# The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014, Regulation 4S: Payment of indirect compensation


(1) An administering authority may, in respect of a compensatable loss that is a Part 4 tax loss incurred by an eligible member—
(a) not pay an amount under section 82 of PSPJOA 2022 by way of compensation in respect of the loss; and
(b) instead pay the eligible member additional benefits under the 2014 Scheme.
(2) This regulation is subject to the requirements of regulation 4T (applications for compensation).
(3) When exercising the power in paragraph (1) to pay additional benefits, the administering authority must comply with the requirements contained in direction 33(1) of the PSP Directions 2022 in relation to the exercise of those powers as those requirements apply to the power to pay amounts by way of compensation by virtue of section 82(1) of PSPJOA 2022 (and the reference in direction 33(1)(f)(iii) to direction 34 is to be read accordingly).
(4) The administering authority must obtain actuarial advice before determining what additional benefits to pay to a member.
(5) When determining what additional benefits to pay to a member under this regulation, the administering authority must, in accordance with the actuarial advice obtained under paragraph (4), apply any actuarial factors that were in force when the pension debit was calculated originally.
(6) Direction 36 of the PSP Directions 2022 (indirect compensation) applies to this regulation for the purpose of determining whether a Part 4 tax loss is compensatable.

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Source: https://www.legislation.gov.uk/uksi/2014/525/regulation/4S (the official version)
Page: https://openlegislation.uk/local-government-pension-scheme-transitional-provisions-savings-and-amendment-regulations-2014/regulation-4S
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.