and manner determined by the scheme manager;

(b) accompanied by such information as the scheme manager may require—

(i) which is within P’s possession, or

(ii) which P may reasonably be expected to obtain; and

(c) received by the scheme manager before the end of the period of six months beginning with the day after the day on which P receives notice that the application is required.

Power to reduce or waive amounts owed by a person to the legacy scheme

68

(1) The scheme manager may reduce or waive an amount owed by a person to the legacy scheme under these Regulations.

(2) When, under paragraph (1), reducing or waiving an amount owed, the scheme manager must—

(a) have regard to the particular circumstances of the person;

(b) apply a presumption in favour of recovering the amount owed by the person unless it is uneconomic to recover it; and

(c) have regard to whether, instead of or in addition to reducing or waiving the liability, it is appropriate in the reasonable opinion of the scheme manager, to exercise regulation 66.

(3) In paragraph (2)(a), the particular circumstances include those set out in direction 4(3).

PART 10 — Revocation of election to convert pensionable service in the legacy scheme

Option to revoke election to convert pensionable service in the legacy scheme

69

(1) This regulation applies to a remedy member (“M”) who has made an election under regulation 41 of the 2015 Transitional Regulations.

(2) M may revoke the election referred to in paragraph (1) with the effect that M’s pensionable service for the purposes of the 1995 Section is treated as if it were never such service for the purposes of the 2008 Section.

(3) Where M may make an election under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members)—

(a) the scheme manager must send a notice in writing to M of M’s right under paragraph (2) on or before the relevant date referred to in regulation 6(2);

(b) M must, if M decides to exercise that right, give the scheme manager notice in writing of that decision—

(i) within three months beginning with the day on which the scheme manager issued the notice referred to in sub-paragraph (a); or

(ii) by such later time as the scheme manager considers reasonable after having regard to all the circumstances of the case.

(4) Where M may make an election under regulation 12 (deferred choice election for 2015 scheme benefits: active, deferred and deceased members)—

(a) the scheme manager must send a notice in writing to M of M’s right under paragraph (2) before 1 April 2024;

(b) M must, if M decides to exercise that right, give the scheme manager notice in writing of that decision—

(i) within three months beginning with the day on which the scheme manager issued the notice referred to in sub-paragraph (a); or

(ii) by such later time as the scheme manager considers reasonable after having regard to all the circumstances of the case.

(5) Where M revokes the election in accordance with paragraph (2), for the purposes of section 4(9)(a) of PSPJOA 2022, the Section under which the person most recently accrued pensionable service is the 1995 Section.

PART 11 — Retirement pensions

Premature retirement in the interests of efficiency

70

(1) This regulation applies in relation to a relevant member (“M”) who has remediable service in the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) (remediable service”). of PSPJOA 2022(“M’s remediable service”)..

(2) Where this regulation applies and the scheme manager accepts an immediate choice election in accordance with regulation 9 or a deferred choice election in accordance with regulation 12 and, as a result of that election, the additional contribution due from the employing authority increases, the scheme manager must waive that increase.

(3) In paragraph (2), the additional contribution due from the employing authority is the amount the scheme manager determines is required to meet the cost of providing the pension in the 1995 Section or 2008 Section (whichever is relevant).

(4) In this regulation, “relevant member” means a member—

(a) who—

(i) on 30 September 2023—

(aa) was a pensioner member with regard to benefits paid in respect of remediable service in the legacy scheme, or

(bb) was deceased, or

(ii) on or after 1 October 2023 was an active, deferred or deceased remedy member but not a pensioner member; and

(b) whose employment has been or is terminated by M’s employing authority under—

(i) regulation E8 of the 2011 Regulations (early retirement pension (redundancy etc notifications)), or

(ii) regulation 2.D.11 of the 2013 Regulations (early retirement on termination of employment by employing authority).

Premature retirement on grounds of redundancy

71

(1) This regulation applies in relation to a relevant member (“M”) where M’s employing authority has made or makes a contribution to the scheme manager in accordance with—

(a) regulation D2 of the 2011 Regulations (contributions and other payments by employing authorities);

(b) regulation 2.C.6 of the 2013 Regulations (contributions by employing authorities: early retirement on termination of employment ); or

(2) Paragraphs (3) and (4) apply if the cost of any benefits on termination in respect of M increase as a result of—

(a) the scheme manager accepting—

(i) an immediate choice election made by or in respect of M in accordance with regulation 9, or

(ii) a deferred choice election made by or in respect of M in accordance with regulation 12; or

(b) an election referred to in sub-paragraph (a) not being made by or in respect of M before the end of the immediate choice election period or the end of the deferred choice election period (whichever election period applies in respect of M).

(3) M may pay all or part of the additional contribution as the scheme manager, after having regard to the advice of the scheme actuary, determines will be sufficient to meet the increased cost of the benefits insofar as that cost—

(a) is not met by the contribution referred to in paragraph (1), and

(b) exceeds the cost in respect of which M was entitled to make an additional contribution on becoming entitled to any benefits on termination.

(4) If M elects not to pay any additional contribution in accordance with paragraph (3), the scheme manager must reduce the amount of pension pursuant to—

(a) regulation E7 of the 2011 Regulations;

(b) regulation 2.D.11 of the 2013 Regulations (early retirement on termination of employment by employing authority); or

(5) Subject to paragraph (6), if the member is not entitled to make an additional contribution to meet the increase in costs referred to in paragraph (2) and that increase is to be met by M’s employing authority in accordance with the terms and conditions relevant to M’s employment, the scheme manager must waive the element of the further contribution due from the employing authority that relates to the increase.

(6) Where M has received a relevant employing authority payment and that payment must be reduced as a consequence of the increase in costs referred to in paragraph (2), the amount that must be waived under that paragraph must also be reduced by the same amount.

(7) Paragraph (8) applies if the cost of any benefits on termination in respect of M decrease as a result of—

(a) the scheme manger accepting—

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