Public Service Pensions and Judicial Offices Act 2022
For the purposes of this Chapter any continuous period of service of a person in an employment or office is “remediable service” in that employment or office if the following four conditions are met.
In this section “the service in question” means the service mentioned in subsection (1).
The first condition is that the service in question takes place in the period beginning with the day after the closing date and ending with 31 March 2022.
The second condition is that the service in question is— The second condition is met if all of the service in question falls within paragraphs (a) to (c) (even if it does not all fall within only one of those paragraphs).
pensionable service under a Chapter 1 legacy scheme,
pensionable service under a Chapter 1 new scheme that would have been pensionable service under a Chapter 1 legacy scheme but for the person’s failure to meet a condition relating to the person’s attainment of normal pension age, or another specified age, by a specified date, or
excess teacher service.
The third condition is that the person—
was, on 31 March 2012 or any earlier day, in service in any employment or office that is pensionable service under—
a Chapter 1 legacy scheme,
a judicial legacy scheme (within the meaning of Chapter 2), or
a local government legacy scheme (within the meaning of Chapter 3), or
is not within paragraph (a) and was, on 31 March 2012, in service as a firefighter which entitled the person to be an active member of a relevant firefighters’ legacy scheme.
The fourth condition is that there is no disqualifying gap in service falling within the period—
beginning with—
in a case in which the third condition is met by virtue of subsection (5)(a), the day after the most recent day in relation to which that condition is met;
in a case in which the third condition is met by virtue of subsection (5)(b), 1 April 2012, and
ending with the day before the first day of the service in question.
In subsection (6) “disqualifying gap in service” means a period longer than 5 years at no time during which is the person in service in an employment or office which—
is pensionable service under—
a Chapter 1 scheme,
a judicial scheme (within the meaning of Chapter 2), or
a local government scheme (within the meaning of Chapter 3),
is, as a result of a Fair Deal transfer, pensionable service under a Fair Deal scheme, or
is, as a result of a local government contracting-out transfer, pensionable service under a pension scheme that offers pension arrangements that are broadly comparable with those offered to the person before the transfer.
In this Chapter “the closing date” means—
31 March 2015 in relation to service which is pensionable service under a Chapter 1 scheme that is not an Agency scheme;
31 March 2016 in relation to service which is pensionable service under an Agency scheme.
In determining for the purposes of this section whether any service is pensionable service under a particular scheme, sections 2(1), 42(2) to (5) and 45(2) (under which service may be treated as pensionable, or not pensionable, under particular schemes) are to be disregarded. See also section 30(1) (which requires section 61 of the Equality Act 2010 and paragraph 2 of Schedule 1 to EEAR(NI) 2006 to be disregarded).
For provision under which the second condition is treated as met in relation to a person’s service in an employment or office, despite the service not being pensionable service under a Chapter 1 scheme or excess teacher service, see section 5(2) (opted-out service).
A person’s remediable service in an employment or office that would, apart from this subsection, be pensionable service under a Chapter 1 new scheme— For the meaning of “the relevant Chapter 1 legacy scheme”, see section 4.
is not, and is treated as never having been, pensionable service under that scheme, and
is treated as being, and as always having been, pensionable service under the relevant Chapter 1 legacy scheme.
Where a person has remediable service in multiple employments or offices, subsection (1) applies separately in relation to the person’s remediable service in each of them.
Subsection (1) has effect—
for the purposes of determining which Chapter 1 scheme is (or at any time was) required to pay benefits to or in respect of a member,
for the purposes of determining the amount of any benefits that are (or at any time were) payable under a Chapter 1 scheme to or in respect of a member, and
subject to subsection (4), and to any other provision of this Chapter to the contrary, for all other purposes.
Subsection (1) does not have effect for the purposes of determining the existence or amount of any liability that any member of a Chapter 1 scheme, or any employer in relation to such a scheme, has (or at any time had) to pay pension contributions in respect of a person’s remediable service.
Subsection (1) does not affect—
any arrangements under a Chapter 1 scheme under which a member pays contributions to the scheme on a voluntary basis so as to secure additional benefits, or the earlier payment of benefits, under the scheme, or
any rights under a Chapter 1 scheme in respect of a transfer in to the scheme of an amount in respect of rights accrued under another pension scheme.
For provision disapplying subsection (3)(b), or affecting the time at which that provision applies, in relation to pensioner and deceased members, see section 6 (immediate choice to receive new scheme benefits).
For further provision under which benefits determined by reference to a member’s remediable service may be new scheme benefits, see section 10 (deferred choice to receive new scheme benefits).
Subsection (2) applies in relation to any benefits (“the paid benefits”) that a Chapter 1 new scheme has at any time paid to a person (“P”) so far as—
they are calculated by reference to P’s, or any other person’s, remediable service in an employment or office, and
they are benefits that, as a result of section 2(1)(a), P was not entitled to receive from the scheme.
The paid benefits are to be treated for all purposes—
as not having been paid to P by the Chapter 1 new scheme, but
as having been paid to P instead by the relevant Chapter 1 legacy scheme.
In this Chapter “the relevant Chapter 1 legacy scheme”, in relation to a person’s remediable service in an employment or office, means the Chapter 1 legacy scheme for people in that employment, or holders of that office, under which (disregarding section 2(1)) the person most recently accrued pensionable service. This is subject to subsections (2) to (8).
In a case in which— “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office, means the Chapter 1 legacy scheme mentioned in paragraph (c).
on or before the closing date, the person opted that their service in the employment or office in question should no longer be pensionable service under the Chapter 1 legacy scheme mentioned in subsection (1),
on the closing date, the rules of that scheme prohibited a person from becoming an active member of the scheme, and
on that date, the rules of another Chapter 1 legacy scheme for people in the employment, or holders of the office, in question did not include such a prohibition,
In a case in which— “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office that takes place after the time mentioned in paragraph (b), means the Chapter 1 legacy scheme mentioned in paragraph (d).
at any time after the closing date, the person—
opted that their service in the employment or office in question should no longer be pensionable service under a Chapter 1 scheme, or
ceased to be in service in the employment or office in question,
at any later time before 1 April 2022, the person—
opted that their service in the employment or office in question should again be pensionable service under a Chapter 1 scheme, or
resumed service in the employment or office in question,
at that time, the rules of the Chapter 1 legacy scheme mentioned in subsection (1) prohibited a person from becoming an active member of the scheme, and
at that time, the rules of another Chapter 1 legacy scheme for people in the employment, or holders of the office, in question did not include such a prohibition,
In a case in which any of the person’s remediable service in the employment or office in question is excess teacher service, “the relevant Chapter 1 legacy scheme”, in relation to so much of the person’s remediable service as is excess teacher service, means the local government new scheme mentioned in section 110(2).
Subsection (6) applies in a case in which—
the person never accrued pensionable service as mentioned in subsection (1), or
paragraphs (a) and (b) of subsection (2) apply, but no Chapter 1 legacy scheme falls within paragraph (c) of that subsection.
Where this subsection applies, “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office, means the Chapter 1 legacy scheme for people in the employment, or holders of the office, in question that the person would have been eligible to join on 31 March 2012 if, on that date, the person—
had been in that employment or a holder of that office, and
had met all other conditions as to eligibility (if any).
Subsection (8) applies in a case in which paragraphs (a) to (c) of subsection (3) apply, but no Chapter 1 legacy scheme falls within paragraph (d) of that subsection.
Where this subsection applies, “the relevant Chapter 1 legacy scheme”, in relation to the person’s remediable service in the employment or office that takes place after the time mentioned in subsection (3)(b), means the Chapter 1 legacy scheme for people in the employment, or holders of the office, in question that the person would have been eligible to join on 31 March 2012 if, on that date, the person—
had been in that employment or a holder of that office, and
had met all other conditions as to eligibility (if any).
Remediable service that is treated under section 2(1) as pensionable service under a Chapter 1 legacy scheme is, if the scheme has different sections or otherwise makes different provision in relation to different people, treated as pensionable service under—
the section or provision of the scheme under which the person most recently accrued pensionable service (disregarding section 2(1)), or
if the person has not (disregarding section 2(1)) accrued pensionable service under the scheme, the section or provision under which the person would have accrued service if on 31 March 2012 the person had been in service in the employment or in the office in question, and had joined the scheme on that date.
Scheme regulations for a Chapter 1 legacy scheme must make provision so as to secure that an election may be made in relation to relevant opted-out service in an employment or office.
Where an election by virtue of this section is made in relation to relevant opted-out service in an employment or office—
the second condition in section 1 is treated as met in relation to the service (so that the service becomes “remediable service”), and
section 2(1)(b) applies to the service (so that the service is treated as pensionable service under the relevant Chapter 1 legacy scheme).
An election by virtue of this section—
must be made before the end of the election period,
takes effect when it is made, and
is irrevocable.
In subsection (3) “the end of the election period” means—
the end of the period of one year beginning with the day on which a remediable service statement is first provided in respect of the member, or
such later time as the scheme manager considers reasonable in all the circumstances.
Scheme regulations made by virtue of subsection (1) may, in particular, include provision—
under which an election may be made in relation to a person’s relevant opted-out service only on the making of an application by or on behalf of the person;
under which an application by virtue of paragraph (a) may be refused unless a condition specified in the regulations is met;
requiring information to be provided before an election is made;
about the form and manner in which an election is to be made;
about who may make an election in relation to the service of a deceased member.
The conditions that may be specified by virtue of subsection (5)(b) include in particular—
a condition relating to the reason why the person opted that the service to which the application relates should not be pensionable service (or did not opt that it should be pensionable service) under a Chapter 1 scheme;
a condition requiring—
the transfer to the scheme of any assets and liabilities held for the purposes of a partnership pension account that are referable to pension contributions made by or on behalf of the person in respect of the person’s relevant opted-out service, and
the surrender of any entitlement to a pension under the scheme, and any right to a future pension under the scheme, that would otherwise arise under the rules of the scheme in respect of the value of the assets and liabilities transferred;
in cases in which any assets and liabilities that are referable to pension contributions made by or on behalf of the person have been transferred out of a partnership pension account, a condition requiring the payment to the scheme of an amount in respect of the transfer.
For the purposes of this section a person’s opted-out service is “relevant” in relation to a Chapter 1 legacy scheme if the scheme is the relevant Chapter 1 legacy scheme (within the meaning given by section 4) in relation to that service (reading any reference in that provision to remediable service as a reference to opted-out service).
Scheme regulations for a Chapter 1 legacy scheme must make provision so as to secure that an election for new scheme benefits may be made in relation to the remediable service in an employment or office of a relevant member of the scheme that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is a pensioner member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, or
is deceased.
Where a member has remediable service in multiple employments or offices that is pensionable service under the scheme, provision made under subsection (1) must include provision for separate elections in relation to the member’s remediable service in each of them.
Section 2(1)—
has effect in relation to a relevant member’s remediable service in an employment or office for the purposes mentioned in section 2(3)(b) (effect of section 2(1) on amount of benefits payable) only if no election by virtue of this section is made before the end of the section 6 election period, and
in such a case, applies for those purposes in relation to the relevant member’s remediable service from the end of the section 6 election period.
Where an election by virtue of this section is made in relation to a member’s remediable service in an employment or office, the benefits payable under the scheme to or in respect of the member, so far as they are determined by reference to the member’s legacy scheme remediable service in the employment or office, are new scheme benefits.
For the purposes of subsection (5) a member’s remediable service in an employment or office is “legacy scheme remediable service” in that employment or office if and to the extent that it is pensionable service under a Chapter 1 legacy scheme otherwise than by virtue of section 2(1).
An election by virtue of this section has effect in relation to all of the member’s remediable service in the employment or office in question that is pensionable service under the scheme.
An election—
must be made before the end of the section 6 election period,
is treated as having taken effect—
immediately before the member became a pensioner member of the scheme, or (if earlier) became a pensioner member of a Chapter 1 new scheme, in relation to the employment or office, or
if the member died without having become a pensioner member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, immediately before the member’s death, and
is irrevocable.
In this Chapter “the end of the section 6 election period” means—
the end of the period of one year beginning with the day on which a remediable service statement is first provided in respect of the member, or
such later time as the scheme manager considers reasonable in all the circumstances.
Scheme regulations made by virtue of section 6(1) may, in particular, include provision—
requiring information to be provided before an election is made;
about the form and manner in which an election is to be made;
about who may make an election in relation to the remediable service of a deceased member.
References in this section to “an election” are to an election by virtue of section 6.
Scheme regulations made by virtue of section 6(1) may include provision under which an election by virtue of section 6 is treated as having been made immediately before the end of the section 6 election period.
Provision by virtue of subsection (1) may be made only in relation to cases in which—
the end of the section 6 election period in relation to a member has passed, and
no decision as to whether an election is to be made in relation to the member’s remediable service has been communicated to the scheme.
Provision by virtue of subsection (1) may, in particular, include provision specifying conditions that are to be met if an election is to be treated as having been made, including conditions relating to the value of benefits payable under the scheme if an election is or is not made.
This section applies where—
an election is made by virtue of section 6 (immediate choice to receive new scheme benefits) in relation to the remediable service in an employment or office of a member (“M”) of a Chapter 1 legacy scheme that is pensionable service under the scheme, and
M has any remediable service in that employment or office that is pensionable service under another Chapter 1 legacy scheme.
If M is a relevant member within the meaning of section 6 in relation to the scheme mentioned in subsection (1)(b), the election has effect as an election by virtue of section 6 in relation to M’s remediable service that is pensionable service under that scheme (as well as having effect as such an election in relation to M’s remediable service that is pensionable service under the scheme mentioned in subsection (1)(a)).
If M is a relevant member within the meaning of section 10 (deferred choice to receive new scheme benefits) in relation to the scheme mentioned in subsection (1)(b), the election has effect as an election by virtue of section 10 in relation to M’s remediable service that is pensionable service under that scheme (as well as having effect as an election by virtue of section 6 in relation to M’s remediable service that is pensionable service under the scheme mentioned in subsection (1)(a)).
Scheme regulations for a Chapter 1 legacy scheme must make provision so as to secure that an election for new scheme benefits may be made in relation to the remediable service in an employment or office of a relevant member of the scheme that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is an active or deferred member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, and
is not a pensioner member of a Chapter 1 scheme in relation to the employment or office.
Where a member has remediable service in multiple employments or offices that is pensionable service under the scheme, provision made under subsection (1) must make provision for separate elections in relation to the member’s remediable service in each of them.
Where an election by virtue of this section is made in relation to a member’s remediable service in an employment or office, the benefits payable under the scheme to or in respect of the member, so far as they are determined by reference to the member’s remediable service in that employment or office are new scheme benefits.
An election by virtue of this section has effect in relation to all of the member’s remediable service in the employment or office in question that is pensionable service under the scheme.
Scheme regulations made by virtue of section 10(1) must specify a time (“the end of the section 10 election period”) in relation to a member.
The end of the section 10 election period must not be more than one year before the day on which it is reasonably expected that, if an election were made, new scheme benefits would become payable under the scheme to or in respect of the member.
An election—
must be made before the end of the section 10 election period, and
(subject to subsection (4)) takes effect immediately before the member becomes a pensioner member of the scheme in relation to the employment or office.
Where an election is made on behalf of a deceased member, the election is treated as having taken effect immediately before the member’s death.
Scheme regulations made by virtue of section 10(1) may, in particular, include provision—
requiring information to be provided before an election is made;
about the form and manner in which an election is to be made;
about who may make an election in relation to the remediable service of a deceased member;
subject to subsection (6), about how and when an election lapses or may be revoked.
Scheme regulations made by virtue of section 10(1) may not provide for an election made in relation to a member’s remediable service in an employment or office to lapse or be revoked after any benefits have become payable to or in respect of the member after the end of the section 10 election period.
Where an election lapses or is revoked, the election is treated as never having had effect.
References in this section to “an election” are to an election by virtue of section 10.
Scheme regulations made by virtue of section 10(1) may include provision under which an election by virtue of section 10 is treated as having been made immediately before the end of the section 10 election period.
Provision by virtue of subsection (1) may be made only in relation to cases in which—
the end of the section 10 election period in relation to a member has passed, and
no decision as to whether an election is to be made in relation to the member’s remediable service has been communicated to the scheme.
Provision by virtue of subsection (1) may, in particular, include provision specifying conditions that are to be met if an election is to be treated as having been made, including conditions relating to the value of benefits payable under the scheme if an election is or is not made.
This section applies where—
an election is made by virtue of section 10 (deferred choice to receive new scheme benefits) in relation to the remediable service in an employment or office of a member (“M”) of a Chapter 1 legacy scheme that is pensionable service under the scheme, and
M has any remediable service in that employment or office that is pensionable service under another Chapter 1 legacy scheme.
If M is a relevant member within the meaning of section 10 in relation to the scheme mentioned in subsection (1)(b), the election has effect as an election by virtue of section 10 in relation to M’s remediable service that is pensionable service under that scheme (as well as having effect as such an election in relation to M’s remediable service that is pensionable service under the scheme mentioned in subsection (1)(a)).
If M is a relevant member within the meaning of section 6 (immediate choice to receive new scheme benefits) in relation to the scheme mentioned in subsection (1)(b), the election has effect as an election by virtue of section 6 in relation to M’s remediable service that is pensionable service under that scheme (as well as having effect as an election by virtue of section 10 in relation to M’s remediable service that is pensionable service under the scheme mentioned in subsection (1)(a)).
This section applies in relation to a relevant member (“M”) of a Chapter 1 legacy scheme who has remediable service in an employment or office that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is a pensioner member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, or
is deceased.
Where, at the operative time— the beneficiary must pay an amount equal to the difference to the scheme.
the aggregate of the pension benefits that (after taking into account the effect, if any, of section 3(2)) have been paid under the scheme to any person (“the beneficiary”) in respect of M’s remediable service in the employment or office, exceeds
the aggregate of the pension benefits to which (after taking into account the effect, if any, of sections 2(1) and 6(4) and (5) in relation to the service) the beneficiary is entitled under the scheme in respect of the service,
Where, at the operative time— the scheme manager must pay an amount equal to the difference to the beneficiary.
the amount mentioned in subsection (3)(a), is less than
the amount mentioned in subsection (3)(b),
Where, at the operative time— the beneficiary must pay an amount equal to the difference to the scheme.
the aggregate of the lump sum benefits that (after taking into account the effect, if any of section 3(2)) have been paid under the scheme to any person (“the beneficiary”) in respect of M’s remediable service in the employment or office, exceeds
the aggregate of the lump sum benefits to which (after taking into account the effect, if any, of sections 2(1) and 6(4) and (5) in relation to the service) the beneficiary is entitled under the scheme in respect of the service,
Where, at the operative time— the scheme manager must pay an amount equal to the difference to the beneficiary.
the amount mentioned in subsection (5)(a), is less than
the amount mentioned in subsection (5)(b),
In this section “the operative time” means—
if an election by virtue of section 6 (immediate choice to receive new scheme benefits) is made in relation to M’s remediable service—
the time the election is made, or
if later, the coming into force of section 2(1);
otherwise, the end of the section 6 election period in relation to M.
In this section—
“lump sum benefit” means any benefit payable under a pension scheme by way of a lump sum;
which are entered into by a member after the coming into force of section 2(1), and
This section applies in relation to a relevant member (“M”) of a Chapter 1 legacy scheme who has remediable service in an employment or office that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is a pensioner member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, or
is deceased.
Where, at the operative time— the scheme manager must pay an amount of compensation equal to the difference to the appropriate person.
the paid contributions amount in relation to M, exceeds
the adjusted contributions amount in relation to M,
Where, at the operative time— the appropriate person must pay pension contributions equal to the difference to the scheme.
the paid contributions amount in relation to M, is less than
the adjusted contributions amount in relation to M,
In this section “the operative time” means—
if an election by virtue of section 6 (immediate choice to receive new scheme benefits) is made in relation to M’s remediable service—
the time the election is made, or
if later, the coming into force of section 2(1);
otherwise, the end of the section 6 election period in relation to M.
In this section “the paid contributions amount” means the aggregate of the pension contributions paid by M in the relevant tax years in respect of M’s remediable service in the employment or office under—
any Chapter 1 scheme, and
where M has made an election by virtue of section 5 (election for retrospective provision to apply: opted-out service), any partnership pension account.
A reference in subsection (6) to pension contributions paid by M includes, in relation to any pension contributions paid under a partnership pension account, such sums as are deducted by M under section 192 of FA 2004 (relief at source).
In this section “the adjusted contributions amount” means—
if an election by virtue of section 6 (immediate choice to receive new scheme benefits) has been made in relation to the remediable service, the aggregate of M’s new scheme contributions for the relevant tax years;
otherwise, the aggregate of M’s legacy scheme contributions for the relevant tax years.
In this section “the relevant tax years” means—
in relation to pensionable service under a Chapter 1 legacy scheme that is not an Agency scheme, the tax years from 2015-16 to 2021-22 inclusive;
in relation to pensionable service under a Chapter 1 legacy scheme that is an Agency scheme, the tax years from 2016-17 to 2021-22 inclusive.
In this section “the appropriate person” means—
M, or
if M is deceased, M’s personal representatives.
This section applies in relation to a relevant member (“M”) of a Chapter 1 legacy scheme who has remediable service in an employment or office that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is an active or deferred member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, and
is not a pensioner member of a Chapter 1 scheme in relation to the employment or office.
Where, on the coming into force of section 2(1)— the scheme manager must pay an amount of compensation equal to the difference to the appropriate person.
the paid contributions amount in relation to M, exceeds
the adjusted contributions amount in relation to M,
Where, on the coming into force of section 2(1)— the appropriate person must pay pension contributions equal to the difference to the scheme.
the paid contributions amount in relation to M, is less than
the adjusted contributions amount in relation to M,
In this section “the paid contributions amount” means the aggregate of the pension contributions paid by M in the relevant tax years in respect of M’s remediable service in the employment or office under—
any Chapter 1 scheme, and
where M has made an election by virtue of section 5 (opting in: persons with opted-out service), any partnership pension account.
A reference in subsection (5) to pension contributions paid by M includes, in relation to any pension contributions paid under a partnership pension account, such sums as are deducted by M under section 192 of FA 2004 (relief at source).
In this section “the adjusted contributions amount” means the aggregate of M’s legacy scheme contributions for the relevant tax years.
In this section “the appropriate person” means—
M, or
if M is deceased, M’s personal representatives.
In this section “the relevant tax years” means—
in relation to pensionable service under a Chapter 1 legacy scheme that is not an Agency scheme, the tax years from 2015-16 to 2021-22 inclusive;
in relation to pensionable service under a Chapter 1 legacy scheme that is an Agency scheme, the tax years from 2016-17 to 2021-22 inclusive.
This section applies in relation to a relevant member (“M”) of a Chapter 1 legacy scheme—
who has remediable service in an employment or office that is pensionable service under the scheme (whether or not by virtue of section 2(1)), and
in respect of whom an election by virtue of section 10 (deferred choice to receive new scheme benefits) has been made.
In this section “relevant member”, in relation to a Chapter 1 legacy scheme, means a member of the scheme who, immediately before the coming into force of section 2(1)—
is an active or deferred member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, and
is not a pensioner member of a Chapter 1 scheme in relation to the employment or office.
Where— the scheme manager must pay an amount of compensation equal to the difference to the appropriate person.
the paid contributions amount in relation to M, exceeds
the adjusted contributions amount in relation to M,
Where— the appropriate person must pay pension contributions equal to the difference to the scheme.
the paid contributions amount in relation to M, is less than
the adjusted contributions amount in relation to M,
In this section “the paid contributions amount” means (subject to subsection (7)) the aggregate of the pension contributions paid by M in the relevant tax years in respect of M’s remediable service in the employment or office under—
any Chapter 1 scheme, and
where M has made an election by virtue of section 5 (opting in: persons with opted-out service), any partnership pension account.
A reference in subsection (5) to pension contributions paid by M includes, in relation to any pension contributions paid under a partnership pension account, such sums as are deducted by M under section 192 of FA 2004 (relief at source).
The “paid contributions amount” determined under subsection (5) is to be adjusted by—
deducting any amounts of compensation paid to M in respect of the remediable service in question under section 16(3), and
adding any pension contributions paid by M in respect the remediable service in question under section 16(4).
In this section “the adjusted contributions amount” means the aggregate of M’s new scheme contributions for the relevant tax years.
In this section “the appropriate person” means—
M, or
if M is deceased, M’s personal representatives.
In this section “the relevant tax years” means—
in relation to pensionable service under a Chapter 1 legacy scheme that is not an Agency scheme, the tax years from 2015-16 to 2021-22 inclusive;
in relation to pensionable service under a Chapter 1 legacy scheme that is an Agency scheme, the tax years from 2016-17 to 2021-22 inclusive.
Scheme regulations for a Chapter 1 legacy scheme may make provision under which a liability owed by a person to the scheme under section 14 (corrections for pension benefits and lump sum benefits) is reduced or waived.
Scheme regulations for a Chapter 1 legacy scheme may make provision under which a liability to pay pension contributions owed by a member to the scheme under section 15, 16 or 17 (corrections for pension contributions) in relation to the member’s remediable service in an employment or office is reduced or waived.
The provision that may be made under subsection (2) includes, in particular, provision under which a liability to pay pension contributions is reduced by tax relief amounts.
In subsection (3) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that would have been available in respect of the amounts owed if they were paid in a different tax year.
Scheme regulations for a Chapter 1 legacy scheme may make provision under which a liability to pay compensation owed by the scheme to a member under section 15, 16 or 17 (corrections for pension contributions) in relation to the member’s remediable service in an employment or office is reduced or waived.
The provision that may be made under subsection (5) includes, in particular, provision under which a liability is reduced by tax relief amounts.
In subsection (6) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that was received by the member in respect of pension contributions paid in a tax year in respect of the member’s remediable service in the employment or office.
Scheme regulations for a Chapter 1 legacy scheme may make provision under which a liability owed by the scheme to a person under section 16 (pension contributions: active and deferred members (immediate correction)) may, by agreement, be reduced or waived.
Scheme regulations for a Chapter 1 scheme may make provision about the benefits payable to or in respect of a relevant pension credit member and the corresponding pension debit member.
In this section “relevant pension credit member”, in relation to a Chapter 1 scheme, means a member of the scheme who has rights under the scheme—
which are attributable (directly or indirectly) to a pension credit, and
the value of which was determined (to any extent) by reference to the value of benefits payable in respect of the remediable service in an employment or office of another member.
In this section “the corresponding pension debit member”, in relation to a relevant pension credit member, means the member mentioned in subsection (2)(b).
The provision that may be made under subsection (1) includes provision under which—
the pension debit of the corresponding pension debit member is adjusted where an election under section 6 (immediate choice) or section 10 (deferred choice) is made in relation to the member’s remediable service;
the pension credit of a relevant pension credit member is adjusted on the assumption that an election under section 6 or 10 is made in relation to the remediable service of the corresponding pension debit member (regardless of whether it in fact is).
Provision made under subsection (1) must include provision under which, in a case in which the corresponding pension debit member in relation to a relevant pension credit member has mixed service, any pension credit retained by the relevant pension credit member under the scheme is of a value determined by reference to the value of benefits payable under only one Chapter 1 scheme.
For the purposes of this Chapter a member’s remediable service in an employment or office is “mixed service” if, disregarding section 2(1)—
some of the service is pensionable service under a Chapter 1 legacy scheme, and
some of the service is pensionable service under a Chapter 1 new scheme.
In this section—
“pension credit” means a credit under section 29(1)(b) of WPRA 1999 or Article 26(1)(b) of WRP(NI)O 1999.
Scheme regulations for a Chapter 1 scheme may make provision about cases in which a member has paid voluntary contributions to the scheme during any period of remediable service.
The provision that may be made under subsection (1) includes, in particular, provision under which the rights to additional benefits, or earlier payment of benefits, that would otherwise have been secured by the payment of the voluntary contributions are varied, in a case in which an election by virtue of section 6 or 10 is made in respect of any remediable service of the member in question.
The rights may, in particular, be varied so that they are of an equivalent value to rights the member would have secured under the Chapter 1 new scheme that is connected with the scheme if the voluntary contributions had been paid to that scheme.
The provision that may be made under subsection (1) in scheme regulations for a Chapter 1 new scheme includes, in particular, provision under which the rights to additional benefits, or earlier payment of benefits, that would otherwise have been secured by the payment of the voluntary contributions are extinguished.
Where scheme regulations made by virtue of subsection (1) make provision as mentioned in subsection (4), scheme regulations by virtue of subsection (1) must be made that include provision under which—
the person whose rights are extinguished receives rights under a Chapter 1 scheme that are of an equivalent value to the extinguished rights,
rights are conferred under a Chapter 1 scheme that would have been secured under that scheme if the voluntary contributions had been paid to that scheme, or
the scheme manager is required to pay the member who paid the contributions or, if that member is deceased, that member’s personal representatives an amount by way of compensation equal to—
the aggregate of the voluntary contributions paid, less
an amount in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which the member was entitled in respect of the voluntary contributions.
Scheme regulations for a Chapter 1 scheme may make provision about cases in which—
a member transfers out of the scheme rights in respect of remediable service in an employment or office that is pensionable service under the scheme;
a member transfers in to the scheme rights in respect of remediable service in an employment or office that is pensionable service under another Chapter 1 scheme;
a member transfers in to the scheme rights in respect of remediable service in a judicial office (within the meaning of Chapter 2) that is pensionable service under a judicial scheme (within the meaning of that Chapter);
a member transfers in to the scheme rights in respect of remediable service in an employment or office (within the meaning of Chapter 3) that is pensionable service under a local government scheme (within the meaning of that Chapter);
a person, within the period beginning with the closing date and ending with 31 March 2022, transfers in to the scheme, or to any other Chapter 1 scheme, rights in respect of service in any employment or office.
The provision that may be made under subsection (1)(b) to (e) includes, in particular, provision under which the rights to benefits that would otherwise have been secured by the transfer are varied, in a case in which an election by virtue of section 6 or 10 is made in respect of any remediable service of the member in question.
The rights may, in particular, be varied so that they are of an equivalent value to rights the member would have secured under another Chapter 1 scheme if the rights had been transferred in to that scheme.
The provision that may be made under subsection (1)(b) to (e) includes, in particular, provision under which the rights to benefits that would otherwise have been secured by the transfer are extinguished.
Where scheme regulations made by virtue of subsection (1) make provision as mentioned in subsection (4), scheme regulations by virtue of subsection (1) must be made that include provision under which—
the person in question receives rights under a Chapter 1 scheme that are of an equivalent value to the extinguished rights, or
the person in question is given rights under a Chapter 1 scheme that the member would have secured under that scheme if the transfer had been made in to that scheme.
Scheme regulations for a Chapter 1 scheme may make further provision relating to a member who has remediable service in an employment or office.
The provision that may be made under subsection (1) includes, in particular—
provision about the benefits payable to or in respect of a member who has remediable service in an employment or office that is mixed service;
provision about the benefits payable to or in respect of a member who has remediable service in an employment or office where—
there is another Chapter 1 scheme that provides benefits for persons in that employment or office, and
the two schemes provide (or in any circumstances might provide) benefits to or in respect of a person in relation to the same period of service;
provision about the benefits payable to or in respect of a member where, disregarding section 2(1), the member—
has remediable service in an employment or office that is pensionable service under a Chapter 1 new scheme, and
has a right under that scheme, if they retire before normal pension age, on the making of a payment to the scheme, to the reduction or elimination of the actuarial reduction that would otherwise have been made to the benefits payable to or in respect of the member in respect of that remediable service;
provision about the benefits payable to or in respect of a person who has partially retired;
provision about the benefits payable in respect of a child of a deceased member where—
the member has remediable service in an employment or office, and
the child is not living in the same household as an adult survivor of the member;
provision about cases in which a person has remediable service in an employment or office any of which is excess teacher service;
provision about cases in which a person has remediable service in an employment or office and also has service in an employment or office as a teacher which—
takes place in the period beginning with the day after the closing date and ending with 31 March 2022,
is pensionable service under a Chapter 1 new scheme, and
is not remediable service;
provision about cases in which a person has a partnership pension account;
provision about cases in which a person is made redundant;
provision about cases in which the scheme administrator of a Chapter 1 scheme pays a liability under section 217 or 237B of FA 2004 (joint liability of scheme administrator to lifetime allowance charge or annual allowance charge);
provision about cases in which remuneration is or was payable to a person on the satisfaction of a condition relating to whether any remediable service of the person is or was, or is or was eligible to be, pensionable service under a particular Chapter 1 scheme (including provision requiring any such remuneration that has been paid to be repaid);
provision about cases in which a former member of the armed forces—
is, disregarding section 2(1), entitled under regulation 19 of AFEDP 2014 (lump sum awards: incapacity for armed forces service) to a payment determined (to any extent) by reference to the person’s remediable service in an employment or office, or
would be entitled under that regulation to such a payment if the benefits payable to the person, so far as determined by reference the person’s remediable service in the employment or office, were new scheme benefits.
Scheme regulations for a Chapter 1 new scheme may make provision about injury and compensation benefits payable under a relevant injury and compensation scheme to or in respect of a member who has remediable service in an employment or office.
Provision made under subsection (3) may in particular be made by amending the relevant injury and compensation scheme.
In subsections (3) and (4) and this subsection—
“injury and compensation scheme” means a pension scheme that is listed in Schedule 6 to PSPA 2013 or Schedule 6 to PSPA(NI) 2014 (existing injury and compensation schemes);
an injury and compensation scheme is “relevant”, in relation to a Chapter 1 new scheme, if it is connected with the Chapter 1 new scheme;
a reference to “injury and compensation benefits” payable under an injury and compensation scheme is a reference to—
in the case of an injury and compensation scheme in relation to which Schedule 6 to PSPA 2013 or Schedule 6 to PSPA(NI) 2014 specifies particular benefits, those benefits;
in the case of any other injury and compensation scheme, any benefits payable under the scheme.
The provision that may be made by scheme regulations under this section, or under section 19, 20 or 21, includes, in particular—
provision modifying any provision of this Chapter in its application to persons of a description specified in the regulations;
provision corresponding to, or applying, any provision of this Chapter, with or without modifications.
In this section—
“opted-out service” has the meaning given by section 36;
“AFEDP 2014” means the Armed Forces Early Departure Payments Scheme Regulations 2014 (S.I. 2014/2328);
“remediable service” has the meaning given by section 39;
“the relevant authority”, in relation to a person who has remediable service in a judicial office, has the meaning given by section 72;
the Armed Forces Redundancy Scheme Order 2006 (S.I. 2006/55), or
the Armed Forces Redundancy Scheme Order 2020 (S.I. 2020/1298);
“legacy scheme election” has the meaning given by section 40(1);
in relation to a judicial scheme within section 70(2)(a), (4)(a) or (5), directions given by the Treasury;
“judicial service award” means an amount payable pursuant to a determination of the Lord Chancellor relating to judicial service awards for holders of judicial offices;
in relation to a judicial scheme within section 70(2)(b) or (4)(b), directions given by the Department of Finance in Northern Ireland.
The scheme manager for a Chapter 1 legacy scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.
Scheme regulations for a Chapter 1 legacy scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).
For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—
any of the following three conditions is met, and
the loss is of a description specified in Treasury directions.
The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.
The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.
The third condition is that—
the member is a relevant member, and
the loss is a Part 4 tax loss that is attributable to the value of rights in respect of remediable service which would, apart from section 2(1), be pensionable service under a Chapter 1 new scheme.
In subsection (6) “relevant member” means a member of the scheme—
who, immediately before the coming into force of section 2(1)—
is a pensioner member of the scheme, or of a Chapter 1 new scheme, in relation to the employment or office, or
is deceased, and
in respect of whom an election by virtue of section 6 (election for new scheme benefits) has been made.
In this section (subject to subsection (10)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.
In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—
incurring a charge, or incurring an increased charge, under Part 4 of FA 2004, or
not being entitled to a relief, or being entitled to less relief, under that Part of that Act.
In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as— whether pursuant to an order of a court or tribunal or otherwise.
any person has already received amounts by way of compensation in respect of them, or
amounts that any person has paid the scheme have been reduced by amounts in respect of them,
Scheme regulations for a Chapter 1 legacy scheme may make provision under which, where a member has incurred a compensatable loss that is a Part 4 tax loss—
the member is not paid an amount under section 23 by way of compensation in respect of the loss, and
the member is instead paid such additional benefits under the scheme as may be determined in accordance with the regulations.
In this section “compensatable loss” and “Part 4 tax loss” have the same meaning as in section 23.
Scheme regulations for a Chapter 1 legacy scheme may make provision so as to secure that a relevant member may enter into remedial voluntary contributions arrangements.
In subsection (1)—
“relevant member”, in relation to a Chapter 1 legacy scheme, means a member (other than a deceased member) who has remediable service in an employment or office which, after the coming into force of section 2(1), is pensionable service under the scheme (whether or not by virtue of that provision);
“judicial legacy scheme” has the same meaning as in Chapter 2 (see section 70);
“scheme regulations” has the meaning given by section 37;
under which the member pays voluntary contributions to the scheme.
Provision by virtue of subsection (1) may permit a member (“M”) to enter into arrangements only if the scheme manager is satisfied that it is more likely than not that, but for a relevant breach of a non-discrimination rule, M would, during the period of M’s remediable service in the employment or office, have entered into the same or similar arrangements.
The provision that may be made by virtue of subsection (1) includes, in particular, provision under which liabilities to pay voluntary contributions that would otherwise arise under the arrangements are reduced by tax relief amounts.
In subsection (4) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that would have been available in respect of the amounts owed if they were paid in a different tax year.
Provision by virtue of subsection (1) may not permit a member (“M”) to enter into arrangements after—
the end of the period of one year beginning with the day on which a remediable service statement is first provided in respect of M, or
such later time as the scheme manager considers reasonable in all the circumstances.
Subsection (6) does not affect the continued operation after the time mentioned in that subsection of any remedial arrangements entered into before that time.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
Scheme regulations for a Chapter 1 scheme may make provision—
under which interest is required to be calculated and paid on relevant amounts;
about the process by which relevant amounts (and any interest on them) are to be paid.
Scheme regulations made by virtue of subsection (1)(b) may, in particular, include provision—
about when relevant amounts (and any interest on them) are to be paid (including provision under which they are paid in instalments);
under which relevant amounts (and any interest on them) owed by the scheme to a person may be paid only on the making of an application;
for the netting off of relevant amounts (and any interest on them) owed to a person by the scheme against relevant amounts (and any interest on them) owed by the person to the scheme;
conferring rights of appeal against decisions taken under the regulations.
In this section “relevant amounts” means any amounts that are payable by a person to the scheme, or by the scheme to a person, under or by virtue of this Chapter.
The powers mentioned in subsection (2) must be exercised in accordance with Treasury directions.
The powers are—
the powers to make scheme regulations by virtue of section 18 (powers to reduce or waive liabilities) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 19 (pension credit members) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 20 (voluntary contributions) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 21 (transfers) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 22 (further powers to make provision about special cases) and any powers exercisable by virtue of such regulations;
the power of a scheme manager under section 23(1) (power to pay compensation);
the power to make scheme regulations by virtue of section 23(2) (power to require employer to reimburse compensation paid by scheme manager) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 24 (indirect compensation) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 25 (remedial arrangements to pay voluntary contributions to legacy schemes) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 26 (interest and process) and any powers exercisable by virtue of such regulations.
Treasury directions under this section may provide for amounts that are to be paid by or to a scheme in relation to a member, or any reduction or waiver of a liability to pay such amounts, to be determined—
taking into account the particular circumstances of the member and (if different) the person to whom or by whom the amount is to be paid or the liability is owed, or
without taking into account any or all of the particular circumstances of that person or those persons.
Treasury directions under this section that relate to the calculation and payment of interest, and variations and revocations of such directions, may only be made after consultation with the Government Actuary.
For the definition of “Treasury directions”, see section 38(1).
Subsection (2) applies where—
a payment from a Chapter 1 scheme is permitted or required to be made under or by virtue of this Chapter,
the payment, if made, would be an unauthorised payment, and
a rule of the scheme prohibits the scheme from making unauthorised payments.
The payment may be made only if it falls within a description of payments specified for the purposes of this section in Treasury directions.
In this section “unauthorised payment” means a payment that is an unauthorised payment for the purposes of Part 4 of FA 2004 (see section 160(5) of that Act).
Scheme regulations for a Chapter 1 legacy scheme must make provision requiring the scheme manager to provide a statement (a “remediable service statement”) in respect of each member of the scheme who has relevant service in an employment or office.
For the purposes of this section, service in an employment or office of a member of a Chapter 1 legacy scheme is “relevant service” if either of the following conditions is met in relation to the service.
The first condition is that the service—
is opted-out service, and
is service in respect of which—
an application by virtue of subsection (5)(a) of section 5 (election for retrospective provision to apply) has been made, but
no election by virtue of that section has been made.
The second condition is that the service is remediable service—
that is pensionable service under the scheme (whether by virtue of section 2(1) or otherwise), and
in relation to which an election by virtue of section 6 or 10 (election for new scheme benefits) has not been made.
A remediable service statement must include—
a description of the benefits currently available under the scheme in respect of the relevant service (if any),
a description of the benefits that would be available under the scheme in respect of the relevant service if any election under section 5, 6 or 10 that could be made in relation to the service were made,
a description of when and how any election that could be made in relation to the service may be made, and
a description of—
the arrangements (if any) that, by virtue of section 25 (remedial arrangements to pay voluntary contributions to legacy schemes), may be entered into under the scheme, and
the circumstances in which, and the process by which, such arrangements may be entered into.
Treasury directions may require— In this subsection “specified” means specified in Treasury directions.
specified information (in addition to that specified in subsection (5)) to be included in a remediable service statement;
information that is included in a remediable service statement to be in a specified form;
a remediable service statement to be provided to a specified person or in a specified manner;
that a remediable service statement should accompany, or be combined with, a benefit information statement provided under section 14 of PSPA 2013 or section 14 of PSPA(NI) 2014 (benefit information statements).
Provision made under subsection (1) must require a remediable service statement in respect of a member of the scheme to be provided on or before the relevant date.
Provision made under subsection (1) must also—
in the case of a member of the scheme who has remediable service in an employment or office in relation to which the member is for the time being an active member, require a remediable service statement in respect of the member to be provided at least once in each year ending with the anniversary of the relevant date;
in the case of a member of the scheme who has remediable service in an employment or office in relation to which the member is for the time being a deferred member, require a remediable service statement in respect of the member to be provided on request.
Only one request under subsection (8)(b) may be made during any period of 12 months.
In this section “the relevant date” means—
the day after the final day of the period of 18 months beginning with the day on which section 2(1) comes into force in relation to the Chapter 1 legacy scheme, or
such later day as the scheme manager considers reasonable in all the circumstances in the case of a particular member or a particular class of member.
A requirement by virtue of this section to provide a remediable service statement may be satisfied by providing it before this section or any other provision of this Chapter comes into force (and for the purposes of any such statement, references in this section to any provision of this Chapter are to be read as if the provision were in force).
In determining for the purposes of this Chapter whether any service is pensionable service under a particular pension scheme, section 61 of EA 2010 and paragraph 2 of Schedule 1 to EEAR(NI) 2006 (non-discrimination rule) are to be disregarded.
To the extent that section 61 of EA 2010 or paragraph 2 of Schedule 1 to EEAR(NI) 2006 has the effect (apart from this subsection) that any remediable service of a person— it ceases to have effect (to that extent) immediately before the coming into force of section 2(1).
is not pensionable service under a Chapter 1 new scheme, or
is pensionable service under a Chapter 1 legacy scheme,
Subject as follows, nothing in sections 2 to 30 applies in relation to a person’s remediable service in an employment or office if an immediate detriment remedy has been obtained in relation to the service.
Scheme regulations for a Chapter 1 scheme may make provision for the purpose of putting persons who have rights in respect of remediable service in relation to which an immediate detriment remedy has been obtained, so far as possible, in the position that they would have been in if there had been no relevant breach of a non-discrimination rule in relation to the service.
The provision that may be made under subsection (2) includes, in particular— with or without modifications.
provision corresponding to any provision of sections 2 to 30, or
provision applying any provision of this Chapter in its application to persons of a description specified in the regulations,
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
For the purposes of section 31 an “immediate detriment remedy” has been obtained in relation to a person’s remediable service in an employment or office if either of the following conditions is met.
The first condition is that—
a court or tribunal has determined that, as a result of a non-discrimination rule, any person has any rights under a Chapter 1 scheme in respect of the remediable service, and
the scheme manager of the scheme has—
paid any benefits or compensation in accordance with the determination, or
taken any other step (for example, altering records) to implement the determination.
The second condition is that—
the scheme manager of a Chapter 1 scheme and any person have agreed that, as a result of a non-discrimination rule, the person has any rights under a Chapter 1 scheme in respect of the remediable service, and
the scheme manager of the scheme has—
paid any benefits or compensation in accordance with the agreement, or
taken any other step (for example, altering records) to implement the agreement.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
“A Chapter 1 scheme” means—
a Chapter 1 new scheme, or
a Chapter 1 legacy scheme.
“A Chapter 1 new scheme” means—
a scheme under section 1 of PSPA 2013 (schemes for persons in public service) which—
is a defined benefits scheme,
is not a scheme for holders of a judicial office, and
is not a scheme for local government workers (within the meaning of that Act), or
a scheme under section 1 of PSPA(NI) 2014 (schemes for persons in public service) which—
is a defined benefits scheme,
is not a scheme for holders of a judicial office, and
is not a scheme for local government workers (within the meaning of that Act).
“A Chapter 1 legacy scheme” means—
an existing scheme (within the meaning of PSPA 2013), other than—
a scheme mentioned in any of paragraphs 2 to 15 of Schedule 5 to that Act (judicial schemes), or
a scheme mentioned in paragraph 16 or 17 of that Schedule (local government workers), or
an existing scheme (within the meaning of PSPA(NI) 2014), other than—
a scheme mentioned in paragraph 2 of Schedule 5 to that Act (judicial schemes), or
a scheme mentioned in paragraph 3 of that Schedule (local government workers).
In this section “judicial office” has the same meaning as in Chapter 2 (see section 71).
This section has effect for the purposes of this Chapter.
Subsection (2) defines “new scheme benefits” in relation to the remediable service in an employment or office of a member of a Chapter 1 legacy scheme that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
“New scheme benefits” means the benefits that would be payable to or in respect of the member if the remediable service were pensionable service under the relevant Chapter 1 new scheme.
Where— the new scheme benefits are payable under the Chapter 1 legacy scheme to or in respect of the member only on the meeting of that condition.
by virtue of section 6 or 10, the benefits payable to or in respect of a member of a Chapter 1 legacy scheme, so far as they are determined by reference to the member’s remediable service, are new scheme benefits, and
the corresponding benefits, if payable under the relevant Chapter 1 new scheme, would have been payable only on the meeting of a condition (for example that the member attains a particular age or makes a particular election),
In this section “the relevant Chapter 1 new scheme”, in relation to a Chapter 1 legacy scheme, means the Chapter 1 new scheme that is connected with the Chapter 1 legacy scheme.
This section has effect for the purposes of this Chapter.
Subsections (2) and (3) apply in relation to a member of a Chapter 1 legacy scheme who has remediable service in an employment or office that is pensionable service under the scheme (whether or not by virtue of section 2(1)).
The member’s “legacy scheme contributions” for a tax year are the pension contributions that would have been payable by the member under the scheme in the tax year in respect of the remediable service if the service had, at the time it took place, been pensionable service under the scheme.
The member’s “new scheme contributions” for a tax year are the pension contributions that would have been payable by the member under the relevant Chapter 1 new scheme in the tax year in respect of the remediable service if the service had, at the time it took place, been pensionable service under that scheme.
In this section “the relevant Chapter 1 new scheme”, in relation to a Chapter 1 legacy scheme, means the Chapter 1 new scheme that is connected with the Chapter 1 legacy scheme.
This section has effect for the purposes of this Chapter.
Any continuous period of service of a person in an employment or office is “opted-out service” in that employment or office if—
the first, third, and fourth conditions in section 1 are met in relation to the person and the service, and
the second condition in that section is not met in relation to the service, but would have been met if the person had not opted that the service should not be (or had opted that the service should be) pensionable service under a Chapter 1 scheme.
For the purposes of subsection (1)(b) a person is treated as having opted that service should not be pensionable service under a Chapter 1 scheme if the service would have been pensionable service under that scheme (or would have been if the person had opted that it should be) but for the fact that the person had a partnership pension account.
This section has effect for the purposes of this Chapter.
In this Chapter “scheme regulations”—
in relation to a Chapter 1 scheme within section 33(2)(a) or (3)(a), has the same meaning as in PSPA 2013 (see section 1(4) of that Act);
in relation to a Chapter 1 scheme within section 33(2)(b) or (3)(b), has the same meaning as in PSPA(NI) 2014 (see section 1(4) of that Act).
A power under this Chapter to make provision by means of scheme regulations for a Chapter 1 legacy scheme—
is to be exercised by the responsible authority for the Chapter 1 new scheme that is connected with the Chapter 1 legacy scheme, and
may be exercised by amending the Chapter 1 legacy scheme.
In subsection (2) “responsible authority”—
in relation to a Chapter 1 scheme within section 33(2)(a) or (3)(a), has the same meaning as in PSPA 2013 (see section 2 of that Act);
in relation to a Chapter 1 scheme within section 33(2)(b) or (3)(b), has the same meaning as in PSPA(NI) 2014 (see section 2 of that Act).
In this Chapter—
Schedule 1 to the Firefighters’ Pension Scheme (England) Order 2006 (S.I. 2006/3432) (new firefighters’ scheme),
“the closing date” means—
31 March 2015 in relation to service which is pensionable service under any other local government new scheme;
Where— the service is treated for the purposes of this Chapter as service in a single employment or office (and references to the employment or office in relation to the service are to be read accordingly).
a member of a pension scheme has service in multiple employments or offices that is pensionable service under the scheme, and
the service is aggregated for the purpose of determining the amount of any benefit under the scheme,
For the purposes of this Chapter any continuous period of service of a person in a judicial office is “remediable service” in that office if the following five conditions are met.
In this section “the service in question” means the service mentioned in subsection (1).
The first condition is that the service in question takes place in the period beginning with 1 April 2015 and ending with 31 March 2022.
The second condition is that the service in question— The second condition is met if all of the service in question falls within paragraphs (a) and (b) (even if it does not all fall within only one of those paragraphs).
is pensionable service under a judicial scheme, or
would have been pensionable service under a judicial scheme but for the fact that the person, in accordance with the scheme, opted that it should not be (or failed to opt that it should be) pensionable service under the scheme.
The third condition is that the person was, on 31 March 2012 or any earlier day, in service in an employment or office that is pensionable service under—
a Chapter 1 legacy scheme (within the meaning of Chapter 1),
a judicial legacy scheme, or
a local government legacy scheme (within the meaning of Chapter 3).
The fourth condition is that there is no disqualifying gap in service falling within the period—
beginning with the day after the most recent day in relation to which the third condition is met, and
ending with the day before the first day of the service in question.
The fifth condition is that the person was under the age of 55 on 1 April 2012.
For the purposes of subsection (4)(b), a person is treated as having opted in accordance with the scheme that service should not be pensionable service under a judicial scheme if the service would have been pensionable service under that scheme (or would have been if the person had opted that it should be) but for the fact that the person had a partnership pension account.
In subsection (6) “disqualifying gap in service” means a period longer than 5 years at no time during which is the person in service in an employment or office which is pensionable service under—
a Chapter 1 scheme (within the meaning of Chapter 1),
a judicial scheme, or
a local government scheme (within the meaning of Chapter 3).
In determining for the purposes of this section whether any service is pensionable service under a particular scheme, sections 2(1), 42(2) to (5) and 45(2) (under which service may be treated as pensionable, or not pensionable, under particular schemes) are to be disregarded. See also section 66(1) (which requires section 61 of the Equality Act 2010 and paragraph 2 of Schedule 1 to EEAR(NI) 2006 to be disregarded).
An election (“a legacy scheme election”) may be made in respect of a person who has remediable service in a judicial office.
Subsection (1) is subject to subsection (3) and section 41(2) and (5) (partnership pension account: requirement to transfer and surrender rights).
A legacy scheme election may not be made in respect of a person if a 2015 scheme election has been made in respect of the person.
A legacy scheme election—
must be in writing,
must be received by the relevant authority before the end of the election period,
(subject to subsection (5)) takes effect at the end of the election period, and
is irrevocable.
In a case in which— the legacy scheme election takes effect immediately after the steps are taken.
section 41(2) or (5) applies (election made in respect of a person with PPA opted-out service), and
the steps mentioned in section 41(3) or (6) have not been taken at the end of the election period,
Subsection (2) applies where—
a person (“P”) has remediable service in a salaried judicial office, and
any of the remediable service is PPA opted-out service.
A legacy scheme election in respect of P may not be made unless—
the relevant authority is satisfied that the steps mentioned in subsection (3) have been taken, or
the appropriate person has notified the relevant authority that they intend to instigate and facilitate the taking of those steps.
The steps are—
the transfer of any relevant assets and liabilities to the relevant judicial legacy salaried scheme,
the surrender of any entitlement to a pension under the relevant judicial legacy salaried scheme, and any right to a future pension under that scheme, that would otherwise arise under the rules of the scheme in respect of the value of the assets and liabilities transferred, and
if at any time any relevant assets and liabilities were transferred out of the partnership pension account (otherwise than in the course of a transfer to the relevant judicial legacy salaried scheme), the payment by the appropriate person to the relevant judicial legacy salaried scheme of an amount, determined by the relevant authority after consulting the Government Actuary, in respect of the value of the relevant assets transferred.
Subsection (5) applies where—
a person (“P”) has remediable service in a fee-paid judicial office, and
any of the remediable service is PPA opted-out service.
A legacy scheme election in respect of P may not be made unless—
the relevant authority is satisfied that the steps mentioned in subsection (6) have been taken, or
the appropriate person has notified the relevant authority that they intend to instigate and facilitate the taking of those steps.
The steps are—
the transfer of any relevant assets and liabilities to the judicial legacy fee-paid scheme,
the surrender of any entitlement to a pension under the judicial legacy fee-paid scheme, and any right to a future pension under that scheme, that would otherwise arise under the rules of the scheme in respect of the value of the assets and liabilities transferred, and
if at any time any relevant assets and liabilities were transferred out of the partnership pension account (otherwise than in the course of a transfer to the judicial legacy fee-paid scheme), the payment by the appropriate person to the judicial legacy fee-paid scheme of an amount, determined by the relevant authority after consulting the Government Actuary, in respect of the value of the relevant assets transferred.
In this section “the appropriate person”, in relation to a person (“P”) who has PPA opted-out service, means the person by whom a legacy scheme election in respect of P may be made (see section 46).
For the purposes of this section assets and liabilities are “relevant” in relation to any PPA opted-out service of a person (“P”) if— This is subject to subsection (9).
they are referable to pension contributions or voluntary contributions that were made by or on behalf of P in respect of the service, and
they are held for the purposes of a partnership pension account.
Where— the assets and liabilities that the relevant authority, after consulting the Government Actuary, determines are referable to the excess are not “relevant” in relation to the PPA opted-out service.
the total of the pension contributions, together with any voluntary contributions, that were paid by P in respect of the PPA opted-out service, exceeds
the total of the pension contributions that would have been payable by P in respect of that service if the service had been pensionable service under the judicial legacy scheme to which the relevant assets and liabilities are to be transferred,
A reference in subsection (9) to pension contributions or voluntary contributions paid by P in respect of PPA opted-out service is a reference to the amount of the contributions paid, net of any tax relief under section 188 of FA 2004 (relief for contributions) to which P was entitled in respect of them.
Subsections (2) to (5) apply where a legacy scheme election is made in respect of a person.
The person’s remediable service in any salaried judicial office, to the extent that it is otherwise pensionable service under a judicial 2015 scheme, is treated—
as not being, and as never having been, pensionable service under that scheme, and
as being, and as always having been, pensionable service under the relevant judicial legacy salaried scheme.
The person’s remediable service in any salaried judicial office, to the extent that it is otherwise opted-out service, is treated as being, and as always having been, pensionable service under the relevant judicial legacy salaried scheme.
The person’s remediable service in any fee-paid judicial office, to the extent that it is otherwise pensionable service under a judicial 2015 scheme, is treated—
as not being, and as never having been, pensionable service under that scheme, and
as being, and as always having been, pensionable service under the judicial legacy fee-paid scheme.
The person’s remediable service in any fee-paid judicial office, to the extent that it is otherwise opted-out service, is treated as being, and as always having been, pensionable service under the judicial legacy fee-paid scheme.
Subsections (2) to (5) have effect—
for the purposes of determining which judicial scheme is (or at any time was) required to pay benefits to or in respect of a member,
for the purposes of determining the amount of any benefits that are (or at any time were) payable under a judicial scheme to or in respect of a member,
for the purposes of determining the judicial scheme to which a member is (or at any time was) required to pay pension contributions under a judicial scheme,
for the purposes of determining the amount of any pension contributions that are (or at any time were) payable under judicial schemes by members, and
subject to any provision of this Chapter to the contrary, for all other purposes.
Subsections (2) to (5) do not affect—
any arrangements under a judicial scheme under which a member pays contributions to the scheme on a voluntary basis so as to secure additional benefits, or the earlier payment of benefits, under the scheme, or
any rights under a judicial scheme in respect of a transfer in to the scheme of an amount in respect of rights accrued under another pension scheme.
In this Chapter “the relevant judicial legacy salaried scheme”, in relation to a person’s remediable service in a salaried judicial office, means—
in a case in which, before 1 April 2015, the person accrued pensionable service in a salaried judicial office under only one judicial legacy salaried scheme, that scheme;
in a case in which, before 1 April 2015, the person accrued pensionable service in a salaried judicial office under more than one judicial legacy salaried scheme, the judicial legacy salaried scheme under which the person most recently accrued pensionable service in the office;
in a case in which, before 1 April 2015, the person did not accrue pensionable service in a salaried judicial office under any judicial legacy salaried scheme, the scheme constituted by Part 1 of JUPRA 1993.
An election (a “2015 scheme election”) may (subject to subsection (2)) be made in respect of a person who has remediable service in a judicial office.
A 2015 scheme election may not be made in respect of a person if—
any of the person’s remediable service is opted-out service, or
a legacy scheme election has been made in respect of the person.
A 2015 scheme election—
must be in writing,
must be received by the relevant authority before the end of the election period,
takes effect at the end of the election period, and
is irrevocable.
Subsection (2)(a) does not apply in a case in which—
some of the person’s service in a judicial office is pensionable service under a judicial legacy scheme, and
section 39(4)(b) applies to the person’s opted-out service only in relation to a judicial 2015 scheme.
Subsection (2) applies where a 2015 scheme election is made in respect of a person.
The person’s remediable service in any judicial office (whether salaried or fee-paid), to the extent that it is otherwise pensionable service under a judicial legacy scheme, is treated—
as not being, and as never having been, pensionable service under that scheme, and
as being, and as always having been, pensionable service under the relevant 2015 scheme.
In subsection (2) “the relevant 2015 scheme” means—
in relation to service in a judicial office within section 71(1)(a) or (b), the Judicial Pensions Regulations 2015 (S.I. 2015/182);
otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76).
Subsection (2) has effect—
for the purposes of determining which judicial scheme is (or at any time was) required to pay benefits to or in respect of a member,
for the purposes of determining the amount of any benefits that are (or at any time were) payable under a judicial scheme to or in respect of a member,
for the purposes of determining the judicial scheme to which a member is (or at any time was) required to pay pension contributions under a judicial scheme,
for the purposes of determining the amount of any pension contributions that are (or at any time were) payable under judicial schemes by members, and
subject to any provision of this Chapter to the contrary, for all other purposes.
Subsection (2) does not affect—
any arrangements under a judicial scheme under which a member pays contributions to the scheme on a voluntary basis so as to secure additional benefits, or the earlier payment of benefits, under the scheme, or
any rights under a judicial scheme in respect of a transfer in to the scheme of an amount in respect of rights accrued under another pension scheme.
The person by whom a legacy scheme election or 2015 scheme election in respect of a person (“P”) is to be made is P or, if P is deceased—
the adult survivor, or
if there is no adult survivor, P’s personal representatives.
In this section “adult survivor” means a surviving spouse, civil partner or other adult who is entitled under the relevant judicial scheme to a pension determined (to any extent) by reference to P’s remediable service.
In subsection (2) “the relevant judicial scheme” means the judicial scheme under which P most recently accrued pensionable service.
Subsection (2) applies where —
a person has remediable service in a judicial office which is mixed service, and
no legacy scheme election or 2015 scheme election in respect of the person is made before the end of the election period.
A 2015 scheme election in respect of the person is treated as having been made.
For the purposes of this section a person’s remediable service in a judicial office is “mixed service” if—
some of the service is pensionable service under a judicial legacy scheme, and
some of the service is—
pensionable service under a judicial 2015 scheme, or
PPA opted-out service.
Subsection (2) applies where—
a 2015 scheme election is made in respect of a deceased person (“P”),
P is survived by a child,
the child is not living in the same household as an adult survivor of P, and
the benefits payable under the judicial 2015 scheme in respect of the child are, in the opinion of the scheme manager of the scheme, less valuable (looked at in the round) than those that would have been payable in respect of the child if a legacy scheme election had been made in respect of P.
The benefits payable in respect of the child under the judicial 2015 scheme, so far as they are determined by reference to P’s remediable service, are such benefits as would have been payable in respect of the child, so far as they are determined by reference to P’s remediable service, if a legacy scheme election had been made in respect of P.
For the purposes of subsections (1) and (2)—
“child” means any individual who would have received benefits in respect of P under a judicial legacy scheme in their capacity as a child if a legacy scheme election had been made in respect of P;
“adult survivor” means a surviving spouse, civil partner or other adult who is entitled under the judicial 2015 scheme to a pension determined (to any extent) by reference to P’s remediable service.
Subsection (5) applies where—
a legacy scheme election is made in respect of a deceased person (“P”),
P is survived by a child,
the child is not living in the same household as an adult survivor of P, and
the benefits payable under the judicial legacy scheme in respect of the child are, in the opinion of the scheme manager of the scheme, less valuable (looked at in the round) than those that would have been payable in respect of the child if a 2015 scheme election had been made in respect of P.
The benefits payable in respect of the child under the judicial legacy scheme, so far as they are determined by reference to P’s remediable service, are such benefits as would have been payable in respect of the child, so far as they are determined by reference to P’s remediable service, if a 2015 scheme election had been made in respect of P.
For the purposes of subsections (4) and (5)—
“child” means any individual who would have received benefits in respect of P under a judicial 2015 scheme in their capacity as a child if a 2015 scheme election had been made in respect of P;
“adult survivor” means a surviving spouse or civil partner who is entitled under the judicial legacy scheme to a pension determined (to any extent) by reference to P’s remediable service.
Subsections (2) and (5) apply in relation to benefits that were payable in respect of the child before, as well as after, the election in question comes into effect.
Subsection (2) applies in relation to any benefits (“the paid benefits”) that a judicial 2015 scheme has at any time paid to a person (“P”) so far as—
they are calculated by reference to P’s, or any other person’s, remediable service in a salaried judicial office, and
they are benefits that, as a result of a legacy scheme election made in respect of P or any other person, P was not entitled to receive from the scheme.
The paid benefits are to be treated for all purposes—
as not having been paid to P by the judicial 2015 scheme, but
as having been paid to P instead by the relevant judicial legacy salaried scheme.
Subsection (4) applies in relation to any benefits (“the paid benefits”) that a judicial 2015 scheme has at any time paid to a person (“P”) so far as—
they are calculated by reference to P’s, or any other person’s, remediable service in a fee-paid judicial office, and
they are benefits that, as a result of a legacy scheme election made in respect of P or any other person, P was not entitled to receive from the scheme.
The paid benefits are to be treated for all purposes—
as not having been paid to P by the judicial 2015 scheme, but
as having been paid to P instead by the judicial legacy fee-paid scheme.
Subsection (6) applies in relation to any benefits (“the paid benefits”) that a judicial legacy scheme has at any time paid to a person (“P”) so far as—
they are calculated by reference to P’s, or any other person’s, remediable service in a judicial office, and
they are benefits that, as a result of a 2015 scheme election made in respect of P or any other person, P was not entitled to receive from the scheme.
The paid benefits are to be treated for all purposes—
as not having been paid to P by the judicial legacy scheme, but
as having been paid to P instead by the relevant 2015 scheme.
In subsection (6) “the relevant 2015 scheme” means—
in relation to service in a judicial office within section 71(1)(a) or (b), the Judicial Pensions Regulations 2015 (S.I. 2015/182);
otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76).
Subsection (9) applies where, as a result of a legacy scheme election or 2015 scheme election (and after taking into account the effect of subsections (2), (4) and (6))—
a judicial scheme owes a person an amount in respect of benefits which—
are calculated by reference to a member’s remediable service in a judicial office, and
were payable before the end of the election period, or
a person owes a judicial scheme an amount in respect of such benefits.
The liability is to be discharged only in accordance with section 51 (corrections for pension benefits and lump sum benefits).
Subsection (2) applies where a member (“M”) of a judicial 2015 scheme has paid any pension contributions (“the paid contributions”) under the scheme which—
are calculated by reference to M’s remediable service in a salaried judicial office, and
as a result of a legacy scheme election made in respect of M, M was not required to pay to the scheme.
The paid contributions are to be treated for all purposes—
as not having been paid by M to the judicial 2015 scheme, but
as having been paid by M instead to the relevant judicial legacy salaried scheme.
Subsection (4) applies where a member (“M”) of a judicial 2015 scheme has paid any pension contributions (“the paid contributions”) under the scheme which—
are calculated by reference to M’s remediable service in a fee-paid judicial office, and
as a result of a legacy scheme election made in respect of M, M was not required to pay to the scheme.
The paid contributions are to be treated for all purposes—
as not having been paid by M to the judicial 2015 scheme, but
as having been paid by M instead to the judicial legacy fee-paid scheme.
Subsection (6) applies where a member (“M”) of a judicial legacy scheme has paid any pension contributions (“the paid contributions”) under the scheme which—
are calculated by reference to M’s remediable service in a judicial office, and
as a result of a 2015 scheme election made in respect of M, M was not required to pay to the scheme.
The paid contributions are to be treated for all purposes—
as not having been paid by M to the judicial legacy scheme, but
as having been paid by M instead to the relevant 2015 scheme.
In subsection (6) “the relevant 2015 scheme” means—
in relation to service in a judicial office within section 71(1)(a) or (b), the Judicial Pensions Regulations 2015 (S.I. 2015/182);
otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76).
Subsection (9) applies where, as a result of a legacy scheme election or 2015 scheme election (and after taking into account the effect of subsections (2), (4) and (6))—
a judicial scheme owes a person an amount in respect of pension contributions which are calculated by reference to a member’s remediable service in a judicial office, or
a person owes a judicial scheme an amount in respect of such contributions.
The liability is to be discharged only in accordance with section 52 (corrections for pension contributions).
This section applies in relation to a member (“M”) of a judicial scheme who, at the end of the election period—
has remediable service in a judicial office that is pensionable service under the scheme, and
is a pensioner member in relation to the judicial office, or is deceased.
Where— the beneficiary must pay the difference to the scheme.
the aggregate of the pension benefits, if any, that (after taking into account the effect, if any, of section 49(2), (4) or (6)) have been paid under the scheme to any person (“the beneficiary”) in respect of M’s remediable service in the judicial office, exceeds
the aggregate of the pension benefits to which (after taking into account the effect, if any, of section 42(2) to (5) or 45(2)) the beneficiary was entitled under the scheme in respect of the service,
Where— the scheme manager must pay the difference to the beneficiary.
the amount mentioned in subsection (2)(a), is less than
the amount mentioned in subsection (2)(b),
Where— the beneficiary must pay the difference to the scheme.
the aggregate of the lump sum benefits, if any, that (after taking into account the effect, if any, of section 49(2), (4) or (6)) have been paid under the scheme to any person (“the beneficiary”) in respect of M’s remediable service in the judicial office, exceeds
the aggregate of the lump sum benefits to which (after taking into account the effect, if any, of section 42(2) to (5) or 45(2)) the beneficiary was entitled under the scheme in respect of the service,
Where— the scheme manager must pay the difference to the beneficiary.
the amount mentioned in subsection (4)(a), is less than
the amount mentioned in subsection (4)(b),
If— the PPA lump sum death benefit is to be treated for the purposes of subsection (4)(a) as a lump sum benefit paid under the scheme in respect of M’s remediable service in the judicial office.
M is deceased,
a PPA lump sum death benefit has been paid on the death of M, and
a legacy scheme election has been made in respect of M,
If— the judicial service award is to be treated for the purposes of subsection (4)(a) as a lump sum benefit paid to M under the scheme in respect of M’s remediable service in the judicial office.
a 2015 scheme election has been made in respect of M, and
M has been paid a judicial service award in respect of M’s service in the judicial office,
In this section—
“pension benefit” means any benefit payable under a pension scheme otherwise than by way of a lump sum;
This section applies in relation to a member (“M”) of a judicial scheme who, at the end of the election period has remediable service in a judicial office that is pensionable service under the scheme.
Where— the scheme manager must (directly or indirectly) pay an amount in respect of the difference to the appropriate person.
the paid contributions amount for an in-scope tax year in respect of M’s remediable service in the judicial office, exceeds
the payable contributions amount for that tax year in respect of that service,
Where— no amount is to be paid by the scheme manager in respect of the difference to the appropriate person.
the paid contributions amount for an out-of-scope tax year in respect of M’s remediable service in the judicial office, exceeds
the payable contributions amount for that tax year in respect of that service,
Where— the appropriate person must pay pension contributions in respect of the difference to the scheme.
the paid contributions amount for an in-scope or out-of-scope tax year in respect of M’s remediable service in the judicial office, is less than
the payable contributions amount for that tax year in respect of that service,
A reference in this section to “the paid contributions amount” for a tax year in respect of M’s remediable service in a judicial office is a reference to the sum of—
the aggregate of the pension contributions that (after taking into account the effect, if any, of section 50(2), (4) and (6)) have been paid under the scheme by M in the tax year in respect of so much of the service as was not PPA opted-out service, and
where any of the remediable service was PPA opted-out service—
the aggregate of the pension contributions and any voluntary contributions that have been paid by M under the partnership pension account in the tax year in respect of the PPA opted-out service, or
if lower, the aggregate of the pension contributions that (after taking into account the effect, if any, of section 42(2) to (5) or 45(2)) were payable under the scheme by M for that tax year in respect of the PPA opted-out service.
A reference in this section to “the payable contributions amount” for a tax year in respect of M’s remediable service in a judicial office means the aggregate of the pension contributions that (after taking into account the effect, if any, of section 42(2) to (5) or 45(2)) were payable under the scheme by M for that tax year in respect of the service.
In this section “the appropriate person” means—
M, or
if M is deceased, M’s personal representatives.
For the purposes of this section—
a tax year is “in-scope” in relation to M if any necessary adjustment to the amount of income tax paid by M in respect of PAYE income for the tax year is capable of being enforced by HMRC under PAYE regulations;
a tax year is “out-of-scope” in relation to M if it is not in-scope in relation to M.
A reference in this section to pension contributions or voluntary contributions paid by a person under a partnership pension account is a reference to the amount of the contributions paid, net of any tax relief under section 188 of FA 2004 (relief for contributions) to which the person was entitled in respect of them.
Subsections (2) and (3) apply where—
a person (“P”) has remediable service in a judicial office,
P has, during the period of remediable service, paid any effective pension age payments to a judicial 2015 scheme, and
a legacy scheme election is made in respect of P.
The rights that would otherwise have been secured by the effective pension age payments are extinguished.
The scheme manager of the judicial 2015 scheme must pay to the appropriate person an amount by way of compensation equal to—
the aggregate of the effective pension age payments paid by P, less
an amount in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which P was entitled in respect of those payments.
In subsection (3) “the appropriate person” means—
P, or
if P is deceased, P’s personal representatives.
In this section “effective pension age payments” means payments under—
Part 3 of Schedule 1 to the Judicial Pensions Regulations 2015 (S.I. 2015/182), or
Part 3 of Schedule 1 to the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76).
Subsection (2) applies where—
a person (“P”) has remediable service in a judicial office,
P’s employer (“the employer”) has paid P a transitional protection allowance, and
a legacy scheme election is made in respect of P.
The appropriate person must pay to the employer an amount equal to—
the amount of the transitional protection allowance, less
an amount in respect of the income tax suffered by P that is attributable to the transitional protection allowance.
In subsection (2) “the appropriate person” means—
P, or
if P is deceased, P’s personal representatives.
In this section “transitional protection allowance” means an amount paid to a person, pursuant to an agreement between the person and the person’s employer, that the person should not accrue pensionable service under any judicial scheme after 31 March 2015.
A reference in this section to a person’s employer is to the person’s employer for the purposes of any judicial scheme of which the person is a member.
Scheme regulations for a judicial scheme may make provision under which—
a person who would otherwise be required to pay an amount under or by virtue of this Chapter to the scheme, or to the person’s employer, is not required to pay that amount to the scheme or the employer, and
instead, the benefits payable to or in respect of the person under the scheme are reduced in accordance with the regulations.
Scheme regulations for a judicial scheme may make provision under which, in a case in which a person is (by virtue of provision made under subsection (1)) not required to pay an amount to the person’s employer, the scheme manager is required to reimburse the employer.
A reference in this section to a person’s employer is to the person’s employer for the purposes of any judicial scheme of which the person is a member.
Scheme regulations for a judicial scheme may make provision under which a liability owed by a person to the scheme under section 51 (corrections for pension benefits and lump sum benefits) is reduced or waived.
Scheme regulations for a judicial scheme may make provision under which a liability to pay pension contributions owed by a person to the scheme under section 52 (corrections for pension contributions) is reduced or waived.
The provision that may be made under subsection (2) includes, in particular, provision under which a liability to pay pension contributions is reduced by tax relief amounts.
In subsection (3) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that would have been available in respect of the amounts owed if—
they had been paid in a different tax year, or
they had been paid to a different judicial scheme.
Scheme regulations for a judicial scheme may make provision about the benefits payable to or in respect of a relevant pension credit member and the corresponding pension debit member.
In this section “relevant pension credit member”, in relation to a judicial scheme, means a person who has rights under the scheme—
which are attributable (directly or indirectly) to a pension credit, and
the value of which was determined (to any extent) by reference to the value of benefits payable in respect of the remediable service in a judicial office of another person.
In this section “the corresponding pension debit member”, in relation to a relevant pension credit member, means the person mentioned in subsection (2)(b).
The provision that may be made under subsection (1) includes provision under which—
the pension debit of the corresponding pension debit member is adjusted where a legacy scheme election or a 2015 scheme election is made in respect of a member;
the pension credit of a relevant pension credit member is adjusted on the assumption that a legacy scheme election or a 2015 scheme election is made in respect of the corresponding pension debit member (regardless of whether it in fact is).
Provision made under subsection (1) must include provision under which, in a case in which the corresponding pension debit member in relation to a relevant pension credit member has mixed service, any pension credit retained by the relevant pension credit member under the scheme is of a value determined by reference to the value of benefits payable under only one judicial scheme.
For the purposes of this section a person’s remediable service in a judicial office is “mixed service” if, disregarding any legacy scheme election or 2015 scheme election made in respect of the person—
some of the service is pensionable service under a judicial legacy scheme, and
some of the service is pensionable service under a judicial 2015 scheme.
In this section—
Scheme regulations for a judicial scheme may make further provision relating to a member who has remediable service in a judicial office.
The provision that may be made under subsection (1) includes, in particular—
provision about cases in which a member has paid voluntary contributions to the scheme during any period of remediable service;
provision about the calculation or payment of transfer values on the transfer out of the rights of a member who has remediable service in a judicial office;
provision about the benefits payable to or in respect of a member who has remediable service in a judicial office and has transferred in to the scheme an amount in respect of rights accrued under another pension scheme;
provision about the benefits payable to or in respect of a member who has remediable service in a judicial office that is mixed service;
provision about the benefits payable to or in respect of a member where, disregarding any legacy scheme election or 2015 scheme election made in respect of the member, the member—
has remediable service in a judicial office that is pensionable service under a judicial 2015 scheme, and
has a right under that scheme, if they retire before normal pension age, on the making of a payment to the scheme, to the reduction or elimination of the actuarial reduction that would otherwise have been made to the benefits payable to or in respect of the member in respect of that remediable service;
provision about the benefits payable to or in respect of a person who has partially retired;
provision about cases in which the scheme administrator of a judicial scheme pays a liability under section 217 or 237B of FA 2004 (joint liability of scheme administrator to lifetime allowance charge or annual allowance charge).
The provision that may be made by virtue of subsection (2)(a) includes, in particular, provision under which—
the rights that would otherwise have been secured by the payment of any voluntary contributions are extinguished, and
the scheme manager is required to pay the member or, if the member is deceased, the member’s personal representatives an amount by way of compensation equal to—
the aggregate of the voluntary contributions paid, less
an amount in respect of the tax relief under section 188 of FA 2004 (member contributions) to which the member was entitled in respect of those payments.
The provision that may be made by scheme regulations under this section, or under section 57, includes, in particular—
provision modifying any provision of this Chapter in its application to persons of a description specified in the regulations;
provision corresponding to, or applying, any provision of this Chapter, with or without modifications.
For the purposes of this section a person’s remediable service in a judicial office is “mixed service” if, disregarding any legacy scheme election or 2015 scheme election made in respect of the person—
some of the service is pensionable service under a judicial legacy scheme, and
some of the service is—
pensionable service under a judicial 2015 scheme, or
PPA opted-out service.
In this section—
The scheme manager for a judicial scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.
Scheme regulations for a judicial scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).
For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—
either of the following conditions is met, and
the loss is of a description specified in Treasury directions.
The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.
The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.
In this section (subject to subsection (8)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.
In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—
incurring a charge, or incurring an increased charge, under Part 4 of FA 2004, or
not being entitled to a relief, or being entitled to less relief, under that Part of that Act.
In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a judicial scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as— whether pursuant to an order of a court or tribunal or otherwise.
any person has already received amounts by way of compensation in respect of them, or
amounts that any person has paid the scheme have been reduced by amounts in respect of them,
Scheme regulations for a judicial scheme may make provision so as to secure that a relevant member may enter into remedial voluntary contributions arrangements.
In subsection (1)—
Provision by virtue of subsection (1) may permit a member (“M”) to enter into arrangements only if the scheme manager is satisfied that it is more likely than not that, but for a relevant breach of a non-discrimination rule, M would, during the period of M’s remediable service in the judicial office, have entered into the same or similar arrangements.
The provision that may be made by virtue of subsection (1) includes, in particular, provision under which liabilities to pay voluntary contributions that would otherwise arise under the arrangements are reduced by tax relief amounts.
In subsection (4) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that would have been available in respect of the amounts owed if they were paid in a different tax year.
Provision by virtue of subsection (1) may not permit a member (“M”) to enter into arrangements after—
the end of the period of one year beginning with the day on which a statement under section 64 (information statements) is sent in respect of M, or
such later time as the scheme manager considers reasonable in all the circumstances.
Subsection (6) does not affect the continued operation after the time mentioned in that subsection of any arrangements entered into before that time.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a judicial scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
Scheme regulations for a judicial scheme may make provision—
under which interest is required to be calculated and paid on relevant amounts;
about the process by which relevant amounts (and any interest on them) are to be paid.
Scheme regulations made by virtue of subsection (1)(b) may, in particular, include provision—
about when relevant amounts (and any interest on them) are to be paid (including provision under which they are paid in instalments);
under which relevant amounts (and any interest on then) owed by the scheme to a person may be paid only on the making of an application;
for the netting off of relevant amounts (and any interest on them) owed to a person by the scheme against relevant amounts (and any interest on them) owed by the person to the scheme;
conferring rights of appeal against decisions taken under the regulations.
In this section “relevant amounts” mean any amounts that are payable under or by virtue of this Chapter—
by a person to the scheme or to an employer in relation to the scheme, or
by the scheme to a person.
The powers mentioned in subsection (2) must be exercised in accordance with Treasury directions.
The powers are—
the power to make scheme regulations by virtue of section 55 (power to reduce benefits) and any powers exercisable by virtue of such regulations;
the powers to make scheme regulations by virtue of section 56 (powers to reduce or waive liabilities) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 57 (pension credit members) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 58 (further powers to make provision about special cases) and any powers exercisable by virtue of such regulations;
the power of the scheme manager under section 59(1) (power to pay compensation);
the power to make scheme regulations by virtue of section 59(2) (power to require employer to reimburse compensation paid by scheme manager) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 60 (remedial arrangements to pay voluntary contributions to judicial schemes) and any powers exercisable by virtue of such regulations;
the power to make scheme regulations by virtue of section 61 (interest and process) and any powers exercisable by virtue of such regulations.
Treasury directions under this section may provide for amounts that are to be paid by or to a scheme in relation to a member, or any reduction or waiver of a liability to pay such amounts, to be determined—
taking into account the particular circumstances of the member and (if different) the person to whom or by whom the amount is to be paid or the liability is owed, or
without taking into account any or all of the particular circumstances of that person or those persons.
Treasury directions under this section that relate to the calculation and payment of interest, and variations and revocations of such directions, may only be made after consultation with the Government Actuary.
For the definition of “Treasury directions”, see section 75.
Subsection (2) applies where—
a payment from a judicial scheme is permitted or required to be made under or by virtue of this Chapter,
the payment, if made, would be an unauthorised payment, and
a rule of the scheme prohibits the scheme from making unauthorised payments.
The payment may be made only if it falls within a description of payments specified for the purposes of this section in Treasury directions.
Subsection (4) applies where—
in the course of taking the step mentioned in section 41(3)(a) or (6)(a) (requirement to transfer assets held in partnership pension account) a payment is made from a partnership pension account,
the payment, if made, would be an unauthorised payment, and
a rule of the scheme prohibits the scheme from making unauthorised payments.
The payment may be made notwithstanding the rule mentioned in subsection (3)(c).
In this section “unauthorised payment” means a payment that is an unauthorised payment for the purposes of Part 4 of FA 2004 (see section 160(5) of that Act).
The relevant authority must—
prepare a statement in relation to any person (“P”) in respect of whom a legacy scheme election or a 2015 election may be made, and
send it to the person who may make the election (see section 46).
Subsection (1) must be complied with before the beginning of the election period in relation to P.
The statement must contain—
a description of the benefits that would be available in respect of P’s remediable service if a legacy scheme election were made in respect of P (specifying the judicial legacy scheme or schemes under which those benefits would be available),
if a 2015 scheme election may be made in respect of P, a description of the benefits that would be available in respect of P’s remediable service if the election were made (specifying the judicial 2015 scheme or schemes under which those benefits would be available),
a description of the benefits (if any) that would be available in respect of P’s remediable service if no legacy scheme election or 2015 scheme election is made in respect of P (specifying the judicial scheme or schemes under which any benefits would be available),
a description of—
the arrangements (if any) that, by virtue of section 60 (remedial arrangements to pay voluntary contributions to judicial schemes), may be entered into under judicial schemes, and
the circumstances in which, and the process by which, such arrangements may be entered into, and
such other information as the relevant authority considers relevant to the decision as to whether to make a legacy scheme election or 2015 scheme election in respect of P.
The Lord Chancellor may delegate to another person any of the Lord Chancellor’s functions under this Chapter.
The Department of Justice in Northern Ireland may delegate to another person any of its functions under this Chapter.
In determining for the purposes of this Chapter whether any service is pensionable service under a particular pension scheme, section 61 of EA 2010 and paragraph 2 of Schedule 1 to EEAR(NI) 2006 (non-discrimination rule) are to be disregarded.
To the extent that section 61 of EA 2010 or paragraph 2 of Schedule 1 to EEAR(NI) 2006 has the effect (apart from this subsection) that any remediable service of a person— it ceases to have effect (to that extent) at the end of the election period.
is not pensionable service under a judicial 2015 scheme, or
is pensionable service under a judicial legacy scheme,
Subject as follows, nothing in sections 40 to 66 applies in relation to a person’s remediable service in a judicial office if an immediate detriment remedy has been obtained in relation to the service.
Scheme regulations for a judicial scheme may make provision for the purpose of putting persons who have rights in respect of remediable service in relation to which an immediate detriment remedy has been obtained, so far as possible, in the position that they would have been in if there had been no relevant breach of a non-discrimination rule in relation to the service.
The provision that may be made under subsection (2) includes, in particular— with or without modifications.
provision corresponding to any provision of sections 40 to 66, or
provision applying any provision of this Chapter in its application to persons of a description specified in the regulations,
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a judicial scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—
an exception to section 18(1) of PSPA 2013 made under section 18(5) to (7) of that Act, or
an exception to section 18(1) of PSPA(NI) 2014 made under section 18(5) to (8) of that Act.
For the purposes of section 67 an “immediate detriment remedy” has been obtained in relation to a person’s remediable service in a judicial office, if either of the following conditions is met.
The first condition is that—
a court or tribunal has determined that, as a result of a non-discrimination rule, any person has any rights under a judicial legacy scheme in respect of the remediable service, and
the scheme manager of the scheme has—
paid any benefits or compensation in accordance with the determination, or
taken any other step (for example, altering records) to implement the determination.
The second condition is that—
the scheme manager of a judicial legacy scheme and any person have agreed that, as a result of a non-discrimination rule, the person has any rights under the scheme in respect of the remediable service, and
the scheme manager of the scheme has—
paid any benefits or compensation in accordance with the agreement, or
taken any other step (for example, altering records) to implement the agreement.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a judicial scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
In this Chapter “the election period”, in relation to a person who has remediable service in a judicial office, means (subject to subsection (3)) the period of three months beginning with such date as is specified for the purposes of this section by the relevant authority.
Different dates may be specified in relation to different descriptions of person.
The relevant authority may extend the period mentioned in subsection (1) in relation to a particular person if the relevant authority considers it just and equitable to do so.
“A judicial scheme” means—
a judicial 2015 scheme, or
a judicial legacy scheme.
“A judicial 2015 scheme” means—
the Judicial Pensions Regulations 2015 (S.I. 2015/182), or
the Judicial Pensions Regulations (Northern Ireland) 2015 (S.R. (N.I.) 2015 No. 76).
“A judicial legacy scheme” means—
a judicial legacy salaried scheme, or
the judicial legacy fee-paid scheme.
“A judicial legacy salaried scheme” means—
an existing scheme (within the meaning of PSPA 2013) mentioned in any of paragraphs 2 to 11, or paragraph 15, of Schedule 5 to that Act (judicial schemes), or
an existing scheme (within the meaning of PSPA(NI) 2014) mentioned in paragraph 2 of Schedule 5 to that Act (judicial schemes).
“The judicial legacy fee-paid scheme” means the scheme constituted by Parts 1 to 11 of the Judicial Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/522).
This section has effect for the purposes of this Chapter.
“Judicial office” means—
an office specified in an order made under paragraph 2(1) of Schedule 1 to PSPA 2013,
an office specified in regulation 3(2) of the Judicial Pensions Regulations 2015 (S.I. 2015/182), or
an office specified in an order made under paragraph 2(1) of Schedule 1 to PSPA(NI) 2014.
“Salaried judicial office” means a judicial office held by a person whose service in that office is remunerated by the payment of salary.
“Fee-paid judicial office” means a judicial office held by a person whose service in that office is remunerated by the payment of fees (as opposed to the payment of salary).
This section has effect for the purposes of this Chapter.
In this Chapter “the relevant authority” means—
in relation to a person who has remediable service in a judicial office within section 71(1)(a) or (b), the Lord Chancellor;
in relation to any other person, the Department of Justice in Northern Ireland.
A person’s remediable service in a judicial office is “opted-out service” if and to the extent that the service meets the second condition in section 39 by virtue of the application of paragraph (b) of subsection (4) of that section.
A person’s remediable service in a judicial office is “PPA opted-out service” if—
it is opted-out service, and
the person has rights under a partnership pension account that are referable to pension contributions made in respect of it.
This section has effect for the purposes of this Chapter.
In this Chapter “scheme regulations”—
in relation to a judicial scheme within section 70(2)(a), (4)(a) or (5) has the same meaning as in PSPA 2013 (see section 1(4) of that Act);
in relation to a judicial scheme within section 70(2)(b) or (4)(b), has the same meaning as in PSPA(NI) 2014 (see section 1(4) of that Act).
A power under this Chapter to make provision by means of scheme regulations for a judicial legacy scheme—
is to be exercised by the responsible authority for the judicial 2015 scheme that is connected with the judicial legacy scheme, and
may be exercised by amending the judicial legacy scheme.
In subsection (2) “responsible authority”—
in relation to a judicial scheme within section 70(2)(a), (4)(a) or (5) has the same meaning as in PSPA 2013 (see section 2 of that Act);
in relation to a judicial scheme within section 70(2)(b) or (4)(b), has the same meaning as in PSPA(NI) 2014 (see section 2 of that Act).
In this Chapter—
In this Chapter—
a reference to a person’s service in an office is, in relation to a fee-paid judicial office, a reference to the person’s holding of the office;
a reference to a period in which a person’s service in an office takes place is, in relation to a fee-paid judicial office, a reference to a period in which the person holds the office;
a reference to a person accruing pensionable service under the judicial legacy fee-paid scheme is a reference to the person being an active member of the scheme in relation to any office;
a reference to a person’s service in a fee-paid judicial office being “pensionable service” under the judicial legacy fee-paid scheme is a reference to the person being, during the period in which the service takes place, an active member of the scheme in relation to that office.
Where, at any time in a specified period— the person is treated for the purposes of this Chapter as having been, at that time, an active member of that scheme in relation to that office.
a person holds a specified judicial fee-paid office, and
the person was not (apart from this subsection) at that time an active member of the judicial legacy fee-paid scheme in relation to that office,
In subsection (2) “specified” means specified by the Lord Chancellor by notice.
The Lord Chancellor must publish any notice under subsection (3).
In this section “active member” has the same meaning as in the Judicial Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/522) (see regulation 9(3) of those regulations).
For the purposes of this Chapter any continuous period of service of a person in an employment or office is “remediable service” in that employment or office if the following four conditions are met.
In this section “the service in question” means the service mentioned in subsection (1).
The first condition is that the service in question takes place in the period—
beginning with the day after the closing date, and
ending with 31 March 2022 or, if earlier, the date on which the person attains legacy scheme normal pension age.
The second condition is that the service in question is pensionable service under a local government new scheme (including where the service is excess teacher service that is so pensionable by virtue of section 2(1)).
The third condition is that the person was, on 31 March 2012 or any earlier day, in pensionable service under—
a Chapter 1 legacy scheme (within the meaning of Chapter 1),
a judicial legacy scheme (within the meaning of Chapter 2), or
a local government legacy scheme.
The fourth condition is that there is no disqualifying gap in service falling within the period—
beginning with the day after the most recent day in relation to which the third condition is met, and
ending with the day before the first day of the service in question.
In subsection (3)—
In subsection (6) “disqualifying gap in service” means a period longer than 5 years at no time during which is the person in service in an employment or office which—
is pensionable service under—
a Chapter 1 scheme (within the meaning of Chapter 1),
a judicial scheme (within the meaning of Chapter 2), or
a local government scheme,
is, as a result of a Fair Deal transfer, pensionable service under a Fair Deal scheme, or
is, as a result of a local government contracting-out transfer, pensionable service under a pension scheme that offers pension arrangements that are broadly comparable with those offered to the person before the transfer.
Scheme regulations for a local government new scheme may make provision under which the benefits payable under the scheme, so far as they are determined by reference to a member’s remediable service in any employment or office, are final salary benefits.
The reference in subsection (1) to remediable service includes—
remediable service within the meaning of Chapter 1 that has been transferred in from a Chapter 1 scheme, and
remediable service within the meaning of Chapter 2 that has been transferred in from a judicial scheme.
Scheme regulations made by virtue of subsection (1) may, in particular, include provision under which final salary benefits are only payable under the scheme to or in respect of a person who has service in multiple employments or offices if—
so much of the service as is otherwise pensionable under another local government scheme, or under a Chapter 1 scheme or a judicial scheme, is transferred in to the scheme, or
the service is aggregated for the purposes of determining those benefits.
Scheme regulations for a local government new scheme may make provision under which the benefits payable under the scheme, so far as they are determined by reference to a member’s final salary transferred-in service in any employment or office, are final salary benefits.
For the purposes of subsection (4) a member’s service in an employment or office is “final salary transferred-in service” if—
the service has been transferred in from another pension scheme, and
before the transfer, the benefits payable under that other scheme, so far as determined by reference to the service, were final salary benefits.
Except as provided by the preceding provisions of this section, scheme regulations for a local government new scheme may not make provision under which the benefits payable under the scheme that are determined by reference to a member’s pensionable service in an employment or office are final salary benefits.
Any provision of scheme regulations that— is treated as having been made under section 78(1).
was, at any time before the coming into force of section 78(1), made (or purportedly made) in relation to a local government new scheme under—
section 18 of PSPA 2013 or section 18 of PSPA(NI) 2014 (restriction of existing pension schemes), or
any other enactment, and
could have been made under section 78(1) if it had been in force at that time,
Section 78(6) does not affect the continued operation of any scheme regulations made before the coming into force of that provision.
Scheme regulations for a local government new scheme may make provision about the benefits payable to or in respect of a relevant pension credit member and the corresponding pension debit member.
In this section “relevant pension credit member”, in relation to a local government new scheme, means a member of the scheme who has rights under the scheme—
which are attributable (directly or indirectly) to a pension credit, and
the value of which was determined (to any extent) by reference to the value of benefits payable in respect of the remediable service in an employment or office of another member.
In this section “the corresponding pension debit member”, in relation to a relevant pension credit member, means the member mentioned in subsection (2)(b).
The provision that may be made by scheme regulations under this section includes, in particular—
provision modifying any provision of this Chapter in its application to persons of a description specified in the regulations;
provision corresponding to, or applying, any provision of this Chapter, with or without modifications.
In this section—
Scheme regulations for a local government new scheme may make further provision relating to a member who has remediable service in an employment or office.
The provision that may be made under subsection (1) includes, in particular, provision about cases in which a person has remediable service in an employment or office any of which is excess teacher service.
Scheme regulations for a local government new scheme may make provision about injury and compensation benefits payable under a relevant injury and compensation scheme to or in respect of a member who has remediable service in an employment or office.
Provision made under subsection (3) may in particular be made by amending the relevant injury and compensation scheme.
In subsections (3) and (4) and this subsection—
“injury and compensation scheme” means a pension scheme that is listed in Schedule 6 to PSPA 2013 or Schedule 6 to PSPA(NI) 2014 (existing injury and compensation schemes);
an injury and compensation scheme is “relevant”, in relation to a local government new scheme, if it is connected with the local government new scheme;
a reference to “injury and compensation benefits” payable under an injury and compensation scheme is a reference to—
in the case of an injury and compensation scheme in relation to which Schedule 6 to PSPA 2013 or Schedule 6 to PSPA(NI) 2014 specifies particular benefits, those benefits;
in the case of any other injury and compensation scheme, any benefits payable under the scheme.
The provision that may be made by scheme regulations under this section includes, in particular—
provision modifying any provision of this Chapter in its application to persons of a description specified in the regulations;
provision corresponding to, or applying, any provision of this Chapter, with or without modifications.
In this section “modifying” includes disapplying or supplementing (and cognate expressions are to be construed accordingly).
The scheme manager for a local government new scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.
Scheme regulations for a local government new scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).
For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—
either of the following conditions is met, and
the loss is of a description specified in Treasury directions.
The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.
The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.
In this section (subject to subsection (8)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.
In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—
incurring a charge, or incurring an increased charge, under Part 4 of FA 2004, or
not being entitled to a relief, or being entitled to less relief, under that Part of that Act.
In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.
In this section “non-discrimination rule” means a rule that is, or at any time was, included in a local government scheme by virtue of—
section 61 of EA 2010, or
paragraph 2 of Schedule 1 to EEAR(NI) 2006.
For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of a provision of scheme regulations made before 1 April 2022 under which the benefits payable under the scheme that are determined by reference to a member’s pensionable service in an employment or office are final salary benefits.
Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as— whether pursuant to an order of a court or tribunal or otherwise.
any person has already received amounts by way of compensation in respect of them, or
amounts that any person has paid the scheme have been reduced by amounts in respect of them,
Scheme regulations for a local government new scheme may make provision under which, where a member has incurred a compensatable loss that is a Part 4 tax loss—
the member is not paid an amount under section 82 by way of compensation in respect of the loss, and
the member is instead paid such additional benefits under the scheme as may be determined in accordance with the regulations.
In this section “compensatable loss” and “Part 4 tax loss” have the same meaning as in section 82.