71.—(1) This regulation applies in relation to a relevant remedy member (“M”) where M’s employing authority has made or makes a contribution to the scheme manager in accordance with—
(a)regulation 11 of the 1995 Regulations(1) (Contributions by employing authorities);
(b)regulation 32 of the 2008 Regulations(2) (Contributions by employing authorities: members becoming entitled to pensions under regulation 55); or
(c)regulation 34 of the 2015 Regulations (Employing authority contributions: redundancy).
(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 by the amount which the revised cost exceeds the original payment.
(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 (5), 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 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).
(8) The scheme manager must send a notice in writing to M or the designated person of the amount by which the cost of any benefits on termination in respect of M have decreased.
(9) In this regulation—
“benefits on termination” means benefits under—
regulations 14A Early retirement pension (termination of employment by employing authority), 17 (lump sum on retirement) and 17A (general option to exchange part of pension for lump sum) of the 1995 Regulations(3);
regulation 58 (general option to exchange part of pension for lump sum) of the 2008 Regulations(4); or
regulations 76 (conversion of part of pension into lump sum) and 81 (premature retirement on grounds of redundancy) of the 2015 Regulations.
“relevant remedy member” means a member who, in respect of the termination of M’s employment by M’s employing authority, is entitled to the payment of any benefits on termination;
“relevant employing authority payment” means a payment made to M by M’s employing authority in respect of the cessation of M’s employment referred to in (whichever is relevant)—
regulation 14A (5)(a) of the 1995 Regulations;
regulation 55 (6)(a) of the 2008 Regulations; or
paragraph 7(2)(a) of Schedule 11 to the 2015 Regulations.
Commencement Information
I1Reg. 71 in operation at 1.10.2023, see reg. 1
Regulation 11 as amended by S.R. 2005 Nos.33 and 565; S.R 2008 Nos.6, 130 and 163; S.R 2009 No.5; S.R 2010 Nos.22 and 420; S.R 2013 No.259; S.R 2014 No.225; S.R 2015 No.121; S.R 2016 No.384 and S.R 2019 No.162.
Regulation 32 was amended by S.R. 2010 No.286, S.R 2013 No.259.
Regulation 17 was amended by S.R. 2006 No. 410, 2009 No 188, 2010 No 286 and 2012 No. 42. Regulation 17A was amended by 2008 No. 163 and 2009 No.188.
Regulation 58 was amended by S.R. 2009 No. 188.