Varying the value of benefits secured by virtue of transferred in remediable rights
55.—(1) Where this regulation applies (see regulation 53) and—
(a)a member is a deferred choice member, and
(b)the member’s transferred in remediable rights are treated as rights to benefits under the relevant Section of the legacy scheme by virtue of regulation 54,
the scheme manager must vary the value of those rights so that they are of an equivalent value to rights the member would have secured under the relevant Section of the legacy scheme if the rights had been transferred into that Section.
(2) A variation under paragraph (1) is to be treated as having taken effect on 1st October 2023.
(3) Where this regulation applies and—
(a)a member is an immediate choice member or a remedy member who died before 1st October 2023;
(b)the end of the immediate choice election period has passed in relation to the member and no election has been made (or treated by the scheme manager as having been made) under regulation 9 in relation to the member’s remediable service; and
(c)the member’s transferred in remediable rights are treated as rights to benefits under the relevant Section of the legacy scheme by virtue of regulation 54,
the scheme manager must vary the value of those rights so that they are of an equivalent value to the rights the member would have secured under the relevant Section of the legacy scheme if the rights had been transferred into that Section.
(4) A variation under paragraph (3) is to be treated as having taken effect at the end of the immediate choice election period.
(5) Where this regulation applies and—
(a)the benefits payable to or in respect of the member’s remediable service are 2015 scheme benefits by virtue of an immediate choice election under regulation 9 or a deferred choice election under regulation 12 (including such an election which the scheme manger treats as having been made under either of those regulations), and
(b)the benefits payable in relation to the member’s transferred in remediable rights would otherwise be benefits in the relevant Section of the legacy scheme,
the scheme manager must vary the value of those rights so that they are of an equivalent value to rights the member would have secured under the 2015 scheme if the rights had been transferred into that scheme.
(6) Where the scheme manager is required to vary the value of any rights under this regulation so that they are equivalent to rights that would have been secured in another scheme (“the alternative scheme”), the scheme manager must, after having regard to the advice of the scheme actuary, calculate the value of the varied rights as if the remediable transfer value which originally secured the rights had been paid to the alternative scheme or Section of the scheme in the scheme year the payment was received by the scheme manager.
(7) In paragraph (6), “scheme year” means a period of one year beginning on 1st April and ending with 31st March.