Part 2Unauthorised payments

Chapter 1Interpretation

Interpretation of Part 2

2.—(1) In this Part—

“Chapter 1 scheme” and “Chapter 1 legacy scheme” have the same meanings as in Chapter 1 of Part 1 of PSPJOA 2022(1);

“event report” means a report required by regulation 3(1) of the Registered Pension Schemes (Provision of Information) Regulations 2006 (provision of information by scheme administrator to the Commissioners)(2);

“HMRC” means His Majesty’s Revenue and Customs;

“offset” means offset in accordance with regulation 7(2) or (3);

“reclaimed” means reclaimed in accordance with regulation 7(4);

“relevant charge” means—

“relevant period” means a period of three months ending with 31st March, 30th June, 30th September or 31st December;

“relevant rectification provision” means—

“repayment interest” means interest calculated in accordance with regulation 8;

“return” means a return under regulation 9.

(2) Expressions used in this Part, unless otherwise provided, have the same meaning as in Part 4 of FA 2004 (pension schemes etc)(6).

Meaning of “historic payment”, “top-up payment” and “interest payment”

3.—(1) In this Part “historic payment”, “top-up payment” and “interest payment” have the following meanings.

(2) “Historic payment” means a payment of a lump sum under a Chapter 1 legacy scheme to an individual with remediable service(7) where—

(a)an amount of the payment was an unauthorised member payment(8),

(b)the scheme administrator paid the resulting unauthorised payments charge on behalf of the individual, and

(c)as a result of a relevant rectification provision, the amount of the payment that was an unauthorised member payment has reduced.

(3) “Top-up payment” means an unauthorised member payment made under a Chapter 1 scheme on or after 1st October 2023 that is—

(a)made, as a result of a relevant rectification provision, in respect of the same individual and for the same reason as a historic payment, or

(b)an interest payment.

(4) “Interest payment” means a payment of interest, in respect of an amount within paragraph (3)(a), which is payable by virtue of scheme regulations made under section 26 of PSPJOA 2022 in accordance with—

(a)direction 14(5) and (6) of the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions 2022(9), or

(b)direction 14(5) and (6) of the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions (Northern Ireland) 2023(10).

Meaning of “excess amount”, “excess individual amount” and “excess scheme amount”

4.—(1) In this Part “excess amount”, “excess individual amount” and “excess scheme amount” have the following meanings.

(2) An “excess amount” is the amount by which the amount paid to HMRC by a scheme administrator in respect of a relevant charge that arose on the making of a historic payment exceeds, as a result of a relevant rectification provision, the amount of the liability for the relevant charge.

(3) An excess amount is an “excess individual amount” if the relevant charge was an unauthorised payments charge that was paid by the scheme administrator on behalf of an individual.

(4) An excess amount is an “excess scheme amount” if the relevant charge was a scheme sanction charge.