Credited periods for transferring members with mis-sold pension rights
124.—(1) Regulation 122(3) does not apply where–
(a)the transferring person is a person mentioned in regulation 6(9)(c); and
(b)the transfer value satisfied the conditions specified in paragraph (2).
(2) Those conditions are that–
(a)it is paid by the trustees or managers of the personal pension scheme mentioned in section 172(1)(a)(ii) of the Pensions Act 1995(1);
(b)it represents all the rights relating to the member in that scheme;
(c)it is paid on an application made to the appropriate administering authority before the expiry of the period of 12 months beginning with the date on which the transferring person becomes an active member (or such longer period as they may allow); and
(d)in the opinion of the appropriate administering authority it is not less than the restitution amount.
(3) Where paragraph (1) applies, the credited period is the period of membership the transferring person could have counted if he had been an active member throughout the personal pension period.
(4) The restitution amount is the aggregate of–
(a)the capitalised value (as at the date on which the request for the calculation of the restitution amount is made) of the rights which would have accrued to the transferring person under the Scheme if he had remained an active member of the Scheme throughout the personal pension period (including rights under the Pensions (Increase) Act 1971(2) and the Pensions (Increase) Act 1974(3);
(b)the transfer value (if any) paid out of the Scheme to the personal pension scheme; and
(c)interest on any such transfer value at such rate as is approved for the time being by the Government Actuary, calculated on a daily basis over the period from the date on which that transfer value was paid out of the Scheme to the date as at which the transfer value is taken to be paid to the Scheme.
(5) The appropriate administering authority must determine the value mentioned in paragraph (4)(a) in such manner as is for the time being indicated in guidance issued by the Government Actuary.
(6) The personal pension period is the period referred to in regulation 6(9)(c).