Public Service Pensions and Judicial Offices Bill [HL] (HL Bill 44)

Public Service Pensions and Judicial Offices Bill [HL]Page 30

(b)the contributions that would have been payable by or on behalf of the
person if the service had been pensionable service under the judicial
legacy scheme to which the relevant assets and liabilities are to be
transferred,

5the assets and liabilities referable to the excess are to be disregarded for the
purposes of subsection (7).

(9)The reference in subsection (8) to the “net value” of pension contributions
made by or on behalf of a person is to the amount of the contributions, net of
any tax relief under section 188 of FA 2004 (relief for contributions) to which
10the person was entitled in respect of them.

39 Legacy scheme elections: effect

(1)Subsections (2) to (5) apply where a legacy scheme election is made in respect
of a person.

(2)The person’s remediable service in any salaried judicial office, to the extent that
15it is otherwise pensionable service under a judicial 2015 scheme, is treated—

(a)as not being, and as never having been, pensionable service under that
scheme, and

(b)as being, and as always having been, pensionable service under the
relevant judicial legacy salaried scheme.

(3)20The person’s remediable service in any salaried judicial office, to the extent that
it is otherwise opted-out service, is treated as being, and as always having
been, pensionable service under the relevant judicial legacy salaried scheme.

(4)The person’s remediable service in any fee-paid judicial office, to the extent
that it is otherwise pensionable service under a judicial 2015 scheme, is
25treated—

(a)as not being, and as never having been, pensionable service under that
scheme, and

(b)as being, and as always having been, pensionable service under the
judicial legacy fee-paid scheme.

(5)30The person’s remediable service in any fee-paid judicial office, to the extent
that it is otherwise opted-out service, is treated as being, and as always having
been, pensionable service under the judicial legacy fee-paid scheme.

(6)Subsections (2) to (5) have effect—

(a)for the purposes of determining which judicial scheme is (or at any time
35was) required to pay benefits to or in respect of a member,

(b)for the purposes of determining the amount of any benefits that are (or
at any time were) payable under a judicial scheme to or in respect of a
member,

(c)for the purposes of determining the judicial scheme to which a member
40is (or at any time was) required to pay pension contributions under a
judicial scheme,

(d)for the purposes of determining the amount of any pension
contributions that are (or at any time were) payable under judicial
schemes by members, and

(e)45subject to any provision of this Chapter to the contrary, for all other
purposes.

(7)Subsections (2) to (5) do not affect—

Public Service Pensions and Judicial Offices Bill [HL]Page 31

(a)any arrangements under a judicial scheme under which a member pays
contributions to the scheme on a voluntary basis so as to secure
additional benefits, or the earlier payment of benefits, under the
scheme, or

(b)5any rights under a judicial scheme in respect of a transfer in to the
scheme of an amount in respect of rights accrued under another
pension scheme.

40 Meaning of “the relevant judicial legacy salaried scheme”

In this Chapter “the relevant judicial legacy salaried scheme”, in relation to a
10person’s remediable service in a salaried judicial office, means—

(a)in a case in which, before 1 April 2015, the person accrued pensionable
service in a salaried judicial office under only one judicial legacy
salaried scheme, that scheme;

(b)in a case in which, before 1 April 2015, the person accrued pensionable
15service in a salaried judicial office under more than one judicial legacy
salaried scheme, the judicial legacy salaried scheme under which the
person most recently accrued pensionable service in the office;

(c)in a case in which, before 1 April 2015, the person did not accrue
pensionable service in a salaried judicial office under any judicial
20legacy salaried scheme, the scheme constituted by Part 1 of JUPRA
1993.

41 2015 scheme elections

(1)An election (a “2015 scheme election”) may (subject to subsection (2)) be made
in respect of a person who has remediable service in a judicial office.

(2)25A 2015 scheme election may not be made in respect of a person if—

(a)any of the person’s remediable service is opted-out service, or

(b)a legacy scheme election has been made in respect of the person.

(3)A 2015 scheme election—

(a)must be in writing,

(b)30must be received by the relevant authority before the end of the election
period,

(c)takes effect at the end of the election period, and

(d)is irrevocable.

(4)Subsection (2)(a) does not apply in a case in which—

(a)35some of the person’s service in a judicial office is pensionable service
under a judicial legacy scheme, and

(b)section 36(4)(b) applies to the person’s opted-out service only in
relation to a judicial 2015 scheme.

42 2015 scheme elections: effect

(1)40Subsection (2) applies where a 2015 scheme election is made in respect of a
person.

(2)The person’s remediable service in any judicial office (whether salaried or fee-
paid), to the extent that it is otherwise pensionable service under a judicial
legacy scheme, is treated—

Public Service Pensions and Judicial Offices Bill [HL]Page 32

(a)as not being, and as never having been, pensionable service under that
scheme, and

(b)as being, and as always having been, pensionable service under the
relevant 2015 scheme.

(3)5In subsection (2) “the relevant 2015 scheme” means—

(a)in relation to service in a judicial office within section 67(1)(a) or (b), the
Judicial Pensions Regulations 2015 (S.I. 2015/182);

(b)otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015
(S.R. (N.I.) 2015 No. 76).

(4)10Subsection (2) has effect—

(a)for the purposes of determining which judicial scheme is (or at any time
was) required to pay benefits to or in respect of a member,

(b)for the purposes of determining the amount of any benefits that are (or
at any time were) payable under a judicial scheme to or in respect of a
15member,

(c)for the purposes of determining the judicial scheme to which a member
is (or at any time was) required to pay pension contributions under a
judicial scheme,

(d)for the purposes of determining the amount of any pension
20contributions that are (or at any time were) payable under judicial
schemes by members, and

(e)subject to any provision of this Chapter to the contrary, for all other
purposes.

(5)Subsection (2) does not affect—

(a)25any arrangements under a judicial scheme under which a member pays
contributions to the scheme on a voluntary basis so as to secure
additional benefits, or the earlier payment of benefits, under the
scheme, or

(b)any rights under a judicial scheme in respect of a transfer in to the
30scheme of an amount in respect of rights accrued under another
pension scheme.

43 Person by whom election is to be made

(1)The person by whom a legacy scheme election or 2015 scheme election in
respect of a person (“P”) is to be made is P or, if P is deceased—

(a)35the adult survivor, or

(b)if there is no adult survivor, P’s personal representatives.

(2)In this section “adult survivor” means a surviving spouse, civil partner or other
adult who is entitled under the relevant judicial scheme to a pension
determined (to any extent) by reference to P’s remediable service.

(3)40In subsection (2) “the relevant judicial scheme” means the judicial scheme
under which P most recently accrued pensionable service.

Options exercise: further provision

44 Cases in which 2015 scheme election treated as made

(1)Subsection (2) applies where —

Public Service Pensions and Judicial Offices Bill [HL]Page 33

(a)a person has remediable service in a judicial office which is mixed
service, and

(b)no legacy scheme election or 2015 scheme election in respect of the
person is made before the end of the election period.

(2)5A 2015 scheme election in respect of the person is treated as having been made.

(3)For the purposes of this section a person’s remediable service in a judicial office
is “mixed service” if—

(a)some of the service is pensionable service under a judicial legacy
scheme, and

(b)10some of the service is—

(i)pensionable service under a judicial 2015 scheme, or

(ii)PPA opted-out service.

45 Benefits for children where election made

(1)Subsection (2) applies where—

(a)15a 2015 scheme election is made in respect of a deceased person (“P”),

(b)P is survived by a child,

(c)the child is not living in the same household as an adult survivor of P,
and

(d)the benefits payable under the judicial 2015 scheme in respect of the
20child are, in the opinion of the scheme manager of the scheme, less
valuable (looked at in the round) than those that would have been
payable in respect of the child if a legacy scheme election had been
made in respect of P.

(2)The benefits payable in respect of the child under the judicial 2015 scheme, so
25far as they are determined by reference to P’s remediable service, are such
benefits as would have been payable in respect of the child, so far as they are
determined by reference to P’s remediable service, if a legacy scheme election
had been made in respect of P.

(3)For the purposes of subsections (1) and (2)

(a)30“child” means any individual who would have received benefits in
respect of P under a judicial legacy scheme in their capacity as a child if
a legacy scheme election had been made in respect of P;

(b)“adult survivor” means a surviving spouse, civil partner or other adult
who is entitled under the judicial 2015 scheme to a pension determined
35(to any extent) by reference to P’s remediable service.

(4)Subsection (5) applies where—

(a)a legacy scheme election is made in respect of a deceased person (“P”),

(b)P is survived by a child,

(c)the child is not living in the same household as an adult survivor of P,
40and

(d)the benefits payable under the judicial legacy scheme in respect of the
child are, in the opinion of the scheme manager of the scheme, less
valuable (looked at in the round) than those that would have been
payable in respect of the child if a 2015 scheme election had been made
45in respect of P.

Public Service Pensions and Judicial Offices Bill [HL]Page 34

(5)The benefits payable in respect of the child under the judicial legacy scheme,
so far as they are determined by reference to P’s remediable service, are such
benefits as would have been payable in respect of the child, so far as they are
determined by reference to P’s remediable service, if a 2015 scheme election
5had been made in respect of P.

(6)For the purposes of subsections (4) and (5)

(a)“child” means any individual who would have received benefits in
respect of P under a judicial 2015 scheme in their capacity as a child if a
2015 scheme election had been made in respect of P;

(b)10“adult survivor” means a surviving spouse, civil partner or other adult
who is entitled under the judicial legacy scheme to a pension
determined (to any extent) by reference to P’s remediable service.

(7)Subsections (2) and (5) apply in relation to benefits that were payable in respect
of the child before, as well as after, the election in question comes into effect.

46 15Effect of elections on benefits previously paid or payable

(1)Subsection (2) applies in relation to any benefits (“the paid benefits”) that a
judicial 2015 scheme has at any time paid to a person (“P”) so far as—

(a)they are calculated by reference to P’s, or any other person’s,
remediable service in a salaried judicial office, and

(b)20they are benefits that, as a result of a legacy scheme election made in
respect of P or any other person, P was not entitled to receive from the
scheme.

(2)The paid benefits are to be treated for all purposes—

(a)as not having been paid to P by the judicial 2015 scheme, but

(b)25as having been paid to P instead by the relevant judicial legacy salaried
scheme.

(3)Subsection (4) applies in relation to any benefits (“the paid benefits”) that a
judicial 2015 scheme has at any time paid to a person (“P”) so far as—

(a)they are calculated by reference to P’s, or any other person’s,
30remediable service in a fee-paid judicial office, and

(b)they are benefits that, as a result of a legacy scheme election made in
respect of P or any other person, P was not entitled to receive from the
scheme.

(4)The paid benefits are to be treated for all purposes—

(a)35as not having been paid to P by the judicial 2015 scheme, but

(b)as having been paid to P instead by the judicial legacy fee-paid scheme.

(5)Subsection (6) applies in relation to any benefits (“the paid benefits”) that a
judicial legacy scheme has at any time paid to a person (“P”) so far as—

(a)they are calculated by reference to P’s, or any other person’s,
40remediable service in a judicial office, and

(b)they are benefits that, as a result of a 2015 scheme election made in
respect of P or any other person, P was not entitled to receive from the
scheme.

(6)The paid benefits are to be treated for all purposes—

(a)45as not having been paid to P by the judicial legacy scheme, but

(b)as having been paid to P instead by the relevant 2015 scheme.

Public Service Pensions and Judicial Offices Bill [HL]Page 35

(7)In subsection (6) “the relevant 2015 scheme” means—

(a)in relation to service in a judicial office within section 67(1)(a) or (b), the
Judicial Pensions Regulations 2015 (S.I. 2015/182);

(b)otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015
5(S.R. (N.I.) 2015 No. 76).

(8)Subsection (9) applies where, as a result of a legacy scheme election or 2015
scheme election (and after taking into account the effect of subsections (2), (4)
and (6))—

(a)a judicial scheme owes a person an amount in respect of benefits
10which—

(i)are calculated by reference to a member’s remediable service in
a judicial office, and

(ii)were payable before the end of the election period, or

(b)a person owes a judicial scheme an amount in respect of such benefits.

(9)15The liability is to be discharged only in accordance with section 48 (corrections
for pension benefits and lump sum benefits).

47 Effect of elections on contributions previously paid or payable

(1)Subsection (2) applies where a member (“M”) of a judicial 2015 scheme has
paid any pension contributions (“the paid contributions”) under the scheme
20which—

(a)are calculated by reference to M’s remediable service in a salaried
judicial office, and

(b)as a result of a legacy scheme election made in respect of M, M was not
required to pay to the scheme.

(2)25The paid contributions are to be treated for all purposes—

(a)as not having been paid by M to the judicial 2015 scheme, but

(b)as having been paid by M instead to the relevant judicial legacy salaried
scheme.

(3)Subsection (4) applies where a member (“M”) of a judicial 2015 scheme has
30paid any pension contributions (“the paid contributions”) under the scheme
which—

(a)are calculated by reference to M’s remediable service in a fee-paid
judicial office, and

(b)as a result of a legacy scheme election made in respect of M, M was not
35required to pay to the scheme.

(4)The paid contributions are to be treated for all purposes—

(a)as not having been paid by M to the judicial 2015 scheme, but

(b)as having been paid by M instead to the judicial legacy fee-paid
scheme.

(5)40Subsection (6) applies where a member (“M”) of a judicial legacy scheme has
paid any pension contributions (“the paid contributions”) under the scheme
which—

(a)are calculated by reference to M’s remediable service in a judicial office,
and

(b)45as a result of a 2015 scheme election made in respect of M, M was not
required to pay to the scheme.

Public Service Pensions and Judicial Offices Bill [HL]Page 36

(6)The paid contributions are to be treated for all purposes—

(a)as not having been paid by M to the judicial legacy scheme, but

(b)as having been paid by M instead to the relevant 2015 scheme.

(7)In subsection (6) “the relevant 2015 scheme” means—

(a)5in relation to service in a judicial office within section 67(1)(a) or (b), the
Judicial Pensions Regulations 2015 (S.I. 2015/182);

(b)otherwise, the Judicial Pensions Regulations (Northern Ireland) 2015
(S.R. (N.I.) 2015 No. 76).

(8)Subsection (9) applies where, as a result of a legacy scheme election or 2015
10scheme election (and after taking into account the effect of subsections (2), (4)
and (6))—

(a)a judicial scheme owes a person an amount in respect of pension
contributions which are calculated by reference to a member’s
remediable service in a judicial office, or

(b)15a person owes a judicial scheme an amount in respect of such
contributions.

(9)The liability is to be discharged only in accordance with section 49 (corrections
for pension contributions).

Pension benefits and contributions: corrections

48 20Pension benefits and lump sums benefits

(1)This section applies in relation to a member (“M”) of a judicial scheme who, at
the end of the election period—

(a)has remediable service in a judicial office that is pensionable service
under the scheme, and

(b)25is a pensioner member in relation to the judicial office, or is deceased.

(2)Where—

(a)the aggregate of the pension benefits, if any, that (after taking into
account the effect, if any, of section 46(2), (4) or (6)) have been paid
under the scheme to any person (“the beneficiary”) in respect of M’s
30remediable service in the judicial office, exceeds

(b)the aggregate of the pension benefits to which (after taking into account
the effect, if any, of section 39(2) to (5) or 42(2)) the beneficiary was
entitled under the scheme in respect of the service,

the beneficiary must pay the difference to the scheme.

(3)35Where—

(a)the amount mentioned in subsection (2)(a), is less than

(b)the amount mentioned in subsection (2)(b),

the scheme manager must pay the difference to the beneficiary.

(4)Where—

(a)40the aggregate of the lump sum benefits, if any, that (after taking into
account the effect, if any, of section 46(2), (4) or (6)) have been paid
under the scheme to any person (“the beneficiary”) in respect of M’s
remediable service in the judicial office, exceeds

Public Service Pensions and Judicial Offices Bill [HL]Page 37

(b)the aggregate of the lump sum benefits to which (after taking into
account the effect, if any, of section 39(2) to (5) or 42(2)) the beneficiary
was entitled under the scheme in respect of the service,

the beneficiary must pay the difference to the scheme.

(5)5Where—

(a)the amount mentioned in subsection (4)(a), is less than

(b)the amount mentioned in subsection (4)(b),

the scheme manager must pay the difference to the beneficiary.

(6)If—

(a)10a 2015 scheme election has been made in respect of M, and

(b)M has been paid a judicial service award in respect of M’s service in the
judicial office,

the judicial service award is to be treated for the purposes of subsection (4)(a)
as a lump sum benefit paid to M under the scheme in respect of M’s remediable
15service in the judicial office.

(7)In this section—

  • “judicial service award” means an amount payable pursuant to a
    determination of the Lord Chancellor relating to judicial service awards
    for holders of judicial offices;

  • 20“lump sum benefit” means any benefit payable under a pension scheme
    by way of a lump sum;

  • “pension benefit” means any benefit payable under a pension scheme
    otherwise than by way of a lump sum.

49 Pension contributions

(1)25This section applies in relation to a member (“M”) of a judicial scheme who, at
the end of the election period has remediable service in a judicial office that is
pensionable service under the scheme.

(2)Where—

(a)the aggregate of the pension contributions, if any, that (after taking into
30account the effect, if any, of section 47(2), (4) and (6)) have been paid
under the scheme, or under a partnership pension account, by M in an
in-scope tax year in respect of M’s remediable service in the judicial
office, exceeds

(b)the aggregate of the pension contributions, if any, that (after taking into
35account the effect, if any, of section 39(2) to (5) or 42(2)) were payable
under the scheme by M for that tax year in respect of the service,

the scheme must (directly or indirectly) pay an amount in respect of the
difference to M.

(3)Where—

(a)40the aggregate of the pension contributions, if any, that (after taking into
account the effect, if any, of section 47(2), (4) and (6)) have been paid
under the scheme, or under a partnership pension account, by M in an
out-of-scope tax year in respect of M’s remediable service in the judicial
office, exceeds

(b)45the aggregate of the pension contributions, if any, that (after taking into
account the effect, if any, of section 39(2) to (5) or 42(2)) were payable
under the scheme by M for that tax year in respect of the service,

Public Service Pensions and Judicial Offices Bill [HL]Page 38

no amount is to be paid by the scheme in respect of the difference to M.

(4)Where—

(a)the aggregate of the pension contributions, if any, that (after taking into
account the effect, if any, of section 47(2), (4) and (6)) have been paid
5under the scheme, or under a partnership pension account, by M in an
in-scope or out-of-scope tax year in respect of M’s remediable service in
the judicial office, is less than

(b)the aggregate of the pension contributions, if any, that (after taking into
account the effect, if any, of section 39(2) to (5) or 42(2)) were payable
10under the scheme by M for that tax year in respect of the service,

M must pay pension contributions in respect of the difference to the scheme.

(5)For the purposes of this section—

(a)a tax year is “in-scope” in relation to M if any necessary adjustment to
the amount of income tax paid by M in respect of PAYE income for the
15tax year is capable of being enforced by HMRC under PAYE
regulations;

(b)a tax year is “out-of-scope” in relation to M if it is not in-scope in
relation to M.

(6)A reference in this section to pension contributions paid by a person under a
20partnership pension account is a reference to the amount of the contributions
paid, net of any tax relief under section 188 of FA 2004 (relief for contributions)
to which the person was entitled in respect of them.

50 Effective pension age payments

(1)Subsection (2) applies where—

(a)25a person (“P”) has remediable service in a judicial office,

(b)P has, during the period of remediable service, paid any effective
pension age payments to a judicial 2015 scheme, and

(c)a legacy scheme election is made in respect of P.

(2)The scheme manager of the judicial 2015 scheme must pay to P an amount
30equal to—

(a)the aggregate of the effective pension age payments paid by P, less

(b)an amount in respect of the value of the tax relief under section 188 of
FA 2004 (member contributions) to which P was entitled in respect of
those payments.

(3)35In this section “effective pension age payments” means payments under—

(a)Part 3 of Schedule 1 to the Judicial Pensions Regulations 2015 (S.I. 2015/
182), or

(b)Part 3 of Schedule 1 to the Judicial Pensions Regulations (Northern
Ireland) 2015 (S.R. (N.I.) 2015 No. 76).

51 40Transitional protection allowance

(1)Subsection (2) applies where—

(a)a person (“P”) has remediable service in a judicial office,

(b)P’s employer (“the employer”) has paid P a transitional protection
allowance, and

(c)45a legacy scheme election is made in respect of P.

Public Service Pensions and Judicial Offices Bill [HL]Page 39

(2)P must pay to the employer an amount equal to—

(a)the amount of the transitional protection allowance, less

(b)an amount in respect of the income tax suffered by P that is attributable
to the transitional protection allowance.

(3)5In this section “transitional protection allowance” means an amount paid to a
person, pursuant to an agreement between the person and the person’s
employer, that the person should not accrue pensionable service under any
judicial scheme after 31 March 2015.

(4)A reference in this section to a person’s employer is to the person’s employer
10for the purposes of any judicial scheme of which the person is a member.

52 Power to reduce benefits in lieu of paying liabilities owed to scheme

(1)Scheme regulations for a judicial scheme may make provision under which—

(a)a person who would otherwise be required to pay an amount under or
by virtue of this Chapter to the scheme, or to the person’s employer, is
15not required to pay that amount to the scheme or the employer, and

(b)instead, the benefits payable to or in respect of the person under the
scheme are reduced in accordance with the regulations.

(2)A reference in this section to a person’s employer is to the person’s employer
for the purposes of any judicial scheme of which the person is a member.

53 20Powers to reduce or waive liabilities

(1)Scheme regulations for a judicial scheme may make provision under which a
liability owed by a person to the scheme under section 48 (corrections for
pension benefits and lump sum benefits) is reduced or waived.

(2)Scheme regulations for a judicial scheme may make provision under which a
25liability to pay pension contributions owed by a person to the scheme under
section 49 (corrections for pension contributions) is reduced or waived.

(3)The provision that may be made under subsection (2) includes, in particular,
provision under which a liability to pay pension contributions is reduced by
tax relief amounts.

(4)30In subsection (3) “tax relief amounts” means amounts determined by reference
to the tax relief under section 188 of FA 2004 (relief for members’ contributions)
that would have been available in respect of the amounts owed if—

(a)they had been paid in a different tax year, or

(b)they had been paid to a different judicial scheme.

35Powers to make provision in relation to special cases

54 Pension credit members

(1)Scheme regulations for a judicial scheme may make provision about the
benefits payable to or in respect of a relevant pension credit member and the
corresponding pension debit member.

(2)40In this section “relevant pension credit member”, in relation to a judicial
scheme, means a member of the scheme who has rights under the scheme—