Regulation 4T Applications for compensationF1C1
An administering authority may pay compensation to a person in respect of the 2014 Scheme under section 82(1) of PSPJOA 2022 (power to pay compensation to members or personal representatives in respect of compensatable losses) or additional benefits payable by virtue of regulation 4S only after the appropriate person has made an application to the administering authority in such form and manner as determined by the administering authority, subject to paragraph (2).
Where compensation payable under section 82(1) or 83(1) (indirect compensation) of PSPJOA 2022 is in respect of a Part 4 tax loss mentioned in direction 34(4)(a) or (b) or 36(3)(a) or (b) of the PSP Directions 2022, the application mentioned in paragraph (1) must include the following—
a calculation obtained by the appropriate person from HMRC (by virtue of HMRC’s compensation function by virtue of section 104 of PSPJOA 2022), of any compensation or indirect compensation paid by the scheme to the person in relation to each out-of-scope tax year;
a signed declaration by the appropriate person that the information provided to HMRC in order to obtain the calculation mentioned in sub-paragraph (a), and the calculation itself, is correct and complete to the best of their knowledge and belief; and
a warning that, if false information is given, the appropriate person signing the declaration mentioned in sub-paragraph (b) may face civil action or prosecution, or both.
The administering authority must determine the relevant amounts (if any) owed by the scheme to a person by virtue of section 82(1) or 83(1) of PSPJOA 2022 following receipt of the application mentioned in paragraph (1).
The administering authority must provide the appropriate person with an explanation of how the relevant amounts (if any) have been determined under paragraph (3).
The appropriate person may appeal against a determination by the administering authority under paragraph (3) by notice in writing to the administering authority, together with a reasoned explanation of a proposed alternative amount, supported by any evidence the appropriate person considers relevant.
If an appeal is made under paragraph (5), the administering authority must decide whether to alter its determination, and provide to the appropriate person—
an altered determination, or confirmation that the original determination stands;
a reasoned explanation of its decision; and
a description of the dispute resolution arrangements that apply to the scheme under section 50 of the Pensions Act 1995.
In this regulation, a tax year is “out-of-scope” in relation to an individual where—
that individual is unable to recover from HMRC the amount of overpaid income tax paid in relation to that tax year by that individual that gives rise to their Part 4 tax loss, and
the reason for that is because the individual may no longer make a claim under the Income Tax Acts to recover from HMRC the amount of overpaid income tax because the statutory time limit has passed.
In this regulation—
“HMRC” means His Majesty’s Revenue and Customs;
“the appropriate person” means the eligible member or, if they are deceased, their personal representatives.
Annotations
Textual amendments
- F1
Regs. 4A-4V inserted (1.10.2023) by The Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023 (S.I. 2023/972), regs. 1(2), 2(4)
Modifications
- C1
Regs. 4A-4V restricted (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)(5), 15