The National Health Service Pension Schemes (Remediable Service) Regulations 2023

The 2019/20 Pensions Annual Allowance Charge Compensation Scheme

59.—(1) This regulation applies in the circumstances described in paragraph (2) in relation to a remedy member (“ M”) who—

(a) has remediable service under the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022, and

(b) is an immediate choice remedy member or a remedy member who died before 1st October 2023.

(2) The circumstances are that—

(a) in respect of an annual allowance charge arising in tax year 2019-20, M gives notice—

(i) under section 237B(3) of FA 2004(1) (liability of scheme administrator), or

(ii) otherwise, on a voluntary basis, and

(b) M has been paid any amount under the 2019/20 Pensions Annual Allowance Charge Compensation Scheme (“PAACCS”)(2).

(3) Where regulation 8 of the 2023 Regulations (Chapter 1 schemes and judicial 2015 schemes: operation of scheme pays for remedy years) applies and the annual allowance charge arising in respect of tax year 2019-20 has reduced, the legacy scheme will pay to NHS England an amount equal to the compensation amount, in respect of the overpaid annual allowance charge, paid to M under PAACCS.

(4) The amount of pension benefit corrections, made under regulations 10 and 13 (pension benefits and lump sum benefits) of these Regulations to be paid by the legacy scheme to M in respect of the reduced annual allowance charge arising in respect of tax year 2019-20 is not a relevant amount for interest under Part 9 of these Regulations (interest and the payment, reduction or waiver of liabilities).

(1)

Section 237B was inserted by paragraph 15 of Schedule 17 to the Finance Act 2011 (c. 11). It has been amended by paragraph 129 of Schedule 46 to the Finance Act 2013 (c. 29), paragraph 68 of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30) and section 9 of the Finance Act 2022 (c. 3) and by S.I. 2015/80 and 1810, 2017/468, 2019/201.

(2)

A booklet, 2019/20 Pensions Annual Allowance Charge Compensation Scheme (PAACCS) Member booklet (version 1, July 2022), describing this scheme is available here: https://www.england.nhs.uk/wp-content/uploads/2022/07/Pensions-Allowance-21-07-22.pdf. Alternatively, a copy may be obtained following a request in writing to NHS England, PO Box 16738, Redditch, B97 9PT.