The Judicial Pensions (Remediable Service etc.) Regulations (Northern Ireland) 2023

PART 3 N.I. Provision where an immediate detriment remedy has been obtained

CHAPTER 1 N.I. Application and Interpretation

Application of Part N.I.

13.—(1) This Part applies where—

(a) a person (“P”) has remediable service in a judicial office, and

(b) an immediate detriment remedy has been obtained in relation to that service.

(2) This Part does not apply in relation to any payment or transfer of assets and liabilities that would otherwise be payable or required to be made under this Part to the extent that a corresponding payment or a corresponding transfer of assets and liabilities has been made.

(3) In this regulation—

(a) a “corresponding payment” is a payment that has been made in accordance with—

(i) a determination described in section 68(2) of PSPJOA 2022, or

(ii) an agreement described in section 68(3) of PSPJOA 2022,

that relates to the same period of remediable service as a payment that is payable or required to be made under this Part;

(b) a “corresponding transfer of assets and liabilities” is a transfer of assets and liabilities that has been made in accordance with a determination described in section 68(2) of PSPJOA 2022 that relates to the same period of remediable service as a transfer of assets and liabilities that is required to be made under this Part.

(4) Regulations 17 to 28 do not apply in relation to P where P is a person described in —

(a) regulation 16(1) and the steps mentioned in regulation 16(2) have not been taken in relation to P;

(b) regulation 16(3) and the steps mentioned in regulation 16(4) have not been taken in relation to P.

Commencement Information

I1 Reg. 13 in operation at 24.7.2023, see reg. 1(b)

Interpretation of Part N.I.

14.—(1) In this Part—

“adult survivor” means a surviving spouse or surviving civil partner who is entitled under the relevant judicial legacy scheme to a pension determined (to any extent) by reference to P’s remediable service;

“relevant judicial legacy scheme” means—

(a)

in the case of—

(i)

a determination described in section 68(2) of PSPJOA 2022, or

(ii)

an agreement described in 68(3) of PSPJOA 2022,

that P has rights under a judicial legacy salaried scheme(1), that scheme;

(b)

in the case of—

(i)

a determination described in section 68(2) of PSPJOA 2022, or

(ii)

an agreement described in section 68(3) of PSPJOA 2022,

that P has rights under the judicial legacy fee-paid scheme(2), that scheme.

(2) Subject to paragraph (3), for the purposes of this Part, the “notification period”, in relation to a person who has obtained an immediate detriment remedy, is the period of three months beginning with the date on which the statement mentioned in regulation 15 is sent.

(3) The relevant authority(3) may extend the period mentioned in paragraph (2) in relation to P if the relevant authority considers it just and equitable to do so.

Commencement Information

I2 Reg. 14 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 2 N.I. Information statements

Information statements N.I.

15.—(1) The relevant authority must, as soon as reasonably practicable—

(a) prepare a statement in relation to P, and

(b) send it to the appropriate person.

(2) The statement must contain such information as the relevant authority considers relevant to P’s rights and liabilities under Chapter 2 of Part 1 of PSPJOA 2022 or these Regulations in respect of the immediate detriment remedy.

Commencement Information

I3 Reg. 15 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 3 N.I. Partnership pension account where an immediate detriment remedy has been obtained

Partnership pension account: requirement to transfer and surrender rights N.I.

16.—(1) Paragraph (2) applies where—

(a) P has remediable service in a salaried judicial office(4), and

(b) any of the remediable service is PPA opted-out service(5).

(2) The relevant person must, before the end of the notification period, take the steps specified in section 41(3) of PSPJOA 2022 and, for the purpose of this paragraph, section 41(3) is to be read as if—

(a) references to the relevant judicial legacy salaried scheme were references to the scheme mentioned in sub-paragraph (a) of the definition of “relevant judicial legacy scheme” in regulation 14(1);

(b) the reference in section 41(3)(c) to the appropriate person were a reference to the relevant person.

(3) Paragraph (4) applies where—

(a) P has remediable service in a fee-paid judicial office, and

(b) any of the remediable service is PPA opted-out service.

(4) The relevant person must, before the end of the notification period, take the steps specified in section 41(6) of PSPJOA 2022 and, for the purpose of this paragraph, section 41(6) is to be read as if the reference in section 41(6)(c) to the appropriate person were a reference to the relevant person.

(5) For the purposes of this regulation, “relevant person” means P or, if P is deceased—

(a) the adult survivor, or

(b) if there is no adult survivor, P’s personal representatives.

Commencement Information

I4 Reg. 16 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 4 N.I. Benefits for children where an immediate detriment remedy has been obtained

Benefits for children N.I.

17.—(1) This regulation applies where—

(a) P died before the immediate detriment remedy was obtained,

(b) the immediate detriment remedy was obtained by an adult survivor of P,

(c) P is survived by a child who is not living in the same household as the adult survivor,

(d) the child would have received benefits in respect of P under the 2015 scheme if—

(i) an immediate detriment remedy had not been obtained in relation to P’s remediable service, and

(ii) a 2015 scheme election had been made in respect of P, and

(e) the benefits payable under the relevant judicial legacy scheme in respect of the child are, in the opinion of the scheme manager of the scheme, less valuable (looked at in the round) than those that would have been payable in respect of the child if—

(i) an immediate detriment remedy had not been obtained in relation to P’s remediable service, and

(ii) a 2015 scheme election had been made in respect of P.

(2) The benefits payable in respect of the child under the relevant judicial legacy scheme, so far as they are determined by reference to P’s remediable service, are such benefits as would have been payable in respect of the child, so far as they are determined by reference to P’s remediable service, if—

(a) an immediate detriment remedy had not been obtained in relation to P’s remediable service, and

(b) a 2015 scheme election had been made in respect of P.

(3) Paragraph (2) applies in relation to benefits that were payable in respect of the child before, as well as after, the immediate detriment remedy was obtained.

Commencement Information

I5 Reg. 17 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 5 N.I. Partial retirement where an immediate detriment remedy has been obtained

Partial retirement notice N.I.

18.—(1) Paragraph (2) applies where—

(a) P exercised a partial retirement option under regulation 60(2) of the 2015 Regulations in respect of any fee-paid judicial office, and

(b) the conditions set out in regulation 27(1) of FPJR 2017 are met in respect of P.

(2) A notice in respect of P that complies with the requirement in regulation 27(3)(a) of FPJR 2017 is treated as having been given in accordance with sub-paragraph (3)(b) of that regulation if it is received by the appropriate Minister before the end of the notification period.

(3) A notice under paragraph (2) has effect on the date agreed by the member and the scheme manager under regulation 61(1)(b) of the 2015 Regulations in relation to the exercise of the partial retirement option referred to in paragraph (1)(a).

Commencement Information

I6 Reg. 18 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 6 N.I. Benefits and contributions previously paid or payable

Effect of immediate detriment remedy on benefits previously paid or payable N.I.

19.—(1) Paragraph (2) applies in relation to any benefits (“the paid benefits”) that the 2015 scheme has at any time paid to a person so far as—

(a) they are calculated by reference to P’s remediable service in a salaried judicial office, and

(b) they are benefits that, as a result of any immediate detriment remedy that has been obtained in relation to that service, a person 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 the person by the 2015 scheme, but

(b) as having been paid to the person instead by the scheme mentioned in sub-paragraph (a) of the definition of “relevant judicial legacy scheme” in regulation 14(1).

(3) Paragraph (4) applies in relation to any benefits (“the paid benefits”) that the 2015 scheme has at any time paid to a person so far as—

(a) they are calculated by reference to P’s remediable service in a fee-paid judicial office, and

(b) they are benefits that, as a result of any immediate detriment remedy that has been obtained in relation to that service, a person was not entitled to receive from the 2015 scheme.

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

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

(b) as having been paid to the person instead by the judicial legacy fee-paid scheme.

(5) Where, as a result of any immediate detriment remedy that has been obtained (and after taking into account the effect of paragraphs (2) and (4))—

(a) a judicial legacy scheme(6) owes a person an amount in respect of benefits which are calculated by reference to P’s remediable service, or

(b) a person owes a judicial legacy scheme an amount in respect of such benefit,

such amount must be paid in accordance with regulation 21.

Commencement Information

I7 Reg. 19 in operation at 24.7.2023, see reg. 1(b)

Effect of immediate detriment remedy on pension contributions previously paid or payable N.I.

20.—(1) Paragraph (2) applies where P has paid any pension contributions (“the paid contributions”) under the 2015 scheme which—

(a) are calculated by reference to P’s remediable service in a salaried judicial office, and

(b) as a result of any immediate detriment remedy that has been obtained in relation to that service, P was not required to pay to the 2015 scheme.

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

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

(b) as having been paid by P instead to the scheme mentioned in sub-paragraph (a) of the definition of “relevant judicial legacy scheme” in regulation 14(1).

(3) Paragraph (4) applies where P has paid any pension contributions (“the paid contributions”) under the 2015 scheme which—

(a) are calculated by reference to P’s remediable service in a fee-paid judicial office, and

(b) as a result of any immediate detriment remedy that has been obtained in relation to that service, P was not required to pay to the 2015 scheme.

(4) The paid contributions are to be treated for all purposes—

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

(b) as having been paid by P instead to the judicial legacy fee-paid scheme.

(5) Where, as a result of any immediate detriment remedy that has been obtained (and after taking into account the effect of paragraphs (2) and (4))—

(a) a judicial legacy scheme owes a person an amount in respect of pension contributions which are calculated by reference to P’s remediable service, or

(b) a person owes a judicial legacy scheme an amount in respect of such contributions,

such amount must be paid only in accordance with regulation 22.

Commencement Information

I8 Reg. 20 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 7 N.I. Corrections for benefits and contributions where an immediate detriment remedy has been obtained

Pension benefits and lump sum benefits N.I.

21.—(1) This regulation applies where—

(a) a notice in respect of an option to take partial retirement is treated as having been given in relation to P by virtue of regulation 18(2),

(b) P is a pensioner member in relation to the judicial office, or

(c) P is deceased.

(2) Where—

(a) the aggregate of the pension benefits that (after taking into account the effect, if any, of regulation 19(2) or (4)) have been paid under a judicial legacy scheme to any person (“the beneficiary”) in respect of P’s remediable service, exceeds

(b) the aggregate of the pension benefits to which (after taking into account the effect, if any, of any immediate detriment remedy that has been obtained in relation to P’s remediable service) the beneficiary was entitled under the scheme in respect of the service,

the beneficiary must pay the difference to the scheme.

(3) Where—

(a) the amount mentioned in sub-paragraph (2)(a), is less than

(b) the amount mentioned in sub-paragraph (2)(b),

the scheme manager must pay the difference to the beneficiary.

(4) Where—

(a) the aggregate of the lump sum benefits that (after taking into account the effect, if any, of regulation 19(2) or (4)) have been paid under a judicial legacy scheme to any person (“the beneficiary”) in respect of P’s remediable service, exceeds

(b) the aggregate of the lump sum benefits to which (after taking into account the effect, if any, of any immediate detriment remedy that has been obtained in relation to P’s remediable service) the beneficiary was entitled under the scheme in respect of the service,

the beneficiary must pay the difference to the scheme.

(5) Where—

(a) the amount mentioned in sub-paragraph (4)(a), is less than

(b) the amount mentioned in sub-paragraph (4)(b),

the scheme manager must pay the difference to the beneficiary.

Commencement Information

I9 Reg. 21 in operation at 24.7.2023, see reg. 1(b)

Pension contributions N.I.

22.—(1) This regulation applies in relation to P after taking into account the effect, if any, of any immediate detriment remedy that has been obtained in respect of P’s remediable service.

(2) Where—

(a) the paid contributions amount for an in-scope tax year in respect of P’s remediable service, exceeds

(b) the payable contributions amount for that tax year in respect of that service,

the scheme manager must (directly or indirectly) pay an amount in respect of the difference to the appropriate person.

(3) Where—

(a) the paid contributions amount for an out-of-scope tax year in respect of P’s remediable service, exceeds

(b) the payable contributions amount for that tax year in respect of that service,

no amount is to be paid by the scheme manager in respect of the difference to the appropriate person.

(4) Where—

(a) the paid contributions amount for an in-scope or out-of-scope tax year in respect of P’s remediable service, is less than

(b) the payable contributions amount for that tax year in respect of that service,

the appropriate person must pay pension contributions in respect of the difference to the scheme.

(5) A reference in this regulation to “the paid contributions amount” for a tax year in respect of P’s remediable service in a judicial office is a reference to the sum of—

(a) the aggregate of the pension contributions that (after taking into account the effect, if any, of regulation 20(2) and (4), have been paid under the scheme by P in the tax year in respect of so much of the service as was not PPA opted-out service, and

(b) where any of the remediable service was PPA opted-out service—

(i) the aggregate of the pension contributions and any voluntary contributions that have been paid by P under the partnership pension account in the tax year in respect of the PPA opted-out service, or

(ii) if lower, the aggregate of the pension contributions that (after taking into account the effect, if any, of regulation 22(2) and (4)) were payable under the scheme by P for that tax year in respect of the PPA opted-out service.

(6) A reference in this regulation to “the payable contributions amount” for a tax year in respect of P’s remediable service means the aggregate of the pension contributions that (after taking into account the effect, if any, of regulation 22(2) and (4)) were payable under the scheme by P for that tax year in respect of the service.

(7) For the purposes of this regulation—

(a) a tax year is “in-scope” in relation to P if any necessary adjustment to the amount of income tax paid by P in respect of PAYE income for the tax year is capable of being enforced by HMRC under PAYE regulations;

(b) a tax year is “out-of-scope” in relation to P if it is not in-scope in relation to P.

(8) A reference in this regulation to pension contributions or voluntary contributions paid by a person under a partnership pension account is a reference to the amount of the contributions paid, net of any tax relief under section 188 of FA 2004 (relief for contributions) to which the person was entitled in respect of them.

Commencement Information

I10 Reg. 22 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 8 N.I. Compensation for voluntary payments where an immediate detriment remedy has been obtained

Compensation for special payments to buy out early payment reduction N.I.

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).

Commencement Information

I11 Reg. 23 in operation at 24.7.2023, see reg. 1(b)

Compensation for payments for added pension N.I.

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.

Commencement Information

I12 Reg. 24 in operation at 24.7.2023, see reg. 1(b)

Compensation for effective pension age payments N.I.

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).

Commencement Information

I13 Reg. 25 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 9 N.I. Transitional protection allowance where an immediate detriment remedy has been obtained

Transitional protection allowance N.I.

26.—(1) This regulation applies where P’s employer(7) has paid P a transitional protection allowance(8).

(2) The appropriate person must pay to P’s employer an amount equal to—

(a) the amount of the transitional protection allowance, less

(b) an amount in respect of the income tax suffered by P that is attributable to the transitional protection allowance.

Commencement Information

I14 Reg. 26 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 10 N.I. Compensation for compensatable losses where an immediate detriment remedy has been obtained

Power to pay compensation in respect of compensatable losses N.I.

27.—(1) The scheme manager for a judicial scheme may pay amounts by way of compensation in respect of compensatable losses incurred by the appropriate person.

(2) For the purposes of this regulation a loss incurred by the appropriate person is “compensatable” if and to the extent that—

(a) the first condition is met (see paragraph (5)) and the loss is—

(i) a direct financial loss, or

(ii) a specified Part 4 tax loss;

(b) the second condition is met (see paragraph (6)) and the loss is—

(i) a direct financial loss which is directly related to the member’s remediable service in an employment or office which is mixed service(9), or

(ii) a specified Part 4 tax loss.

(3) For the purposes of paragraph (2)(a)(ii) and (b)(ii), a Part 4 tax loss is a “specified Part 4 tax loss” if and to the extent it falls within one of the descriptions listed in direction 26(4) of the PSP Directions 2023.

(4) For the purposes of paragraph (3), direction 26(4) is to be read as if—

(a) references to a legacy scheme election being made by virtue of section 40(1) of PSPJOA 2022 were references to an immediate detriment remedy being obtained by virtue of—

(i) a determination mentioned in section 68(2)(a) of PSPJOA 2022, or

(ii) an agreement mentioned in section 68(3)(a) of PSPJOA 2022;

(b) the reference in direction 26(4)(e) to section 52(3) of PSPJOA 2022 were a reference to regulation 22(3);

(c) in direction 26(4)(f)—

(i) the reference to provision made by virtue of section 56(2) of PSPJOA 2022 were a reference to regulation 63(2);

(ii) the reference to section 52(4) of PSPJOA 2022 were a reference to regulation 22(4).

(5) The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule(10).

(6) The second condition is that the loss is attributable to the application of any provision of this Part.

(7) Paragraph (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as—

(a) the appropriate person has already received amounts by way of compensation in respect of them, or

(b) amounts that any person has paid to the scheme have been reduced by amounts in respect of them,

whether pursuant to a court or tribunal order otherwise.

(8) For the purpose of this regulation, a breach of a non-discrimination rule is “relevant” if section 59(10) of PSPJOA 2022 applies to it.

(9) In this regulation, “loss”—

(a) has the meaning given in section 59(6) and (7) of PSPJOA 2022;

(b) does not include an amount that is payable under this Part.

Commencement Information

I15 Reg. 27 in operation at 24.7.2023, see reg. 1(b)

CHAPTER 11 N.I. Unauthorised payments where an immediate detriment remedy has been obtained

Scheme rules that prohibit unauthorised payments N.I.

28.—(1) This regulation applies where—

(a) a payment from a judicial scheme is permitted or required to be made under this Part,

(b) the payment, if made, would be an unauthorised payment(11), and

(c) a rule of the scheme prohibits the scheme from making unauthorised payments.

(2) The payment may be made only if it falls within a description of payments that correspond to a description of payments specified for the purposes of section 63 of PSPJOA 2022 in Treasury directions.

(3) Paragraph (4) applies where—

(a) in the course of taking the steps mentioned in regulation 16 a payment is made from a partnership pension account,

(b) the payment, if made, would be an unauthorised payment, and

(c) a rule of the scheme prohibits the scheme from making unauthorised payments.

(4) The payment may be made notwithstanding the rule mentioned in paragraph (3)(c).

Commencement Information

I16 Reg. 28 in operation at 24.7.2023, see reg. 1(b)

(1)

See section 70(4) of PSPJOA 2022 for the meaning of “judicial legacy salaried scheme”.

(2)

See section 70(5) of PSPJOA 2022 for the meaning of “judicial legacy fee-paid scheme”.

(3)

See section 72 of PSPJOA 2022 for the meaning of “the relevant authority”.

(4)

See section 71(2) of PSPJOA 2022 for the meaning of “salaried judicial office”.

(5)

See section 73(2) of PSPJOA 2022 for the meaning of “PPA opted-out service”.

(6)

See section 70(3) for the definition of “judicial legacy scheme”.

(7)

See section 110 of PSPJOA 2022 for the meaning of “employer”.

(8)

See section 54(4) of PSPJOA 2022 for the meaning of “transitional protection allowance”.

(9)

See section 58(5) of PSPJOA 2022 for the meaning of “mixed service”.

(10)

See section 59(9) of PSPJOA 2022 for the meaning of “non-discrimination rule”.

(11)

See section 63(5) of PSPJOA 2022 for the meaning of “unauthorised payment”.