Section 25 Remedial arrangements to pay voluntary contributions to legacy schemesC2C4C5C10C11I1I2C1C3C6C7C8C9C12C13

Scheme regulations for a Chapter 1 legacy scheme may make provision so as to secure that a relevant member may enter into remedial voluntary contributions arrangements.

In subsection (1)—

• “relevant member”, in relation to a Chapter 1 legacy scheme, means a member (other than a deceased member) who has remediable service in an employment or office which, after the coming into force of section 2(1), is pensionable service under the scheme (whether or not by virtue of that provision);

• “remedial voluntary contributions arrangements” means arrangements—

  1. (a)

     which are entered into by a member after the coming into force of section 2(1), and

  2. (b)

     under which the member pays voluntary contributions to the scheme.

Provision by virtue of subsection (1) may permit a member (“M”) to enter into arrangements only if the scheme manager is satisfied that it is more likely than not that, but for a relevant breach of a non-discrimination rule, M would, during the period of M’s remediable service in the employment or office, have entered into the same or similar arrangements.

The provision that may be made by virtue of subsection (1) includes, in particular, provision under which liabilities to pay voluntary contributions that would otherwise arise under the arrangements are reduced by tax relief amounts.

In subsection (4) “tax relief amounts” means amounts determined by reference to the tax relief under section 188 of FA 2004 (relief for members’ contributions) that would have been available in respect of the amounts owed if they were paid in a different tax year.

Provision by virtue of subsection (1) may not permit a member (“M”) to enter into arrangements after—

Subsection (6) does not affect the continued operation after the time mentioned in that subsection of any remedial arrangements entered into before that time.

In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—

For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—