Regulation 19 Calculation of pension input amounts: pensioner members of a relevant pension scheme and members of an MPs’ pension scheme

Where a rectification exercise increases the value of a specified member’s rights under a relevant pension scheme, the additional pension input amount is to be included in the calculation of that member’s total pension input amount under section 229(1) of FA 2004 (total pension input amount)^f1 for the tax year in which the rectification period ends.

The “additional pension input amount” is—

$$\left(NV - OV\right) \times 16$$

where—

• “NV” is—

  1. (a)

     where the specified member is a pensioner member^f2 of a relevant pension scheme, the annual rate of scheme pension that would, disregarding any commutation of pension, have been payable under the scheme when the member first became entitled to payment of it, if the rectification exercise had been retrospective,

  2. (b)

     where the specified member is an active or deferred member of an MPs’ pension scheme, the annual rate of the pension which would, on the valuation assumptions^f3, be payable to the individual under the scheme if the individual became entitled to payment of it at the end of the pension input period, or

  3. (c)

     where the specified member is a hybrid member, the result of adding together the amounts in paragraphs (a) and (b) that would arise in relation to the member, and

• “OV” is what NV would have been, in relation to the member, if the rectification exercise had not taken place.

For the purposes of paragraph (1) a rectification exercise increases the value of a specified member’s rights under a relevant pension scheme if—

In this regulation—

• “hybrid member” means an active member of an MPs’ pension scheme who has previously been a pensioner member of the scheme, and references in this regulation to an active member of such a scheme do not include a hybrid member;

• “specified member” means—

  1. (a)

     a pensioner member of a relevant pension scheme, or

  2. (b)

     an active, deferred or hybrid member of an MPs’ pension scheme.