http://www.legislation.gov.uk/id/uksi/2023/998

Schedules

Schedule 6Remediable Service for the Reserve Forces Non Regular Permanent Staff Pension 2011

Regulation 30

Schedule 4Remediable Service
Regulation 3B
Part 1Introductory Provisions
Interpretation
1
In this Schedule—
“EDP Regulations 2014” means the Armed Forces Early Departure Payments Scheme Regulations 2014;
“NRPS 2011” means the occupational pension scheme established by Schedules 1 and 3 to this instrument, and—
a
“NRPS 2011 benefits” means Scheme benefits under Schedules 1 and 3;
b
“NRPS 2011 service”, in relation to a member, means the member’s remediable service which is pensionable service under the NRPS 2011 (whether or not by virtue of section 2(1) of PSPJOA 2022);
“PSP Directions 2022” means the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions 2022;
“PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022;
“armed forces pension scheme” means any Chapter 1 scheme under which service in the regular forces or the reserve forces is pensionable;
“Chapter 1 scheme” has the meaning given in section 33(1) of PSPJOA 2022;
“deferred choice decision” has the meaning given in paragraph 13(1);
“deferred choice decision-maker” means the person who may make a deferred choice decision under paragraph 13(2);
“end of the section 6 election period”, in relation to an immediate choice member, has the meaning given in section 7(2) of PSPJOA 2022;
“end of the section 10 election period”, in relation to a deferred choice member, means the end of the day determined in accordance with—
a
where the member is the deferred choice decision-maker, paragraph 14(2)(b);
b
where a person other than the member is the deferred choice decision-maker, paragraph 15(2)(b);
“immediate choice decision” has the meaning given in paragraph 9(1);
“immediate choice decision-maker” means the person who may make an immediate choice decision under paragraph 9(2);
“legacy scheme”, in relation to a remedy member’s remediable service, means the NRPS 2011, and—
a
“legacy scheme benefits” means NRPS 2011 benefits;
b
“legacy scheme service”, in relation to a remedy member, means the member’s NRPS 2011 service;
“member” means an active, deferred, deceased or pensioner member;
“non-discrimination rule” has the meaning given in section 25(8) of PSPJOA 2022, and references to a relevant breach of a non-discrimination rule are to be read in accordance with section 25(9) of that Act;
“opted-out service election” has the meaning given in paragraph 7(1);
the “reformed scheme” means the AFPS 2015, and “reformed scheme benefits” means new scheme benefits under that scheme;
“relevant amount” has the meaning given in section 26(3) of PSPJOA 2022;
“remediable service”, in relation to a remedy member, means the member’s remediable service in an employment or office that is pensionable service under the NRPS 2011 (whether or not by virtue of section 2(1) of PSPJOA 2022);
“remedy member” means a member with remediable service;
“Scheme manager” means the Secretary of State;
“section 6 election” has the meaning given in paragraph 9(1)(a);
“section 10 election” has the meaning given in paragraph 13(1)(a).
2
1
In this Schedule, a “deferred choice member” means a member with remediable service who—
a
immediately before 1st October 2023 was not entitled to the present payment of a pension under this Scheme (whether or not that pension was abated), the amount of which was determined (to any extent) by reference to the member’s remediable service;
b
on or after 1st October 2023, in relation to that remediable service, is entitled to an award under Part 4 of the EDP Regulations 2014.
2
In this Schedule, an “immediate choice member” means a member with remediable service who, immediately before 1st October 2023, was—
a
entitled to a pension under this Scheme (whether or not that pension was abated), the amount of which was determined by reference (to any extent) to the member’s remediable service;
b
a deceased member;
c
entitled to an award under Part 4 of the EDP Regulations 2014.
3
A deferred choice member is a relevant member of the Scheme for the purposes of section 10 of PSPJOA 2022.
4
An immediate choice member is a relevant member of the Scheme for the purposes of section 6 of PSPJOA 2022.
3
1
For the purposes of this Schedule, a reference in PSPJOA 2022 to section 2(1) of that Act coming into force is to be understood as a reference to that section coming into force in relation to the armed forces pension Schemes.
2
A term used in this Schedule which—
a
is defined in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022, and
b
is not defined differently in this Schedule,
has the meaning given in, or for the purposes of, that provision.
3
A term used in this Schedule which—
a
is defined in Schedules 1 or 3 to this instrument, the AFP Regulations 2014 or the EDP Regulations 2014 (“the relevant Schemes”), and
b
is not defined differently—
i
in this Schedule, or
ii
in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022,
has, in relation to the relevant Schemes, the meaning given in those Schemes.
4
In this Schedule, a reference to a provision of the PSP Directions 2022 is a reference to that provision as amended from time to time.
4
For the purposes of this Scheme, section 14 of PSPJOA 2022 applies as if—
a
in section 14(2) the words “immediately before the coming into force of section 2(1)” were omitted;
b
in section 14(7)(b) the words “or section 10” were inserted after “section 6”.
Part 2Remediable Service Statements
Requirements relating to remediable service statements5
1
The Scheme manager must provide a remediable service statement in respect of a remedy member (“M”) in accordance with—
a
section 29 of PSPJOA 2022,
b
any Treasury directions made under section 29(6) of that Act, and
c
this paragraph.
2
The Scheme manager must provide a remediable service statement in respect of M—
a
before the relevant date,
b
where M is, in relation to their remediable service, for the time being—
i
an active member, at least once in each year ending with the anniversary of the relevant date;
ii
a deferred member, within three months of receipt of a written request by the member, where such request is received after the relevant date;
c
where M is a deferred choice member, as soon as is reasonably practicable following receipt of notification—
i
that M intends to claim benefits in relation to their remediable service, or
ii
that M has died.
3
Where—
a
a remediable service statement has been provided to M under sub-paragraph (2)(a), and
b
M dies before the end of the section 6 election period before making a decision under paragraph 9(1),
the Scheme manager must provide a remediable service statement in respect of M as soon as reasonably practicable and, for the purposes of section 7(2)(a) of PSPJOA, the remediable service statement provided to M under sub-paragraph (2)(a) is treated as though it had never been provided.
4
The remediable service statement must be provided—
a
to M, or
b
where M is deceased, to the person who is for the time being the eligible decision-maker in relation to M’s remediable service under Part 8 (unless the eligible decision-maker is the Scheme manager).
5
The remediable service statement must include—
a
where the Scheme manager has determined that any information to be provided in connection with M’s remediable service must be communicated in a particular form and manner, information about that form and manner;
b
where M is an immediate choice member, information about the irrevocability of an immediate choice decision;
c
where M is a deferred choice member, information about the revocability (or otherwise) of a deferred choice decision.
6
For further provision about—
a
what a remediable service statement must include, see—
i
section 29(5) of PSPJOA 2022;
ii
direction 20(1) of the PSP Directions 2022;
b
when a remediable service statement must be combined with a benefit information statement provided under section 14 of the Public Service Pensions Act 2013, see direction 20(2) of the PSP Directions 2022.
Part 3Decisions about the treatment of remediable service
Chapter 1Opted-out Service
Application and interpretation of Chapter 16
1
This Chapter applies to and in respect of a member (“M”) with opted-out service in an employment or office in relation to the legacy scheme.
2
In this Chapter—
“opted-out service decision-maker” means the person who may make an opted-out service election in accordance with paragraph 7(2);
“relevant opted-out service” means the service referred to in sub-paragraph (1).
Election in relation to relevant opted-out service7
1
An election (an “opted-out service election”) may be made in relation to M’s relevant opted-out service in accordance with this Part and section 5 of PSPJOA 2022.
2
An opted-out service election may be made—
a
by M, or
b
where M is deceased, by the eligible decision-maker specified in Part 8.
3
Where a person other than the Scheme manager is the opted-out service decision-maker, an opted-out service election may only be made after the Scheme manager determines an application which is—
a
made by or on behalf of M,
b
in a form and manner determined by the Scheme manager,
c
received by the Scheme manager within twelve months of the date on which the Scheme manager notified M of their right to make the application, and
d
accompanied by such information—
i
which is within the person’s possession, or
ii
which the person may reasonably be expected to obtain,
that the Scheme manager may by written notice require the person to provide in relation to the decision which caused the service in question to become opted-out service.
4
As soon as is reasonably practicable after receipt of an application, the Scheme manager must—
a
determine whether an opted-out service election may be made in relation to M, and
b
notify the person who made the application whether such an opted-out service election may be made.
5
Where the Scheme manager is the opted-out service decision-maker, the Scheme manager must, as soon as is reasonably practicable after determining that they are the opted-out service decision-maker, determine whether to make an opted-out service election in relation to M.
6
The Scheme manager must refuse an application where the decision by virtue of which M’s service became opted-out service was not made pursuant to a relevant breach of a non-discrimination rule.
7
An opted-out service election to be made by—
a
a person other than the Scheme manager is made when the person confirms that an opted-out service election is to be made following receipt of the notification mentioned in sub-paragraph (4)(b);
b
the Scheme manager is made at the time determined by the Scheme manager.
8
See section 5(2) to (4) of PSPJOA 2022 about the effect, timing and irrevocability of an opted-out service election.
Chapter 2Immediate choice decision for reformed scheme or legacy scheme benefits
Application and interpretation of Chapter 28
This Chapter applies in respect of the remediable service of an immediate choice member (“M”).
Immediate choice decision for reformed scheme or legacy scheme benefits9
1
A decision (an “immediate choice decision”) may be made in accordance with this Chapter—
a
to make an election (a “section 6 election”) by virtue of section 6 of PSPJOA 2022 in relation to M’s remediable service, or
b
that no section 6 election is to be made in relation to that service.
2
An immediate choice decision may be made—
a
by M, or
b
where M is deceased, by the eligible decision-maker specified in Part 8.
3
An immediate choice decision made by—
a
a person other than the Scheme manager is made when it is received by the Scheme manager in a form and manner determined by the Scheme manager;
b
the Scheme manager is made at the time determined by the Scheme manager.
4
An immediate choice decision may only be made before the end of the section 6 election period.
5
An immediate choice decision is irrevocable.
6
An immediate choice decision to make a section 6 election takes effect as a section 6 election (see sections 6(5) and (7), 7(1)(b) and 9 of PSPJOA 2022 about the effect of a section 6 election).
7
Where—
a
immediately before 1st October 2023, M had remediable service in the reformed scheme (“reformed scheme service”), and
b
an immediate choice decision is made that no section 6 election is to be made in relation to M’s remediable service,
section 6(4) of PSPJOA 2022 does not apply in relation to M’s reformed scheme service (and, accordingly, section 2(1) of PSPJOA 2022 has effect in relation to M’s reformed scheme service for the purposes mentioned in section 2(3)(b) of that Act from the time the immediate choice decision is made).
8
The following provisions of PSPJOA 2022 have effect in relation to a decision that no section 6 election is to be made as they have effect in relation to a section 6 election—
a
section 6(7) (section 6 election has effect in respect of all remediable service in the employment or office);
b
section 7(1)(b) (provision about when a section 6 election is to be treated as having taken effect).
Immediate choice decision: additional requirements10
1
This paragraph applies where the immediate choice decision-maker (“D”) is a person other than the Scheme manager.
2
An immediate choice decision may not be made unless a remediable service statement has been provided to D in accordance with paragraph 5(2)(a) or where sub-paragraph (3) applies, in accordance with paragraph 5(3).
3
Where—
a
a remediable service statement has been provided to M in accordance with paragraph 5(2)(a), and
b
M dies before making an immediate choice decision under paragraph 9,
the section 6 election period is treated as though it had never begun in relation to M.
4
An immediate choice decision is to be treated as having been made only if D provides the information specified in any written request from the Scheme manager that is—
a
information in D’s possession, or
b
information which D can reasonably be expected to obtain.
Immediate choice decision: deemed election11
Where—
a
the end of the section 6 election period in relation to M has passed, and
b
no immediate choice decision has been made,
the Scheme manager may, if it seems reasonable in all the circumstances of the case, treat an immediate choice election as having been made in relation to M’s remediable service immediately before the end of the section 6 election period.
Chapter 3Deferred choice decision for reformed scheme or legacy scheme benefits
Application and interpretation of Chapter 312
This Chapter applies in respect of the remediable service of a deferred choice member (“M”).
Deferred choice decision for reformed scheme or legacy scheme benefits: general13
1
A decision (a “deferred choice decision”) may be made—
a
to make an election (a “section 10 election”) by virtue of section 10 of PSPJOA 2022 in relation to M’s remediable service, or
b
that no section 10 election is to be made in relation to that service.
2
A deferred choice decision may be made—
a
by M, or
b
where M is deceased, by the eligible decision-maker specified in Part 8.
3
A deferred choice decision—
a
to be made by a person other than the Scheme manager is made when it is received by the Scheme manager in a form and manner determined by the Scheme manager;
b
to be made by the Scheme manager is made at a time determined by the Scheme manager.
4
A deferred choice decision may only be made before the end of the section 10 election period.
5
A deferred choice decision to make a section 10 election takes effect as a section 10 election (see sections 10(4) and (5), 11(3)(b), (4) and (7) and 13 of PSPJOA 2022 about the effect of a section 10 election).
6
Where the deferred choice decision is that no section 10 election is to be made, the benefits payable to or in respect of M, so far as they are determined by reference to M’s remediable service, are legacy scheme benefits.
7
The following provisions of PSPJOA 2022 have effect in relation to a decision that no section 10 election is to be made as they have effect in relation to a section 10 election—
a
section 10(5) (section 10 election has effect in respect of all remediable service in the employment or office);
b
section 11(3)(b), (4) and (7) (provision about when a section 10 election take effect, and the effect of lapse or revocation of a section 10 election).
Deferred choice decision to be made by M14
1
This paragraph applies where M is the deferred choice decision-maker.
2
A deferred choice decision may only be made during the period—
a
beginning on the date a remediable service statement is issued under paragraph 5(2)(c)(i), and
b
ending—
i
at the end of the day 6 months after the day the remediable service statement mentioned in paragraph (a) was issued;
ii
subject to sub-paragraph (4), at the end of such other day as the Scheme manager considers reasonable in all the circumstances.
3
The end of the period during which a deferred choice decision may be made must not be more than the earlier of—
a
one year before the day on which it is reasonably expected that legacy scheme benefits would become payable to or in respect of M, or
b
one year before the day on which it is reasonably expected that, if a section 10 election were made, reformed scheme benefits would become payable to or in respect of M.
4
A deferred choice decision made by M may be revoked—
a
at any time before the cancellation deadline, and
b
by M communicating to the Scheme manager notice of the revocation in a form and manner determined by the Scheme manager.
5
Where the Scheme manager receives, before the cancellation deadline, notice that M has died—
a
any deferred choice decision made by M lapses, and
b
any period that has begun (whether or not it has also ended) in accordance with sub-paragraph (2) is to be treated as if it had never begun (or ended).
6
In sub-paragraphs (4) and (5), “the cancellation deadline” means—
a
the beginning of the day one calendar month before the day (“the payment day”) on which the first payment under the Scheme is due to be made in relation to M’s remediable service, or
b
such later time before the payment day as the Scheme manager considers reasonable in all the circumstances.
Deferred choice decision to be made by a person other than M15
1
This paragraph applies where a person other than M is the deferred choice decision-maker.
2
A deferred choice decision may only be made during the period—
a
beginning on the date a remediable service statement is issued under paragraph 5(2)(c)(ii), and
b
ending—
i
at the end of the day 6 months after that date;
ii
except where the Scheme manager is the deferred choice decision-maker, at such later time as the Scheme manager considers reasonable in all the circumstances;
iii
if earlier than the time which applies under sub-paragraph (i) or (ii), immediately after a deferred choice decision is made.
3
A deferred choice decision made by a person other than M is irrevocable.
Deferred choice election: deemed section 10 election16
Where—
a
the end of the section 10 election period in relation to M has passed, and
b
no deferred choice decision has been made,
the Scheme manager may, if it seems reasonable in all the circumstances of the case, treat a section 10 election as having been made in relation to M’s remediable service immediately before the end of the section 10 election period.
Deferred choice decision: additional requirements17
Where the deferred choice decision-maker (“D”) is a person other than the Scheme manager, a deferred choice decision is to be treated as having been made only if D provides the information specified in any written request from the Scheme manager that is—
a
information in D’s possession, or
b
information which D can reasonably be expected to obtain.
Part 4Provision about divorce and dissolution arrangements
Chapter 1General
Section 1Application and Interpretation of Chapter 1
Application and interpretation of Chapter 118
1
This Chapter applies in relation to—
a
a pension credit member (“C”),
b
the corresponding pension debit member (“D”), and
c
the pension sharing order by virtue of which C became a pension credit member in relation to D’s remediable service (the “relevant pension sharing order”).
2
In this Chapter—
“appropriate amount” means an amount calculated for the purposes of section 29(1) of WRPA 1999;
“cash equivalent” means an amount calculated in accordance with regulations made under section 30 of WRPA 1999;
“corresponding pension debit member” means a member of this Scheme with remediable service (whether or not by virtue of section 2(1) of PSPJOA 2022) whose benefits, or future benefits, under the Scheme are subject to a pension debit;
“legacy remediable appropriate amount” means the appropriate amount in relation to D’s remediable relevant benefits, determined as if those remediable relevant benefits had been secured in this Scheme immediately before the transfer day;
“pension credit account” means a pension credit member account in this Scheme by virtue of the relevant pension sharing order;
“pension credit member” means a member of this Scheme who has rights under the Scheme—
a
which are attributable (directly or indirectly) to a pension credit,
b
which arise by virtue of a pension sharing order with a transfer day on or after 1st April 2015, and
c
the value of which was determined (to any extent) by reference to the value of benefits payable in respect of the remediable service of another member;
“pension information” means information provided by the Scheme manager under regulations 2, 3 or 4 of the Pensions on Divorce etc. (Provision of Information) Regulations 2000;
“pension sharing order” means the order or provision by virtue of which section 29 of WRPA 1999 applies in relation to a pension credit member and the corresponding pension debit member;
“reformed remediable appropriate amount” means the appropriate amount in relation to D’s remediable relevant benefits, determined as if those remediable relevant benefits had been secured in the reformed scheme immediately before the transfer day;
“remediable relevant benefits” means the benefits or future benefits described in section 29(4) and (5) of WRPA 1999 to which D is entitled by virtue of remediable shareable rights;
“remediable shareable rights” means D’s shareable rights secured by virtue of D’s remediable service during the period beginning on 1st April 2015 and ending on the earlier of—
a
the day before the transfer day, or
b
the last day of D’s remediable service;
“shareable rights” has the meaning given in section 27(2) of WRPA 1999;
“transfer day” means the day on which the relevant pension sharing order takes effect;
“valuation day” has the meaning given in section 29(7) of WRPA 1999.
3
In this Chapter, where the Scheme manager is required to determine an amount, this must be done—
a
as soon as reasonably practicable, and
b
with regard to the advice of the Scheme actuary.
4
In this Chapter, a reference to benefits secured in “this Scheme” or the “legacy scheme”, means benefits secured under the rules in Schedules 1 and 3 to this Scheme.
Section 2Pension sharing orders: information provided before 1st October 2023
Application and interpretation of Section 219
This Section applies where the most recent pension information in respect of D’s remediable service was provided by the Scheme manager before 1st October 2023.
Information before 1st October 2023: unprotected member, NRPS 2011 only20
1
This paragraph applies where—
a
D was a transition member with continuity of service on or before 31st March 2022, and
b
the relevant pension sharing order applies only to shareable rights under this Scheme, or to shareable rights under this Scheme and any other Chapter 1 legacy schemes.
2
For the purposes of determining the pension debit under section 29(1)(a) of WRPA 1999 or the pension credit under section 29(1)(b) of WRPA 1999, D’s shareable rights do not include any rights secured by pensionable service on or after 1st April 2015.
Information and transfer day before 1st October 2023: protected members21
1
This paragraph applies—
a
where D was a full protection member of this Scheme before 1st April 2022,
b
where the transfer day in relation to a relevant pension sharing order was before 1st October 2023, and
c
whether or not C has a pension credit account in the reformed scheme under the relevant pension sharing order.
2
The Scheme manager must determine—
a
the initial appropriate amount;
b
the remediable appropriate amount.
3
The “initial appropriate amount” means the appropriate amount determined for the purposes of section 29(2) or (3) of WRPA 1999 in relation to D’s remediable shareable rights in this Scheme.
4
The remediable appropriate amount is the greater of—
a
the initial appropriate amount;
b
the reformed remediable appropriate amount.
5
Where the remediable appropriate amount is greater than the initial appropriate amount, C’s pension credit account is subject to an adjustment (a “remediable credit adjustment”) equal to the difference.
6
The Scheme manager must, as soon as reasonably practicable, provide C with a statement setting out—
a
the initial appropriate amount,
b
the reformed remediable appropriate amount,
c
the remediable appropriate amount,
d
the remediable credit adjustment, if any, and
e
where paragraph 24(4) applies in relation to C, an explanation of the request that may be made in accordance with paragraph 24(5) and the consequences of making, or not making, such a request.
7
In determining the remediable appropriate amount for the purposes of sub-paragraph (4), the percentage value for the purposes of section 29(2) WRPA 1999 is the percentage specified in the relevant pension sharing order in relation to this Scheme.
8
Where the relevant pension sharing order specifies an amount to be transferred, the Scheme manager must—
a
calculate the percentage (the “implied percentage”) that the amount to be transferred represented of the cash equivalent, on the valuation day, of all D’s shareable rights under this Scheme immediately before the transfer day;
b
determine the reformed remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent, on the valuation day, of the remediable relevant benefits as if they had been secured in the reformed scheme.
Information and transfer day before 1st October 2023: unprotected members22
1
This paragraph applies where—
a
D was a transition member with continuity of service before 1st April 2022,
b
the transfer day in relation to a relevant pension sharing order was before 1st October 2023, and
c
C has a pension credit account in the reformed scheme under the relevant pension sharing order.
2
The Scheme manager must determine—
a
the initial appropriate amount;
b
the remediable appropriate amount.
3
The “initial appropriate amount” means the appropriate amount determined, on the valuation day, for the purposes of section 29(2) or (3) of WRPA 1999 in relation to D’s remediable shareable rights on the transfer day in the reformed scheme.
4
The remediable appropriate amount is the greater of—
a
the legacy remediable appropriate amount;
b
the initial appropriate amount.
5
Where the remediable appropriate amount is greater than the initial appropriate amount, C’s pension credit account is subject to an adjustment (a “remediable credit adjustment”) equal to the difference.
6
The Scheme manager must, as soon as reasonably practicable, provide C with a statement setting out—
a
the initial appropriate amount,
b
the legacy remediable appropriate amount,
c
the remediable appropriate amount,
d
the remediable credit adjustment, if any, and
e
where paragraph 24(4) applies in relation to C, an explanation of the request that may be made in accordance with paragraph 24(5) and the consequences of making, or not making, such a request.
7
In determining the legacy remediable appropriate amount for the purposes of sub-paragraph (4), the percentage value for the purposes of section 29(2) WRPA 1999 is the percentage value specified in the relevant pension sharing order in relation to the reformed scheme.
8
Where the relevant pension sharing order specifies an amount to be transferred, the Scheme manager must—
a
calculate the percentage (the “implied percentage”) that the amount to be transferred represented of the cash equivalent of D’s shareable rights under the reformed scheme on the valuation day;
b
determine the legacy remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent of the remediable relevant benefits on the valuation day as if they had been secured in this Scheme.
Information before 1st October 2023: transfer day after 1st October23
1
This paragraph applies—
a
where the transfer day in relation to a relevant pension sharing order is on or after 1st October 2023 and
b
whether or not the relevant pension sharing order also makes provision in relation to the reformed scheme for an appropriate amount to be transferred to C.
2
The Scheme manager must determine the remediable appropriate amount.
3
The remediable appropriate amount is the greater of the following amounts—
a
the legacy remediable appropriate amount;
b
the reformed remediable appropriate amount.
4
The Scheme manager must transfer the legacy remediable appropriate amount to C’s pension credit account in this Scheme.
5
Where the remediable appropriate amount is greater than the legacy remediable appropriate amount, C’s pension credit account is subject to an adjustment (a “remediable credit adjustment”) equal to the difference.
6
The Scheme manager must, as soon as reasonably practicable, provide C with a statement setting out—
a
the legacy remediable appropriate amount,
b
the reformed remediable appropriate amount,
c
the remediable appropriate amount,
d
the remediable credit adjustment, if any, and
e
where paragraph 24(4) applies in relation to C, an explanation of the request that may be made in accordance with paragraph 24(5) and the consequences of making, or not making, such a request.
7
In determining the remediable appropriate amount for the purposes of sub-paragraph (4), the percentage value for the purposes of section 29(2) WRPA 1999 is—
a
where the relevant pension sharing order specifies a percentage value in relation to this Scheme only, that percentage value;
b
where the relevant pension sharing order specifies different percentage values in relation to this Scheme and the reformed scheme, the percentage value that is specified for the pension Scheme under which remediable relevant benefits were accrued, disregarding the effect of section 2(1) of PSPJOA 2022.
8
Where the relevant pension sharing order specifies an amount to be transferred, the Scheme manager must—
a
calculate the percentage (the “implied percentage”) that the initial appropriate amount represented of the cash equivalent of D’s shareable rights on the valuation day—
i
as if they had been secured in this Scheme, where D was a full protection member before 1st April 2022, or
ii
as if they had been secured in the reformed scheme, where D was a transition member with continuity of service before 1st April 2022;
b
determine the legacy remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent of the remediable relevant benefits as if they had been secured in this Scheme on the valuation day;
c
determine the reformed remediable appropriate amount for the purposes of section 29(3) of WRPA 1999 by applying the implied percentage to the cash equivalent of the remediable relevant benefits as if they had been secured in the reformed scheme on the valuation day.
Information provided before 1st October 2023: applying a remediable credit adjustment24
1
This paragraph applies where C’s pension credit account is subject to a remediable credit adjustment in accordance with paragraphs 21(5), 22(5) or 23(5).
2
The Scheme manager must adjust C’s pension credit account by an amount equal to the remediable credit adjustment.
3
An adjustment made under sub-paragraph (2) has effect as if it had been made on the transfer day.
4
Where C has a pension credit in the reformed scheme by virtue of the relevant pension sharing order, C may request that the value of the remediable credit adjustment is instead credited to C’s pension credit account in the reformed scheme.
5
A request under sub-paragraph (4) must—
a
be made by C in writing to the Scheme manager,
b
be in a form determined by the Scheme manager,
c
unambiguously identify C’s pension credit account in the reformed pension scheme, and
d
be received by the Scheme manager by—
i
the end of the day twelve months after the date on which the statement required by paragraphs 21(6), 22(6) or 23(6) was sent to C, or
ii
the end of such later day that the Scheme manager considers reasonable in all the circumstances.
6
A request made in accordance with sub-paragraph (5) is irrevocable.
7
Section 14(3) to (6) of PSPJOA 2022 applies in relation to C as it applies in relation to a member described in section 14(1) as if—
a
a reference to D’s remediable service in an employment or office were a reference to C’s pension credit;
b
a reference to the effect, if any, of sections 2(1) and 6(4) were a reference to the effect, if any, of this paragraph;
c
the term “operative time” means the time at which the adjustment mentioned in sub-paragraph (2) is made (disregarding sub-paragraph (3)).
Information provided before 1st October 2023: immediate choice – pension debit25
1
This paragraph applies where D is an immediate choice member of this Scheme, where—
a
D’s remediable relevant benefits are subject to a pension debit by virtue of a relevant pension sharing order,
b
an immediate choice decision has not been made or treated as made in relation to D’s remediable service under this Schedule, and
c
paragraph 20 does not apply.
2
The Scheme manager must determine the appropriate amount under section 29(1)(a) of WRPA 1999 in relation to D’s remediable relevant benefits—
a
as if those remediable relevant benefits had been secured in this Scheme on the transfer day (“legacy remediable reduction amount”), and
b
as if those remediable relevant benefits had been secured in the reformed scheme on the transfer day (“reformed remediable reduction amount”).
3
For the purposes of sub-paragraph (2) the Scheme manager must have regard to—
a
the remediable relevant benefits on the valuation day as if they had been remediable relevant benefits secured—
i
in this Scheme on the transfer day, for sub-paragraph (2)(a);
ii
in the reformed scheme on the transfer day, for sub-paragraph (2)(b),
b
the percentage value or the amount to be transferred specified in the relevant pension sharing order in relation to the pension Scheme in which remediable relevant benefits were accrued, disregarding the effect of section 2(1) of PSPJOA 2022, and
c
the provisions of sections 29 and 31 of WRPA 1999.
Information provided before 1st October 2023: immediate choice – pension debit adjustment on election26
1
This paragraph applies where—
a
D was an immediate choice member to whom paragraph 25 applied, and
b
an immediate choice decision is subsequently made in relation to D’s remediable service.
2
The Scheme manager must adjust D’s pension account in respect of D’s remediable relevant benefits so that it is subject to a debit of the reformed remediable reduction amount where an immediate choice decision is made or treated as having been made in relation to D’s remediable service under paragraph 9(1)(a) of this Schedule.
3
The Scheme manager must adjust D’s pension account in respect of D’s remediable relevant benefits so that it is subject to a debit of the legacy remediable reduction amount where an immediate choice decision is made or treated as having been made in relation to D’s remediable service under paragraph 9(1)(b) of the Schedule.
Information provided before 1st October 2023: deferred choice – pension debit27
1
This paragraph applies where D is a deferred choice member of this Scheme where—
a
D’s remediable relevant benefits are subject to a pension debit by virtue of a relevant pension sharing order,
b
a deferred choice decision has not been made or treated as made in relation to D’s remediable service under this Schedule, and
c
paragraph 20 does not apply.
2
The Scheme manager must determine the appropriate amount under section 29(1)(a) of WRPA 1999 in relation to D’s remediable relevant benefits—
a
as if those remediable relevant benefits had been secured in this Scheme on the transfer day (“legacy remediable reduction amount”), and
b
as if those remediable relevant benefits had been secured in the reformed scheme on the transfer day (“reformed remediable reduction amount”).
3
The Scheme manager must adjust D’s pension account so that it is subject to a debit of the legacy remediable reduction amount in respect of D’s remediable relevant benefits.
4
For the purposes of sub-paragraph (2) the Scheme manager must have regard to—
a
the remediable relevant benefits on the valuation day as if they had been remediable relevant benefits secured—
i
in this Scheme on the transfer day, for sub-paragraph (2)(a);
ii
in the reformed scheme on the transfer day, for sub-paragraph (2)(b),
b
the percentage value or the amount to be transferred specified in the relevant pension sharing order in relation to the pension Scheme in which remediable relevant benefits were accrued, disregarding the effect of section 2(1) of PSPJOA 2022, and
c
the provisions of sections 29 and 31 of WRPA 1999.
Information provided before 1st October 2023: deferred choice member – pension debit adjustment on election28
1
This paragraph applies where—
a
D was a deferred choice member to whom paragraph 27 applied, and
b
a deferred choice decision is subsequently made in relation to D’s remediable service.
2
The Scheme manager must adjust D’s pension account in respect of D’s remediable relevant benefits so that it is subject to a debit of the reformed remediable reduction amount determined under paragraph 27 where a deferred choice decision is made or treated as having been made in relation to D’s remediable service under paragraph 13(1)(a) of this Schedule.
3
An adjustment under sub-paragraph (2) above takes effect as if it had been made on the transfer day.
Section 3Information provided on or after 1st October 2023
Application and interpretation of Section 329
This Section applies where, on or after 1st October 2023, the Scheme manager provides pension information in respect of D’s remediable service.
Information provided on or after 1st October 2023: pension information30
1
This paragraph applies where no immediate choice decision or deferred choice decision has been made in relation to D’s remediable service before the Scheme manager provided the pension information.
2
For the purpose of providing the pension information, the Scheme manager must determine—
a
the cash equivalent of D’s remediable rights as if those remediable rights were secured in this Scheme, and
b
the cash equivalent of those rights as if they were secured in the reformed scheme.
3
The value of D’s remediable rights for the purposes of section 23 WRPA 1999 is the greater of those rights.
Information provided on or after 1st October 2023: calculation of pension credits31
1
This paragraph applies where the Scheme manager must determine an appropriate amount for the purposes of section 29 of WRPA 1999.
2
For the purpose of calculating the appropriate amount, the Scheme manager must determine—
a
the cash equivalent of D’s remediable relevant benefits on the valuation day as if those remediable relevant benefits were in this Scheme (“the legacy scheme cash equivalent”), and
b
the cash equivalent of those benefits on the valuation day as if they were in the reformed scheme (“the reformed scheme cash equivalent”).
3
For the purpose of calculating the pension credit, the Scheme manager must use the greater of—
a
the legacy scheme cash equivalent;
b
the reformed scheme cash equivalent.
Information provided on or after 1st October 2023: pension debit32
1
This paragraph applies where—
a
the Scheme manager must determine an appropriate amount for the purposes of section 29(1)(a) of WRPA 1999, and
b
no immediate choice decision under paragraph 9(1)(a) or deferred choice decision under paragraph 13(1)(a) has been made or treated as being made in relation to D’s remediable service under this Schedule.
2
The Scheme manager must determine the appropriate amount in relation to D’s remediable relevant benefits—
a
as if those remediable relevant benefits had been secured in this Scheme on the transfer day (“legacy remediable reduction amount”), and
b
as if those remediable relevant benefits had been secured in the reformed scheme on the transfer day (“reformed remediable reduction amount”).
3
Where D is a deferred choice member, the Scheme manager must adjust D’s remediable relevant benefits by the legacy remediable reduction amount.
4
An adjustment under sub-paragraph (3) takes effect as if it had been on the transfer day.
Information provided on or after 1st October 2023: pension debit adjustment on election33
1
This paragraph applies where—
a
D’s remediable relevant benefits are subject to a pension debit by virtue of a relevant pension sharing order, and
b
an immediate choice decision under paragraph 9(1)(a) or a deferred choice decision under paragraph 13(1)(a) is made or treated as being made in relation to D’s remediable service under this Schedule.
2
The Scheme manager must determine the appropriate amount under section 29(1)(a) of WRPA 1999 in relation to D’s remediable relevant benefits as if those remediable relevant benefits had been secured in the reformed scheme on the transfer day.
3
The Scheme manager must adjust D’s pension account to reflect the appropriate amount determined under sub-paragraph (2) in respect of D’s remediable relevant benefits.
4
An adjustment under sub-paragraph (3) takes effect as if it had been on the transfer day.
5
For the purposes of sub-paragraph (2), the Scheme manager must have regard to—
a
the remediable relevant benefits on the valuation day as if they had been remediable relevant benefits secured in the reformed scheme on the transfer day,
b
the percentage value or the amount to be transferred specified in the relevant pension sharing order, and
c
the provisions of sections 29 and 31 of WRPA 1999.
Chapter 2Arrangements on divorce, annulment or dissolution other than a pension sharing order
Arrangements other than a pension sharing order: calculating the value of pension benefits34
1
This paragraph applies where—
a
the value of the remediable rights of a member (“M”) must be determined for the purpose of proceedings connected to M’s divorce, annulment or the dissolution of M’s civil partnership,
b
the divorce, annulment or dissolution is to take effect—
i
on or after 1st October 2023, and
ii
before the earlier of—
aa
a decision taking effect in relation to M’s remediable service, or
bb
the end of the relevant election period, and
c
the value of M’s remediable rights is not to be subject to a pension sharing order.
2
The value of M’s remediable rights for the purpose of the proceedings is the greater of those rights valued by the Scheme manager, having regard to the advice of the Scheme actuary, as if they were—
a
secured in M’s legacy scheme, or
b
secured in the reformed scheme.
3
In this paragraph—
“decision” means an immediate choice decision or a deferred choice decision;
“pension sharing order” means an order or provision which attracts section 29 of WRPA 1999 in relation to M’s remediable rights;
“relevant election period” means, where M is—
a
a deferred choice member, the section 10 election period in relation to M;
b
an immediate choice pensioner member, the section 6 election period in relation to M;
“remediable rights” means the rights secured by virtue of M’s remediable service.
Part 5Transfers
Chapter 1General
Interpretation of Part 535
1
In this Part—
“public sector transfer arrangements” has the meaning given in rule A.1(2) of Schedule 1;
“receiving scheme”, in relation to a remediable value, means the scheme to which the remediable value was, or is to be, paid;
“reformed public service pension scheme” means—
a
a Chapter 1 scheme;
b
a judicial scheme within the meaning of section 70(1) of PSPJOA 2022;
c
a local government scheme within the meaning of section 86(1) of PSPJOA 2022;
“remediable benefits” means the benefits payable to or in respect of a remedy member in relation to that member’s remediable service;
“remediable club transfer value”, in relation to a member, means the payment or acceptance by the Scheme manager of a transfer value under Part E of Schedule 1 in accordance with the public sector transfer arrangements, in so far as the transfer value relates to the member’s remediable rights;
“remediable rights”, in relation to a member, means the member’s rights to benefits under a reformed public service pension scheme secured by virtue of the member’s remediable service;
“remediable transfer value”, in relation to a member, means the payment or acceptance by the Scheme manager of a transfer value under Part E of Schedule 1 which is not a remediable club transfer value;
“remediable value” means a remediable club transfer value or a remediable transfer value;
“sending scheme”, in relation to a remediable value, means the scheme which paid, or is to pay, the remediable value.
2
Where a provision of this Part requires the Scheme manager to calculate a club transfer value or a transfer value (including a remediable club transfer value or a remediable transfer value) in relation to rights secured in a pension scheme, that value is to be calculated in accordance with—
a
the provisions of the pension scheme which apply to the calculation of values of that type, and
b
the guidance and tables provided for the purpose of calculating such values that were, or are, in use on the date used for the original calculation.
3
For the purposes of this Part, any rule or condition in Part E of Schedule 1 or the public sector transfer arrangements relating to the time within which a transfer value payment must be made or accepted that would otherwise prevent any payments being made or accepted under this Part, is treated as complied with or met.
Transferred out remediable service statements36
Where a remedy member has transferred any rights in respect of remediable service out of this Scheme, the Scheme manager must provide a transferred out remediable service statement in accordance with direction 6(2) to (4) of the PSP Directions 2022 (and direction 6(4) applies as if the reference to “any provision made by virtue of section 29(1) of PSPJOA 2022” were a reference to paragraph 5).
Chapter 2Transfers on a cash equivalent basis
Section 4Transfers before 1st October 2023
Transfers out before 1st October 202337
1
This paragraph applies in relation to a member (“M”) in respect of whom the Scheme manager paid a remediable transfer value before 1st October 2023.
2
The Scheme manager, having regard to the advice of the Scheme actuary, must calculate the transfer value of M’s remediable rights as if they were secured in—
a
this Scheme;
b
the reformed scheme.
3
The Scheme manager must notify the receiving scheme of the results of the calculation mentioned in sub-paragraph (2).
4
Where—
a
the greater of the amounts calculated under sub-paragraph (2) (“x”) is greater than
b
the amount of the remediable transfer value (“y”) paid before 1st October 2023,
the Scheme manager must take reasonable steps to pay the receiving scheme an amount (“the remediable amount”) equal to x – y.
5
A payment made under sub-paragraph (4) is subject to the same conditions as the remediable transfer value.
6
Where—
a
paragraph (4) applies, and
b
the scheme manager, having taken reasonable steps, is unable to make the payment required by that paragraph,
the scheme manager owes M or, where M is deceased, M’s personal representatives an amount by way of compensation equal to x - y (“the compensatable amount”) reduced in accordance with paragraph (7).
7
Where, if the remediable amount was paid immediately after the requirement to pay it arose, the payment—
a
would be a payment described in regulation 6 of the Registered Pension Schemes (Authorised Payments) Regulations 200944 (“the 2009 Regulations”) as if regulation 6(1)(a) of those Regulations were omitted, the remediable amount is to be reduced by the amount equal to the income tax that would be chargeable on it as if regulation 3(b) of the 2009 Regulations applied to it;
b
would not be a payment so described, the remediable amount is to be reduced by an amount equal to the income tax that would be charged on the amount if it were taxed as pension income under Part 9 of the Income Tax (Earnings and Pensions) Act 2003.
Transfers in before 1st April 202238
1
This paragraph applies in relation to each remediable transfer value in respect of a member (“M”) which was accepted by the Scheme manager during the remedy period.
2
The Scheme manager, having regard to the advice of the Scheme actuary, must determine M’s remediable benefits as if the remediable transfer value together with any payment accepted under sub-paragraph (3) were applied in respect of rights in—
a
this Scheme;
b
the reformed scheme.
3
Where the sending scheme was a reformed public service pension scheme, the Scheme manager may accept an additional payment representing an adjustment—
a
in respect of the remediable rights to which the remediable transfer value relates, and
b
which is made by the sending scheme pursuant to, or to provision made under, PSPJOA 2022.
4
A payment accepted under sub-paragraph (3) is to be used for the purpose of determining M’s remediable benefits on the same terms as the remediable transfer value.
Section 5Transfers on or after 1st October 2023
Application of Section 539
This Section applies in respect of a member (“M”) who is—
a
a deferred choice member, and no pension benefits have become payable in relation to M’s remediable service under the NRPS 2011, or
b
an immediate choice member, where—
i
the end of the section 6 election period has not passed in relation to M, and
ii
no immediate choice decision under paragraph 9 of this Schedule has been made in relation to M’s remediable service.
Transfers out on or after 1st October 202340
1
This paragraph applies to a remediable transfer value to be paid in relation to M by the Scheme manager on or after 1st October 2023.
2
The Scheme manager, having regard to the advice of the Scheme actuary, must calculate the transfer value of M’s remediable rights as if those rights had been in—
a
this Scheme;
b
the reformed scheme.
3
The amount of the remediable transfer value is the greater of the amounts calculated under sub-paragraph (2).
Chapter 3Transfers on a club basis
Section 6Club transfers before 1st October 2023
Club transfers out before 1st October 202341
1
This paragraph applies in relation to a member (“M”) in respect of whom the Scheme manager paid a remediable club transfer value before 1st October 2023.
2
The Scheme manager, having regard to the advice of the Scheme actuary, must calculate the following amounts—
a
the transfer value of M’s rights under the Scheme, in accordance with the public sector transfer arrangements, as if M’s remediable rights had been secured in this Scheme;
b
the club transfer value of M’s rights under the Scheme as if M’s remediable rights had been secured in the reformed scheme.
3
The Scheme manager must provide to the receiving scheme the result of the calculations mentioned in sub-paragraph (2).
4
Where the receiving scheme is a local government scheme (within the meaning of section 86(1) of PSPJOA 2022), and—
a
the greater of the amounts calculated under sub-paragraph (2) (“x”) is greater than
b
the amount of the remediable transfer value (“y”),
the Scheme manager must pay the receiving scheme an amount equal to x – y.
5
A payment made under sub-paragraph (4) is subject to the same conditions as the remediable club transfer value.
Section 7Club transfers on or after 1st October 2023
Application of Section 742
This Section applies in respect of a deferred choice member (“M”) where no pension benefits have become payable in relation to M’s remediable service under this Scheme.
Club transfers out on or after 1st October 202343
1
This paragraph applies in relation to a remediable club transfer value to be paid by the Scheme manager on or after 1st October 2023.
2
The Scheme manager must calculate the following amounts—
a
the transfer value of M’s rights under the Scheme, in accordance with the public sector transfer arrangements, as if M’s remediable rights had been secured in the legacy scheme;
b
the club transfer value of M’s rights under the Scheme as if M’s remediable rights had been secured in the reformed scheme.
3
The amount of the remediable club transfer value is the greater of the amounts calculated under sub-paragraph (2).
4
The Scheme manager must provide to the receiving scheme the result of the calculations mentioned in sub-paragraph (2).
Chapter 4Transfers to and from the AFPS 2015
Transfers out before 1st October 2023: AFPS 201544
1
This paragraph applies where—
a
the Scheme manager for the reformed scheme paid a remediable transfer value in respect of a remedy member (“M”) before 1st October 2023, and
b
M’s remediable service is pensionable service under this Scheme by virtue of section 2(1) of PSPJOA 2022.
2
The remediable transfer value in sub-paragraph (1)(a)—
a
is not, and is treated as never having been, paid by the reformed scheme, and
b
is treated as being, and as always having been, paid by this Scheme.
3
In particular, paragraph (1) has effect—
a
for the purposes of determining which Scheme is (or at any time was) required to pay benefits to, or in respect of, the remediable transfer value in sub-paragraph (1)(a), and
b
for all other purposes.
4
Paragraph 37 applies to a remediable transfer value which is treated as paid from this Scheme under this paragraph.
Transfers in before 1st October 2023: AFPS 201545
1
This paragraph applies where—
a
the Scheme manager for the reformed scheme accepted a remediable transfer value in respect of a remedy member (“M”) during the period of M’s remediable service, and
b
M’s remediable service is pensionable under this Scheme by virtue of section 2(1) of PSPJOA 2022.
2
The remediable transfer value in sub-paragraph (1)(a)—
a
is not, and is treated as never having been, accepted into the reformed scheme, and
b
is treated as being, and as always having been, accepted into this Scheme.
3
Paragraph (1) has effect—
a
for the purposes of determining which Scheme is (or at any time was) required to pay benefits to, or in respect of, the remediable transfer value in sub-paragraph (1)(a), and
b
subject to paragraph 46, for all other purposes.
4
Paragraph 38 applies to a remediable transfer value which is treated as accepted into this Scheme under this paragraph.
Chapter 5Treatment of transferred in remediable rights
Treatment of rights secured by virtue of transferred in remediable rights46
1
This paragraph applies where the Scheme manager has accepted a remediable value in relation to a remedy member (“M”).
2
Sub-paragraph (3) applies where the Scheme manager has accepted payments to which paragraph 45 apply.
3
The Scheme manager must confer rights to benefits under Part F of Schedule 1 in relation to the remediable value that are equivalent to the rights that would have been secured if the remediable value had been transferred into this Scheme in the same relevant pension year in which the remedy period transfer value was accepted by the Scheme manager of the reformed scheme.
4
Sub-paragraph (5) applies where—
a
the benefits payable to or in respect of M’s remediable service are reformed scheme benefits by virtue of an immediate choice decision under paragraph 9(1)(a) or a deferred choice decision under paragraph 13(1)(a) (including, in either case, a deemed election), and
b
the rights to benefits payable in relation to M’s remediable value would otherwise be legacy scheme benefits.
5
Where this paragraph applies, the Scheme manager must—
a
have regard to the advice of the Scheme actuary where the remediable value is a remediable transfer value under paragraphs 38 or 45, together with any payment accepted under paragraph 38(3;
b
vary the value of those rights so that they are of an equivalent value to rights M would have secured under the reformed scheme if the remediable value had been transferred into that Scheme in the same relevant pension year that the remediable value was accepted.
6
In this Chapter, “relevant pension year” has the meaning given by direction 5(16)(c)(i) of the PSP Directions 2022.
Benefits already paid in relation to transferred in remediable rights47
1
Sub-paragraph (2) applies in relation to any benefits (“the paid benefits”) that the reformed scheme has at any time paid to a person (“P”) so far as—
a
they are calculated by reference to a remediable value, and
b
they are benefits that, as a result of paragraphs 45(2)(a), P was not entitled to receive from the reformed scheme.
2
The paid benefits are to be treated for all purposes—
a
as not having been paid to P by the reformed scheme, but
b
as having been paid to P instead by this Scheme.
Pension benefits and lump sum benefits in relation to a remediable value48
1
This paragraph applies in relation to any benefits that have been paid in relation to a remediable value accepted in relation to an immediate choice member (“M”).
2
Where, at the operative time—
a
the aggregate of benefits that (after taking into account the effect, if any, of paragraph 47) have been paid under the legacy scheme to any person (“the beneficiary”) in respect of the remediable value, exceeds
b
the aggregate of the benefits to which (after taking into account the effect, if any, of paragraphs 45 and 46 in relation to the rights) the beneficiary is entitled under the Scheme in respect of the remediable value,
the beneficiary must pay an amount equal to the difference to the Scheme.
3
Where, at the operative time—
a
the amount mentioned in sub-paragraph (2)(a), is less than
b
the amount mention in sub-paragraph (2)(b),
the Scheme manager must pay an amount equal to the difference to the beneficiary.
4
In this paragraph, “the operative time” means—
a
if an immediate choice decision is made in relation to M’s remediable service, the time that the decision is made;
b
otherwise, the end of the section 6 election period in relation to M.
Part 6Provision about special cases
Chapter 1Child pensions in payment
Protection of the amount of pension payable to an eligible child49
1
This paragraph applies where—
a
a child pension is in payment to an eligible child (“E”) in respect of the remediable service of a deceased member (“M”),
b
the eligible decision-maker specified in Part 8 makes an immediate choice decision or a deferred choice decision which would (disregarding this paragraph) result in a decrease in the rate of child pension payable to E in respect of M’s remediable service,
c
the eligible decision-maker does not live in the same household as E.
2
Where this paragraph applies—
a
E does not owe the Scheme manager a liability under section 14(3) of PSPJOA 2022 in respect of the child pension, and
b
the rate of child pension continues to be the rate that was payable before the decision was made.
3
For the purposes of this paragraph, a child’s pension means—
a
a pension under rule D.10 of Schedule 1;
b
a pension under regulation 72 of the AFP Regulations 2014.
Chapter 2Ill-health retirement
Full Protection Member: determining entitlement to ill-health pension under the reformed scheme50
1
This paragraph applies in relation to an immediate choice member (“M”) who, during the period beginning on 1st April 2015 and ending on 31st March 2022 was—
a
a full protection member of the NRPS 2011 Scheme within the meaning of Part 2 of Schedule 3, and
b
medically discharged with an entitlement to an ill-health pension under rule C.6 of Schedule 1.
2
The Scheme manager must, as soon as reasonably practicable, determine whether M would have met the criteria for an ill-health pension under regulations 51 or 52 of the AFP Regulations 2014 at the time M was discharged (“the IHP decision”).
3
No remediable service statement may be provided to or in respect of M’s remediable service until such time as the IHP decision has been made.
4
Where a remediable service statement has been provided under paragraph 5(2)(a) before the IHP decision has been finally determined, the section 6 election period may be extended until such time after the IHP decision is finally determined as the Scheme manager considers reasonable in all the circumstances.
5
The IHP decision is finally determined when any route to appeal such determinations has been exhausted (including where no application for appeal or review has been received by the Scheme manager by the end of the section 6 election period).
Early payment of preserved pension in case of ill-health51
1
This paragraph applies to a remedy member (“M”) who, during the period beginning on 1st April 2015 and ending on 31st March 2022—
a
was in remediable service under the NRPS 2011, and
b
became entitled to a pension under rule C.7 of Schedule 1 or paragraph 14 of Schedule 3, in respect of that remediable service.
2
The Scheme manager must, as soon as reasonably practicable after 1st October 2023, determine whether M would have met the criteria for an ill-health pension (“the IHP decision”)—
a
under regulation 56 of the AFP Regulations 2014 at the time M became entitled to the pension under rule C.7, or
b
under rule C.7 of Schedule 1 at the time M became entitled to the pension under paragraph 14 of Schedule 3.
3
No remediable service statement may be provided to or in respect of M’s remediable service until such time as the IHP decision has been made.
4
Where a remediable service statement has been provided under paragraph 5(2)(a) before the IHP decision has been finally determined, the section 6 election period may be extended until such time after the IHP decision is finally determined as the Scheme manager considers reasonable in all the circumstances.
5
The IHP decision is finally determined when any route to appeal such determinations has been exhausted (including where no application for appeal or review has been received by the Scheme manager by the end of the section 6 election period).
Chapter 3Application of Schedule 3 (Transitional Provision)
Application of Chapter 352
This Chapter applies where a section 6 election under paragraph 9(1)(a) or a section 10 election under paragraph 13(1)(a) is made in relation to a remedy member’s (“M”) remediable service.
Calculation of Benefits for remediable service: election for new Scheme benefits53
1
For the purposes of calculating the benefits due to, or in respect of, M in relation to their remediable service, M is treated as though they were a transition member with continuity of service within the meaning of paragraph 2 of Schedule 3.
2
For these purposes—
a
M’s transition date is taken to be 1st April 2015;
b
the date on which M joined the AFPS 2015 is taken to be 1st April 2015;
c
references to M’s pensionable service in the AFPS 2015 include M’s period of remediable service in the NRPS 2011;
d
references to M’s reckonable service in the NRPS 2011 mean M’s reckonable service up to the end of 31st March 2015;
e
where M died before 1st April 2022, references in Part 4 of Schedule 2 to M dying as a member of the AFPS 2015 include a case where M died as a member of the NRPS 2011 (whether or not by virtue of section 2(1) of PSPJOA 2022).
Chapter 4Nomination
Death Lump Sum Nomination
54
Where—
a
M had made a nomination in relation to remediable service in the AFPS 2015 under regulation 84 of the AFP Regulations 2014,
b
that nomination would be valid if M was a member of the AFPS 2015, and
c
an immediate choice decision under paragraph 9(1)(a) or a deferred choice decision under paragraph 13(1)(a) is made in relation to M’s remediable service,
the nomination has effect in relation to benefits payable in relation to M’s remediable service.
Chapter 5Scheme Pays
Payment of annual allowance tax charge and provision of information
55
Where a remedy member is unable to give an effective notice to the Scheme manager under section 237B(3) of FA 2004 in relation to an in-scope tax year (within the meaning of direction 7(7) of the PSP Directions 2022) because the time limit in section 237BA(2) has passed, direction 7(2) to (6) of the PSP Directions 2022 applies in relation to the remedy member.
Part 7Liabilities and payment
Chapter 1Application of Part 7
Application of Chapters 1, 2 and 3
56
Chapters 1, 2 and 3 apply in relation to a relevant amount owed in respect of the remediable service of a remedy member.
Chapter 2Interest, compensation and netting off
Interest57
1
The Scheme manager must calculate interest on a relevant amount described in direction 15 of the PSP Directions 2022 in accordance with the provisions of directions 14 and 15 which apply to that description of relevant amount.
2
In relation to a relevant amount not described in direction 15 of the PSP Directions 2022, the Scheme manager must determine whether interest is paid and, if so, what rate of interest applies and how it is calculated.
3
The following provisions of the PSP Directions 2022 apply in relation to a determination under sub-paragraph (2) as if it were a determination under direction 16(1) of those Directions—
a
direction 16(2) (provision of explanation);
b
direction 16(3) and (4) (appeals).
Indirect compensation58
1
This paragraph applies where pursuant to an application under paragraph 59, the Scheme manager determines that an immediate choice member (“M”) has incurred a compensatable loss that is a Part 4 tax loss (a “relevant loss”).
2
M is not to be paid an amount under section 23 of PSPJOA 2022 by way of compensation in respect of the relevant loss.
3
Instead, the amount of benefit payable under the Scheme is to be increased to reflect the amount of the relevant loss in such manner as determined by the Scheme manager in accordance with direction 10(2) to (4) of the PSP Directions 2022.
Applications for compensation or indirect compensation59
1
This paragraph applies in relation to—
a
the payment of a relevant amount by way of compensation under section 23(1) of PSPJOA 2022;
b
the increase of benefits by way of indirect compensation under paragraph 58.
2
The relevant amount is not payable, or (as the case may be) the benefits are not to be increased, except where—
a
an application is made in accordance with direction 18(1) and (2) of the PSP Directions 2022,
b
the application is accompanied by such information that the Scheme manager may by written notice require the person making the application (“P”) to provide in relation to the proposed compensation which is—
i
information within P’s possession, or
ii
information which P may reasonably be expected to obtain, and
c
the Scheme manager makes a determination in accordance with direction 18(3) of those Directions.
3
The following apply in relation to a determination under direction 18(3) of the PSP Directions 2022—
a
direction 18(4) (provision of explanation);
b
direction 18(5) and (6) (appeals).
Netting off60
1
This paragraph applies where—
a
relevant amounts owed by and to a person (“P”) fall to be paid at the same time or similar times, and
b
the Scheme manager has determined the interest (if any) that is to be paid on the relevant amounts in accordance with paragraph 57.
2
The Scheme manager may determine, in accordance with direction 19(2) to (5) of the PSP Directions 2022, that the relevant amounts (and any interest on them) must be aggregated and that the difference must be paid by P to the Scheme or (as the case may be) by the Scheme to P.
3
For the purposes of this paragraph, any amounts owed by P under the rules of a relevant injury and compensation Scheme are treated as a relevant amount owed by P to this Scheme, where those amounts arose by virtue of the operation of the provisions of Chapter 1 of Part 1 of PSPJOA 2022.
4
The following provisions of the PSP Directions 2022 apply in relation to a determination under sub-paragraph (2) as if it were a determination under direction 19(1) of those Directions—
a
direction 19(6) (provision of explanation);
b
direction 19(7) and (8) (appeals).
Chapter 3Reduction and waiver of liabilities
Power to reduce or waive amounts owed by a person to the Scheme manager61
1
The Scheme manager may reduce or waive an amount owed by a person to the Scheme under—
a
section 14 of PSPJOA 2022, or
b
this Schedule.
2
When reducing or waiving an amount under sub-paragraph (1), the Scheme manager must comply with the requirements set out in direction 4(1)(a) to (c) of the PSP Directions 2022 (and the reference in direction 4(1)(c) to “any Scheme regulations made by virtue of section 26(1)(b) of PSPJOA 2022” is to be read as a reference to paragraph 63).
Chapter 4Payment of net liabilities
Application of Chapter 462
This Chapter applies in respect of a relevant amount (together with any interest on that relevant amount) owed after taking into account the effect, if any, of paragraphs 57 to 61 (a “net liability”).
Payment of amounts owed to the Scheme manager63
1
This paragraph applies where a person (“P”) owes a net liability to the Scheme manager.
2
The Scheme manager must send notice in writing to P setting out—
a
how the net liability has been calculated,
b
an explanation of the circumstances in which the net liability may be reduced or waived under paragraph 61,
c
when and how the net liability must be paid, and
d
the consequences of not paying the net liability.
3
Where—
a
the Scheme manager has sent a notice under sub-paragraph (2), and
b
the amount of the net liability is subsequently adjusted,
the Scheme manager must send another notice in writing to P under sub-paragraph (2).
4
P must pay the amount of the net liability to the Scheme manager—
a
before the end of the period of six months beginning with the day after the day on which P receives the most recent notice under sub-paragraph (2), or
b
in accordance with an agreement under sub-paragraph (5).
5
P and the Scheme manager may agree that the net liability is to be paid in part or in full—
a
by way of instalments, or
b
by way of deductions from any benefits (including a lump sum benefit) to which P is entitled under an armed forces pension scheme.
6
P and the Scheme manager may agree to vary an agreement under sub-paragraph (5).
7
Where P does not pay any amount that falls due by virtue of sub-paragraph (4)(a) or an agreement under sub-paragraph (5), the Scheme manager may deduct such sums from benefits payable to P under an armed forces pension scheme as seem reasonable to the Scheme manager for the purpose of discharging P’s liability.
Payment of amounts owed to a person64
1
This paragraph applies where the Scheme manager owes a net liability to a person (“P”).
2
The Scheme manager must pay the amount of the net liability to P—
a
as soon as reasonably practicable after the Scheme manager determines the amount of the net liability, or
b
where the Scheme manager requires P to provide information in accordance with sub-paragraph (3), as soon as reasonably practicable after receipt of that information.
3
Before paying the amount of a net liability owed to P, the Scheme manager may, by written notice given as soon as reasonably practicable after the Scheme manager determines the amount of the net liability, require P to provide information in relation to the payment of the net liability which is—
a
information within P’s possession, or
b
information which P may reasonably be expected to obtain.
Part 8Eligible decision-makers for deceased members
Application and Interpretation of this Part65
1
This Part applies where a remedy member (“M”) has died and an eligible decision-maker is required to make a decision or election under this Schedule.
2
In this Part—
“adult” means—
a
in England and Wales, and Northern Ireland, a person over the age of 18;
b
in Scotland, a person over the age of 16;
“beneficiary” means a person who has become entitled to receive any death benefit;
“child”, except in the term “eligible child”, means—
a
in England and Wales, and Northern Ireland, a person under the age of 18;
b
in Scotland, a person under the age of 16;
“death benefit” means a benefit payable under Part E of Schedule 1 or Part 6 of the AFP Regulations 2014 in relation to the death of a member;
“guardian” means a person with parental responsibility for a child, and where there is more than one person with parental responsibility for a child, the person with whom the child usually resides;
“personal representative” means the person or persons named in the—
a
Grant of Probate, or
b
Grant of Letters of Administration, or
c
Confirmation
issued in respect of M’s estate;
“surviving adult” means—
a
a surviving spouse;
b
a surviving civil partner;
c
a person eligible for a pension under rule D3(7) of Schedule 1;
d
a surviving adult dependant within the meaning of regulation 67 of the AFP Regulations 2014.
3
In this Part, a reference to—
a
a beneficiary is a reference to a beneficiary of death benefits in relation to M’s remediable service;
b
an eligible child is a reference to an eligible child of M;
c
a surviving adult is a reference to a surviving adult in relation to M.
Sole beneficiary: an adult66
Where a person is—
a
the sole beneficiary, and
b
an adult,
the eligible decision-maker is that person.
Sole beneficiary: a child67
Where a person (“C”) is—
a
the sole beneficiary, and
b
a child,
the eligible decision-maker is C’s guardian.
Sole beneficiary: M’s estate68
Where M’s estate is the sole beneficiary, the eligible decision-maker is—
a
M’s personal representative;
b
where M has no personal representative, the Scheme manager.
Sole beneficiary: a body69
Where a body (corporate or unincorporate) is the sole beneficiary, the eligible decision-maker is—
a
M’s personal representative, or
b
where M has no personal representative, the Scheme manager.
Multiple beneficiaries: including a surviving adult70
Where—
a
two or more adults are the only beneficiaries, and
b
one of those adults is a surviving adult (“A”),
the eligible decision-maker is A.
Multiple beneficiaries: including adult eligible children71
1
Where—
a
two or more adults are the only beneficiaries,
b
none of those adults is a surviving adult, and
c
two or more of those adults are eligible children,
the eligible decision-maker is determined in accordance with sub-paragraph (2).
2
The eligible decision-maker is—
a
the person agreed upon by the adult eligible children, or
b
the Scheme manager, where no decision about whether to make an election has been received by the Scheme manager by the day by which an election must, in accordance with this Schedule, be received by the Scheme manager.
Multiple beneficiaries: nominated individuals only72
1
Where—
a
two or more adults (the “nominated adults”) are beneficiaries of a lump sum death benefit, and
b
none of the following are beneficiaries—
i
a surviving adult, or
ii
an eligible child (whether or not an adult),
the eligible decision-maker is determined in accordance with sub-paragraph (2).
2
The eligible decision-maker is—
a
M’s personal representative;
b
where M has no personal representative, the person agreed upon by the nominated adults;
c
where—
i
M has no personal representative, and
ii
no decision about whether to make an election has been received by the Scheme manager by the day by which an election must, in accordance with this Schedule, be received by the Scheme manager,
the Scheme manager.
Multiple beneficiaries: non-adult eligible children73
Where the only beneficiaries are children, two or more of whom are eligible children, the eligible decision-maker is—
a
where one person has parental responsibility for all the eligible children, that person;
b
otherwise—
i
M’s personal representative, or
ii
where M has no personal representative, the Scheme manager.
Multiple beneficiaries: nominated children only74
Where the only beneficiaries of lump sum death benefits are two or more children who are not eligible children, the eligible decision-maker is—
a
where one person has parental responsibility for all the children, that person;
b
otherwise—
i
M’s personal representative, or
ii
where M has no personal representative, the Scheme manager.
Multiple beneficiaries: one or more adults and one or more children75
1
Where the beneficiaries include one or more adults and one or more children—
a
M’s personal representative is the eligible decision-maker;
b
where M has no personal representative, and—
i
one of the beneficiaries is a surviving adult, that surviving adult is the eligible decision-maker;
ii
none of the beneficiaries is a surviving adult and—
aa
one or more of the beneficiaries is an eligible child, or
bb
none of the beneficiaries is a surviving adult or an eligible child,
the eligible decision-maker is determined in accordance with sub-paragraph (2).
2
Where sub-paragraph (1)(b)(ii) applies, and—
a
all relevant children are under 18 and—
i
have, or had, the same guardian, the eligible decision-maker is that guardian;
ii
do not, or did not, have the same guardian, the eligible decision-maker is the Scheme manager;
b
all relevant children are 18 or over, the eligible decision-maker is—
i
the person agreed upon by those relevant children, or
ii
the Scheme manager, where no decision about whether to make an election has been received by the Scheme manager by the day by which an election must, in accordance with this Schedule, be received by the Scheme manager;
c
one or more relevant children are under 18 and one or more of the relevant children are 18 or over, the eligible decision-maker is the person agreed upon by—
i
the relevant children who are 18 or over, and
ii
the guardian (or guardians) of the relevant children who are under 18.
3
In sub-paragraph (2), a relevant child is—
a
where sub-paragraph (1)(b)(ii)(aa) applies, an eligible child;
b
where sub-paragraph (1)(b)(ii)(bb) applies, a person who—
i
has never married or formed a civil partnership, and
ii
meets any of conditions A, B or C as set out in regulation 73 of the AFP Regulations 2014.
Other cases76
In any case not covered by paragraphs 66 to 75, the eligible decision-maker is the Scheme manager.