PART 13Supplementary
CHAPTER 5Forfeiture and set-off
Set-off212
1
The pension supervising authority may require the scheme manager to set off a relevant monetary obligation against a member’s entitlement to benefits under this scheme.
2
In this regulation, a “relevant monetary obligation” is a monetary obligation owed by a member (P), which satisfies the conditions in paragraph (3), (4) or (5).
3
The conditions are that the monetary obligation—
a
was incurred to the Department or P’s employer (if different);
b
was incurred after P became an active member of this scheme; and
c
arose out of or was connected with the eligible service in respect of which P is a member of this scheme.
4
The conditions are that the monetary obligation—
a
was incurred to this scheme; and
b
arose out of P’s criminal, negligent or fraudulent act or omission.
5
The conditions are that the monetary obligation—
a
was incurred to this scheme; and
b
arose out of a payment made to P in error by the scheme manager.
6
Paragraph (7) applies if a set-off is to be applied as a result of P owing a relevant monetary obligation which satisfies the conditions in paragraph (3).
7
Where this paragraph applies, the scheme manager may not apply a set-off against that part of P’s entitlement to benefits that represents transfer credits within the meaning of article 121 (interpretation of Part 2) of the 1995 Order107 (other than prescribed transfer credits for the purpose of article 89(5)(d) of the 1995 Order108 (exceptions from the inalienability of occupational pensions).
8
The scheme manager may only apply a set-off against that part of a member’s pension that exceeds any guaranteed minimum to which the member is entitled under section 10 of the 1993 Act.
9
The value of the set-off applied must not exceed the lesser of—
a
the amount of the relevant monetary obligation; and
b
the value of P’s entitlement to benefits.
10
The scheme manager may only set off a relevant monetary obligation against P’s entitlement to benefits if—
a
there is no dispute as to the amount of the relevant monetary obligation; or
b
the relevant monetary obligation is enforceable—
i
under an order of a competent court;
ii
in consequence of an award of an arbitrator; or
iii
in Scotland, in consequence of an award of an arbiter appointed (failing agreement between the parties) by the sheriff.