Part 1: Public Service Pension Schemes Chapter 1: Schemes other than Judicial Schemes and Local Government Schemes Section 16: Pension contributions: active and deferred members (immediate correction)
This ssection provides for the correction of any overpayment or underpayment of member contributions made in relation to the remediable service of active and deferred members at the time when section 2(1) comes into force, where pensionable service that would otherwise have been service in the new scheme is returned to the legacy scheme by virtue of ssection 2(1).
	As under section 15, these member’s contributions liabilities are unaffected by section 2(1) (due to section 2(4)), but when compared to the contributions that they would have paid had they always been a member of the legacy scheme, they may have paid more or less.
	Section 16(3) and 16(4) provide that where, pursuant to section 2(1), there is a difference between the amount of member contributions paid by an active or deferred member and the amount of member contributions that would have been paid by that active or deferred member had they always been in the legacy scheme, the surplus or shortfall must be covered. In other words, section 16(3) provides that the scheme manager must pay compensation for any overpaid contributions, whilst section 16(4) provides that the active or deferred member, or, where the member is deceased, their personal representatives, must pay to the scheme any amounts required to make up an underpayment.
	Section 16(5) defines the term "the paid contributions amount", which includes any member contributions paid to a Chapter 1 legacy or new scheme and any contributions paid to a partnership pension account where they have made an election under section 5.
	Section 16(6) provides that in determining the contributions that have been paid by an active or deferred member under section 16(3) and 16(4), where the contributions were to a partnership pension account, that amount includes any tax relief deducted at source in relation to those contributions.
	Section 16(7) defines the term "the adjusted contributions amount", which is the amount of contributions that the active or deferred member would have paid in relation to their remediable service in the legacy scheme had they always been a member.
	This section applies to active and deferred members when section 2(1) comes into force and as a result any remediable service that would, apart from section 2(1) had been pensionable service in a Chapter 1 new scheme is now treated as pensionable service under the relevant Chapter 1 legacy scheme. Section 16 ensures, in combination with section 18, that such members are put into, so far as possible, the same position with respect to contributions that they would have been in had they always been in the legacy scheme. The contributions under the legacy scheme may differ from those that were previously paid under the new scheme and either compensation will be due from the scheme manager or a payment will be required from the member or their personal representatives to correct the contributions position. Some members may end up opting for new scheme benefits before their benefits are paid (making use of the election in section 10). In this case, further provision is made later in the Act to adjust their contributions again to reflect this (section 17). Section 18(2) and 18(3) makes further provision for an adjustment so that the member is placed in the correct position net of tax.