Treatment of legacy scheme added years payments
28.—(1) This regulation applies in relation to a remediable added years payment made by a remedy member (“M”).
(2) The scheme manager must, as soon as reasonably practicable after 30th September 2023 and having consulted the scheme actuary, determine the “compensatable amount”, being an amount by way of compensation which is equal to—
(a)the aggregate of all of M’s remediable added years payments, less
(b)an amount in respect of the value of tax relief in accordance with directions 5(5) to (9) of the PSP Directions 2022.
(3) Where a determination is made in accordance with direction 5(8) of the PSP Directions 2022, the following apply—
(a)direction 5(10) (provision of explanation);
(b)direction 5(11) and (12) (appeals).
(4) Where, by virtue of a section 6 election (including a deemed section 6 election) or a section 10 election, the benefits payable in relation to M’s remediable service as a firefighter are reformed scheme benefits—
(a)the scheme manager owes M or, where M is deceased, M’s personal representatives the compensatable amount, and
(b)the rights to benefits that would otherwise have been secured by the remediable added years payment are extinguished.
(5) In this regulation, a “remediable added years payment” means a payment to secure increased benefits under the 1992 Order or the 2006 Order which is—
(a)a lump sum payment made during the period of M’s remediable service as a firefighter,
(b)a periodical contribution made pursuant to an arrangement which commenced during the period of M’s remediable service as a firefighter, or
(c)a lump sum payment or a periodical contribution made pursuant to a remedial arrangement under regulation 29.