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81 provisions
40 Variation of legacy scheme additional pension where reformed scheme benefits chosen
(1) This regulation applies where M has paid remediable voluntary contributions to secure additional pension under the legacy scheme.
(2) When making a deferred choice decision, the deferred choice decision-maker may elect that—
(a) the value of additional pension under the legacy scheme secured by virtue of M’s remediable voluntary contributions is to be varied so that it is equivalent to the alternative reformed scheme additional pension value, or
(b) the scheme manager must pay to M or, if M is deceased, M’s personal representatives an amount by way of compensation equal to the compensatable amount.
(3) Paragraphs (4) and (5) apply where a section 10 election is made (or deemed to have been made) in relation to M’s remediable teacher service.
(4) Where either—
(a) an election is made in accordance with paragraph (2)(a), or
(b) no election is made in accordance with paragraph (2),
the scheme manager must vary the value of additional pension under the legacy scheme secured by virtue of M’s remediable voluntary contributions so that it is equivalent to the alternative reformed scheme additional pension value.
(5) Where an election is made in accordance with paragraph (2)(b)—
(a) the scheme manager must pay to M or, if M is deceased, M’s personal representatives an amount by way of compensation equal to the compensatable amount, and
(b) the rights that would have been secured by payment of the remediable voluntary contributions are extinguished.
41 Reinstatement of reformed scheme flexibilities where reformed scheme benefits chosen
(1) Paragraph (2) applies—
(a) in relation to—
(i) rights to alternative legacy scheme additional pension conferred under regulation 38(2)(a), together with
(ii) any rights treated as being rights to legacy scheme additional pension by virtue of regulation 38(2)(c), and
(b) where a section 10 election is made (or deemed to have been made) in relation to M’s remediable teacher service.
(2) Where this paragraph applies, the scheme manager must, having consulted the scheme actuary, vary the rights mentioned in paragraph (1)(a) so that they are equivalent to the rights to reformed scheme flexibilities that would have been secured had regulation 38(2) never taken effect in relation those rights.
(3) Paragraph (4) applies—
(a) in relation to rights which were extinguished under regulation 38(4)(b),
(b) where payment of a compensatable amount in respect of those rights was waived in accordance with the terms of an agreement under regulation 39(2), and
(c) where a section 10 election is made (or deemed to have been made) in relation to M’s remediable teacher service.
(4) Where this paragraph applies—
(a) the scheme manager must, having consulted the scheme actuary, confer rights under the legacy scheme that are equivalent to the extinguished rights mentioned in paragraph (3)(a), and
(b) the right to payment of the compensatable amount is extinguished.
42 Treatment of waived compensatable amount where legacy scheme benefits take effect
(1) This regulation applies where—
(a) payment of a compensatable amount was waived in accordance with the terms of an agreement under regulation 39(2),
(b) the waiver under that agreement has ceased to apply, and
(c) the benefits payable in relation to M’s remediable teacher service are legacy scheme benefits.
(2) The scheme manager owes M or, where M is deceased, M’s personal representatives the compensatable amount.
43 Remedial arrangements to pay voluntary contributions to secure legacy scheme additional pension
(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—
(a) Schedule 4 to the 2010 Regulations, and
(b) this regulation.
(3) M may only enter into a remedial arrangement—
(a) in respect of a period of M’s remediable teacher service,
(b) if the scheme manager is satisfied that it is more likely than not that, but for a relevant breach of a non-discrimination rule, M would, during the period of M’s remediable teacher service, have entered into the same or a similar arrangement,
(c) 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 time as the scheme manager considers reasonable in all the circumstances, and
(d) after an application made in accordance with paragraph (4) is approved by the scheme manager.
(4) An application is made in accordance with this paragraph where—
(a) it is in writing in a form and manner determined by the scheme manager,
(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 Schedule 4 to the 2010 Regulations in connection with making an election to pay voluntary contributions for additional pension, and
(c) it is received by the scheme manager—
(i) before 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 time as the scheme manager considers reasonable in all the circumstances.
(5) The scheme manager may treat an application made in accordance with paragraph (4) as if it were a notice under paragraph 2 of Schedule 4 to the 2010 Regulations.
(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 PSP Directions 2022.
(7) Where a determination is made in accordance with direction 12(6) of the PSP Directions 2022, the following apply—
(a) direction 12(8) (provision of explanation);
(b) direction 12(9) and (10) (appeals).
(1) In this Part—
“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 club transfer value”, in relation to a member, means the payment or acceptance by the scheme manager of a club transfer value under—
Chapter 2 of Part 4 of the 2010 Regulations;
Chapter 3 of Part 10 of the 2014 Regulation,
so far as the club transfer value 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 under—
Chapter 4 of Part 4 of the 2010 Regulations;
Chapter 2 of Part 10 of the 2014 Regulations,
so far as the transfer value 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 club transfer value or a transfer value (including a remediable club transfer value or a remediable transfer value) in relation to rights secured in a teacher pension scheme, that value is to be calculated in accordance with—
(a) the provisions of the teacher pension scheme which apply to the calculation of values of that type, and
(b) the guidance and tables provided for the purpose of calculating such values that were, or are, in use on the date used for the calculation of the value which originally secured rights under a teacher pension scheme.
Where a remedy member has transferred any rights in respect of remediable service out of a teacher pension scheme, the scheme manager must provide a transferred out remediable service statement in accordance with direction 6(2) to (4) of the PSP Directions 2022 (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 4).
(1) 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.
(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) M’s legacy scheme;
(b) the reformed 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.
(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 2009 (“the 2009 Regulations”) 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 as 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 2003.
(1) This regulation applies in relation to each payment of a remediable transfer value in respect of a member (“M”) which was accepted by the scheme manager before 1st October 2023.
(2) The scheme manager, having consulted the scheme actuary, must determine the amount of pension M is entitled to count if the remediable transfer value together with any payment accepted under paragraph (3) were applied in respect of rights in—
(a) M’s legacy scheme;
(b) the reformed scheme.
(3) Where the sending scheme was a reformed public service pension scheme, the scheme manager may accept a payment—
(a) in respect of the remediable rights to which the remediable transfer value relates, and
(b) which is made by the sending scheme pursuant to, or to provision made under, PSPJOA 2022.
(4) A payment accepted under paragraph (3) is to be used for the purpose of determining the amount of pension M is entitled to count under a teacher pension scheme on the same terms as the remediable transfer value.
This Section applies in respect a deferred choice member (“M”) where no pension benefits have become payable in relation to M’s remediable teacher service.
(1) This regulation applies to a remediable transfer value paid in relation to M by the scheme manager on or after 1st October 2023.
(2) The scheme manager, having consulted the scheme actuary, must calculate the transfer value of M’s remediable rights as if those rights had been in—
(a) M’s legacy scheme;
(b) the reformed scheme.
(3) The amount of the remediable transfer value is the greater of the amounts calculated under paragraph (2).
(1) This regulation applies in relation to each member (“M”) in respect of whom the scheme manager paid a remediable club transfer value before 1st October 2023.
(2) The scheme manager must calculate the following amounts—
(a) the club transfer value of M’s rights under a teacher pension scheme as if M’s remediable rights had been secured in M’s legacy scheme;
(b) the club transfer value of M’s rights under a teacher pension scheme as if M’s remediable rights had been secured in the reformed scheme.
(3) The scheme manager must provide to the receiving scheme the result of the calculations mentioned in paragraph (2).
(4) Where the receiving scheme is a local government scheme (within the meaning of section 86(1) of PSPJOA 2022), and—
(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 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 club transfer value.
(1) This regulation applies in relation to each remediable club transfer value in respect of a member (“M”) which was accepted by the scheme manager before 1st October 2023.
(2) The scheme manager may accept an adjustment in the value of a remediable club transfer value—
(a) in respect of the remediable rights to which the remediable club transfer value relates, and
(b) which is made by the sending scheme pursuant to, or to provision made under, PSPJOA 2022.
(3) An adjustment accepted under paragraph (2) is to be used for the purpose of determining the amount of pension M is entitled to count under a teacher pension scheme on the same terms as the remediable club transfer value mentioned in paragraph (1).
(4) The scheme manager must determine the amount of pension M is entitled to count if the remediable transfer value together with any adjustment accepted under paragraph (2) were applied in respect of rights in—
(a) M’s legacy scheme;
(b) the reformed scheme.
This Section applies in respect of a member (“M”) who is a deferred choice member, and no pension benefits have become payable in relation to M’s remediable teacher service.
53 Club transfers out on or after 1st October 2023
(1) This regulation applies in relation to a remediable club transfer value to be paid by the scheme manager on or after 1st October 2023.
(2) The scheme manager must calculate the following amounts—
(a) the club transfer value of M’s rights under a teacher pension scheme as if M’s remediable rights had been secured in M’s legacy scheme;
(b) the club transfer value of M’s rights under a teacher pension scheme as if M’s remediable rights had been secured in the reformed scheme.
(3) The amount of the remediable club transfer value is the greater of the amounts calculated under paragraph (2).
(4) The scheme manager must provide to the receiving scheme the result of the calculations mentioned in paragraph (2).
(1) This regulation applies in relation to a remediable club transfer value payment which is accepted by the scheme manager on or after 1st October 2023.
(2) The scheme manager must determine the amount of pension M is entitled to count if the remediable club transfer value were applied in respect of rights in—
(a) M’s legacy scheme;
(b) the reformed scheme.
(1) Regulations 204(2)(a) and 212(2)(a) of the 2014 Regulations apply in relation to—
(a) the relevant remediable teacher service of a remedy member as if, in each of those provisions, for “after the day on which P enters pensionable service under this scheme” there were substituted “from 1st October 2023”;
(b) the local government pension scheme service of a remedy member with relevant excess teacher service as if, in each of those provisions, for “after the day on which P enters pensionable service under this scheme” there were substituted “from the day on which the remediable service statement mentioned in regulation 4(2)(a) of the Teachers’ Pension Scheme (Remediable Services) Regulations 2023 is issued in respect of the relevant member”.
(2) In this regulation—
“local government pension scheme service” means service in an employment or office which is pensionable service under a scheme described in section 86 of PSPJOA 2022;
“relevant excess teacher service” means excess teacher service which is, by virtue of sections 2(1) and 4(4) of PSPJOA 2022, treated as being pensionable service in the local government new scheme mentioned in section 110(2) of PSPJOA 2022;
“relevant remediable teacher service” means remediable teacher service that is not relevant excess teacher service.
(1) This Chapter applies in relation to the following accepted by the scheme manager in respect of a member (“M”)—
(a) a remediable transfer value, together with any payment accepted under regulation 47(3);
(b) a remediable club transfer value, together with any adjustment accepted under regulation 51(2).
(2) In this Chapter, “transferred in remediable rights” means M’s remediable rights in a teacher pension scheme secured by virtue of a remediable value together with any payment or, as the case may be, adjustment under regulation 47(3) or 51(2).
57 Transferred in remediable rights treated as being in the legacy scheme
(1) Where M’s transferred in remediable rights would, apart from this regulation, be rights to benefits under the reformed scheme, the rights—
(a) are not, and are treated as never having been, rights under the reformed scheme, and
(b) are treated as being, and as always having been, rights under M’s legacy scheme.
(2) Paragraph (1) has effect—
(a) for the purposes of determining which teacher pension scheme is (or at any time was) required to pay benefits to or in respect of M’s transferred remediable rights, and
(b) subject to regulation 58, for all other purposes.
58 Varying the value of benefits secured by virtue of transferred in remediable rights
(1) Where—
(a) M is a deferred choice member, and
(b) M’s transferred in remediable rights are treated as rights to benefits under the legacy scheme by virtue of regulation 57,
the scheme manager must vary the value of those rights so that they are of an equivalent value to rights M would have secured under the legacy scheme if the rights had been transferred into that scheme.
(2) A variation under paragraph (1) is to be treated as having taken effect when these Regulations come into force.
(3) Where M is—
(a) an immediate choice member, and—
(i) an immediate choice decision has been made that no section 6 election is to be made in relation to M’s remediable teacher service, or
(ii) the section 6 election period in relation to M has passed and no section 6 election has been made (or deemed to have been made) in relation to M’s remediable teacher service, and
(b) M’s transferred in remediable rights are treated as rights to benefits under M’s legacy scheme by virtue of regulation 57,
the scheme manager must vary the value of those rights so that they are of an equivalent value to rights M would have secured under M’s legacy scheme if the rights had been transferred into that scheme.
(4) A variation under paragraph (3) is to be treated as having taken effect on the earlier of—
(a) the time that an immediate choice decision (including a deemed section 6 election) is treated as having taken effect in relation to M’s remediable teacher service;
(b) the end of the section 6 election period in relation to M.
(5) Where—
(a) the benefits payable to or in respect of M’s remediable teacher service are reformed scheme benefits by virtue of a section 6 election or a section 10 election (including, in either case, a deemed election), and
(b) the benefits payable in relation to M’s transferred in remediable rights would otherwise be legacy scheme benefits,
the scheme manager must vary the value of those rights so that they are of an equivalent value to rights M would have secured under the reformed scheme if the rights had been transferred into that scheme.
(6) A variation under paragraph (5) is to be treated as having taken effect when the election (or deemed election) is treated as having taken effect in relation to M’s remediable teacher service.
(7) Where the scheme manager is required to vary the value of any rights under this regulation so that they are equivalent to rights that would have been secured in another scheme (“the alternative scheme”), the scheme manager must—
(a) where the rights were secured by virtue of a remediable transfer value, first consult the scheme actuary, and
(b) calculate the varied rights as if the remediable value which originally secured rights under a teacher pension scheme were transferred into the alternative scheme in the relevant pension year that the transfer occurred.
(8) In paragraph (7), “relevant pension year” has the meaning given by direction 4(14)(f)(i) of the PSP Directions 2022.
59 Benefits already paid in relation to transferred in remediable rights
(1) Paragraph (2) applies in relation to any benefits (“the paid benefits”) that the reformed scheme has at any time paid to a person (“P”) so far as—
(a) they are calculated by reference to P’s or, where P is not M, M’s, transferred in remediable rights, and
(b) they are benefits that, as a result of regulation 57(1)(a), P was not entitled to receive from the scheme.
(2) The paid benefits are to be treated for all purposes—
(a) as not having been paid to P by the reformed scheme, but
(b) as having been paid to P instead by the legacy scheme.
60 Pension benefits and lump sum benefits in relation to transferred in remediable rights
(1) This regulation applies—
(a) where M is an immediate choice member, and
(b) in relation to any benefits that have been paid to or in respect of the transferred in remediable rights of M.
(2) Where, at the operative time—
(a) the aggregate of benefits that (after taking into account the effect, if any, of regulation 57) have been paid under the legacy scheme to any person (“the beneficiary”) in respect of M’s transferred in remediable rights, exceeds
(b) the aggregate of the benefits to which (after taking into account the effect, if any, of regulation 58(3) or (5) in relation to the rights) the beneficiary is entitled under the scheme in respect of the rights,
the beneficiary must pay an amount equal to the difference to the scheme.
(3) Where, at the operative time—
(a) the amount mentioned in paragraph (2)(a), is less than
(b) the amount mentioned in paragraph (2)(b),
the scheme manager must pay an amount equal to the difference to the beneficiary.
(4) In this regulation, “the operative time” means—
(a) if an immediate choice decision is made in relation to M’s remediable teacher service, the time the decision is made;
(b) otherwise, the end of the section 6 election period in relation to M.
(1) In this Chapter—
“alternative scheme”, in relation to a remedy member means, where the member’s eligibility for ill-health retirement benefits was assessed under—
the member’s legacy scheme, the reformed scheme;
the reformed scheme, the member’s legacy scheme;
“ill-health retirement benefits”—
in relation to the legacy scheme, has the meaning given in Schedule 1 to the 2010 Regulations;
in relation to the reformed scheme, has the meaning given in regulation 3 of the 2014 Regulations;
“ill-health retirement criteria” means the criteria contained in a teacher pension scheme by which it is determined whether a person is eligible for ill-health retirement benefits under that scheme.
(2) For the purposes of this Chapter, an application for ill-health retirement benefits is “finally determined” in relation to a teacher pension scheme when—
(a) it has been determined that the member in respect of whom the application is made meets the ill-health retirement criteria of that scheme, or
(b) it has been determined that the member does not meet the ill-health retirement criteria of that scheme, and any route for disputing that determination has been exhausted (including where any deadline for initiating a dispute has passed and no dispute has been initiated).
62 Determining whether a member meets the ill-health retirement criteria in each scheme
(1) Paragraph (2) applies where, during the period beginning on 1st April 2015 and ending at the end of 30th September 2023, an application by a remedy member (“M”) for ill-health retirement benefits was finally determined.
(2) The scheme manager must take reasonable steps to determine whether M would have met the ill-health retirement criteria in M’s alternative scheme at the “relevant time”, being—
(a) where the application was initially determined—
(i) under the reformed scheme, or
(ii) under the legacy scheme on or before 31st March 2022,
at the time the application was first determined;
(b) where the application was initially determined under the legacy scheme on or after 31st March 2022, on 31st March 2022.
(3) Whether a step is reasonable for the purposes of paragraph (2) depends on, among other things, the difficulty of obtaining information or evidence (including by interviewing or examining M) relevant to the question of whether M would have met the ill-health retirement criteria in M’s alternative scheme at the relevant time.
(4) Paragraph (5) applies where a remedy member (“M”)—
(a) makes an application for ill-health retirement benefits which—
(i) was received by the scheme manager before 1st April 2022, and
(ii) is finally determined on or after 1st October 2023, or
(b) is a deferred member of a teacher pension scheme, who—
(i) before 1st April 2022, left all service in an employment or office which is capable of being pensionable service under a teacher pension scheme,
(ii) makes an application for ill-health retirement benefits which is received by the scheme manager on or after 1st April 2022, and
(iii) the application has not been finally determined by 1st October 2023.
(5) The scheme manager must determine—
(a) whether M would have met the ill-health retirement criteria in the legacy scheme if the application had been determined on 31st March 2022, and
(b) whether M meets the ill-health retirement criteria in the reformed scheme.
63 Provisions about ill-health retirement benefits following reassessment
(1) This regulation applies where—
(a) a remedy member’s (“M’s”) application for ill-health retirement benefits was determined under a teacher pension scheme before 1st October 2023,
(b) it was determined that M did not meet the ill-health retirement criteria in that teacher pension scheme,
(c) the scheme manager determines in accordance with regulation 62 that M would have met the ill-health retirement criteria in M’s alternative scheme at the time the application was first determined, and
(d) M is a deferred choice member.
(2) The scheme manager must, as soon as reasonably practicable following the determination mentioned in paragraph (1)(c), send to M a written notice setting out—
(a) that an election (an “immediate IHR election”) may be made,
(b) the time by which an immediate IHR election must be received by the scheme manager, and
(c) the consequences of making (or not making) an immediate IHR election.
(3) M may make an immediate IHR election by sending notice of the election to the scheme manager—
(a) in a form and manner determined by the scheme manager, and
(b) so that it is received by the scheme manager no later than the end of the period of three months beginning on the day the notice mentioned in paragraph (2) is sent.
(4) Where an immediate IHR election is made, M is to be treated—
(a) for all purposes as if a deferred choice decision has been made—
(i) where M’s alternative scheme is M’s legacy scheme, that no section 10 election is to be made in relation to M’s remediable teacher service (and, accordingly, the benefits payable in relation to M’s remediable teacher service are legacy scheme benefits);
(ii) where M’s alternative scheme is the reformed scheme, that a section 10 election is to be made in relation to M’s remediable teacher service, and
(b) as if M is entitled to the payment of ill-health retirement benefits under M’s alternative scheme from the day after M’s last day of service in an employment or office which is capable of being pensionable service in a teacher pension scheme.
(5) Where M does not leave all service in an employment or office which is capable of being pensionable service in a teacher pension scheme before—
(a) the end of the period of three months beginning on the day the immediate IHR election is received by the scheme manager, or
(b) such later time as the scheme manager considers reasonable in all the circumstances,
M is to be treated as if the immediate IHR election had not been made (and no subsequent immediate IHR election may be made).
(6) An immediate IHR election is irrevocable.
(7) The provisions of Chapter 1 of Part 1 of PSPJOA 2022 and of these Regulations about the timing and effect of, as the case may be, a deferred choice decision and a section 10 election apply subject to this regulation.
64 Ill-health retirement benefit payable in transitional cases
(1) This regulation applies where—
(a) a remedy member’s (“M’s”) application for ill-health retirement benefits was received by the scheme manager before 1st April 2022,
(b) that application is finally determined on or after 1st April 2022, and
(c) M has service in an employment or office which is pensionable service under the reformed scheme on or after 1st April 2022.
(2) Paragraphs (3) and (4) apply where, by virtue of regulation 62 or otherwise, it has been determined that—
(a) M would have met the ill-health retirement criteria in the legacy scheme if the application had been determined on 31st March 2022 (“the legacy scheme condition”), and
(b) M meets the ill-health retirement criteria in the reformed scheme (“the reformed scheme condition”).
(3) The scheme manager must, as soon as reasonably practicable after the date of the latest determination mentioned in paragraph (2), determine—
(a) the amount of the ill-health retirement benefits that would have been payable under the legacy scheme if the application had been determined under the legacy scheme on 31st March 2022 (the “legacy scheme IHR benefits”), and
(b) the amount of the ill-health retirement benefits under the reformed scheme (the “reformed scheme IHR benefits”) calculated up to the later of—
(i) if M is no longer in any service in an employment or office that is capable of being pensionable service under a teacher pension scheme, the last day of such service;
(ii) otherwise, the date on which the determination under this sub-paragraph is made.
(4) Where—
(a) the reformed scheme IHR benefits payable to a person (“P”) are less than
(b) the legacy scheme IHR benefits payable to P,
an amount is payable to P under the reformed scheme which is equal to the difference between the reformed scheme IHR benefits and the legacy scheme IHR benefits.
(5) Paragraph (6) applies where, by virtue of regulation 62 or otherwise, it has been determined that—
(a) M meets the legacy scheme condition, but
(b) M does not meet the reformed scheme condition.
(6) An amount is payable to a person by way of ill-health retirement benefits under the reformed scheme which is equal to the amount that would have been payable to that person under the legacy scheme had M’s application been determined under that scheme on 31st March 2022.
65 Protection of the amount of pension payable to an eligible child
(1) This regulation applies where—
(a) immediately before 1st October 2023, a child pension is in payment to an eligible child (“E”) in respect of the remediable teacher service of a deceased member (“M”),
(b) there is a surviving adult (“S”) in relation to the deceased member,
(c) E is not in the care of S, and
(d) S makes an immediate choice decision which would (disregarding this regulation) result in a decrease in the rate of child pension payable to E in respect of M’s remediable teacher service.
(2) Where this regulation applies—
(a) E does not owe the scheme manager a liability under section 14(3) of PSPJOA 2022 in respect of the child pension, and
(b) the rate of child pension continues to be the rate that was payable before the decision was made.
66 Immediate choice members with excess teacher service
(1) This regulation applies in relation to an immediate choice member (“M”) who has excess teacher service within the meaning of section 110(2)(b) of PSPJOA 2022 (“relevant excess teacher service”).
(2) Section 2(1) of PSPJOA 2022 does not apply in relation to M’s remediable teacher service until the sooner of—
(a) an immediate choice decision being made in relation to that service, or
(b) the end of the section 6 election period in relation to M.
(3) Where—
(a) section 2(1) of PSPJOA 2022 has effect in relation to M’s remediable teacher service, and
(b) a section 6 election has been made, or deemed to have been made, in relation to that service,
section 4(4) of PSPJOA 2022 does not apply in relation to M’s relevant excess teacher service (and, accordingly, the relevant Chapter 1 legacy scheme in relation to that excess teacher service is the legacy scheme).
No annual compensation or lump sum compensation to which M is eligible under regulation 9 or 14 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015 is to be treated as a pension benefit or a lump sum benefit for the purposes of PSPJOA 2022 or these Regulations.
68 Payment of annual allowance tax charges and provision of information
Where a remedy member is unable to give an effective notice to the scheme administrator under section 237B(3) of FA 2004 in relation to an in-scope tax year (within the meaning of direction 7(7) of the PSP Directions 2022) because the time limit in section 237BA has passed, direction 7(2) to (6) of the PSP Directions 2022 applies in relation to the remedy member.
(1) The scheme manager must calculate interest on a relevant amount described in direction 15 of the PSP Directions 2022 in accordance with the provisions of directions 14 and 15 which apply to that description of relevant amount.
(2) In relation to a relevant amount not described in direction 15 of the PSP Directions 2022, the scheme manager must determine whether interest is paid and, if so, what rate of interest applies and how it is calculated.
(3) The following provisions of the PSP Directions 2022 apply in relation to a determination under paragraph (2) as if it were a determination under direction 16(1) of those Directions—
(a) direction 16(2) (provision of explanation);
(b) direction 16(3) and (4) (appeals).
(1) This regulation applies where—
(a) pursuant to an application under regulation 72, the scheme manager determines that an immediate choice member (“M”) has incurred a compensatable loss that is a Part 4 tax loss (a “relevant loss”), and
(b) the relevant loss is a reduction of benefit under—
(i) regulation 123 of the 2010 Regulations, or
(ii) regulation 182 of the 2014 Regulations.
(2) M is not to be paid an amount under section 23 of PSPJOA 2022 by way of compensation in respect of the relevant loss.
(3) Instead, the amount of benefit payable under a teacher pension scheme is to be increased to reflect the amount of the relevant loss in such manner as determined by the scheme manager in accordance with direction 10(2) to (4) of the PSP Directions 2022.
72 Applications for compensation or indirect compensation
(1) This regulation applies in relation to—
(a) the payment of a relevant amount by way of compensation under section 23(1) of PSPJOA 2022;
(b) the increase of benefits by way of indirect compensation under regulation 71.
(2) The relevant amount is not payable, or (as the case may be) the benefits are not to be increased, except where—
(a) an application is made in accordance with direction 18(1) and (2) of the PSP Directions 2022,
(b) the application is accompanied by such information that the scheme manager may by written notice require the person making the application (“P”) to provide in relation to the proposed compensation which is—
(i) information within P’s possession, or
(ii) information which P may reasonably be expected to obtain, and
(c) the scheme manager makes a determination in accordance with direction 18(3) of those Directions.
(3) The following apply in relation to a determination in accordance with direction 18(3) of the PSP Directions 2022—
(a) direction 18(4) (provision of explanation);
(b) direction 18(5) and (6) (appeals).
(1) This regulation applies where—
(a) relevant amounts owed by and to a person (“P”) fall to be paid at the same time or similar times, and
(b) the scheme manager has—
(i) determined the interest (if any) that is to be paid on the relevant amounts in accordance with regulation 70, and
(ii) reduced the relevant amounts by tax relief amounts in accordance with regulation 74.
(2) The scheme manager may determine, in accordance with direction 19(2) to (5) of the PSP Directions 2022, that the relevant amounts (and any interest on them) must be aggregated and that the difference must be paid by P to the scheme or (as the case may be) by the scheme to P.
(3) The following provisions of the PSP Directions 2022 apply in relation to a determination under paragraph (2) as if it were a determination under direction 19(1) of those Directions—
(a) direction 19(6) (provision of explanation);
(b) direction 19(7) and (8) (appeals).
74 Requirement to reduce liabilities by tax relief amounts
(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 amounts—
(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).
75 Power to reduce or waive amounts owed by a person to the scheme manager
(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).
76 Agreement to waive a liability owed by the scheme manager in respect of an immediate correction
(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).
This Chapter applies in respect of a relevant amount (together with any interest on that relevant amount) which will be payable after taking into account the effect, if any, of regulations 70 to 76 (a “net liability”).
(1) This regulation applies where a person (“P”) has a net liability to the scheme manager within the meaning of regulation 77.
(2) The scheme manager must send notice in writing to P setting out—
(a) how the net liability has been calculated,
(b) an explanation of the circumstances in which the net liability may be reduced or waived under regulation 75,
(c) where the net liability has been calculated by reference to an amount by way of compensation under section 16(3) of PSPJOA 2022, an explanation of the agreement that may be made under regulation 76,
(d) when and how the net liability must be paid, and
(e) the consequences of not paying the net liability.
(3) Where—
(a) the scheme manager has sent a notice under paragraph (2), and
(b) the amount of the net liability is subsequently adjusted,
the scheme manager must send another notice in writing to P under paragraph (2).
(4) P must pay the amount of the net liability to the scheme manager—
(a) before the end of the period of six months beginning with the day after the day on which P receives the most recent notice under paragraph (2), or
(b) in accordance with an agreement under paragraph (5).
(5) P and the scheme manager may agree that the net liability is to be paid in part or in full—
(a) by way of instalments, or
(b) by way of deductions from any benefits (including a lump sum benefit) to which P is entitled under a teacher pension scheme.
(6) P and the scheme manager may agree to vary an agreement under paragraph (5).
(7) Where P does not pay any amount that falls due by virtue of paragraph (4)(a) or an agreement under paragraph (5), the scheme manager may deduct such sums from benefits payable to P under a teacher pension scheme as seem reasonable to the scheme manager for the purpose of discharging P’s liability.
(8) P has no liability to pay any amount on account of the net liability until the time for payment arises in accordance with this regulation or an agreement under this regulation, and until that time the scheme manager has no cause of action for the recovery of any such amount (whether for the purposes of the Limitation Act 1980 or otherwise).
(1) This regulation applies where the scheme manager owes a net liability to a person (“P”).
(2) The scheme manager must pay the amount of the net liability to P—
(a) as soon as reasonably practicable after the scheme manager determines the amount of the net liability, or
(b) where the scheme manager requires P to provide information in accordance with paragraph (3), as soon as reasonably practicable after receipt of that information.
(3) Before paying the amount of a net liability owed to P, the scheme manager may, by written notice given as soon as reasonably practicable after the scheme manager determines the amount of the net liability, require P to provide information in relation to the payment of the net liability which is—
(a) information within P’s possession, or
(b) information which P may reasonably be expected to obtain.