Legislation – The Teachers’ Pension Scheme (Remediable Service) Regulations 2023

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Introduction

PART 1
Introductory provisions

1 Citation, commencement and extent

2 Interpretation

3 Delegation

PART 2
Remediable service statements

4 Requirements relating to remediable service statements

PART 3
Decisions about the treatment of remediable service

CHAPTER 1 Opted-out service elections

5 Application and interpretation of Chapter 1

6 Election in relation to relevant opted-out service

CHAPTER 2 Immediate choice decision for reformed scheme or legacy scheme benefits

7 Application and interpretation of Chapter 2

8 Immediate choice decision for reformed scheme or legacy scheme benefits: general

9 Immediate choice decision: additional requirements

10 Immediate choice decision: deemed section 6 election

CHAPTER 3 Deferred choice decision for reformed scheme or legacy scheme benefits

11 Application and interpretation of Chapter 3

12 Deferred choice decision for reformed scheme or legacy scheme benefits: general

13 Deferred choice decision to be made by M

14 Deferred choice decision to be made by a person other than M

15 Deferred choice decision: deemed section 10 election

16 Deferred choice decision: additional requirements

PART 4
Provision about divorce and dissolution arrangements

CHAPTER 1 Pension credit and pension debit members

SECTION 1 Application and interpretation of Chapter 1

17 Application and interpretation of Chapter 1

SECTION 2 Pension sharing orders: information provided before 1st October 2023

18 Application and interpretation of Section 2

19 Meaning of “alternative amount”

20 Information provided before 1st October 2023: calculating a remediable credit adjustment

21 Information provided before 1st October 2023: applying a remediable credit adjustment

22 Information provided before 1st October 2023: recalculating D’s reduction of benefit

SECTION 3 Information provided on or after 1st October 2023

23 Application and interpretation of Section 3

24 Information provided on or after 1st October 2023: calculation of pension credits and debits

25 Information provided on or after 1st October 2023: recalculating D’s reduction of benefit

CHAPTER 2 Arrangements on divorce, annulment or dissolution other than a pension sharing order

26 Arrangements other than a pension sharing order: calculating the value of pension benefits

PART 5
Voluntary contributions

CHAPTER 1 General

27 Interpretation of Part 5

28 Requirement to determine the value of flexibilities in a member’s alternative scheme

29 Election in relation to remediable voluntary contributions

30 Disapplication of scheme regulations where rights are determined, varied or conferred

31 Variation of the period during which a buy-out election may be made

CHAPTER 2 Immediate choice members

32 Application of Chapter 2

33 Treatment of legacy scheme additional pension where reformed scheme benefits chosen

34 Treatment of reformed scheme flexibilities where legacy scheme benefits take effect

35 Treatment of scheme flexibilities in payment

CHAPTER 3 Deferred choice members

SECTION 1 Application of Chapter 3

36 Application of Chapter 3

SECTION 2 Provision about remedial voluntary contributions on the entry into force of section 2(1) of PSPJOA 2022

37 Application of Section 2

38 Treatment of rights to reformed scheme flexibilities on the entry into force of section 2(1) of PSPJOA 2022

39 Agreement to waive payment of a compensatable amount

SECTION 3 Provision about remediable voluntary contributions on a deferred choice decision

40 Variation of legacy scheme additional pension where reformed scheme benefits chosen

41 Reinstatement of reformed scheme flexibilities where reformed scheme benefits chosen

42 Treatment of waived compensatable amount where legacy scheme benefits take effect

CHAPTER 4 Remedial arrangements to pay voluntary contributions to the legacy scheme

43 Remedial arrangements to pay voluntary contributions to secure legacy scheme additional pension

PART 6
Transfers

CHAPTER 1 General

44 Interpretation of Part 6

45 Transferred out remediable service statements

CHAPTER 2 Transfers on a cash equivalent basis

SECTION 1 Transfers before 1st October 2023

46 Transfers out before 1st October 2023

47 Transfers in before 1st October 2023

SECTION 2 Transfers on or after 1st October 2023

48 Application of Section 2

49 Transfers out on or after 1st October 2023

CHAPTER 3 Transfers on a club basis

SECTION 1 Club transfers before 1st October 2023

50 Club transfers out before 1st October 2023

51 Club transfers in before 1st October 2023

SECTION 2 Club transfers on or after 1st October 2023

52 Application of Section 2

53 Club transfers out on or after 1st October 2023

54 Club transfers in on or after 1st October 2023

CHAPTER 4 Variation of transfer application periods

55 Variation of transfer application periods

CHAPTER 5 Treatment of rights secured by virtue of a remediable value

56 Application and interpretation of Chapter 5

57 Transferred in remediable rights treated as being in the legacy scheme

58 Varying the value of benefits secured by virtue of transferred in remediable rights

59 Benefits already paid in relation to transferred in remediable rights

60 Pension benefits and lump sum benefits in relation to transferred in remediable rights

PART 7
Provision about special cases

CHAPTER 1 Ill-health retirement

61 Interpretation of Chapter 1

62 Determining whether a member meets the ill-health retirement criteria in each scheme

63 Provisions about ill-health retirement benefits following reassessment

64 Ill-health retirement benefit payable in transitional cases

CHAPTER 2 Miscellaneous special cases

65 Protection of the amount of pension payable to an eligible child

66 Immediate choice members with excess teacher service

67 Premature retirement

68 Payment of annual allowance tax charges and provision of information

PART 8
Liabilities and payment

CHAPTER 1 Application of Part 8

69 Application of Part 8

CHAPTER 2 Interest, compensation and netting off

70 Interest

71 Indirect compensation

72 Applications for compensation or indirect compensation

73 Netting off

CHAPTER 3 Reduction and waiver of liabilities

74 Requirement to reduce liabilities by tax relief amounts

75 Power to reduce or waive amounts owed by a person to the scheme manager

76 Agreement to waive a liability owed by the scheme manager in respect of an immediate correction

CHAPTER 4 Payment of net liabilities

77 Application of Chapter 4

78 Payment of amounts owed to the scheme manager

79 Payment of amounts owed to a person

SCHEDULES

SCHEDULE Eligible decision-makers for deceased members

Signature

Explanatory note

PART 8Liabilities and payment

CHAPTER 3Reduction and waiver of liabilities

Requirement to reduce liabilities by tax relief amounts74.

(1)

This regulation applies where—

(a)

a person owes a liability to pay pension contributions in relation to the remediable teacher service of a remedy member, or

(b)

the scheme manager owes a liability to pay compensation in relation to such service,

under section 15, 16 or 17 of PSPJOA 2022.

(2)

The scheme manager must reduce the liability by tax relief amounts30

(a)

determined in accordance with direction 4(5) to (9) of the PSP Directions 2022, and

(b)

before the liability is netted off in accordance with regulation 73.

(3)

The following provisions of the PSP Directions 2022 apply where the scheme manager makes a determination in accordance with direction 4(8)—

(a)

direction 4(10) (provision of explanation);

(b)

direction 4(11) and (12) (appeals).

Power to reduce or waive amounts owed by a person to the scheme manager75.

(1)

The scheme manager may reduce or waive an amount owed by a person to the scheme under—

(a)

section 14, 15, 16 or 17 of PSPJOA 2022, or

(b)

these Regulations.

(2)

When reducing or waiving an amount under paragraph (1), the scheme manager must comply with the requirements set out in direction 4(1)(a) to (c) of the PSP Directions 2022 (and the reference in direction 4(1)(c) to “any scheme regulations made by virtue of section 26(1)(b) of PSPJOA 2022” is to be read as a reference to regulation 78).

Agreement to waive a liability owed by the scheme manager in respect of an immediate correction76.

(1)

This regulation applies where the scheme manager owes a liability to pay compensation to a person (“P”) under section 16(3) of PSPJOA 2022.

(2)

The scheme manager and P may agree to waive the liability.

(3)

Such an agreement—

(a)

must be in writing,

(b)

may only be made during the period—

(i)

beginning with the day after the day on which P receives the most recent notice sent under paragraph 78(2), and

(ii)

ending at the end of the day six months after that date,

(c)

may be rescinded with the agreement of the scheme manager and P, and

(d)

in any event ceases to apply where—

(i)

the end of the section 10 election period in relation to the remediable teacher service in respect of which the compensation is payable has passed, and

(ii)

no section 10 election is made in relation to that service.

(4)

Where an agreement is rescinded or otherwise ceases to apply, the scheme manager owes P the liability mentioned in paragraph (1).

30

See section 18(4) of PSPJOA 2022 for the meaning of “tax relief amounts” for the purposes of a liability mentioned in regulation 73(1)(a) and section 18(7) of that Act for the meaning of that term for the purposes of a liability mentioned in regulation 73(1)(b).