Regulation 5 Reduction of benefits where annual allowance charge paid by scheme manager

In regulation 219 (reduction of benefits where annual allowance charge paid by scheme manager)—

After regulation 219 insert—

“Voluntary scheme pays arrangement

219A

(1)

A member may serve notice on the scheme manager requesting the scheme manager to discharge an annual allowance charge where the conditions in paragraph (2) are satisfied.

(2)

The conditions mentioned in paragraph (1) are that—

(a)

the scheme manager is not jointly liable under section 237B of the 2004 Act (liability of scheme administrator) in relation to the charge;

(b)

the pension scheme input amount for a tax year for the member in relation to all police pension schemes of which the individual is a member, exceeds the annual allowance applicable to that member for that tax year; and

(c)

the amount of the member’s liability to an annual allowance charge for a tax year exceeds £1,000.

(3)

The scheme manager may fix a date in relation to any tax year by which a notice under paragraph (1) must be given.

(4)

Where the scheme manager satisfies a liability under paragraph (1), consequential adjustment must be made to the member’s entitlement to benefits under this scheme on a basis that is just and reasonable having regard to normal actuarial practice.

(5)

In this regulation—

• “pension scheme input amount” has the same meaning as in section 237B(2) of the 2004 Act (liability of scheme administrator);

• “police pension schemes” means this scheme, the 1988 scheme or the 2006 scheme;”.”