Compensation for effective pension age payments
41.—(1) This regulation applies where R has, during the period of relevant 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 R, 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 R 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 that amount.
(5) The following provisions of the PSP Directions 2022 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).