New Clause 8 - Power to pay compensation

Public Service Pensions and Judicial Offices Bill [Lords] – in a Public Bill Committee am 2:15 pm ar 27 Ionawr 2022.

Danfonwch hysbysiad imi am ddadleuon fel hyn

“(1) The scheme manager for a local government new scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.

(2) Scheme regulations for a local government new scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).

(3) For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—

(a) either of the following conditions is met, and

(b) the loss is of a description specified in Treasury directions.

(4) The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.

(5) The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.

(6) In this section (subject to subsection (8)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.

(7) In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—

(a) incurring a charge, or incurring an increased charge, under Part 4 of FA 2004, or

(b) not being entitled to a relief, or being entitled to less relief, under that Part of that Act.

(8) In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.

(9) In this section “non-discrimination rule” means a rule that is, or at any time was, included in a local government scheme by virtue of—

(a) section 61 of EA 2010, or

(b) paragraph 2 of Schedule 1 to EEAR(NI) 2006.

(10) For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of a provision of scheme regulations made before 1 April 2022 under which the benefits payable under the scheme that are determined by reference to a member’s pensionable service in an employment or office are final salary benefits.

(11) Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as—

(a) any person has already received amounts by way of compensation in respect of them, or

(b) amounts that any person has paid the scheme have been reduced by amounts in respect of them,

whether pursuant to an order of a court or tribunal or otherwise.”—

This new clause enables local government schemes to pay compensation. It is similar to the corresponding provision in Chapter 1 (which is at clause 23).

Brought up, read the First and Second time, and added to the Bill.