K14.—(1) Where a person who becomes a member has accrued rights to benefit under—
(a)an occupational pension scheme,
(b)a personal pension scheme,
(c)a retirement annuity contract approved by the Commissioners of Inland Revenue under section 620 or 621 of the Income and Corporation Taxes Act 1988, or
(d)a self-employed pension arrangement,
he may within 12 months of becoming a member (or such longer period as the Committee may allow) give written notice to the Committee that he wishes it to accept a transfer value in respect of some or all of those accrued rights from the relevant transferor.
(2) In paragraph (1) the reference to accrued rights to benefit—
(a)includes rights to preserved benefits and rights appropriately secured under section 15 of the Pension Schemes (Northern Ireland) Act 1993, but
(b)excludes rights to benefits arising out of an additional voluntary contributions provision or an additional voluntary contributions scheme (except where the payments securing such rights began before 8th April 1987).
(3) In paragraph (1) “the relevant transferor”, in relation to a member, means—
(a)the trustees or managers of the scheme, contract or arrangement under which his accrued rights arise, or
(b)in the case of such rights as mentioned in paragraph (2)(a), the trustees or managers of the scheme, contract or arrangement, or the insurance company, to which a payment in respect of his accrued rights has been made.
(4) Subject to paragraphs (5) and (6), where notice is given in accordance with paragraph (1), the transfer value shall be accepted by the Committee and be credited to the fund.
(5) Paragraph (4) only applies if—
(a)the transfer value is offered on conditions which are consistent with the provisions of these regulations;
(b)in the case of a person who—
(i)became employed in his local government employment before 26th August 1977, or
(ii)ceased to be employed in his non-local government employment before 31st March 1972,
the Committee has consented to the transfer value being accepted; and
(c)in the case of a person who became employed in his local government employment before 31st March 1972, he was employed in local government employment on that date.
(6) Subject to regulation K18, the Committee only needs to accept a transfer value if it exceeds the annual amount of the guaranteed minimum pension to which the person would have become entitled under these regulations at the request date as a result of the transfer value being accepted, multiplied by the appropriate factor.
(7) In paragraph (6)—
“the request date” means the date when the Committee is requested to accept the transfer value; and
“the appropriate factor”, in relation to a person, means—
in the case of a person under 30 on the request date, 8;
in the case of a person at least 30 but under 40 on that date, 9;
in the case of a person at least 40 but under 50 on that date, 10; and
otherwise, 12.
K15.—(1) Where a transfer value has been accepted under regulation K14 in relation to a person, he shall be entitled—
(a)subject to regulation K19(4), (5) and (6), to count a period calculated as mentioned in regulation K16 or, as the case may be, regulation K17, or regulation K18 as a period of membership for all purposes of these regulations (except that of determining whether there is any entitlement to benefit (other than any benefit under regulation D18)), and
(b)to count as a period to which Part II of Schedule B1 applies all the service in respect of which he has accrued rights to benefits under his previous occupational pension scheme or appropriate policy, as certified by the trustees or managers of that scheme or issuers of that policy, whether the transfer value relates to some or all of those accrued rights.
(2) For the purposes of making any calculation under these regulations a period of membership which may be counted under paragraph (1)(a) shall be treated—
(a)where the person is a man, as a period after 5th April 1978, and
(b)subject to regulation K17(6) where the person is a woman, as a period after 31st March 1972.
(3) A period which may be counted under paragraph (1)(b) shall count at its actual length.
(4) The Committee shall provide the person with a written notice stating the periods of membership which he is entitled to count under paragraph (1)(a) and (b).
(5) A notice under paragraph (4) shall contain a statement of the kind required by regulation J4(2)(c).
K16.—(1) Subject to regulation K18—
(a)the period mentioned in regulation K15(1)(a) shall be calculated in a manner consistent with the methods adopted and assumptions made by the Committee in determining the amount of transfer values to be paid to occupational pension schemes (other than club schemes) under regulations K5, K7 and K8; and
(b)due allowance shall be given for the expected increase in the pensionable remuneration of a local government employee between—
(i)the appropriate date, and
(ii)the NRD of the person in respect of whom the transfer value was paid.
(2) In paragraph (1)(b)(i) “the appropriate date” means—
(a)the date on which the person in respect of whom the transfer value is paid became a member, or
(b)if more than twelve months later, the date on which the transfer value is received.
K17.—(1) This regulation applies to a person who, during any period—
(a)was eligible to be a member of the Scheme;
(b)opted out of, or chose not to become a member of, the Scheme and instead was a member of a personal pension scheme or made contributions to a personal pension arrangement; and
(c)has suffered loss as a result of a 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) Where, at any time after 8th April 1997, a person to whom this regulation applies—
(a)dies when still a member, or
(b)becomes entitled to benefits under Part D,
before the transfer payment referred to in paragraph (3) has been paid to the fund in respect of him, paragraphs (3) and (4) shall continue to apply in the case of that person.
(3) Paragraph (4) shall apply where—
(a)a transfer value in relation to a person to whom this regulation applies has been calculated in a manner consistent with the methods adopted and assumptions made by the Committee in determining a restitution payment; and
(b)the Committee is satisfied that—
(i)the transfer value is adequate to restore the position in relation to that person to what it would have been if the person had been a member of the Scheme throughout the relevant period, or
(ii)the transfer value represents an amount which will provide such period of service as the Committee may approve in respect of the relevant period.
(4) Where this paragraph applies in relation to a person—
(a)the period mentioned in regulation K15(1)(a) shall be equal to the period which the person would have been entitled to count as his period of membership if he had been a member of the Scheme throughout the relevant period or such shorter period as the Committee may approve; and
(b)the person shall be entitled to count the whole of the relevant period as a period to which Part II of Schedule B1 applies (total period of membership to include former and related membership for some purposes of entitlement etc.).
(5) In the case of a member to whom this regulation applies who has been credited with an additional period of membership calculated as specified in regulation K16 (calculation of period of membership allowed under regulation K15(1)(a): non club schemes), the Committee may adjust the amount of the period of membership or period of total membership referred to in paragraph (4)(a) and (b) on account of the transfer value payment by reference to which that additional period of membership was credited.
(6) Where a transfer payment has been accepted in relation to a woman to whom this regulation applies and in respect of whom a transfer value had been paid previously by the Committee to a personal pension scheme or a personal pension arrangement any part of which transfer value was attributable to membership before 1st April 1972, then the period of membership which may be counted under regulation K15(1) shall be apportioned as membership in the same proportions as it would have been had the woman become or remained a member of the Scheme throughout the relevant period.
(7) In this regulation—
“opted out period” means any period throughout which the person was eligible to be a member of the Scheme but instead was a member of a personal pension scheme or made contributions to a personal pension arrangement,
“personal pension arrangement” means a contract or arrangement referred to in regulation K14(1)(c) or (d),
“relevant period” means the total of the opted out period and, if applicable, any period of transferred out service,
“restitution payment” has the same meaning as in regulation K20(5), and
“transferred out service” means service which the person transferred out of the Scheme to a personal pension scheme by exercising a right to a cash equivalent under regulation K2.
K18.—(1) Regulation K14(6) does not apply where the transfer value is offered by the trustees or managers of a club scheme.
(2) Where the transfer value—
(a)is paid by the trustees or managers of a club scheme,
(b)represents all the rights relating to the person in that scheme,
(c)has been calculated in a manner consistent with the methods adopted and assumptions made by the Committee in determining the amount of transfer values to be paid to club schemes, and
(d)is paid following an application made to the Committee before the expiry of the period of twelve months beginning with the date on which the person becomes a member,
regulation K16 does not apply and the period mentioned in regulation K15(1)(a) shall be equal to the period which, if used to calculate a transfer value to be paid to a club scheme, would produce an amount equal to the transfer value received by the Committee.
(3) In making the calculation referred to in paragraph (2), regard shall be had—
(a)to the person’s age,
(b)to the rate of remuneration used by the trustees or managers of the scheme making the payment in determining its amount,
(c)to his normal retirement age,
(d)to his marital status, and
(e)to any other factor notified to the Committee by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount.
K19.—(1) Where—
(a)a person to whom regulation K15 applies ceases to be employed in employment in which he is a member in circumstances in which a return of contributions is payable to him under regulation C21(1),
(b)if a transfer value had not been payable, he would have been entitled on the termination of his non-local government employment to a return of contributions under his non-local government scheme in respect of service to which the transfer value accepted under regulation K14 relates, and
(c)no previous increase has been made under this regulation in relation to that service,
the sum due to him under regulation C21(1) shall be increased by an amount equal to the return of contributions (including any interest), which would have been paid to him under his non-local government scheme in respect of that service in the circumstances specified in sub-paragraph (b), if it had been paid when the transfer value was received by the Committee.
(2) Where compound interest is payable on the contributions due to be so returned, compound interest calculated at the same rate and in the same manner shall also be payable on the amount of the increase under paragraph (1) for the period beginning with the date on which the transfer value was received by the Committee and ending with the date on which he ceased to be employed in the employment in which he was a member.
(3) Nothing in paragraphs (1) and (2) confers any entitlement to an increase on account of contributions which were returned to, and were not subsequently repaid by, the person who paid them.
(4) Where—
(a)a sum due under regulation C21(1) is increased under paragraph (1) by an amount equal to the whole of the person’s contributions in connection with the service to which the transfer value relates, and
(b)that is the only service to which the transfer value relates,
his right to count a period of membership under regulation K15(1)(a) on account of the transfer value shall be extinguished when the increased payment is made.
(5) Where—
(a)a sum due under regulation C21(1) is increased under paragraph (1), and
(b)paragraph (4) does not apply,
then, when the increased payment is made, the period of membership the person is entitled to count under regulation K15(1)(a) on account of the transfer value is reduced to the appropriate fraction of the period of membership which he was entitled so to count before the payment was made.
(6) In paragraph (5) “the appropriate fraction” means the fraction of which—
(a)the numerator is the period he is entitled to count under regulation K15(1)(b) (“the K15(1)(b) period”) reduced by the period of service on account of which the increase under paragraph (1) is made, and
(b)the denominator is the K15(1)(b) period.
(7) For the purpose of calculating the reduction under paragraph (5)—
(a)the period of service mentioned in paragraph (6)(a) shall count at its actual length; and
(b)all periods are to be expressed in years and fractions of a year.
K20.—(1) For the purposes of Article 164(1) of the Pensions Order (prescribed circumstances in which information may be provided) (“the prescribed circumstances”) the prescribed circumstances are that the individual to whom the information relates, or, where he has died, his personal representatives, has requested or consented in writing to the provision of the information.
(2) For the purposes of Article 164(1) of the Pensions Order (persons to whom information may be provided and the imposition of reasonable fees in respect of expenses incurred in providing that information) the prescribed persons are those persons described in paragraph 1 of Schedule K2.
(3) For the purposes of Article 164(2) of the Pensions Order (persons on whom fees may be imposed in respect of administrative expenses incurred in connection with admission, readmission or payment) the prescribed persons are the persons referred to in paragraph 2 of Schedule K2.
(4) For the purposes of Article 164(4) of the Pensions Order (person prescribed in place of the Department in the case of an occupational pension scheme under Article 9 of the Order of 1972) the Committee is a prescribed person.
(5) Where—
(a)information is requested by a prescribed person in the prescribed circumstances in relation to an individual to whom regulation K17 applies for the purpose of establishing what payment would need to be made to the Scheme in respect of the individual to restore the position to what it would have been if the individual had been an active member of the Scheme throughout the period in question (“the restitution payment”), or
(b)an individual to whom regulation K17 applies, applies to become a member of the Scheme or applies to have a restitution payment accepted having become a member of the Scheme after the period in question
the Committee shall calculate the restitution payment in accordance with the provisions of paragraphs 3 to 5 of Schedule K2.