Paragraph 43 Transfers out before 1st October 2023F1

(1)

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

(2)

The Scheme manager, having regard to the advice of the Scheme actuary, must calculate the transfer value of M’s remediable rights as if they were secured in—

(a)

this Scheme;

(b)

the reformed scheme.

(3)

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

(4)

Where—

(a)

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

(b)

the amount of the remediable transfer value (“y”) paid before 1st October 2023,

the Scheme manager must take reasonable steps to pay the receiving scheme an amount (“the remediable amount”) equal to x – y.

(5)

A payment made under sub-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 remediable 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^f1 (“the 2009 Regulations”) as if regulation 6(1)(a) of those Regulations were omitted, the remediable 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 remediable 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.

Annotations

Textual amendments

F1: Sch. 3 inserted (1.10.2023) by The Armed Forces Pensions (Remediable Service) Regulations 2023 (S.I. 2023/998), reg. 1(b), Sch. 2

Footnotes

f1: 1826 c. 16.

Notes on Schedule 3

Modifications

C1: Schs. 1-3 modified (14.7.2026 for the tax year 2014-15 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2026 (S.I. 2026/673), regs. 1(2), 10