PART 5Voluntary contributions
CHAPTER 3Deferred choice members
SECTION 3Provision about remediable voluntary contributions on a deferred choice decision
Variation of legacy scheme additional pension where reformed scheme benefits chosen 40.
(1)
This regulation applies where M has paid remediable voluntary contributions to secure additional pension under the legacy scheme.
(2)
When making a deferred choice decision, the deferred choice decision-maker may elect that—
(a)
the value of additional pension under the legacy scheme secured by virtue of M’s remediable voluntary contributions is to be varied so that it is equivalent to the alternative reformed scheme additional pension value, or
(b)
the scheme manager must pay to M or, if M is deceased, M’s personal representatives an amount by way of compensation equal to the compensatable amount.
(3)
Paragraphs (4) and (5) apply where a section 10 election is made (or deemed to have been made) in relation to M’s remediable teacher service.
(4)
Where either—
(a)
an election is made in accordance with paragraph (2)(a), or
(b)
no election is made in accordance with paragraph (2),
the scheme manager must vary the value of additional pension under the legacy scheme secured by virtue of M’s remediable voluntary contributions so that it is equivalent to the alternative reformed scheme additional pension value.
(5)
Where an election is made in accordance with paragraph (2)(b)—
(a)
the scheme manager must pay to M or, if M is deceased, M’s personal representatives an amount by way of compensation equal to the compensatable amount, and
(b)
the rights that would have been secured by payment of the remediable voluntary contributions are extinguished.