Amendment of the Police Pensions (Scotland) Regulations 2007
48. After regulation 86 (reduction of benefits where lifetime allowance charge payable), insert—
“Voluntary scheme pays arrangement
86A.—(1) A member may serve notice on the scheme manager requesting the scheme manager to discharge an annual allowance charge where the conditions in paragraph (2) are satisfied.
(2) The conditions mentioned in paragraph (1) are that—
(a)the scheme manager is not jointly liable under section 237B of the Finance Act 2004 (liability of scheme administrator) in relation to the charge,
(b)the pension scheme input amount for a tax year for the member in relation to all police pension schemes of which the individual is a member, exceeds the annual allowance applicable to that member for that tax year, and
(c)the amount of the member’s liability to an annual allowance charge for a tax year exceeds £1,000.
(3) The scheme manager may fix a date in relation to a tax year by which a notice under paragraph (1) must be given.
(4) When the scheme manager satisfies a liability under paragraph (1), consequential adjustment must be made to the member’s entitlement to benefits under this scheme on a basis that is just and reasonable having regard to normal actuarial practice.
(5) In this regulation—
“annual allowance” has the meaning given in section 228(1) of the Finance Act 2004 (annual allowance),
“annual allowance charge” has the meaning given in section 227(1) of the Finance Act 2004 (annual allowance charge),
“pension scheme input” has the meaning given in section 237B(2) of the Finance Act 2004,
“police pensions schemes” means this scheme and the schemes constituted under the Police Pensions Regulations 1987(1) and the Police Pension Scheme (Scotland) Regulations 2015(2),
“tax year” means a period of one year which is the period of assessment for income tax purposes.”.