Part 1, Chapter 3, Section 82 · Public Service Pensions and Judicial Offices Act 2022

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82Power to pay compensation#

(1)The scheme manager for a local government new scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.

(2)Scheme regulations for a local government new scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).

(3)For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—

(a)either of the following conditions is met, and

(b)the loss is of a description specified in Treasury directions.

(4)The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.

(5)The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.

(6)In this section (subject to subsection (8)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.

(7)In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—

(a)incurring a charge, or incurring an increased charge, under Part 4 of FA 2004, or

(b)not being entitled to a relief, or being entitled to less relief, under that Part of that Act.

(8)In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.

(9)In this section “non-discrimination rule” means a rule that is, or at any time was, included in a local government scheme by virtue of—

(a)section 61 of EA 2010, or

(b)paragraph 2 of Schedule 1 to EEAR(NI) 2006.

(10)For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of a provision of scheme regulations made before 1 April 2022 under which the benefits payable under the scheme that are determined by reference to a member’s pensionable service in an employment or office are final salary benefits.

(11)Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as—

(a)any person has already received amounts by way of compensation in respect of them, or

(b)amounts that any person has paid the scheme have been reduced by amounts in respect of them,

whether pursuant to an order of a court or tribunal or otherwise.

Contains public sector information licensed under the Open Government Licence v3.0.

Defined terms · 121

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a judicial 2015 scheme
has the meaning given by section 70;
a judicial legacy salaried scheme
has the meaning given by section 70;
a judicial legacy scheme
has the meaning given by section 70;
a judicial scheme
has the meaning given by section 70;
active member
has the meaning given by section 109;
adult survivor
means a surviving spouse, civil partner or other adult who is entitled under the judicial 2015 scheme to a pension determined (to any extent) by reference to P’s remediable service.
Agency scheme
means— (a) a scheme under section 1 of PSPA 2013 which is a defined benefits scheme for staff of the Secret Intelligence Service or Security Service, or (b) a scheme under section 1 of SA 1972 which is a defined benefits scheme and relates to staff of the Secret Intelligence Service or Security Service;
Chapter 1 legacy scheme
has the meaning given by section 33(3);
Chapter 1 new scheme
has the meaning given by section 33(2);
Chapter 1 scheme
has the meaning given by section 33(1);
child
means any individual who would have received benefits in respect of P under a judicial 2015 scheme in their capacity as a child if a 2015 scheme election had been made in respect of P;
compensatable loss
means—
compensation benefits
means benefits by way of compensation for loss of office or employment;
compensation function
means a function that relates to— (a) the payment of compensation, contributions, benefits or other amounts to or in respect of a person by virtue of a provision made by or under this Part, or (b) the reduction or waiving of a person’s liability to pay an amount by virtue of such a provision;
connected
means— (a) connected within the meaning of PSPA 2013 (see section 4(6) and (7) of that Act), or (b) connected within the meaning of PSPA(NI) 2014 (see section 4(6) and (7) of that Act);
deferred member
has the meaning given by section 109;
disqualifying gap in service
means a period longer than 5 years at no time during which is the person in service in an employment or office which—
effective pension age payments
means payments under—
enactment
includes— (a) an enactment comprised in subordinate legislation (within the meaning given by section 21 of the Interpretation Act 1978), (b) an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru, (c) an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament, and (d) an enactment comprised in, or in an instrument made under, Northern Ireland legislation;
excess teacher service
has the meaning given by subsection (2);
existing scheme
has the same meaning as in PSPA(NI) 2014 (see section 18(2) of that Act);
Fair Deal scheme
means— (a) a pension scheme that, in accordance with the Fair Deal Statement of Practice, has been certified by the Government Actuary’s Department as offering, to persons who have been subject to a Fair Deal transfer, pension arrangements that are broadly comparable with those offered to them before the transfer, or (b) a pension scheme in relation to which the obligation to give such a certificate has been waived in accordance with that statement of practice;
Fair Deal Statement of Practice
means the statement of practice entitled “Staff Transfers in the Public Sector” issued by the Cabinet Office in January 2000, as supplemented and modified from time to time;
Fair Deal transfer
means a transfer of a person’s employment from a public sector employer to a private sector employer in accordance with the Fair Deal Statement of Practice;
fee-paid judicial office
has the meaning given by section 71;
final salary benefits
has the meaning given by subsection (2);
health service workers
means— (a) health service workers within the meaning of PSPA 2013 (see paragraph 5 of Schedule 1 to that Act), or (b) health service workers within the meaning of PSPA(NI) 2014 (see paragraph 5 of Schedule 1 to that Act);
HMRC
means Her Majesty’s Revenue and Customs;
injury and compensation scheme
means a pension scheme that is listed in Schedule 6 to PSPA 2013 or Schedule 6 to PSPA(NI) 2014 (existing injury and compensation schemes);
injury benefits
means benefits by way of compensation for incapacity or death as a result of injury or illness;
judicial legacy scheme
has the same meaning as in Chapter 2 (see section 70);
judicial office
has the same meaning as in Chapter 2 (see section 71).
judicial scheme
has the same meaning as in Chapter 2;
judicial service award
means an amount payable pursuant to a determination of the Lord Chancellor relating to judicial service awards for holders of judicial offices;
legacy scheme contributions
has the meaning given by section 35;
legacy scheme election
has the meaning given by section 40(1);
legacy scheme normal pension age
means— (a) in a case in which the person meets the third condition in relation to a local government legacy scheme, the person’s normal pension age under that scheme;
local government contracting-out transfer
means a transfer of a person’s employment that was required to be conducted— (a) in accordance with directions given, and having regard to guidance issued, for the purposes of section 101(1) of the Local Government Act 2003 (contracting out: staff transfer matters), or (b) having regard to guidance issued for the purposes of section 52 of the Local Government in Scotland Act 2003 (asp 1) (guidance on contractual matters);
local government legacy scheme
has the meaning given by section 86(3);
local government new scheme
has the meaning given by section 86(2);
local government scheme
has the meaning given by section 86(1);
loss
includes a loss of any kind including, in particular, a Part 4 tax loss.
lump sum benefit
means any benefit payable under a pension scheme by way of a lump sum;
made redundant
includes, in relation to a member of the armed forces, a person becoming entitled to a redundancy payment under— (a) Part 2 of the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No 2) Order 2010 (S.I. 2010/832), (b) the Armed Forces Redundancy Scheme Order 2006 (S.I. 2006/55), or (c) the Armed Forces Redundancy Scheme Order 2020 (S.I. 2020/1298);
member
has the meaning given by section 109;
mixed service
has the meaning given by section 19;
modifying
includes disapplying or supplementing (and cognate expressions are to be construed accordingly);
money purchase benefits
has the meaning given by section 181 of the Pension Schemes Act 1993;
new public scheme
has the meaning given by section 111(1);
new scheme benefits
has the meaning given by section 34;
new scheme contributions
has the meaning given by section 35;
non-discrimination rule
means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—
normal pension age
means normal pension age within the meaning of PSPA 2013 (see section 10(5) of that Act) or PSPA(NI) 2014 (see section 10(10) of that Act);
occupational defined contributions scheme
means— (a) a defined contributions scheme (within the meaning given by section 4 of PSA 2015) that is an occupational pension scheme within the meaning of PSA 1993 (see section 1 of that Act), or (b) a defined contributions scheme (within the meaning given by section 4 of PSA(NI) 2016) that is an occupational pension scheme within the meaning of PS(NI)A 1993 (see section 1 of that Act);
occupational pension scheme
has the meaning given by section 1 of the Pension Schemes Act 1993;
opted-out service
has the meaning given by section 36;
pension benefit
means any benefit payable under a pension scheme otherwise than by way of a lump sum.
pension credit
means a credit under section 29(1)(b) of WPRA 1999 or Article 26(1)(b) of WRP(NI)O 1999.
pension credit right
has the meaning given by section 124(1) of the Pensions Act 1995;
pension debit
means a debit under section 29(1)(a) of WPRA 1999 or Article 26(1)(a) of WRP(NI)O 1999;
pension scheme
means a scheme for the payment of pensions or other benefits to or in respect of persons with service of a particular description;
pensioner member
has the meaning given by section 109;
personal pension scheme
means a personal pension scheme within the meaning of PSA 1993 (see section 1 of that Act) or PS(NI)A 1993 (see section 1 of that Act);
prescribed
means prescribed by regulations made by—
previously contracted-out scheme
means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of Part 3 of the Pension Schemes Act 1993.
primary legislation
means—
public body pension scheme
means a scheme which is a public body pension scheme for the purposes of PSPA 2013 (see section 30(5) of that Act) or PSPA(NI) 2014 (see section 31(4) of that Act);
qualifying accrued rights
means— (a) any right to future benefits under the BBS Pension Scheme or the NRAM Pension Scheme which, at the qualifying time, has accrued to or in respect of a member of that scheme, (b) any entitlement under the BBS Pension Scheme or the NRAM Pension Scheme to the present payment of a pension or other benefit which a member of the BBS Pension Scheme or the NRAM Pension Scheme has at the qualifying time, or (c) any entitlement to benefits, or right to future benefits, under the BBS Pension Scheme or the NRAM Pension Scheme which a survivor of a member of the BBS Pension Scheme or the NRAM Pension Scheme has at the qualifying time in respect of the member;
qualifying liability
has the meaning given by section 116(2).
registered pension scheme
has the meaning given in Part 4 of the Finance Act 2004;
relevant Agency scheme
means regulations under section 1 of SA 1972 which relate to staff of the Secret Intelligence Service or Security Service.
relevant amounts
means any amounts that are payable by the scheme to a person under or by virtue of this Chapter.
relevant enactment
means an enactment that—
relevant member
means a member of the scheme—
relevant national authority
means— a in relation to a devolved office within paragraph (a) of the definition of “devolved office” in section 37, the Department of Justice in Northern Ireland;
relevant office holder
means—
relevant person
means a person— (a) who exercises a compensation function, (b) to or in respect of whom compensation, contributions, benefits or other amounts is or are payable by virtue of a provision made by or under this Part, or (c) whose liability to pay an amount may be reduced or waived by virtue of such a provision.
relevant scheme
means—
relevant tax
means— (a) income tax;
remediable service
has the meaning given by section 1;
remediable service statement
has the meaning given by section 29;
remedial voluntary contributions arrangements
means arrangements— (a) which are entered into by a member after the coming into force of section 2(1), and (b) under which the member pays voluntary contributions to the scheme.
salaried judicial office
has the meaning given by section 71;
scheme administrator
has the same meaning as in Part 4 of FA 2004 (see section 270 of that Act);
scheme manager
has the meaning given by section 4 of PSPA 2013 or section 4 of PSPA(NI) 2014;
scheme regulations
has the meaning given by section 37;
section 1 scheme
means a scheme under section 1 of PSPA 2013;
specified
means specified by the Lord Chancellor by notice.
stakeholder pension scheme
means a scheme which is a stakeholder pension scheme for the purposes of Part 1 of WRPA 1999 (see section 1 of that Act) or Part 2 of WRP(NI)O 1999 (see Article 3 of that Order);
statutory provision
has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954;”
tax provision
means any provision made by or under an enactment relating to a relevant tax.
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.
teacher
means teacher within the meaning of PSPA 2013 (see paragraph 4 of Schedule 1 to that Act) or PSPA(NI) 2014 (see paragraph 4 of Schedule 1 to that Act);
the adjusted contributions amount
means—
the affirmative procedure
means—
the appropriate national authority
means—
the appropriate person
means—
the armed forces
has the same meaning as in PSPA 2013 (see paragraph 8 of Schedule 1 to that Act).
the closing date
has the meaning given by section 1(8);
the commencement date
means the date on which the amendment made by paragraph 25(4)(d) takes effect.
the data protection legislation
has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).
the election period
has the meaning given by section 69;
the end of the election period
means—
the end of the section 6 election period
means—
the investigatory powers legislation
means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016;
The judicial legacy fee-paid scheme
means the scheme constituted by Parts 1 to 11 of the Judicial Pensions (Fee-Paid Judges) Regulations 2017 (S.I. 2017/522).
the negative procedure
means—
the operative time
means—
the paid contributions amount
means (subject to subsection (7)) the aggregate of the pension contributions paid by M in the relevant tax years in respect of M’s remediable service in the employment or office under—
the qualifying time
means the time immediately before the date specified or described in regulations made by the Treasury.
the relevant 2015 scheme
means—
the relevant authority
means—
the relevant date
means—
the relevant judicial scheme
means the judicial scheme under which P most recently accrued pensionable service.
the relevant tax years
means—
the service in question
means the service mentioned in subsection (1).
the supplemental list
has the meaning given by section 12 of the Courts Act 2003 (and references to entry in and removal from the supplemental list are to be construed accordingly).
transitional protection allowance
means an amount paid to a person, pursuant to an agreement between the person and the person’s employer, that the person should not accrue pensionable service under any judicial scheme after 31 March 2015.
Treasury directions
means— (a) in relation to a Chapter 1 scheme within section 33(2)(a) or (3)(a), directions given by the Treasury;
unauthorised payment
means a payment that is an unauthorised payment for the purposes of Part 4 of FA 2004 (see section 160(5) of that Act).
voluntary contributions
means amounts that are paid to a pension scheme by a member of the scheme on a voluntary basis, in accordance with the scheme, for the purpose of securing additional benefits, or securing the earlier payment of benefits, under the scheme;