CHAPTER 8Compensation for voluntary payments where an immediate detriment remedy has been obtained
Compensation for special payments to buy out early payment reduction
23.—(1) This regulation applies where P has, during the period of remediable service, made any special payments under regulation 74(3)(a) or (c) of the 2015 Regulations.
(2) The rights that would otherwise have been secured by the special payments are extinguished.
(3) The scheme manager must pay to the appropriate person an amount by way of compensation equal to—
(a)the aggregate of the special payments made by P, less
(b)an amount determined by the scheme manager in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which P was entitled in respect of those payments.
(4) Where determining the tax relief amount under paragraph (3)(b), the scheme manager may adopt an approach which is reasonable in all the circumstances to approximate those amounts.
(5) The following provisions of the PSP Directions 2023 apply in relation to a determination under paragraph (3)(b) as they apply in relation to a determination under direction 23(2)—
(a)direction 23(4) (provision of explanation);
(b)direction 23(5) and (6) (appeals).
Compensation for payments for added pension
24.—(1) This regulation applies where—
(a)P has, during the period of remediable service, made any added pension payments under Part 2 of Schedule 1 to the 2015 Regulations, and
(b)regulation 129(1)(b) of the 2015 Regulations does not apply in respect of those payments.
(2) Where the appropriate person makes a request for compensation in respect of the added pension payments—
(a)the rights that would otherwise have been secured by the added pension payments are extinguished, and
(b)the scheme manager must pay to the appropriate person an amount by way of compensation equal to—
(i)the aggregate of the added pension payments paid by P, less
(ii)an amount determined by the scheme manager in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which P was entitled in respect of those payments.
(3) Where determining the tax relief amount under paragraph (2)(b), the scheme manager may adopt an approach which is reasonable in all the circumstances to approximate those amounts.
(4) The following provisions of the PSP Directions 2023 apply in relation to a determination under paragraph (2)(b) of this regulation as they apply in relation to a determination under direction 23(2)—
(a)direction 23(4) (provision of explanation);
(b)direction 23(5) and (6) (appeals).
(5) A request under paragraph (2) is irrevocable and must be—
(a)made by notice to the scheme manager,
(b)in a form required by the scheme manager, and
(c)received by the scheme manager before the end of the notification period.
Compensation for effective pension age payments
25.—(1) This regulation applies where P has, during the period of remediable service, made any effective pension age payments under Part 3 of Schedule 1 to the 2015 Regulations.
(2) The rights that would otherwise have been secured by the effective pension age payments are extinguished.
(3) The scheme manager must pay to the appropriate person an amount by way of compensation equal to—
(a)the aggregate of the effective pension age payments made by P, less
(b)an amount determined by the scheme manager in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which P was entitled in respect of those payments.
(4) Where determining the tax relief amount under paragraph (3)(b), the scheme manager may adopt an approach which is reasonable in all the circumstances to approximate those amounts.
(5) The following provisions of the PSP Directions 2023 apply in relation to a determination under paragraph (3)(b) as they apply in relation to a determination under direction 23(2)—
(a)direction 23(4) (provision of explanation);
(b)direction 23(5) and (6) (appeals).