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Local Government Pension Scheme (Administration) Regulations (Northern Ireland) 2009

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

72.—(1) This regulation applies where—

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

(i)an offence involving fraud; 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 the Benefits Regulations and these Regulations or the 2002 Regulations and a forfeiture direction has been given; or

(ii)he did not become so entitled and on leaving the employment became entitled to a return of contributions under regulation 41 (rights to return to contributions) (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 or admission agreement fund.

(3) Otherwise, the Committee must pay the former employing authority an appropriate amount out of the fund or admission agreement 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 the 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, civil partner, nominated cohabiting partner or a dependant, under regulation 42(2) (exclusion of rights to return of contributions) or regulation 89(2) (exclusion of rights to return of contributions) of the 2002 Regulations, less the amount of any contributions 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 4 or Chapter 5 of Part 4 of the 1993 Act(1) or under regulation 77 (bulk transfers (transfers of undertakings), etc.) for a former employee, the former employing authority must repay it, if requested to do so.

(1)

1993 c. 49; Chapter 5 was inserted by Art. 241 of S.I. 2005/255 (N.I. 1).

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