Regulation M2 Transfer of certain sums from the fund
This regulation applies where—
a person (“the former employee”) has ceased to hold an employment in which he was a pensionable employee in consequence of—
an offence of a fraudulent character; or
grave misconduct,
in connection with that employment; and
the body who were his employing authority in that employment (“the former employing authority”) have suffered direct financial loss by reason of the offence or misconduct; and
either—
he became entitled to benefits under regulation E2(1) and a direction has been given under regulation M1(1); or
he did not become so entitled and the total of his reckonable service and qualifying service is less than 2 years.
Where this regulation applies and the former employing authority are the Committee, they may retain an appropriate amount in the fund.
Where this regulation applies and the former employing authority are not the Committee, the Committee shall, subject to paragraph (5), pay them an appropriate amount out of the fund if requested to do so.
An appropriate amount is an amount which does not exceed the lesser of—
the amount of the direct financial loss; and
the amount of any contributions which could have, but have not, been returned to the former employee, or paid to his spouse or a dependant under regulation C15(8).
Where a payment in lieu of contributions has been made, or is due, in respect of the former employee, the Committee may reduce a payment under paragraph (3) by half the amount of the payment in lieu of contributions.
If after making a payment under paragraph (3) the Committee are required to pay a transfer value in respect of the former employee, the former employing authority shall repay them the amount of that payment if requested to do so.