Regulation C16 Return of repaid contributions
A person to whom contributions were repaid before June 1973—
who is in pensionable employment, or
who is in comparable British service and in respect of whom no transfer value has been paid since the end of his last pensionable employment,
may at any time, by giving written notice to the Secretary of State, elect to return the contributions, with interest, to him.
The return of contributions—
may in any case, and
if the amount of the contributions, together with the interest payable, does not exceed £500, must,
be made by a single payment, which must be made within ten weeks of the giving of notice under paragraph (1).
Except where paragraph (2)(b) applies, the person may elect to make the return of contributions—
if he is in full-time pensionable employment, by instalments under paragraph (5), or
if he is in part-time pensionable employment or in comparable British service, by instalments under paragraph (7).
Interest is payable at the rate of 3.5% per annum from the date on which the contributions were repaid to the date on which their return is completed, and—
where the return is made by a single payment, is payable on the full amount of the contributions and is compounded with yearly rests, and
where the return is made by instalments, is payable on the balance for the time being outstanding and is compounded with yearly rests on 31st March.
Instalments payable under this paragraph are of equal amounts and are, subject to paragraph (6), payable by deduction from the person’s salary for a number of whole years, not exceeding 5 and ending before his 61st birthday, to be specified in the notice of the election.
Where the total of—
the instalments payable by a person under paragraph (5) in any year, and
the other amounts to be deducted in that year under regulation C18,
would otherwise exceed 15% of his contributable salary for that year, the instalments are payable for the smallest number of whole years that will secure that the total does not exceed 15% of his annual contributable salary.
Instalments payable under this paragraph are, subject to paragraph (8), payable—
at equal intervals, of not more than six months, and
for a period,
determined by the Secretary of State after consulting the person making the election.
Instalments are of equal amounts unless in any year the payment of an instalment of an amount equal to that paid in previous years would exceed the limit specified in paragraph (9) and in that event the instalments (and the corresponding period over which they are payable) shall be recalculated so that they do not exceed that limit.
The annual amount of instalments paid under paragraph (7) is to be such that A+B does not exceed 15% of the annual rate of the person’s contributable salary in the year where—
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A is the annual amount of the instalments; and
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B is the annual amount of other contributions paid under Part C (except any treated for the purposes of regulation G2 as employers' contributions) or towards the provision of a pension otherwise than under these Regulations.
For the purposes of this regulation, a person is to be treated as being in pensionable employment if he is paying additional contributions under regulation C9 or C10 and such a person may, except where paragraph (2)(b) applies, elect to make the return by instalments under paragraph (7).