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Local Government Pension Scheme Regulations (Northern Ireland) 2002

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Transfer of sums from the fund to compensate for former member’s misconduct

118.—(1) This regulation applies where –

(a)a person has left an employment in which he was a member because of –

(i)an offence of a fraudulent character, or

(ii)grave misconduct,

in either case in connection with that employment;

(b)his former employing authority in that employment has suffered direct financial loss by reason of the offence or misconduct; and

(c)either –

(i)the former employee became entitled to benefits under Part II or the 2000 Regulations and a direction has been given under regulation 114(2), or

(ii)he did not become so entitled and on leaving the employment became entitled to a return of contributions under regulation 88 (whether or not he has waived his right).

(2) If the former employing authority is the Committee, it may retain an appropriate amount in the fund.

(3) Otherwise, the Committee must pay the former employing authority an appropriate amount out of the fund, if requested to do so.

(4) But if a contributions equivalent premium or a payment in lieu of contributions is due or has been made in respect of the former employee, the Committee may reduce an amount retained under paragraph (2) or a payment under paragraph (3) by the amount of any contributions equivalent premium and by half the amount of any payment in lieu of contributions.

(5) An appropriate amount is an amount not exceeding –

(a)the amount of the direct financial loss; or

(b)the amount of any contributions which could have been returned to the former employee, or paid to his spouse or a dependant, under regulation 89(2) or regulation C21(4) of the 2000 Regulations, less the amount of any which have been so returned or paid,

whichever is the less.

(6) If after making a payment under paragraph (3) the Committee is required to make any transfer payment under Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993(1) or under regulation 122 for a former employee, the former employing authority must repay it, if requested to do so.

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