The Teachers’ Pension Scheme (Remediable Service) Regulations (Northern Ireland) 2023

PART 8 N.I. Liabilities and payment

CHAPTER 1 N.I. Application of Part 8

Application of Part 8 N.I.

68.  This Part applies in relation to a relevant amount(1) owed in respect of the remediable teacher service of a remedy member.

Commencement Information

I1 Reg. 68 in operation at 1.10.2023, see reg. 1

CHAPTER 2 N.I. Interest, compensation and netting off

Interest N.I.

69.—(1) The scheme manager must calculate interest on a relevant amount described in direction 15 of the PSP(NI) Directions 2023 in accordance with the provisions of directions 14 and 15 which apply to that description of relevant amount.

(2) In relation to a relevant amount not described in direction 15 of the PSP(NI) Directions 2023, the scheme manager must determine whether interest is paid and, if so, what rate of interest applies and how it is calculated.

(3) The following provisions of the PSP(NI) Directions 2023 apply in relation to a determination under paragraph (2) as if it were a determination under direction 16(1) of those Directions—

(a) direction 16(2) (provision of explanation);

(b) direction 16(3) and (4) (appeals).

Commencement Information

I2 Reg. 69 in operation at 1.10.2023, see reg. 1

Indirect compensation N.I.

70.—(1) This regulation applies where—

(a) pursuant to an application under regulation 71, the scheme manager determines that an immediate choice member (“M”) has incurred a compensatable loss(2) that is a Part 4 tax loss(3) (a “relevant loss”), and

(b) the relevant loss is a reduction of benefit under—

(i) regulation F3 of the 1998 Regulations, or

(ii) regulation 182 of the 2014 Regulations.

(2) M is not to be paid an amount under section 23 of PSPJOA 2022 of compensation in respect of the relevant loss.

(3) Instead, the amount of benefit payable under a teacher pension scheme is to be increased to reflect the amount of the relevant loss in such manner as determined by the scheme manager in accordance with direction 10(2) to (4) of the PSP(NI) Directions 2023.

Commencement Information

I3 Reg. 70 in operation at 1.10.2023, see reg. 1

Applications for compensation or indirect compensation N.I.

71.—(1) This regulation applies in relation to —

(a) the payment of a relevant amount by way of compensation under section 23(1) of PSPJOA 2022;

(b) the increase of benefits by way of indirect compensation under regulation 70.

(2) The relevant amount is not payable, or (as the case may be) the benefits are not to be increased, except where—

(a) an application is made in accordance with direction 18(1) and (2) of the PSP(NI) Directions 2023,

(b) the application is accompanied by such information that the scheme manager may by written notice require the person making the application (“P”) to provide in relation to the proposed compensation which is—

(i) information within P’s possession, or

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

(c) the scheme manager makes a determination in accordance with direction 18(3) of those Directions.

(3) The following apply in relation to a determination in accordance with direction 18(3) of the PSP(NI) Directions 2023—

(a) direction 18(4) (provision of explanation);

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

Commencement Information

I4 Reg. 71 in operation at 1.10.2023, see reg. 1

Netting off N.I.

72.—(1) This regulation applies where—

(a) relevant amounts owed by or to a person (“P”) fall to be paid at the same time or similar times, and

(b) the scheme manager has —

(i) determined the interest (if any) that is to be paid on the relevant amounts in accordance with regulation 69, and

(ii) reduced the relevant amounts by tax relief amounts in accordance with regulation 73.

(2) The scheme manager may determine, in accordance with direction 19(2) to (5) of the PSP (NI) Directions 2023, that the relevant amounts (and any interest on them) must be aggregated and that the difference must be paid by P to the scheme or (as the case may be) by the scheme to P .

(3) The following provisions of the PSP(NI) Directions 2023 apply in relation to a determination under paragraph (2) as if it were a determination under direction 19(1) of those Directions—

(a) direction 19(6) (provision of explanation);

(b) direction 19(7) and (8) (appeals).

Commencement Information

I5 Reg. 72 in operation at 1.10.2023, see reg. 1

CHAPTER 3 N.I. Reduction and waiver of liabilities

Requirement to reduce liabilities by tax relief amounts N.I.

73.—(1) This regulation applies where—

(a) a person owes a liability to pay pension contributions in relation to the remediable teacher service of a remedy member, or

(b) the scheme manager owes a liability to pay compensation in relation to such service,

under section 15, 16 or 17 of PSPJOA 2022.

(2) The scheme manager must reduce the liability by tax relief amounts(4)—

(a) determined in accordance with direction 4(5) to (9) of the PSP(NI) Directions 2023, and

(b) before the liability is netted off in accordance with regulation 72.

(3) The following provisions of the PSP (NI) Directions 2023, apply where the scheme manager makes a determination in accordance with direction 4(8)—

(a) direction 4(10) (provision of explanation);

(b) direction 4(11) and (12) (appeals).

Commencement Information

I6 Reg. 73 in operation at 1.10.2023, see reg. 1

Power to reduce or waive amounts owed by a person to the scheme manager N.I.

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

(a) section 14, 15, 16 or 17 (“the corrections provisions”) of PSPJOA 2022, or

(b) these Regulations.

(2) When reducing or waiving an amount under paragraph (1), the scheme manager must comply with the requirements set out in direction 4(1)(a) to (c) of the PSPJOA Directions 2022 (and the reference in direction 4(1)(c) to “any scheme regulations made by virtue of section 26(1)(b) of PSPJOA 2022” is to be read as a reference to regulation 77.

Commencement Information

I7 Reg. 74 in operation at 1.10.2023, see reg. 1

Agreement to waive a liability owed by the scheme manager in respect of an immediate correction N.I.

75.—(1) This regulation applies where the scheme manager owes a liability to pay compensation to a person (“ P”) under section 16(3) of PSPJOA 2022.

(2) The scheme manager and P may agree to waive the liability.

(3) Such an agreement—

(a) must be in writing,

(b) may only be made during the period—

(i) beginning with the day after the day on which P receives the most recent notice sent under regulation 77(2), and

(ii) ending at the end of the day six months after that date,

(c) may be rescinded with the agreement of the scheme manager and P, and

(d) in any event ceases to apply where—

(i) the end of the section 10 election period in relation to the remediable teacher service in respect of which the compensation is payable has passed, and

(ii) no section 10 election is made in relation to that service.

(4) Where an agreement is rescinded or otherwise ceases to apply, the scheme manager owes P the liability mentioned in paragraph (1).

Commencement Information

I8 Reg. 75 in operation at 1.10.2023, see reg. 1

CHAPTER 4 N.I. Payment of net liabilities

Application of Chapter 4 N.I.

76.  This Chapter applies in respect of a relevant amount (together with any interest on that relevant amount) owed after taking into account the effect, if any, of regulations 69 to 75 (a “net liability”).

Commencement Information

I9 Reg. 76 in operation at 1.10.2023, see reg. 1

Payment of amounts owed to the scheme manager N.I.

77.—(1) This regulation applies where a person (“ P”) has a net liability to the scheme manager within the meaning of regulation 76.

(2) The scheme manager must send notice in writing to P setting out—

(a) how the net liability has been calculated,

(b) an explanation of the circumstances in which the net liability may be reduced or waived under regulation 74,

(c) where the net liability has been calculated by reference to an amount by way of compensation under section 16(3) of PSPJOA 2022, an explanation of the agreement that may be made under regulation 75,

(d) when and how the net liability must be paid, and

(e) the consequences of not paying the net liability.

(3) Where—

(a) the scheme manager has sent a notice under paragraph (2), and

(b) the amount of the net liability is subsequently adjusted,

the scheme manager must send another notice in writing to P under paragraph (2).

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

(a) before the end of the period of six months beginning with the day after the day on which P receives the most recent notice under paragraph (2), or

(b) in accordance with an agreement under paragraph (5).

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

(a) by way of instalments, or

(b) by way of deductions from any benefits (including a lump sum benefit) to which P is entitled under a teacher pension scheme.

(6) P and the scheme manager may agree to vary an agreement under paragraph (5).

(7) Where P does not pay any amount that falls due by virtue of paragraph (4)(a) or an agreement under paragraph (5), the scheme manager may deduct such sums from benefits payable to P under a teacher pension scheme as seem reasonable to the scheme manager for the purpose of discharging P’s liability.

(8) P has no liability to pay any amount on account of the net liability until the time for payment arises in accordance with this regulation or an agreement under this regulation, and until that time the scheme manager has no cause of action for the recovery of any such amount (whether for the purposes of the Limitation (Northern Ireland) Order 1989(5) or otherwise).

Commencement Information

I10 Reg. 77 in operation at 1.10.2023, see reg. 1

Payment of amounts owed to a person N.I.

78.—(1) This regulation applies where the scheme manager owes a net liability to a person (“ P”).

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

(a) as soon as reasonably practicable after the scheme manager determines the amount of the net liability, or

(b) where the scheme manager requires P to provide information in accordance with paragraph (3), as soon as reasonably practicable after receipt of that information.

(3) Before paying the amount of a net liability owed to P, the scheme manager may, by written notice given as soon as reasonably practicable after the scheme manager determines the amount of the net liability, require P to provide information in relation to the payment of the net liability which is—

(a) information within P’s possession, or

(b) information which P may reasonably be expected to obtain.

Commencement Information

I11 Reg. 78 in operation at 1.10.2023, see reg. 1

(1)

See section 26(3) of PSPJOA 2022 for the meaning of “relevant amount”.

(2)

See section 23 of PSPJOA 2022 and direction 11 of the PSP(NI) Directions 2023 for the meaning of “compensatable loss”.

(3)

See section 23(9) of PSPJOA 2022 for the meaning of “Part 4 tax loss”.

(4)

See section 18(4) of PSPJOA 2022 for the meaning of “tax relief amounts” for the purposes of a liability mentioned in regulation 72(1)(a) and section 18(7) of that Act for the meaning of that term for the purposes of a liability mentioned in regulation 72(1)(b).

(5)

1989/1339 (N.I. 11)