The Judicial Pensions (Remediable Service etc.) Regulations 2023

PART 2 Provision about special cases where a member has remediable service

CHAPTER 1 Application of Part

Application of Part

6.  This Part applies where—

(a) a person (“P”) has remediable service(1) in a judicial office(2), and

(b) an immediate detriment remedy(3) has not been obtained in relation to that service.

CHAPTER 2 Member options

Compensation for special payments to buy out early payment reduction

7.—(1) This regulation applies where—

(a) P has, during the period of remediable service, made any special payments under regulation 74(3)(a) or (c) of the 2015 Regulations, and

(b) a legacy scheme election(4) is made in respect of P.

(2) The rights that would otherwise have been secured by the special payments are extinguished.

(3) The scheme manager must pay to the appropriate person an amount by way of compensation equal to—

(a) the aggregate of the special payments made by P, less

(b) an amount determined by the scheme manager in respect of the value of the tax relief under section 188 of FA 2004(5) (member contributions) to which P was entitled in respect of those payments.

(4) Where determining the tax relief amount under paragraph (3)(b), the scheme manager may adopt an approach which is reasonable in all the circumstances to approximate those amounts.

(5) The following provisions of the PSP Directions 2022 apply in relation to a determination under paragraph (3)(b) of this regulation as they apply in relation to a determination under direction 23(2)—

(a) direction 23(4) (provision of explanation);

(b) direction 23(5) and (6) (appeals).

Compensation for payments for added pension

8.—(1) This regulation applies where—

(a) P has, during the period of remediable service, made any added pension payments under Part 2 of Schedule 1 to the 2015 Regulations,

(b) regulation 129(1)(b) of the 2015 Regulations does not apply in respect of those added pension payments, and

(c) a legacy scheme election is made in respect of P.

(2) Where the appropriate person makes a request for compensation in respect of the added pension payments—

(a) the rights that would otherwise have been secured by the added pension payments are extinguished, and

(b) the scheme manager must pay to the appropriate person an amount by way of compensation equal to—

(i) the aggregate of the added pension payments paid by P, less

(ii) an amount, determined in accordance with direction 23 of the PSP Directions 2022, in respect of the value of the tax relief under section 188 of FA 2004 (member contributions) to which P was entitled in respect of those payments.

(3) The following apply in relation to a determination in accordance with direction 23(2)—

(a) direction 23(4) (provision of explanation);

(b) direction 23(5) and (6) (appeals).

(4) A request under paragraph (2) is irrevocable and must be—

(a) made by notice to the scheme manager,

(b) in a form required by the scheme manager, and

(c) received by the scheme manager before the end of the election period(6).

Transfers out of the 2015 scheme

9.—(1) This regulation applies where a transfer value payment has been made during the period of remediable service under regulation 133 of the 2015 Regulations in respect of P’s accrued rights under the 2015 scheme (disregarding any provision of Chapter 2 of Part 1 of PSPJOA 2022).

(2) Nothing in sections 40 to 66 of PSPJOA 2022 applies in relation to P’s remediable service.

(3) The scheme manager must provide the appropriate person with a statement of the cash equivalent to which P would have been entitled, had—

(a) sections 40 to 66 of PSPJOA 2022 applied in respect of P’s accrued rights on the guarantee date in relation to the period of remediable service, and

(b) a legacy scheme election been made in respect of P.

(4) Where—

(a) the value of the cash equivalent in respect of the sum specified in regulation 137(3)(a) of the 2015 Regulations, is less than

(b) the value of the cash equivalent to which P would have been entitled under paragraph (3) in respect of that sum,

the scheme manager must pay to the appropriate person an amount equal to the value of the difference.

(5) The scheme manager is discharged from any further obligation to provide benefits in relation to the cash equivalent if—

(a) the scheme manager makes any payment required to be made by paragraph (4), or

(b) the amount mentioned in paragraph (4)(a) is greater than the amount mentioned in paragraph (4)(b).

(6) In this regulation, the “guarantee date” is the date specified in the statement of entitlement that was provided to P under regulation 135(1) of the 2015 Regulations in respect of the transfer value payment.

CHAPTER 3 Partial retirement

Partial retirement notice

10.—(1) Paragraph (2) applies where—

(a) P exercised a partial retirement option under regulation 60(2) of the 2015 Regulations in respect of any fee-paid judicial office(7),

(b) a legacy scheme election is made in respect of P, and

(c) the conditions set out in regulation 27(1) of FPJR 2017 are met in respect of P.

(2) A notice in respect of P that complies with the requirement in regulation 27(3)(a) of FPJR 2017 is treated as having been given in accordance with sub-paragraph (3)(b) of that regulation if it is received by the appropriate Minister before the end of the election period.

(3) A notice under paragraph (2) has effect on the date agreed by the member and the scheme manager under regulation 61(1)(b) of the 2015 Regulations in relation to the exercise of the partial retirement option referred to in paragraph (1)(a).

(4) Paragraph (5) applies where—

(a) P gave notice to take partial retirement under regulation 27(2) of FPJR 2017,

(b) a 2015 scheme election is made, or is treated as having been made, in respect of P, and

(c) the conditions set out in regulation 60(1) of the 2015 Regulations are met in respect of P.

(5) A partial retirement option in respect of P is treated as having been exercised in accordance with regulation 61(1)(b) of the 2015 Regulations if a partial retirement option notice that complies with the requirements of regulation 61(1)(a) and (2) of those Regulations is received by the scheme manager before the end of the election period.

(6) An option under paragraph (5) has effect on the day the notice mentioned in paragraph (4)(a) was received by the appropriate Minister.

Corrections for pension benefits and lump sum benefits on partial retirement

11.  Where paragraph (2) or (5) of regulation 10 applies, section 51 of PSPJOA 2022 applies in relation to P as if for subsection (1) there were substituted—

“(1) This section applies in relation to a member (“M”) of a judicial scheme(8) who—

(a) at the end of the election period has remediable service in a judicial office that is pensionable service under the scheme, and

(b) during the period of remediable service has—

(i) exercised a partial retirement option under regulation 60(2) of the 2015 Regulations, or

(ii) given notice to take partial retirement under regulation 27(2) of FPJR 2017.”.

CHAPTER 4 Annual allowance tax charges

Payment of annual allowance tax charges and provision of information

12.  Where P is unable to give an effective notice to the scheme administrator under section 237B(3)(9) of FA 2004 in relation to an in-scope tax year (within the meaning of direction 24(7) of the PSP Directions 2022) because the time limit in section 237BA(10) has passed, direction 24(2) to (6) of the PSP Directions 2022 applies in relation to P.

(1)

See section 39 of PSPJOA 2022 for the meaning of “remediable service”.

(2)

See section 71(1) of PSPJOA 2022 for the meaning of “judicial office”.

(3)

See section 68 of PSPJOA 2022 for provision about whether an “immediate detriment remedy” has been obtained.

(4)

See section 40(1) and 42 of PSPJOA 2022 for the meaning and effect of “a legacy scheme election”.

(5)

In accordance with section 110(1) of PSPJOA 2022, “FA 2004” means the Finance Act 2004 (c. 12).

(6)

See section 69 of PSPJOA 2022 for the meaning of “the election period”.

(7)

See section 71(3) of PSPJOA 2022 for the meaning of “fee-paid judicial office”.

(8)

See section 70(1) of PSPJOA 2022 for the meaning of “a judicial scheme”.

(9)

Section 237B was inserted by paragraph 15 of Schedule 17 to the Finance Act 2011 (c. 11).

(10)

Section 237BA was inserted by section 9(3) of the Finance Act 2022 (c. 3).