PART 2BENEFITS FOR OFFICERS
CHAPTER 9MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
Reduction in and forfeiture of benefits
Reduction in benefits in cases where loss caused by member’s crime, negligence or fraud129
1
If, as a result of a member’s criminal, negligent or fraudulent act or omission, a loss to public funds occurs that arises out of or is connected with the member’s employment relationship with the member’s employer, the Department—
a
may reduce any pension or other benefit payable to, or in respect of, the member under these Regulations by an amount less than or equal to the loss, or
b
in a case where the loss equals or exceeds the value of the pension or other benefit, reduce them to nil or by any amount less than that value.
2
Paragraph (1) does not apply so far as the pension or other benefit—
a
is a guaranteed minimum pension or safeguarded rights which are derived from rights to such a pension, or
b
arise out of a transfer payment.
3
If the Department proposes to exercise the power under paragraph (1), the Department must give the member a certificate specifying the amount of the loss to public funds and of the reduction in benefits.
4
If the amount of the loss is disputed, no reduction may be made under paragraph (1) until the member’s obligation to make good the loss has become enforceable—
a
under the order of a competent court, or
b
in consequence of an award of an arbitrator.
5
If the loss is suffered by an employing authority, the amount of any reduction under paragraph (1) must be paid to that authority.