Legislation – The Public Service (Civil Servants and Others) Pensions (Remediable Service) Regulations 2023

There are currently no known outstanding effects for The Public Service (Civil Servants and Others) Pensions (Remediable Service) Regulations 2023, Section 38.

Changes to Legislation

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PART 6Transfers

CHAPTER 2Transfers on a cash equivalent basis

SECTION 1Transfers before 1st October 2023

Transfers out before 1st October 2023
38.

(1)

F1Except where paragraph (1A) applies, this regulation applies in relation to a remedy member (“M”) in respect of whom the scheme manager paid a remediable transfer value before 1st October 2023.

F2(1A)

This paragraph applies where—

(a)

the receiving scheme was not a local government scheme within the meaning of section 86(1) of PSPJOA 2022, and

(b)

the payment was made in circumstances in which any of the following applied—

(i)

Rule F.12 of Section I,

(ii)

Rule 6.35 of Section II, to the extent that it concerns persons being transferred to a new employer without their consent,

(iii)

Rule G.12 of Section III, or

(iv)

regulation 155(1) or (2) of the 2014 Regulations (bulk transfers out).

(2)

The scheme manager, having consulted the scheme actuary, must calculate the transfer value of M’s remediable rights as if they were secured in—

(a)

the PCSPS, and separately

(b)

alpha.

(3)

The scheme manager must notify the receiving scheme of the results of the calculation mentioned in paragraph (2).

(4)

Where—

(a)

the greater of the amounts calculated under paragraph (2) (“x”) is greater than

(b)

the amount of the remediable transfer value (“y”),

the scheme manager must take reasonable steps to pay the receiving scheme an amount equal to x – y.

(5)

A payment made under paragraph (4) is subject to the same conditions as the remediable transfer value.

(6)

Where—

(a)

paragraph (4) applies, and

(b)

the scheme manager, having taken reasonable steps, is unable to make the payment required by that paragraph,

the scheme manager owes M or, where M is deceased, M’s personal representatives an amount by way of compensation equal to x – y (“the compensatable amount”) reduced in accordance with paragraph (7).

(7)

Where, if the compensatable amount was paid immediately after the requirement to pay it arose, the payment—

(a)

would be a payment described in regulation 6 of the Registered Pension Schemes (Authorised Payments) Regulations 200920 (“the 2009 Regulations”) read as if regulation 6(1)(a) of those Regulations were omitted, the compensatable amount is to be reduced by the amount equal to the income tax that would be chargeable on it if regulation 3(b) of the 2009 Regulations applied to it;

(b)

would not be a payment so described, the compensatable amount is to be reduced by an amount equal to the income tax that would be charged on the amount if it were taxed as pension income under Part 9 of the Income Tax (Earnings and Pensions) Act 200321.

Changes to legislation: