Calculation of contributions to be repaid
23.—(1) The balance of contributions referred to in regulation 22(4) is (A-B)-C, where—
A is the total of the amounts specified in paragraph (2),
B is the total of the deductions specified in paragraph (4), and
C is the amount of tax chargeable on (A-B) under section 205 of FA 2004.
(2) The amounts are those of—
(a)all contributions paid, up to the date of receipt of the application for repayment, under regulations 18 (teachers’ ordinary contributions) and 19 (election to pay contributions by a person serving in a reserve force), and Schedules 4 (contributions for additional pensions) and 5 (family benefit contributions) and under the provisions of TPR 1997 specified in paragraph (3) (which continue to have effect by virtue of paragraphs 8 and 10 of Schedule 13) except—
(i)any treated for the purposes of regulation 126 (receipts etc. to be credited) as employers’ contributions, and
(ii)any paid in respect of a period of pensionable employment for which a short-service incapacity grant or a short-service serious ill health grant has been paid;
(b)contributions paid in respect of any comparable British service in respect of which the person is entitled to count reckonable service by virtue of the acceptance of a transfer value;
(c)if the person (T) was entitled to count any reckonable service by virtue of the acceptance of a transfer value in respect of an employment that was not comparable British service, either—
(i)any payment by way of repayment of contributions, and interest, that T would otherwise have been entitled to receive under the rules of the pension scheme to which he was subject in the employment, or
(ii)if that scheme made no provision for the repayment of contributions, the contributions T paid under it in respect of the employment;
(d)interest to the date of payment at 3% per year, compounded with yearly rests—
(i)on the contributions mentioned in sub-paragraphs (a) and (b), from the first day of the financial year following that in which they were paid, and
(ii)where sub-paragraph (c) applies, on the sum mentioned in that sub-paragraph, from the first day of the financial year following that in which the transfer value was paid to the Secretary of State.
(3) The provisions of TPR 1997 are—
(a)regulation C3(3) where an election has been made under regulation C2(1) of those Regulations,
(b)Part 1 or 2 of Schedule 4, where an election has been made under regulation C4(2) of those Regulations, and
(c)regulation C9, where an election has been made under paragraph (2) of that regulation.
(4) The deductions are—
(a)the amount of any previous repayment of contributions,
(b)if the Secretary of State has made a payment in lieu of contributions, or the person is entitled to equivalent pension benefits, half of the amount of the payment in lieu of contributions that was, or, as the case may be, would otherwise have been made, and
(c)if the Secretary of State has paid a contributions equivalent premium, the amount recoverable by the Secretary of State under sections 61 to 63 of PSA 1993.