Legalize / United Kingdom / Scotland / Scottish-Statutory-Instrument

The National Health Service Pension Schemes (Remediable Service) (Scotland) Regulations 2023

Type Scottish-Statutory-Instrument

Publication 2023-09-05

Last updated 2025-10-31

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(3) The scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to the additional pension purchased by contributions paid under the corresponding options referred to in paragraph (2)(b) so that those rights are of an equivalent value to the additional pension rights the member would have secured if the contributions had been made in the relevant scheme year in which they were paid—

(a) in respect of an election under 2015 regulation 61, where paragraph (1)(c)(i) applies to or in respect of the member, and

(b) in respect of an election under 2015 regulation 63, where paragraph (1)(c)(ii) applies to or in respect of the member.

(4) For the purposes of paragraph (2)(b)(ii), the amount of compensation must be equal to the relevant contributions paid by the member reduced by tax relief amounts calculated in accordance with paragraphs (5) to (9) and, if relevant, (11) to (12) of direction 5 of the 2022 Directions.

(5) In paragraph (2)(b), “corresponding option” means—

(a) where pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations—

(i) an option under 2011 regulation Q8 if the member paid contributions in accordance with 2015 regulation 63;

(ii) an option under 2011 regulation Q10 if the member paid the lump sum contribution referred to in 2015 regulation 61; or

(iii) an option under 2011 regulation Q11 if the member’s employing authority paid the lump sum contribution referred to in 2015 regulation 61; or

(b) where pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations—

(i) an option under 2013 regulation 2.C.8 or 2013 regulation 3.C.6 if the member paid contributions in accordance with 2015 regulation 63;

(ii) an option under 2013 regulation 2.C.10 or 2013 regulation 3.C.8 if the member paid the lump sum contribution referred to in 2015 regulation 61; or

(iii) an option under 2013 regulation 2.C.11 or 2013 regulation 3.C.9 if the member’s employing authority paid the lump sum contribution referred to in 2015 regulation 61.

(6) In this regulation—

“pensioner member” means a person entitled to a retirement pension including a partial retirement pension under regulation 84 of the 2015 Regulations (effect of the election) where at the same time as the person became entitled to that pension, the person also became entitled to the immediate payment of additional pension in accordance with regulation 84(2)(c) of the 2015 Regulations;

“relevant section of the legacy scheme” means— the 1995 Section if, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations, or the 2008 Section if, pursuant to section 2(1) of that Act, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations.

(7) For the purposes of this regulation, the reference to “£5,000” in paragraph (7) of 2011 regulation Q8, 2013 regulation 2.C.8 and 2013 regulation 3.C.6 is to be read as if it were a reference to “£12,079”.

Treatment of buy-out contributions made under 2015 regulation 47: pensioner and deceased members of the 2015 scheme

22

(1) This regulation applies to a remedy member—

(a) who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b) who on 30 September 2023—

(i) was a pensioner member with regard to benefits paid in respect of remediable service in the 2015 scheme;

(ii) was an active or deferred member in respect of remediable service in the 2015 scheme and was entitled to a retirement pension in respect of pensionable service in the legacy scheme to which the member had become entitled on or after 1 April 2015; or

(iii) was deceased; and

(c) who paid buy-out contributions in accordance with 2015 regulation 47 during the remedy period (including where any such contributions were paid by the member’s employing authority in place of the member during that period under paragraph (3) of that regulation (“employer buy-out contributions”)).

(2) Where this regulation applies—

(a) all the member’s rights secured by the payment of buy-out contributions mentioned in paragraph (1)(c) are extinguished, and

(b) unless paragraph (3) or (4) applies to or in respect of that member, the scheme manager must pay to the member or, if the member is deceased, the member’s personal representative an amount of compensation determined in accordance with paragraph (9) in respect of any buy-out contributions paid during the remedy period by a member (excluding any employer buy-out contributions).

(3) This paragraph applies to or in respect of a member if—

(a) an immediate choice election has been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with regulation 9;

(b) an annual pension to which an actuarial reduction or an actuarial increase was applied under the 2015 Regulations is being paid to the member or, if the member is deceased, was paid to the member before the member’s death; and

(c) the scheme manager accepts a claim made by a member or designated person in accordance with paragraph (4) for rights under the 1995 Section or the 2008 Section (whichever is relevant) that, after having regard to the advice of the scheme actuary, the scheme manager has determined are of an equivalent value to the member’s rights that were extinguished under paragraph (2)(a).

(4) This paragraph applies to or in respect of a member where—

(a) an immediate choice election has not been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with regulation 9, and

(b) the scheme manager accepts a claim made by a member or designated person in accordance with paragraph (5) for rights that are of an equivalent value to the additional pension rights the member would have secured if the contributions referred to in paragraph (1)(c) had been made in the relevant scheme year in which they were paid under—

(i) an option under 2011 regulation Q6 on the payment of the member’s 1995 Section benefits in respect of the member’s remediable service, or

(ii) an option under 2013 regulation 2.C.8 or 2013 regulation 3.C.6 on the payment of the member’s benefits under the 2008 Section in respect of the member’s remediable service.

(5) For the purposes of paragraph (3)(c), the member or designated person must make the claim—

(a) by notice in writing in such form and including such further information as the scheme manager requires;

(b) at the same time as an election under regulation 9 is made.

(6) For the purposes of paragraph (4)(b), the member or designated person must make the claim—

(a) by notice in writing, in such form and including such further information as the scheme manager requires;

(b) before the end of the immediate choice election period in relation to the member.

(7) The scheme manager must send a notice in writing to the member or designated person—

(a) of the amount of compensation to which the member is entitled under this regulation;

(b) if paragraph (3) applies to or in respect of the member, of the member’s or designated person’s right to make a claim in accordance with paragraph (5); and

(c) if paragraph (4) applies to or in respect of the member, of the member’s or designated person’s right to make a claim in accordance with paragraph (6).

(8) The scheme manager must send any notice referred to in paragraph (7) to the member or designated person when the scheme manager provides the first remediable service statement in respect of the member under regulation 6 (remediable service statements).

(9) For the purposes of paragraph (2)(b), the amount of compensation must be equal to the buy- out contributions paid during the remedy period by the member reduced by tax relief amounts calculated in accordance with paragraphs (5) to (9) and, if relevant, (11) to (12) of direction 5 of the 2022 Directions.

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

23

(1) This regulation applies to a remedy member (“M”) who is not a deceased member.

(2) M may elect to enter into an arrangement (a “remedial arrangement”) to pay contributions for additional pension under the legacy scheme in accordance with this regulation and—

(a) 2011 regulation Q8 or 2011 regulation Q10, or

(b) 2013 regulation 2.C.8, 2013 regulation 2.C.10, 2013 regulation 3.C.6 or 2013 regulation 3.C.8.

(3) M may only enter into a remedial arrangement—

(a) in respect of a period of M’s remediable service;

(b) if the scheme manager is satisfied that it is more likely than not that, but for an actual or anticipated relevant breach of a non-discrimination rule²⁶, M would, during that period have entered into the same or a similar arrangement;

(i) 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

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

(d) after making an application in accordance with paragraph (4).

(4) An application is made in accordance with this paragraph where—

(a) it is in writing in such form as the scheme manager determines;

(b) it is accompanied by any information the scheme manager reasonably requires to be provided for the purposes of—

(i) determining the matters mentioned in paragraph (3)(b);

(ii) complying with any requirement imposed by 2011 regulation Q12, 2013 regulation 2.C.12 or 2013 regulation 3.C.10 in connection with exercising an option to make contributions for additional pension; and

(i) the end of the period of six months beginning with the day on which a remediable service statement is first provided in respect of M, or

(ii) at such later time as the scheme manager considers reasonable in all the circumstances of the case.

(5) The scheme manager may treat an application made in accordance with paragraph (4) as if it were a notice under paragraph (1) of 2011 regulation Q12, 2013 regulation 2.C.12 or 2013 regulation 3.C.10.

(6) Where M enters into a remedial arrangement, M owes to the scheme manager an amount equal to—

(a) the aggregate of the voluntary contributions which M would have owed had M entered into the remedial arrangement at the time M would have entered into the same or a similar arrangement but for a relevant breach of a non-discrimination rule, less

(b) tax relief amounts calculated in accordance with direction 12(2) to (7) of the 2022 Directions.

(7) Where a determination is made in accordance with direction 12(6) of the 2022 Directions, the following apply—

(a) direction 12(8) (provision of explanation);

(b) direction 12(9) and (10) (appeals).

(8) In this regulation—

“2011 regulation Q12” means regulation Q12 of the 2011 Regulations (exercise of options under regulations Q8, Q10 and Q11);

“2013 regulation 2.C.12” means regulation 2.C.12 of the 2013 Regulations (exercise of options under regulations 2.C.8, 2.C.10 and 2.C.11);

“2013 regulation 3.C.10” means regulation 3.C.19 of the 2013 Regulations (exercise of options under regulations 3.C.6, 3.C.8 and 3.C.9).

Revocation of cancellation of arrangement or option to secure legacy scheme additional service or additional pension

24

(1) This regulation applies to a remedy member (“M”) who has cancelled—

(a) an arrangement to pay for additional years of service by regular additional contributions under 2011 regulation Q5;

(b) an option to purchase additional pension by the making of additional periodical contributions under 2011 regulation Q8; or

(c) an option to purchase additional pension by the making of additional periodical contributions under 2013 regulation 2.C.8 or 2013 regulation 3.C.6.

(2) M may revoke the cancellation of an arrangement or option referred to in paragraph (1) with the effect that it is treated as if it had never been cancelled.

(3) The revocation referred to in paragraph (2) may only be made—

(a) if the scheme manager is satisfied that it is more likely than not that, but for an actual or anticipated relevant breach of a non-discrimination rule, M would not have made the decision to cancel the arrangement or option (whether or not by virtue of opting out of the legacy scheme or the 2015 scheme);

(b) before—

(i) 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

(ii) such later deadline as the scheme manager considers reasonable in all the circumstances of the case; and

(4) The scheme manager must determine that the condition in respect of which the scheme manager is required to be satisfied under paragraph (3)(a) has been met where M cancelled an arrangement or option referred to in paragraph (1) at any time between 1 October 2014 and 31 March 2022 (those dates included).

(5) An application is made in accordance with this paragraph where—

(a) it is in writing and in such form as the scheme manager determines;

(b) it is accompanied by any information the scheme manager reasonably requires to be provided for the purpose of determining the matters mentioned in paragraph (3)(a);

(i) the end of the period of six months beginning with the day on which a remediable service statement is first provided in respect of M, or

(ii) such later deadline as the scheme manager considers reasonable in all the circumstances of the case.

(6) Where M revokes the cancellation of an arrangement or option referred to in paragraph (1), M must pay to the scheme an amount equal to—

(a) the outstanding balance of voluntary contributions owed plus interest in accordance with regulation 63, less

(b) amounts representing tax relief calculated in accordance with direction 12(2) to (7) of the 2022 Directions, as if the arrangement or option were a new remedial voluntary contributions arrangement made by virtue of section 25(1) of PSPJOA 2022.

(7) Where the scheme manager makes a determination in accordance with paragraph (6) of direction 12 of the 2022 Directions (remedial arrangements to pay voluntary contributions to legacy schemes), paragraphs (8) (provision of explanation) and (9) and (10) (appeals) of that direction apply.

(8) In this regulation, “2011 regulation Q5” means regulation Q5 of the 2011 Regulations²⁷ (paying for additional service or unreduced retirement lump sum by regular additional contributions).

PART 5 — Divorce or the dissolution of a civil partnership

Interpretation of Part 5

25

In this Part—

“the 1999 Act” means the Welfare Reform and Pensions Act 1999²⁸;

“the 2000 Regulations” means The Pensions on Divorce etc. (Provision of Information) Regulations 2000²⁹;

“appropriate amount” means the appropriate amount for the purposes of section 29(1) of the 1999 Act (creation of pension debits and credits) determined in accordance with section 29(2) or (3) (whichever is relevant) of that Act but converted, where it is determined in accordance with section 29(3), into a percentage using the formula— $A×100/B$ where— A is the amount specified to be transferred, and B is the valuation of pension benefits at the valuation date provided by the scheme manager;

“non-remediable service shareable rights” means the shareable rights of the remedy member that are not remediable service shareable rights on the day before the transfer day;

“operative time” means— if an election under regulation 9 is made in relation to a pension debit member’s remediable service, the time the election is made or otherwise the end of the immediate choice election period; if an election under regulation 12 is made in relation to a pension debit member’s remediable service, the time the election is made or otherwise the end of the deferred choice election period;

“pension debit” means a debit of the appropriate amount under section 29(1)(a) of the 1999 Act;

“remediable service shareable rights” means the shareable rights of the remedy member obtained by virtue of the remedy member’s remediable service during the period beginning with 1 April 2015 and ending with the earlier of— the day before the transfer day, or the last day of the member’s remediable service;

“shareable rights” has the meaning given in section 27(2) of the 1999 Act (scope of mechanism);

“transfer day” has the meaning given in section 29(8) of the 1999 Act;

“valuation day” has the meaning given in section 29(7) of the 1999 Act.

Pension debits: valuation of pension benefits before 1 October 2023: active and deferred members (immediate alternative debit of appropriate amount)

26

(1) This regulation applies to a corresponding pension debit member³⁰ (“DM”) where—

(a) DM has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b) on 30 September 2023, DM was an active or deferred member of the 2015 scheme in respect of remediable service³¹;

(c) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations³² (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits); and

(d) on or after 1 April 2015, DM became subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights.

(2) Where this regulation applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(3) The scheme manager must make the adjustment referred to in paragraph (2)—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act³³ (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 July 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(4) Where paragraph (3)(a) applies, the scheme manager must send a notice in writing to DM specifying the adjusted debit of the appropriate amount in the legacy scheme.

(5) The scheme manager must send the notice to DM within one month beginning with the day after making the adjustment under paragraph (2)(b).

Pension debits: valuation of pension benefits before 1 October 2023: immediate choice election for 2015 scheme benefits: pensioner and deceased members

27

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30September 2023, DM was a pensioner remedy member, or a deceased member of the legacy scheme or the 2015 scheme in respect of remediable service, and

(b) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations³⁴ (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is not pensionable service by virtue of section 2(1) of the PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, the scheme manager must adjust all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(4) Paragraph (5) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is pensionable service by virtue of section 2(1) of PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(5) Where this paragraph applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) must be treated by the scheme manager as a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(6) Paragraphs (3) and (5) have effect—

(a) where paragraph (2)(c)(i) or (4)(c)(i) applies, at the operative time;

(b) where paragraph (2)(c)(ii) or (4)(c)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(7) Where paragraph (2)(c)(ii) or 4(c)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the 2015 scheme on the transfer day.

(8) The scheme manager must send the notice mentioned in paragraph (7) to DM within one month beginning with the day after paragraph (3) or (5) (whichever is relevant) has effect in accordance with paragraph (6)(b) or (c).

Pension debits: no immediate choice election for 2015 scheme benefits: pensioner and deceased members

28

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30September 2023, DM was a pensioner remedy member, or a deceased member of the 2015 scheme in respect of remediable service, and

(b) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations.

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) does not make an immediate choice election for 2015 scheme benefits under regulation 9 before the end of the immediate choice election period and such an election is not treated by the scheme manager as having been made in accordance with regulation 9(6);

(b) DM has remediable service in the legacy scheme that is pensionable service by virtue of section 2(1) of PSPJOA 2022; and

(c) DM is subject to a debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time,

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the 2015 scheme in respect of remediable service shareable rights—

(a) becomes a debit of the appropriate amount in the legacy scheme, and

(b) is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) at the operative time, where paragraph (2)(c)(i) applies, or

(b) on such later date as the scheme manager considers reasonable in all the circumstances of the case.

(5) Where paragraph (2)(c)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the legacy scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after paragraph (3) has effect in accordance with paragraph (4).

Pension debits: deferred choice election for 2015 scheme benefits: active and deferred members

29

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) DM has remediable service in the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022;

(b) on 30 September 2023, DM was an active or deferred member of the legacy scheme or the 2015 scheme in respect of remediable service;

(c) under regulation 12, DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes a deferred choice for 2015 scheme benefits or such an election is treated by the scheme manager as having been made in accordance with regulation 12(6); and

(d) DM is subject to—

(i) an adjustment to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day under regulation 26(2);

(ii) a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights at or before the operative time;

(iii) a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights after the operative time.

(2) Where this regulation applies, the scheme manager must adjust all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights to an equivalent value to the debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(3) Paragraph (2) has effect—

(a) where paragraph (1)(d)(i) or (ii) applies, at the operative time;

(b) where paragraph (1)(d)(iii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(4) Where paragraph (1)(d)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme that DM would have had in the 2015 scheme on the transfer day.

(5) The scheme manager must send the notice mentioned in paragraph (4) to DM within one month beginning with the day after paragraph (2) has effect in accordance with paragraph (3)(b) or (c).

Valuation of pension benefits on or after 1 October 2023

30

(1) This regulation applies to a remedy member (“RM”) where—

(a) on 30 September 2023, the RM was an active or deferred member of the legacy scheme or the 2015 scheme or a pensioner remedy member, and

(b) after these Regulations come into force, the scheme manager receives a request in writing for a valuation of pension benefits, under regulation 2 of the 2000 Regulations³⁵ (basic information about pensions and divorce or dissolution of a civil partnership), in respect of remediable service shareable rights.

(2) Paragraph (3) applies where on the valuation day—

(a) the scheme manager has not received an immediate choice election under regulation 9 or a deferred choice election under regulation 12 in respect of those rights, and

(b) the immediate choice election period or the deferred choice election period has not ended.

(3) The scheme manager must determine—

(a) an aggregated legacy scheme valuation of pension benefits in respect of—

(i) non-remediable service shareable rights, and

(ii) remediable service shareable rights, and

(b) where relevant, a 2015 scheme valuation of pension benefits in respect of non-remediable service shareable rights.

(4) For the purposes of paragraph (3)(a)(ii), the scheme manager must determine the legacy scheme valuation of pensions benefits as if the RM’s remediable service on the valuation day was in—

(a) the legacy scheme, and

(b) the 2015 scheme.

(5) The scheme manager must provide—

(a) an aggregated legacy scheme valuation of pension benefits determined under paragraph (3)(a) using the higher of the two valuations determined under paragraph (4), and

(b) where relevant, a 2015 scheme valuation of pension benefits determined under paragraph (3)(b),

in accordance with regulation 2 of the 2000 Regulations.

(6) Paragraph (7) applies where on the valuation day—

(a) the scheme manager has received an immediate choice election under regulation 9 or a deferred choice election under regulation 12 in respect of those rights, or

(b) no such election has been received and the immediate choice election period or the deferred choice election period has ended.

(7) The scheme manager must determine the legacy scheme valuation of pension benefits in respect of remediable service shareable rights as if RM’s remediable service on the valuation day were in—

(a) the legacy scheme, where—

(i) the scheme manager has not received an immediate choice election for 2015 scheme benefits under regulation 9 or a deferred choice election for 2015 scheme benefits under regulation 12 by the end of the immediate choice election period or the deferred choice election period (whichever is relevant), and

(ii) such a choice is not treated as having been made in accordance with regulation 9(6) or regulation 12(6) (whichever is relevant); or

(b) the 2015 scheme, where—

(i) the scheme manager has received an immediate choice election for 2015 scheme benefits under regulation 9 or a deferred choice election under regulation 12 (whichever is relevant), or

(ii) such an election is treated by the scheme manager as having been made in accordance with regulation 9(6) or 12(6) (whichever is relevant).

Pension debits: valuation of pension benefits on or after 1 October 2023: immediate choice election for 2015 scheme benefits: pensioner members

31

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30 September 2023, DM was a pensioner remedy member, and

(b) after these Regulations have come into force, the scheme manager provides an aggregated legacy scheme valuation of pension benefits determined under regulation 30(3)(a) taking into account the higher of the two valuations determined under regulation 30(4).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) makes an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) or such an election is treated by the scheme manager as having been made in accordance with regulation 9(6), and

(b) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the 2015 scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) where paragraph (2)(b)(i) applies, at the operative time;

(b) where paragraph (2)(b)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(5) Where paragraph (2)(b)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme, that DM would have had in the 2015 scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after (3) has effect in accordance with paragraph (4)(b) or (c).

Pension debits: valuation of pension benefits on or after 1st October 2023: no immediate choice election for 2015 scheme benefits: pensioner members

32

(1) This regulation applies to a corresponding pension debit member (“DM”) where—

(a) on 30 September 2023, DM was a pensioner remedy member, and

(b) after these Regulations have come into force, the scheme manager provides an aggregated legacy scheme valuation of pension benefits determined under regulation 30(3)(a) taking into account the higher of the two valuations determined under regulation 30(4).

(2) Paragraph (3) applies where—

(a) DM or, where DM has died after the transfer day, the designated person (see regulation 7) does not make an immediate choice election for 2015 scheme benefits under regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members) before the end of the immediate choice election period and such an election is not treated by the scheme manager as having been made in accordance with regulation 9(6), and

(b) DM is subject to a debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights—

(i) at or before the operative time, or

(ii) after the operative time.

(3) Where this paragraph applies, all DM’s debit of the appropriate amount in the legacy scheme in respect of remediable service shareable rights is adjusted to a debit of equivalent value to a debit of the appropriate amount that DM would have had in the legacy scheme on the transfer day.

(4) Paragraph (3) has effect—

(a) where paragraph (2)(b)(i) applies, at the operative time;

(b) where paragraph (2)(b)(ii) applies, immediately after DM is subject to a debit of the appropriate amount in respect of remediable service shareable rights; or

(5) Where paragraph (2)(b)(ii) applies, the scheme manager must send a notice in writing to DM specifying the equivalent debit of the appropriate amount, in respect of remediable service shareable rights, in the legacy scheme, that DM would have had in the legacy scheme on the transfer day.

(6) The scheme manager must send the notice mentioned in paragraph (5) to DM within one month beginning with the day after paragraph (3) has effect in accordance with paragraph (4)(b) or (c).

Pension credits: valuation of pension benefits before 1st October 2023: pension credit adjustment: remediable service shareable rights in the legacy scheme only or the 2015 scheme only

33

(1) This regulation applies to a relevant pension credit member³⁶ (“CM”) where—

(a) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service³⁷ shareable rights, under regulation 3 of the 2000 Regulations³⁸ (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits), and

(b) in respect of the corresponding pension debit member’s (“DM”) remediable service shareable rights, CM has a pension credit³⁹ solely in—

(i) the legacy scheme, or

(ii) the 2015 scheme.

(2) Paragraphs (3) and (4) apply where CM has a pension credit, in respect of DM’s remediable service shareable rights, in the legacy scheme but does not have a pension credit, in respect of DM’s remediable service shareable rights, in the 2015 scheme.

(3) Where this paragraph applies, the scheme manager, after having regard to the advice of the scheme actuary, must determine a valuation of pension benefits, in respect of DM’s remediable service shareable rights, as though DM’s remediable service on or before the day before the transfer day had been in the 2015 scheme.

(4) Where—

(a) the valuation of pension benefits determined under paragraph (3) is greater than

(b) the valuation of pension benefits, in respect of DM’s remediable service shareable rights in the legacy scheme on or before the day before the transfer day,

the scheme manager, after having regard to the advice of the scheme actuary, must adjust CM’s legacy scheme pension credit to take account of the difference between the valuations referred to in sub-paragraphs (a) and (b).

(5) Paragraphs (6) and (7) apply where CM has a pension credit, in respect of DM’s remediable service shareable rights in the 2015 scheme but does not have a pension credit, in respect of DM’s remediable service shareable rights, in the legacy scheme.

(6) Where this paragraph applies, the scheme manager, after having regard to the advice of the scheme actuary, must determine a valuation of pension benefits, in respect of DM’s remediable service shareable rights, as though DM’s remediable service on or before the day before the transfer day had been in the legacy scheme.

(7) Where—

(a) the valuation of pension benefits determined under paragraph (6) is greater than

(b) the valuation of pension benefits, in respect of DM’s remediable service shareable rights in the 2015 scheme on or before the day before the transfer day,

(8) An adjustment made under paragraph (4) or (7) has effect as though it had been made on the transfer day.

(9) The scheme manager must make the adjustment referred to in paragraph (4) or (7) (whichever is relevant)—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 October 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(10) Where paragraph (9) applies, the scheme manager must send a notice in writing to CM specifying—

(a) the adjusted pension credit, and

(b) in which scheme the adjusted pension credit is retained.

(11) The scheme manager must send the notice referred to in paragraph (10) to CM within one month beginning with the day after the day on which the scheme manager made the adjustment under paragraph (4) or (7).

Pension credits: valuation of pension benefits before 1 October 2023: pension credit adjustment: remediable service shareable rights in the legacy scheme and the 2015 scheme

34

(1) This regulation applies to a relevant pension credit member⁴⁰ (“CM”) where—

(a) before these Regulations came into force, the scheme manager provided a valuation of benefits, in respect of remediable service shareable rights, under regulation 3 of the 2000 Regulations (information about pensions and divorce and dissolution of a civil partnership: valuation of pension benefits), and

(b) CM has a pension credit, in respect of the corresponding pension debit member’s (“DM”) remediable service shareable rights, in the legacy scheme and the 2015 scheme.

(2) Where this regulation applies, CM’s pension credit in respect of DM’s remediable service shareable rights must, by virtue of section 19(5) of PSPJOA 2022, be retained solely in the legacy scheme or solely in the 2015 scheme.

(3) The scheme manager must, after having regard to the advice of the scheme actuary, determine—

(a) a valuation of pension benefits, in respect of DM’s remediable service shareable rights and the legacy scheme corresponding pension credit, under section 29(1) of the 1999 Act (creation of pension debits and credits), as though all DM’s remediable service on or before the day before the transfer day were pensionable service in the legacy scheme, and

(b) a valuation of pension benefits, in respect of DM’s remediable service shareable rights, and the 2015 scheme corresponding pension credit, under section 29(1) of the 1999 Act, as though all DM’s remediable service on or before the day before the transfer day were pensionable service in the 2015 scheme.

(4) CM must make an election to choose one of the pension credits, in respect of DM’s remediable service shareable rights, determined under paragraph (3).

(5) The election referred to in paragraph (4) must—

(a) be made by CM in writing;

(b) be received by the scheme manager within a period—

(i) of three months, beginning with the day after the scheme manager provides the notice referred to in paragraph (6), or

(ii) that the scheme manager considers reasonable in all the circumstances of the case; and

(6) The scheme manager must inform CM of the right to make an election under paragraph (5) in a notice in writing to CM—

(a) where the scheme manager discharged their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit) before 1 October 2023—

(i) before 1 October 2024, or

(ii) on such later date as the scheme manager considers reasonable in all the circumstances of the case, or

(b) as soon as reasonably practicable after the day on which the scheme manager discharges their liability under that section where the scheme manager does so after 30 September 2023.

(7) The notice referred to in paragraph (6) must specify—

(a) the valuation of pension benefits and corresponding pension credits calculated by the scheme manager, determined under paragraph (3);

(b) the date by which an election under this regulation must be received by the scheme manager;

(8) Where the scheme manager accepts such an election—

(a) the pension credit, in respect of DM’s remediable service shareable rights, in whichever of the legacy scheme and the 2015 scheme CM identified in the election is retained, and

(b) any pension credit, in respect of DM’s remediable service shareable rights, in whichever of the legacy scheme and the 2015 scheme CM did not identify in the election is extinguished.

(9) The pension credit—

(a) retained under paragraph (8)(a) has effect as though it had been retained in that scheme on the transfer day,

(b) extinguished under paragraph (8)(b) has effect as though it had been extinguished in that scheme on the transfer day.

(10) The personal representatives of CM may make an election under paragraph (4) where CM dies before making such an election.

(11) Where the scheme manager does not receive an election within the period specified in paragraph (5)(b), the pension credit, in respect of DM’s remediable service shareable rights, is to be retained in whichever of the legacy scheme or the 2015 scheme the scheme manager, after having regard to the advice of the scheme actuary, deems would be most beneficial to CM.

(12) Where paragraph (8) applies, the scheme manager must send a notice in writing to CM specifying—

(a) the adjusted pension credit, in respect of DM’s remediable service shareable rights;

(b) in which scheme that adjusted pension credit is retained;

(13) The scheme manager must send the notice mentioned in paragraph (12) to CM within one month beginning with the day after the day on which the scheme manager accepts an election under paragraph (8).

Pension credits: pensioner and deceased relevant pension credit members

35

(1) This regulation applies where the relevant pension credit member (“CM”) is—

(a) a pensioner pension credit member before—

(i) the adjustment is made under regulation 33(4) or 33(7), or

(ii) receiving the notice sent by the scheme manager under regulation 34(6), or

(b) a deceased member, where the personal representatives of CM make an election under regulation 34(10).

(2) Where this regulation applies, subsections (3) to (8) of section 14 of PSPJOA 2022 apply in relation to CM as they apply in relation to a relevant member (“M”) described in subsection (1) of that section with the following modifications—

(a) the references to “M’s remediable service in the employment or office” in subsections (3)(a) and (5)(a) are to be read as references to CM’s pension credit;

(b) the references to “the effect, if any, of sections 2(1) and 6(4) and (5)” in subsections (3)(b) and (5)(b) are to be read as references to the effect, if any, of this regulation; and

(i) the adjustment mentioned in regulation 33(4) or regulation 33(7) has effect, or

(ii) the pension credit mentioned in regulation 34(8)(a) has effect.

Pension credits: valuation of pension benefits on or after 1 October 2023: creation of a pension credit

36

(1) This regulation applies to a relevant pension credit member⁴¹ (“CM”) where—

(a) on or after these Regulations came into force, the scheme manager provided an aggregated legacy scheme valuation of pension benefits, determined under regulation 30(3)(a) and the higher of the two valuations determined under regulation 30(4); and

(b) the corresponding pension debit member (“DM”) is subject to a legacy scheme debit of the appropriate amount in respect of remediable service shareable rights.

(2) Where this regulation applies the scheme manager, having regard to the advice of the scheme actuary, must determine the legacy pension credit, determined under section 29(1) of the 1999 Act, by means of the aggregated legacy scheme valuation calculated under paragraph (1)(a), which is recalculated to the day before the transfer day.

(3) Where paragraph (2) applies, the scheme manager must send a notice in writing to CM specifying the legacy scheme pension credit.

(4) The scheme manager must send the notice mentioned in paragraph (3) to CM as soon as reasonably practicable after the day on which the scheme manager discharges their liability under section 33(1) of the 1999 Act (time for discharge of liability in respect of a pension credit).

PART 6 — Transfers

Interpretation of Part 6

37

(1) In this part—

“2011 regulation N1” means regulation N1 of the 2011 Regulations⁴² (member’s right to transfer accrued rights to benefits to this Section of the scheme);

“2011 regulation N4” means regulation N4 of the 2011 Regulations⁴³ (transfers that are not made under the Public Sector Transfer Arrangements);

“2013 regulation 2.F.9” means regulation 2.F.9 of the 2013 Regulations⁴⁴ (procedure for applications under regulation 2.F.8);

“2013 regulation 2.F.11” means regulation 2.F.11 of the 2013 Regulations (calculation of transferred–in pensionable service);

“2013 regulation 3.F.9” means regulation 3.F.9 of the 2013 Regulations⁴⁵ (procedure for applications under regulation 3.F.8);

“2013 regulation 3.F.11” means regulation 3.F.11 of the 2013 Regulations (calculation of increase to pensionable earnings as the result of a transfer–in);

“2015 regulation 142” means regulation 142 of the 2015 Regulations (acceptance of transfer value payment);

“2015 scheme joining date” means the date on which the member became eligible to be an active member of the 2015 scheme for the purpose of regulation 141(1)(c)(i) of the 2015 Regulations (application procedure);

“legacy scheme remediable cash equivalent”, in relation to a member, means the use by the scheme manager of the cash equivalent of rights in the legacy scheme to acquire rights in the 2015 scheme under— regulation M7A of the 2011 Regulations⁴⁶ (member’s right to transfer a preserved pension to the 2015 Scheme), or regulation 2.F.18 or regulation 3.F.18 of the 2013 Regulations⁴⁷ (right to transfer a deferred pension to the 2015 Scheme), so far as the cash equivalent relates to the member’s remediable rights;

“Public Sector Transfer Arrangements” means the arrangements applying to certain public sector and other schemes under which a common basis for transfer payments is applied by the scheme and those other participating schemes;

“receiving scheme”, in relation to a remediable value, means the scheme to which the remediable value was, or is to be, paid;

“reformed public service pension scheme” means— a Chapter 1 scheme; a judicial scheme within the meaning of section 70(1) of PSPJOA 2022; a local government scheme within the meaning of section 86(1) of PSPJOA 2022;

“remediable benefits” means the benefits payable to or in respect of a member in relation to that member’s remediable service;

“remediable club transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of— a transfer value under Part M (Transfer-out Arrangements and buy-outs) or Part N (Transfers from Other Pension Arrangements) of the 2011 Regulations in accordance with the public sector transfer arrangements (within the meaning given to that term by regulation A2 of those Regulations); a transfer value payment under Chapter 2.F of the 2013 Regulations (Transfers) in accordance with the public sector transfer arrangements (within the meaning given to that term by regulation 2.A.1 of those Regulations); a transfer value payment under Chapter 3.F of the 2013 Regulations (Transfers) under the public sector transfer arrangements (within the meaning given to that term by regulation 3.A.1 of those Regulations); a club transfer value under Part 7 of the 2015 Regulations (Transfers) (within the meaning given to that term by regulation 131 of those Regulations) so far as the transfer value or transfer value payment relates to the member’s remediable rights;

“remediable rights”, in relation to a member, means the member’s rights to benefits under a reformed public service pension scheme secured by virtue of the member’s remediable service;

“remediable transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of a transfer value or transfer value payment other than— a legacy scheme remediable cash equivalent, or a remediable club transfer value under— Part M or Part N of the 2011 Regulations; Chapter 2.F or 3.F of the 2013 Regulations; or Part 7 of the 2015 Regulations. so far as the transfer value or transfer value payment relates to the member’s remediable rights;

“remediable value” means a remediable club transfer value or a remediable transfer value;

“sending scheme”, in relation to a remediable value, means the scheme which paid, or is to pay, the remediable value.

(2) Where a provision of this Part requires the scheme manager to calculate a transfer value (including a remediable club transfer value or a remediable transfer value) in relation to rights secured in the legacy scheme or the 2015 scheme, that value is to be calculated in accordance with—

(a) the provisions of the legacy scheme or the 2015 scheme which apply to the calculation of values of that type, and

(b) the guidance and tables provided by the Government Actuary for the purpose of calculating such values that were, or are, in use on the date used for the original calculation.

Treatment of transfer and transfer value payments made to the 1995 Section or the 2008 Section that are not made under public sector transfer arrangements

38

(1) This regulation applies to a relevant transfer member who has remediable service in the 1995 Section or the 2008 Section and was on 30 September 2023 an active, deferred or pensioner member of that Section in respect of that service where one of the following has occurred in relation to that member—

(a) an immediate choice election has been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with paragraph (6) of regulation 9 (immediate choice election for 2015 scheme benefits: pensioner and deceased members); or

(b) a deferred choice election has been accepted by the scheme manager or treated by the scheme manager as having been made in accordance with paragraph (6) of regulation 12 (deferred choice election for 2015 scheme benefits: active, deferred and deceased members).

(2) For the purposes of paragraph (1), a member is a relevant transfer member if—

(a) the scheme manager has accepted—

(i) a transfer payment and in respect of that payment—

(aa) the member is credited with a period of pensionable service calculated in accordance with 2011 regulation N4, or

(bb) the member is entitled to an increase in the member’s pensionable earnings calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations (medical and dental practitioners: transfers from other pension arrangements), or

(ii) a transfer value payment and in respect of that payment—

(aa) the member is entitled to an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(bb) the member is entitled to count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11; and

(b) the member’s legacy scheme joining date in relation to the transfer payment or transfer value payment referred to in sub-paragraph (a) falls within the period of that member’s remediable service.

(3) Where this regulation applies and the scheme manager determines that the benefits payable in respect of the member’s remediable service are 2015 scheme benefits, the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (2) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

(4) In this regulation, “legacy scheme joining date” means—

(a) the date on which the member joined the 1995 Section for the purposes of paragraph (1) of 2011 regulation N1, or

(b) the date on which the member became eligible to be an active member of the 2008 Section for the purposes of paragraph (1)(c)(i) of 2013 regulation 2.F.9 or 2013 regulation 3.F.9.

Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treatment as transfer payments under the 1995 Section or transfer value payments under the 2008 Section active and deferred members

39

(1) This regulation applies to a remedy member who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022 and was an active or deferred member of the 2015 scheme on 30 September 2023 in respect of that service where—

(a) the scheme manager has accepted a transfer value payment in relation to the member that is a non-club transfer⁴⁸ for the purposes of 2015 regulation 142;

(b) in respect of that payment, the member is entitled to an increase in the member’s pensionable earnings and has been credited with a period of pensionable service under paragraph (2) of that regulation; and

(c) the member’s 2015 scheme joining date in relation to the transfer value payment falls within the period of that member’s remediable service.

(2) Where this regulation applies—

(a) all the remedy member’s rights secured by the transfer value payment mentioned in paragraph (1) are extinguished;

(b) the scheme manager must treat the payment as if it had been accepted for the purposes of—

(i) 2011 regulation N4 where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations, or

(ii) 2013 regulation 2.F.11 or 2013 regulation 3.F.11 (whichever is relevant) where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations; and

(c) in respect of the payment, the member is entitled to count the pensionable service or increase in pensionable earnings set out in paragraph (3) or (4) (whichever is relevant).

(3) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of 2011 regulation N4, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with 2011 regulation N4, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations (medical and dental practitioners: transfers from other pension arrangements).

(4) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 2013 Regulations, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11.

(5) The scheme manager must send a notification in writing to the remedy member specifying the additional period of pensionable service or increase in pensionable earnings that the member is entitled to count under paragraph (3) or (4) of this regulation.

(6) The notification must be sent to the remedy member before 1 October 2024 or such earlier date as the scheme manager determines, after having regard to all the circumstances of the case.

Transfer value payments treated in accordance with regulation 39: variation of the member’s rights on the making of a deferred choice election

40

(1) This regulation applies to a remedy member who—

(a) is entitled to an additional period of pensionable service or an increase in pensionable earnings in the 1995 Section under paragraph (3), or in the 2008 Section under paragraph (4), of regulation 39, and

(b) makes a deferred choice election for 2015 scheme benefits under regulation 12.

(2) Where this regulation applies and the scheme manager determines that the benefits to be paid to or in respect of the remedy member for the member’s remediable service are to be determined in accordance with the 2015 Regulations, the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (1) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treated as if accepted under the legacy scheme: pensioner and deceased members

41

(1) This regulation applies to a remedy member—

(a) who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b) who on 30 September 2023—

(i) was a pensioner member with regard to benefits paid in respect of remediable service in the 2015 scheme, or

(ii) was deceased;

(i) an immediate choice election may be made or treated by the scheme manager as having been made in accordance with regulation 9;

(ii) the scheme manager has accepted a transfer value payment that is in relation to the member that is a non-club transfer for the purposes of 2015 regulation 142 and, in respect of that payment, the member is entitled to an increase in the member’s pensionable earnings and has been credited with a period of pensionable service under paragraph (2) of that regulation; and

(iii) the 2015 scheme joining date in relation to the transfer value payment referred to in paragraph (ii) falls within the period of that member’s remediable service.

(2) Where this regulation applies, on the acceptance of an election referred to in paragraph (1)(c)(i) in respect of a member or at the end of the immediate choice election period if no such election is accepted—

(a) all the remedy member’s rights secured by the transfer payment or transfer value payment mentioned in paragraph (1)(c)(ii) are extinguished;

(b) the scheme manager must treat the payment as if it had been accepted for the purposes of—

(i) 2011 regulation N4 where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations, or

(ii) 2013 regulation 2.F.11 or 2013 regulation 3.F.11 (whichever is relevant) where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations;

(c) in respect of the payment, the member is entitled to count the pensionable service or increase in pensionable earnings set out in paragraph (3) or (4) (whichever is relevant); and

(d) paragraph (5) applies if the scheme manager determines that the benefits payable in respect of the member’s remediable service are 2015 scheme benefits.

(3) If the scheme manager treats the transfer payment as if it had been accepted for the purposes of the 2011 regulation N4, in respect of the payment the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with 2011 regulation N4, or

(b) an increase in the member’s pensionable earnings in respect of the payment calculated in accordance with paragraph 27 of schedule 1 of the 2011 Regulations.

(4) If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 2013 Regulations, the member is entitled to—

(a) an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2013 regulation 2.F.11, or

(b) count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2013 regulation 3.F.11.

(5) Where this paragraph applies (see paragraph (2)(d)), the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (3) or (4) (whichever is relevant) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 142.

Treatment of transfer and transfer value payments and statements accepted from other and corresponding health service schemes

42

(1) This regulation applies to a member who—

(a) is credited with a period of pensionable service (together with the rights attaching to that service) in accordance with regulation R7(2) or (6) of the 2011 Regulations (Former members of health service schemes) in respect of a transfer payment made by a health service scheme;

(b) is entitled to count a period of pensionable service in accordance with paragraph (6) of 2013 regulation 2.F.11 or entitled to count an increase in pensionable earnings in accordance with paragraph (6) of 2013 regulation 3.F.11 in respect of a transfer value payment made by a corresponding 2008 Section; or

(c) is entitled to count an increase in pensionable earnings in accordance with regulation 145(5) of the 2015 Regulations (calculation of increase to pensionable earnings) in respect of a transfer value statement accepted from a corresponding scheme.

(2) Where this regulation applies and the scheme manager determines that the payment or transfer value statement referred to in paragraph (1) represents any rights in respect of a period of pensionable service that is remediable service in another health service scheme, a corresponding 2008 scheme or a corresponding scheme, the scheme manager must treat that period of pensionable service as a period of pensionable service that is remediable service in the 1995 Section, the 2008 Section or the 2015 scheme (whichever is relevant).

(3) In this regulation—

“corresponding 2008 scheme” means a scheme as so defined in regulation 2.A.1(1) of the 2013 Regulations;

“corresponding scheme” means a scheme as so defined in schedule 13 of the 2015 Regulations;

“health service scheme” means a scheme as so defined in regulation R7(1) of the 2011 Regulations.

Transferred out remediable service statements

43

Where a remedy member has transferred any rights in respect of remediable service out of the legacy scheme or the 2015 scheme, the scheme manager must provide a transferred out remediable service statement in accordance with direction 6(2) to (4) of the 2022 Directions (Transfers) (and direction 6(4) applies as if the reference to “any provision made by virtue of section 29(1) of PSPJOA 2022” were a reference to regulation 6 of these Regulations).

Remediable transfer value payments made before 1 October 2023

44

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager paid a remediable transfer value before 1 October 2023.

(2) Where this regulation applies, the scheme manager must, after having regard to the advice of the scheme actuary, must calculate the transfer value of M’s remediable rights as if they had been secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(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 (“top-up transfer value payment”).

(5) Where the greater of the amounts calculated under paragraph (2) (“x”) is less than the amount of the remediable transfer value (“y”), the scheme manager must waive any overpayment.

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

(7) Where a receiving scheme, other than a reformed public service scheme, cannot accept the top-up transfer value payment, the scheme manager may—

(a) pay the top-up transfer value payment to another nominated registered pension scheme, or

(b) pay an amount of compensation to the member in accordance with direction 6(5) of the 2022 Directions.

(8) Where, if the amount of compensation under paragraph (7)(b) had been paid immediately after the requirement to pay it arose, the payment—

(a) would have been a payment described in regulation 6 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (“the 2009 Regulations”) (payment after relevant accretion) as if regulation 6(1)(a) of those Regulations had been omitted, the amount of compensation is to be reduced by the amount equal to the income tax that would be chargeable on it as if regulation 3(b) of the 2009 Regulations applied to;

(b) would not have been a payment so described, the amount of compensation is to be reduced by an amount equal to the income tax that would be charged on the amount at M’s marginal tax rate under the Income Tax Acts.

(9) In this regulation, a “nominated registered pension scheme” means a pension scheme registered under Chapter 2 of Part 4 of the Finance Act 2004, that—

(a) is chosen by M;

(b) agrees to accept the top-up transfer value payment; and

Remediable transfer value payments on or after 1 October 2023 that are not made under the public sector transfer arrangements

45

(1) This regulation applies in relation to a member (“M”) in respect of whom the scheme manager has made a remediable transfer value payment on or after 1 October 2023.

(2) Where this regulation applies, the scheme manager must, after having regard to the advice of the scheme actuary, calculate the transfer value of M’s remediable rights as if those rights had been secured in—

(a) the 1995 Section or the 2008 Section (whichever is relevant);

(b) the 2015 scheme.

(3) The amount of the remediable transfer value is the greater of the amounts calculated under paragraph (2).

Transfers of remediable rights in the legacy scheme to the 2015 scheme before 1 October 2023

46

(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager has used a legacy scheme remediable cash equivalent to acquire rights in the 2015 scheme before 1 October 2023.

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