4.—(1) After regulation F9 (transfer values payable following cessation of contributions) there shall be inserted the following regulation—
F10.—(1) This regulation shall apply to a member who—
(a)opted or transferred out; and
(b)has suffered loss as a result of contravention which is actionable under section 62 of the Financial Services Act 1986(1) (actions for damages in respect of contravention of rules etc. made under the Act).
(2) A member to whom this regulation applies may give notice in writing to the Police Authority that he wishes the Authority to accept payment of a transfer value in order to create or restore reckonable service, and such notice shall be treated as cancelling, with effect from the date on which an instalment of pay next falls due to him, any election that is in force under paragraph (1) of regulation G4 (election not to pay pension contributions) in respect of that member.
(3) Where a member has given notice under paragraph (2), but before payment has been accepted and reckonable service created or restored he either—
(a)dies while serving as a member; or
(b)becomes entitled to benefits under Part B,
paragraph (4) shall continue to apply in the case of that member.
(4) Where a transfer value in relation to a member who has given notice under paragraph (2) is paid to the Police Authority before the expiry of the period of twelve months beginning with the date on which the member gives such notice or such longer period as the Police Authority may allow, the Police Authority—
(a)shall, if satisfied that the transfer value has been calculated in a manner consistent with the methods adopted and assumptions made by them in determining the restitution payment, accept the payment and treat the relevant period as reckonable service; and
(b)may, if not so satisfied, but if satisfied that the transfer value represents, by reference to those methods and assumptions, a length of service not exceeding the relevant period, accept the payment and treat that length of service as reckonable service,
and the member shall be treated for the purpose of calculating any award under these regulations as having made pension contributions throughout the period of reckonable service credited under this paragraph.
(5) Where a member is credited under paragraph (4) with a period of reckonable service that is shorter than the relevant period, the period of service credited shall be treated for the purpose of any award under these regulations as being a continuous period with the same concluding date as the relevant period.
(6) Where a member who is being credited under paragraph (4) with a period of reckonable service has previously been credited with an additional period of reckonable service calculated, in respect of the relevant period, in accordance with section 2 (calculation of reckonable service by reference to accrued rights) of Part III of Schedule F, the Police Authority may adjust the transfer value that it accepts under this regulation to ensure that no part of the additional period of pensionable service that was previously credited is included in the period of reckonable service credited under paragraph (4).
(7) In this regulation—
“the assumed calculation date” means the date on which it is assumed, for the purpose of calculating a restitution payment, that a transfer value will be paid to the Police Authority;
“the material date” means the date on which the Police Authority is asked to provide the calculation of the restitution payment;
“personal pension scheme” has the meaning given by section 1 of the Pension Schemes (Northern Ireland) Act 1993(2);
“the relevant period”, in relation to a member, means the total of any periods of opted out and transferred out service;
“restitution payment”, in relation to a member, means an amount equal to the sum of—
the capitalised value at the material date, determined by the Police Authority in accordance with methods and assumptions notified to it by the Government Actuary for cash equivalent transfer values from occupational pension schemes (other than arrangements of a kind mentioned in paragraph 1(2) of section 2 of Part II (pensionable service reckonable on receipt of transfer value) of Schedule F), which would produce a service credit equal to his total period of opted out service, including the capitalised value of any rights under the Pensions (Increase) Acts; and
the greater of—
any transfer value paid to a personal pension scheme in respect of that member’s transferred out service by the Police Authority under regulation F9(4), increased by interest calculated at a rate approved by the Government Actuary over the period from the date of payment of that transfer value to the assumed calculation date; and
the cash equivalent transfer value that would be payable by the Police Authority in respect of that transferred out service if the Police Authority were to pay a cash equivalent transfer value in respect of that service determined in accordance with methods and assumptions, notified to it by the Government Actuary, applicable immediately after the assumed calculation date.
(8) For the purposes of this regulation, a member shall be taken—
(a)to have opted out if, for any period during which he is a member, he does not make contributions (including any additional or further contributions that he had previously elected to make) in respect of police pension rights but instead makes contributions to a personal pension scheme; and
(b)to have transferred out if a transfer value is paid in respect of him by the Police Authority to a personal pension scheme,
and “opted out service” and “transferred out service” shall be construed accordingly.”.
(2) In regulation G4 (election not to pay pension contributions)—
(a)in paragraph (5) there shall be inserted at the beginning the words “Subject to paragraph (6),”; and
(b)after paragraph (5) there shall be inserted the following paragraph—
“(6) The age restriction in paragraph (5) and the provisos to that paragraph shall not apply to a member to whom regulation F10 (mis-sold pensions) applies.”.