PART 3Scheme membership
CHAPTER 4Pensionable earnings
Money value of residential benefits in kind to form part of pensionable earnings38
1
The scheme manager, if satisfied that it is reasonable for residential accommodation to be provided to a person (P) by P's employer (E) in connection with P's employment, may decide that the money value of residential benefits in kind forms part of P's pensionable earnings from—
a
the first day of P's employment; or
b
if later, the first day on which residential accommodation is provided to P.
2
If the money value of the residential accommodation exceeds 1/6th of the aggregate of the amounts mentioned in regulation 34(2) or 35(3)(a) and (b), the excess does not form part of P's pensionable earnings.
3
The scheme manager may revoke a decision that the money value of residential benefits in kind forms part of P's pensionable earnings if E does not—
a
carry out the reviews in accordance with regulation 37; or
b
inform the scheme manager of the results of those reviews within a reasonable time.
4
If paragraph (3) applies, the scheme manager must—
a
calculate the amount attributable to the overpayment of contributions (“the amount”); and
b
repay the amount to E together with interest applied in accordance with paragraph (6).
5
The amount is the difference between—
a
the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E deducted from P's pensionable earnings M1 during the period in which the residential benefits in kind formed part of P's pensionable earnings; and
b
the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E would have deducted from P's pensionable earnings during that period had the residential benefits in kind not formed part of P's pensionable earnings.
6
Interest is applied to the amount at the rate of 3% each year, compounded with yearly rests—
a
from the first day of the financial year following the year in which the contributions were first deducted;
b
until the day on which the amount attributable to the overpayment of contributions is repaid.