6. After Schedule 17 there shall be inserted the following Schedule:–
Regulation J15(1)
1. A restitution payment in relation to an individual shall be an amount equal to the total of–
(a)the capitalised value of the rights which would have accrued to him under these Regulations in respect of the period referred to in regulation B4B(4)(b) if he had been a pensionable employee throughout that period, including the capitalised value of any rights under the Pensions (Increase) Act 1971(1) and the Pensions (Increase) Act 1974(2); and
(b)the transfer value (if any) previously paid under regulation J2 to the personal pension scheme, increased by interest at a rate approved from time to time by the Government Actuary for that purpose on a daily basis over the period from the date on which the person ceased to be a pensionable employee as described in regulation J2(1)(b) to the date on which it is assumed, for the purpose of calculating the restitution payment, that a transfer value will be paid to the appropriate superannuation fund.
2. The amount, if any, calculated by virtue of paragraph 1(b) shall be at least equal to the amount of the cash equivalent transfer value, calculated and verified as required by Chapter IV of Part IV of the Pension Schemes Act 1993(3), which would be payable by the fund authority in respect of the period referred to in regulation B4B(4)(b) if the fund authority were to pay a cash equivalent transfer value in respect of that period immediately after the time at which the transfer payment is paid to them by the trustees or managers of the personal pension scheme.
3. In this Schedule–
“capitalised value” means the capitalised value at the material date as determined by the fund authority in such manner as shall be approved by the Government Actuary and using the then current tables of factors issued by the Government Actuary for calculating cash equivalent transfer values;
“material date” means the date on which information is requested as mentioned in regulation J15(1)(a) or, as the case may be, the date on which an election or application is made as mentioned in regulation J15(1)(b).”.