PART 1Public service pension schemes

C12C11C10C9C8C13C14C15C16CHAPTER 1Schemes other than judicial schemes and local government schemes

Annotations:
Modifications etc. (not altering text)

Powers to make provision in relation to special cases

I1I2C4C12C1C11C10C5C3C2C9C8C6C720C12C11C10C9C8Voluntary contributions

1

Scheme regulations for a Chapter 1 scheme may make provision about cases in which a member has paid voluntary contributions to the scheme during any period of remediable service.

2

The provision that may be made under subsection (1) includes, in particular, provision under which the rights to additional benefits, or earlier payment of benefits, that would otherwise have been secured by the payment of the voluntary contributions are varied, in a case in which an election by virtue of section 6 or 10 is made in respect of any remediable service of the member in question.

3

The rights may, in particular, be varied so that they are of an equivalent value to rights the member would have secured under the Chapter 1 new scheme that is connected with the scheme if the voluntary contributions had been paid to that scheme.

4

The provision that may be made under subsection (1) in scheme regulations for a Chapter 1 new scheme includes, in particular, provision under which the rights to additional benefits, or earlier payment of benefits, that would otherwise have been secured by the payment of the voluntary contributions are extinguished.

5

Where scheme regulations made by virtue of subsection (1) make provision as mentioned in subsection (4), scheme regulations by virtue of subsection (1) must be made that include provision under which—

a

the person whose rights are extinguished receives rights under a Chapter 1 scheme that are of an equivalent value to the extinguished rights,

b

rights are conferred under a Chapter 1 scheme that would have been secured under that scheme if the voluntary contributions had been paid to that scheme, or

c

the scheme manager is required to pay the member who paid the contributions or, if that member is deceased, that member’s personal representatives an amount by way of compensation equal to—

i

the aggregate of the voluntary contributions paid, less

ii

an amount in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which the member was entitled in respect of the voluntary contributions.