# The New Firefighters’ Pension Scheme Order (Northern Ireland) 2007, Paragraph 66E: Compensation deduction


(1) The Board must deduct from a special member’s mandatory special period pension contributions an amount calculated in accordance with this article (the “compensation deduction”) where a special member—
(a) elects to pay mandatory special period pension contributions in respect of the special member’s service during the mandatory special period in accordance with article 66A, in relation to service purchased following an application under article 65B; and
(b) provides the statement referred to at paragraph (5).
(2) The compensation deduction must be calculated on the advice of the Scheme Actuary and must be equal to the amount of tax relief on mandatory special period pension contributions to which the special member would have been entitled in the compensation scenario described in paragraph (3) (“the compensation scenario”), together with interest calculated at the past interest rate and applied to that amount of tax relief as described under article 66A(13), taking into account any tax relief on mandatory special period pension contributions that has been received through PAYE.
(3) The compensation scenario means that it is assumed that the special member—
(a) had been entitled to join this Scheme as a special member on the first day of the mandatory special period;
(b) from that date, had paid the special period pension contributions in accordance with article 63(1A), deducted from each instalment of the member’s pensionable pay in accordance with article 63(2); and
(c) tax relief on the special period pension contributions at the rate set out in paragraph (4) had been applied at the time each instalment of pensionable pay had been paid.
(4) The rate of tax relief which must be applied in the compensation scenario is—
(a) where a special member establishes, with such supporting evidence as the Board may reasonably require, that the rate of tax relief which would have applied to the special member in the compensation scenario is a higher tax rate, that higher tax rate; or
(b) in any other case, the basic rate of tax that would have applied to the special member during the mandatory special period.
(5) In order to be entitled to the compensation deduction, the special member must provide a statement to the Board that the special member will not claim tax relief in respect of the mandatory special period pension contributions.

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Source: https://www.legislation.gov.uk/nisr/2007/215/schedule/ANNEX/paragraph/66E (the official version)
Page: https://openlegislation.uk/new-firefighters-pension-scheme-order-northern-ireland-2007/schedule-ANNEX/paragraph-66E
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.