Part 1: Public Service Pension Schemes Chapter 3: Local Government Schemes Section 82: Power to pay compensation
Section 82 enables scheme regulations to make provision allowing scheme managers to pay compensation in respect of compensatable losses incurred by local government scheme members. Most compensatable losses would be for the schemes to pay –for example, where the loss is attributable to the value of pension rights payable from the scheme. Other losses would normally fall to the employer to pay – for example, losses attributable to a breach of the non-discrimination rule. The power at section 82(2) allows scheme regulations to make provision for a scheme employer to reimburse the scheme where it is considered that the employer rather than the pension scheme should meet the cost.