The Public Service (Civil Servants and Others) Pensions (Remediable Service) Regulations (Northern Ireland) 2023

Made: 21st September 2023

Coming into operation: 1st October 2023

To the extent required by section 27 of PSPJOA 2022, these Regulations are made in accordance with Treasury Directions[^f00003] made under that section.

PART 1 — Introductory provisions

Citation and commencement

1

These Regulations—

• (a) may be cited as the Public Service (Civil Servants and Others) Pensions (Remediable Service) Regulations (Northern Ireland) 2023;

• (b) come into operation on 1st October 2023.

Interpretation

2

• (1) In these Regulations—

• “PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022;

• “the 2014 Regulations” means the Public Service (Civil Servants and Others) Pensions Regulations (Northern Ireland) 2014[^f00004];

• “the PSP Directions 2023” means the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions (Northern Ireland) 2023;

• “alpha” means the pension scheme established by the 2014 Regulations;

• “alpha benefits” means new scheme benefits[^f00005] under alpha;

• “civil service scheme” means alpha or the PCSPS(NI);

• “deferred choice decision” has the meaning given in regulation 12(1);

• “deferred choice decision-maker” means the person who may make a deferred choice decision under regulation 12(2);

• “deferred choice member” means a member with remediable service who is not an immediate choice member;

• “end of the section 10 election period”, in relation to a deferred choice member, means the end of the day determined in accordance with— where the member is the deferred choice decision-maker, regulation 13(1)(b); where a person other than the member is the deferred choice decision-maker, regulation 13(4)(b);

• “immediate choice decision” has the meaning given in regulation 8(1);

• “immediate choice decision-maker” means the person who may make an immediate choice decision under regulation 8(2);

• “immediate choice member” means a member with remediable service who, immediately before 1st October 2023, was deceased or entitled to the present payment of a pension, other than an excluded pension, under a civil service scheme; and “excluded pension” means a pension the rate of which— is not determined (by any extent) by reference to the member’s remediable service, and is not affected by the coming into force of section 2(1) of PSPJOA 2022;

• “member” means an active, deferred, deceased or pensioner, but not a pension credit member[^f00006] of a civil service scheme;

• “opted-out service election” has the meaning given in regulation 6(1);

• “the PCSPS(NI)” means the pension scheme made under Article 3 of the Superannuation (Northern Ireland) Order 1972[^f00007] which is the principal civil service pension scheme within the meaning of Article 4(10) of that Order, and in relation to a member— “the PCSPS(NI)” means the Section of the PCSPS(NI) that is the relevant Chapter 1 legacy scheme[^f00008] for the member; “PCSPS(NI) benefits” means benefits under the PCSPS(NI);

• “remediable service”, in relation to a member, means (except in this definition) the member’s remediable service[^f00009] in an employment or office that is pensionable service under a civil service scheme;

• “remedy member” means a deferred choice member or an immediate choice member;

• “the scheme manager” means the Department of Finance;

• “Section I” means Section I of the PCSPS(NI);

• “Section II” means Section II of the PCSPS(NI);

• “Section III” means Section III of the PCSPS(NI);

• “section 6 election” has the meaning given in regulation 8(1)(a);

• “section 10 election” has the meaning given in regulation 12(1)(a).

• (2) For the purposes of these Regulations, a reference in PSPJOA 2022 to section 2(1) of that Act coming into force is to be understood as a reference to that section coming into force in relation to members of a civil service scheme.

• (3) A term used in these Regulations which—

• (a) is defined in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022, and

• (b) is not defined differently in these Regulations,

has the meaning given in, or for the purposes of, that provision.

• (4) A term used in these Regulations which—

• (a) is defined in the 2014 Regulations, Section I, Section II or Section III (a “relevant scheme”), and

• (b) is not defined differently in—

• (i) these Regulations, or

• (ii) in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022,

has, in relation to the relevant scheme, the meaning given in that scheme.

• (5) In these Regulations, a reference to a provision of the PSP Directions 2023 is a reference to that provision as amended from time to time.

Delegation

3

The scheme manager may delegate any functions of the scheme manager under these Regulations, including this power to delegate.

PART 2 — Remediable service statements

Requirements relating to remediable service statements

4

• (1) The scheme manager must provide a remediable service statement in respect of a remedy member (“M”) in accordance with—

• (a) section 29 of PSPJOA 2022,

• (b) direction 20 of the PSP Directions 2023, and

• (c) this regulation.

• (2) The scheme manager must provide a remediable service statement in respect of M—

• (a) before the relevant date[^f00010],

• (b) where M is, in relation to their remediable service, for the time being—

• (i) an active member, at least once in each year ending with the anniversary of the relevant date;

• (ii) a deferred member, within three months of receipt of a written request by the member[^f00011], and

• (c) where M is a deferred choice member, as soon as is reasonably practicable following receipt of notification—

• (i) that M intends to claim payment of any pension benefits in relation to M’s remediable service, or

• (ii) that M has died.

• (3) The remediable service statement must be provided—

• (a) to M, or

• (b) where —

• (i) M is deceased, and

• (ii) the eligible decision-maker as determined in accordance with the Schedule is a person other than the scheme manager,

to the person who is for the time being the eligible decision-maker in relation to M’s remediable service in accordance with the Schedule.

• (4) The remediable service statement must include—

• (a) where the scheme manager has determined that any information to be provided in connection with M’s remediable service must be communicated in a particular form and manner, information about that form and manner;

• (b) where M is an immediate choice member, information about the irrevocability of an immediate choice decision;

• (c) where M is a deferred choice member, information about the circumstances in which a deferred choice decision is revocable, and the circumstances in which it is irrevocable;

• (d) where regulation 61 applies in relation to M, information about the election that may be made in accordance with regulation 61(2), how to make that election, and the consequences of making, or not making, that election.

• (5) For further provision about—

• (a) what a remediable service statement must include, see—

• (i) section 29(5) of PSPJOA 2022;

• (ii) direction 20(1) of the PSP Directions 2023;

• (b) when a remediable service statement must be combined with a benefit information statement provided under section 14 of the Public Service Pensions Act 2014, see direction 20(2) of the PSP Directions 2023.

PART 3 — Decisions about the treatment of remediable service

CHAPTER 1 — Opted-out service elections

Application and interpretation of Chapter 1

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• (1) This Chapter applies to and in respect of a member (“M”) with PCSPS(NI) opted-out service.

• (2) In this Chapter—

• “opted-out service decision-maker” means the person who may make an opted-out service election under regulation 6(2);

• “PCSPS(NI) opted-out service” means relevant opted-out service[^f00012] in an employment or office in relation to the PCSPS(NI).

Election in relation to PCSPS(NI) opted-out service

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• (1) An election (an “opted-out service election”) may be made in relation to M’s PCSPS(NI) opted-out service in accordance with this Chapter and section 5 of PSPJOA 2022.

• (2) An opted-out service election may be made—

• (a) by M or,

• (b) where M is a deceased member, by the eligible decision-maker determined in accordance with the Schedule.

• (3) Where a person other than the scheme manager is the opted-out service decision-maker, an opted-out service election may only be made after the scheme manager determines an application which is—

• (a) made by or on behalf of M,

• (b) in a form and manner determined by the scheme manager,

• (c) received by the scheme manager during the period beginning with 1st October 2023 and ending—

• (i) at the end of 30th September 2024, or

• (ii) such later time as the scheme manager considers reasonable in all the circumstances, and

• (d) accompanied by such information—

• (i) which is within the person’s possession, or

• (ii) which the person may reasonably be expected to obtain,

that the scheme manager may by written notice require the person to provide in relation to the decision which caused the service in question to become opted-out service.

• (4) As soon as is reasonably practicable after receipt of an application, the scheme manager must—

• (a) determine whether an opted-out service election may be made in relation to M, and

• (b) notify the person who made the application whether such an opted-out service election may be made.

• (5) Where the scheme manager is the opted-out service decision-maker, the scheme manager must, as soon as is reasonably practicable after determining that they are the opted-out service decision-maker, determine whether to make an opted-out service election in relation to M.

• (6) The scheme manager may refuse an application where any of the following conditions is not met—

• (a) the decision by virtue of which M’s service became opted-out service was communicated to the scheme manager on or after 12th March 2012;

• (b) the decision by virtue of which M’s service became opted-out service was made pursuant to a relevant breach of a non-discrimination rule[^f00013];

• (c) any—

• (i) assets held for the purposes of a partnership pension account[^f00014] that are referable to pension contributions made by or on behalf of M in respect of M’s PCSPS(NI) opted-out service are transferred to the PCSPS(NI), and

• (ii) entitlement to a future or current pension under the partnership pension account that would otherwise arise under the rules of the partnership pension account in respect of the value of the assets transferred is surrendered;

• (d) where any assets that are referable to pension contributions made by or on behalf of M in respect of M’s PCSPS(NI) opted-out service have been paid or transferred out of a partnership pension account, an amount determined by the scheme manager following consultation with the scheme actuary is paid to the PCSPS(NI) in respect of the payment or transfer.

• (7) An opted-out service election to be made by—

• (a) a person other than the scheme manager is made when that person confirms that an opted-out service election is to be made following receipt of the notification mentioned in paragraph (4)(b);

• (b) the scheme manager is made at the time determined by the scheme manager.

• (8) See section 5(2) to (4) of PSPJOA 2022 about the effect, timing and irrevocability of an opted-out service election.

CHAPTER 2 — Immediate choice decision for alpha or PCSPS(NI) benefits

Application of Chapter 2

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• (1) This Chapter applies in respect of the remediable service of an immediate choice member (“M”).

• (2) Where M has remediable service in multiple employments or offices, this Chapter applies separately in relation to the remediable service in each employment or office.

Immediate choice decision for alpha or PCSPS(NI) benefits: general

8

• (1) A decision (an “immediate choice decision”) may be made in accordance with this Chapter—

• (a) to make an election (a “section 6 election”) by virtue of section 6 of PSPJOA 2022 in relation to M’s remediable service, or

• (b) that no section 6 election is to be made in relation to that service.

• (2) An immediate choice decision may be made—

• (a) by M, or

• (b) where M is deceased, by the eligible decision-maker determined in accordance with the Schedule.

• (3) An immediate choice decision made by—

• (a) a person other than the scheme manager is made when it is received by the scheme manager in a form and manner determined by the scheme manager;

• (b) the scheme manager is made at the time determined by the scheme manager.

• (4) An immediate choice decision may only be made before the end of the section 6 election period[^f00015].

• (5) An immediate choice decision is irrevocable.

• (6) An immediate choice decision to make a section 6 election takes effect as a section 6 election (see sections 6(5) and (7), 7(1)(b) and 9 of PSPJOA 2022 about the effect of a section 6 election).

• (7) Paragraph (8) applies where—

• (a) immediately before 1st October 2023, M has remediable service in alpha (“alpha service”), and

• (b) an immediate choice decision is made that no section 6 election is to be made in relation to M’s remediable service.

• (8) Where this paragraph applies, section 6(4) of PSPJOA 2022 does not apply in relation to M’s alpha service (and, accordingly, section 2(1) of PSPJOA 2022 has effect in relation to M’s alpha service for the purposes mentioned in section 2(3)(b) of that Act from the time the immediate choice decision mentioned in paragraph (7)(b) is made).

• (9) The following provisions of PSPJOA 2022 have effect in relation to an immediate choice decision that no section 6 election is to be made as they have effect in relation to a section 6 election—

• (a) section 6(7) (section 6 election has effect in respect of all remediable service in the employment or office);

• (b) section 7(1)(b) (provision about when a section 6 election is to be treated as having taken effect);

• (c) section 9 (provision about persons with remediable service in more than one Chapter 1 legacy scheme).

Immediate choice decision: additional requirements

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• (1) This regulation applies where the immediate choice decision-maker (“D”) is a person other than the scheme manager.

• (2) An immediate choice decision may not be made unless a remediable service statement has been provided to D in accordance with regulation 4(2)(a).

• (3) An immediate choice decision is to be treated as having been made only if D provides any information specified in a written request from the scheme manager that is—

• (a) information in D’s possession, or

• (b) information which D can reasonably be expected to obtain.

Immediate choice decision: deemed section 6 election

10

• (1) A section 6 election is treated as made in relation to M’s remediable service immediately before the end of the section 6 election period where—

• (a) the end of the section 6 election period in relation to M has passed,

• (b) no immediate choice decision has been made in relation to M’s remediable service, and

• (c) condition A or B is met.

• (2) Condition A is met where all of M’s remediable service was in alpha.

• (3) Condition B is met where—

• (a) M’s remediable service was mixed service, and

• (b) the scheme manager determines, having consulted the scheme actuary, that the value of benefits payable in relation to M’s remediable service would be greater if payable as alpha benefits than if they were payable as PCSPS(NI) benefits.

CHAPTER 3 — Deferred choice decision for alpha or PCSPS(NI) benefits

Application of Chapter 3

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• (1) This Chapter applies in respect of the remediable service of a deferred choice member (“M”).

• (2) Where M has remediable service in multiple employments or offices, this Chapter applies separately in relation to the remediable service in each employment or office.

Deferred choice decision for alpha or PCSPS(NI) benefits: general

12

• (1) A decision (a “deferred choice decision”) may be made—

• (a) to make an election (a “section 10 election”) by virtue of section 10 of PSPJOA 2022 in relation to M’s remediable service, or

• (b) that no section 10 election is to be made in relation to that service.

• (2) A deferred choice decision may be made—

• (a) by M, or

• (b) where M is deceased, by the eligible decision-maker determined in accordance with the Schedule.

• (3) A deferred choice decision made by—

• (a) a person other than the scheme manager is made when it is received by the scheme manager in a form and manner determined by the scheme manager;

• (b) the scheme manager is made at a time determined by the scheme manager.

• (4) A deferred choice decision may only be made before the end of the section 10 election period.

• (5) A deferred choice decision to make a section 10 election takes effect as a section 10 election (see sections 10(4) and (5), 11(3)(b), (4) and (7) and 13 of PSPJOA 2022 about the effect of a section 10 election).