Set-offN.I.
177.—(1) The scheme manager may set off a relevant monetary obligation against a member's entitlement to benefits under this scheme.
(2) In this regulation, a “relevant monetary obligation” is a monetary obligation owed by a member (P), which satisfies the conditions in paragraphs (3), (4) or (5).
(3) The conditions in this paragraph are that the monetary obligation—
(a)was incurred to the Board;
(b)was incurred after P became an active member of this scheme;
(c)arose out of or was connected with the service in the scheme employment in respect of which P is a member of this scheme; and
(d)arose out of P's criminal, negligent or fraudulent act or omission.
(4) The conditions in this paragraph are that the monetary obligation—
(a)was incurred to this scheme; and
(b)arose out of P's criminal, negligent or fraudulent act or omission.
(5) The conditions in this paragraph are that the monetary obligation—
(a)was incurred to this scheme; and
(b)arose out of a payment made to P in error by the scheme manager.
(6) Paragraph (7) applies if a set-off is to be applied as result of P owing a relevant monetary obligation which satisfies the conditions in paragraph (3).
(7) Where this paragraph applies, the scheme manager may not apply a set-off against such part of P's entitlement to benefits that represents transfer credits within the meaning of article 121(1) (interpretation of Part 2) of the Pensions (Northern Ireland) Order 1995 M1 other than prescribed transfer credits for the purposes of section 89(5)(d) (inalienability of occupational pension) of the Pensions (Northern Ireland) Order 1995 M2.
(8) The scheme manager may only apply a set-off against that part of a member's pension that exceeds any guaranteed minimum to which that member is entitled under section 10 of the Pension Schemes Act.
(9) The value of the set-off applied must not exceed the lesser of—
(a)the amount of the relevant monetary obligation;
(b)the value of P's entitlement to benefits.
(10) The scheme manager may only set off a relevant monetary obligation against P's entitlement to benefits if—
(a)there is no dispute as to the amount of the relevant monetary obligation; or
(b)the relevant monetary obligation is enforceable—
(i)under an order of a competent court, or
(ii)in consequence of an award of an arbitrator.
Marginal Citations
M1S.I. 1995/3213 (NI 22). Article 121(1) was amended by The Welfare Reform and Pensions (Northern Ireland) Order 1999 Schedule 9 paragraph 17 and 50, the Child support, Pensions and Social security Act (Northern Ireland) 2000 (c. 4) (NI) Schedule 5 paragraph 5, the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (NI 1)) section 6(2), Schedule 10 paragraph 63(2), SR 2005 No 434 and SI 2006/745.
M2S.I. 1995/3213 (NI 22). Article 89(5)(d) was amended by the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (NI 11)) Schedule 9 paragraphs 32 and 46. See SR 1997 No 153 which prescribes the transfer credits.