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The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008

Type Ni-Statutory-Rule

Publication 2008-06-17

Last updated 2025-06-18

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(5) If any dependent child was a dependent child both at the time when the pensionable service in respect of which the pension is payable ceased and at the date of death, the annual amount of the pension in respect of the dependent child or children is the sum of—

(a) the annual amount that would be payable in respect of the child under regulation 76 as a result of the member dying whilst an active member or a non-contributing member if that regulation applied to members who are also pensioner members (disregarding the pensionable service in respect of which the pension is payable (“the pension service”) and any additional pension), and

(b) the annual amount that would be payable in respect of the child under regulation 77 as a result of the member dying whilst a pensioner member if that regulation applied to members who are also active members or non-contributing members (having regard only to the pension service and disregarding any additional pension).

(6) If, apart from this paragraph, the sum of—

(a) the relevant service (as defined in regulation 76(4)) for the purposes of the calculation of the annual amount referred to in paragraph (5)(a), and

(b) the pension service,

would be less than 10 years' pensionable service, the deceased's relevant service for the purposes of that calculation is increased by the length of the shortfall.

Lump sum death benefits

Lump sum benefits on death: introduction

82

(1) If a member or a recent leaver or a deferred member dies before reaching the age of 75, a lump sum is payable in accordance with this Chapter.

(2) Paragraph (1) is subject to the following provisions of this Chapter.

(3) This regulation does not apply if—

(a) the member is—

(i) a pensioner member, or

(ii) a pension credit member who dies after any benefits attributable to the pension credit have become payable, and

(b) the death takes place more than five years after the member's pension becomes payable.

Amount of lump sum: single capacity members and recent leavers (disregarding regulation 49 employments)

83

(1) The lump sum payable on the death of an active member or a non-contributing member , who is not also a deferred member or a pensioner member, is an amount equal to twice the member's reckonable pay.

In the case of a 2008 Section Optant, this is subject to regulation 136W and in the case of a Waiting Period Joiner, this is subject to regulation 136ZB.

(2) The lump sum payable on the death of a pensioner member, who is not also an active member or a non-contributing member or a deferred member, is, in respect of each pension to which the member is entitled, the lesser of—

(a) an amount equal to five times the annual rate of the pension (other than any additional pension), less the amount of the pension payments already made to the member, and

(b) an amount equal to twice the member’s reckonable pay by reference to which the pension was calculated, less the aggregate of—

(i) any lump sum paid to the member when the pension came into payment as a result of the member exercising the option under regulation 58, and

(ii) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 136L.

This is subject to regulations 86A and 87.

(3) The lump sum payable on the death of a deferred member, who was not an active member or non-contributing member or a pensioner member, is an amount equal to the member's deferred annual pension, multiplied by 2.25.

(4) The lump sum payable on the death of a recent leaver is an amount equal to the deferred annual pension to which the person would have been entitled if the person were entitled to such a pension calculated by reference to the pensionable service the recent leaver was entitled to count in the service that has ceased, multiplied by 2.25.

(5) References in this regulation to a member's deferred annual pension are to the annual pension, in respect of any period of pensionable service, to which the member would have been entitled under regulation 45 (normal retirement pensions) if on the date of death the member had become entitled to such a pension (other than any additional pension).

(6) The reference in paragraph (2)(a) to the annual rate of the member’s pension is to the member’s pension after it has been reduced to take account of—

(a) the exercise by the member of an option under regulation 58; and

(b) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 136L.

(7) If a pensioner member exercised the option under regulation 62 (election to allocate pension), the reference in paragraph (2)(a) to the amount of the pension payments already made to the member is a reference to the amount of the pension payments that would have been made apart from the election.

(8) For the purposes of this regulation, the fact that a person—

(a) was an active member or a non-contributing member in service in an employment in respect of which the member has exercised the option under regulation 49,

(b) is a deferred member as a result of service in an employment in respect of which the member has exercised that option, or

is ignored.

Amount of lump sum: dual capacity members (disregarding regulation 49 employments)

84

(1) Paragraph (2) applies for determining the lump sum payable by virtue of this regulation on the death of a member who—

(a) was an active member or a non-contributing member otherwise than in service in an employment in respect of which the member had exercised the option under regulation 49 (partial retirement: members aged at least 55), and

(b) was also a pensioner member.

(2) The lump sum is an amount equal to the sum of—

(a) five times the annual rate of pension—

(i) payable under regulation 52(5) (tier 2 ill-health pension), if the deceased had not reached the age of 65,

(ii) payable under regulation 45 (normal retirement pensions), if the deceased had reached the age of 65,

to which the member would have been entitled—

(aa) in the case of a deceased active member, at the member’s date of death, or

(bb) in the case of a deceased non-contributing member, on the last day of the member’s pensionable service; and

(b) in respect of each pension to which the person has been entitled for less than 5 years, the lesser of—

(i) five times the annual rate of the pension payable after exercising any option under regulation 58 (general option to exchange part of pension for lump sum), less the amount of the pension payments already made to the member, and

(ii) an amount equal to twice the member's reckonable pay by reference to which the pension was calculated, less any lump sum paid to the member when the pension came into payment as a result of the member exercising the option under regulation 58 (general option to exchange part of pension for lump sum).

This is subject to paragraph (4).

(3) If the pensioner member exercised the option under regulation 62, the reference in paragraph (2)(b) to the amount of the pension payments already made to the member is a reference to the amount of the pension payments that would have been made apart from the election.

(4) In the case of a 2008 Section Optant—

(a) the reference to the annual rate of pension in paragraph (2)(b)(i) is to the annual rate of pension after it has been reduced to take account of the lump sum paid to the Optant under regulation 136L; and

(b) the amount of the Optant’s reckonable pay for the purposes of paragraph (2)(b)(ii) shall be reduced by the aggregate of—

(i) the amount of the lump sum paid to the Optant under regulation 136L, and

(ii) the lump sum under regulation 58 referred to in paragraph (2)(b)(ii).

Amount of lump sum: dual capacity members: members with pensions under regulation 49

85

(1) Paragraph (2) applies for determining the lump sum payable by virtue of this regulation on the death of a member who—

(a) was an active member or a non-contributing member in service in an employment in respect of which the member has exercised the option under regulation 49 (partial retirement: members aged at least 55), and

(b) was a pensioner member by virtue of being entitled to a pension under that regulation.

(2) The lump sum is an amount equal to the sum of—

(a) twice the appropriate fraction of the member's reckonable pay in that employment at the date of death, and

(b) if the member had been entitled to any pensions under regulation 49 for less than 5 years, the lesser of—

(i) the total of the guarantee amounts for each of those pensions (see paragraph (3)), and

(ii) the aggregate lump sum cap (see paragraph (4)).

In the case of a 2008 Section Optant, this is subject to regulation 136W.

(3) The guarantee amount for a pension under regulation 49 is five times the annual rate of the pension at the date of death, less the amount of the pension payments already made to the member in respect of the pension.

(4) The aggregate lump sum cap is equal to twice the appropriate fraction of the reckonable pay by reference to which the pension to which the member became entitled on last exercising the option under regulation 49 was calculated, less the total of any lump sums paid to the member—

(a) in exchange for pensions under regulation 49 as a result of the member exercising the option under regulation 58; and

(b) in the case of a 2008 Section Optant, the lump sum paid to that Optant under regulation 136L.

(5) In this regulation “the appropriate fraction” means—

$$DPSTDPS$where—DPS is, where the member continues in pensionable service as an active member or a non-contributing member on the option day (or the last such option day if the option has been exercised more than once), the total number of days which do not form part of the specified percentage of pensionable service at the option day, andTDPS is the aggregate of DPS and the total number of days of pensionable service (at the option day or the last such option day if the option has been exercised more than once) which forms part of the specified percentage of pensionable service.$

Amount of lump sum: pension credit members

86

(1) The lump sum payable on the death of a pension credit member who dies before any benefits derived from the member's pension credit have become payable is an amount equal to the amount of the annual pension to which the member would have become entitled under regulation 46 if the member had reached the age of 65 on the date of death, multiplied by 2.25.

(2) The lump sum payable on the death of a pension credit member who dies after a pension under that regulation has become payable is equal to the lower of—

(a) the annual amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, and

$$2RP-CLS,$where—RP is the amount as at the valuation day of the reckonable pay of the debit member from whose rights the pension credit member's pension credit is derived, andCLS is the amount of the lump sum (if any) paid to the pension credit member as a result of the member exercising the option under regulation 58 (general option to exchange part of pension for lump sum) on becoming entitled to the pension under regulation 46.$

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this regulation—

“valuation day” means the day referred to in Article 26(7) of the 1999 Order, ...

Payment of lump sums on death

87

(1) A lump sum payable under regulation 82 or a pension payable under regulation 86A must be paid in accordance with this regulation.

(2) The lump sum or pension must be paid to the member's personal representatives, except so far as it is payable to a different person or body under paragraph (4), (6) or (10) .

(3) A member may give notice to the Department—

(a) specifying—

(i) the member's personal representatives,

(ii) one or more other individuals, or

(iii) one incorporated or unincorporated body,

to whom the lump sum or pension is to be paid, and

(b) where two or more individuals are specified, specifying the percentage of the payment payable to each of them.

(4) If the member—

(a) has given notice under paragraph (3) specifying a person, and

(b) has not revoked that notice,

the lump sum or pension (or, as the case may be, the percentage of it specified in respect of the person) may be paid to the person, unless paragraph (5) or (7) applies.

(5) This paragraph applies if—

(a) the person specified in the notice has died before the payment can be made, or

(b) payment to that person is not, in the opinion of the Department, reasonably practicable.

(6) If the member—

(a) leaves a surviving adult dependant, and

(b) has not given notice under paragraph (3) or has revoked any notice so given,

the lump sum or pension may be paid to that person unless paragraph (7) applies.

(7) This paragraph applies if the person to whom the lump sum or pension (or a specified percentage of the lump sum or pension ) would otherwise be payable has been convicted of an offence specified in regulation 130 (4) (forfeiture of rights to benefit) and the Department has directed, as a consequence of that conviction, that the person's right to a payment in respect of the member's death is forfeited.

(8) A notice under paragraph (3)—

(a) must be given in writing, and

(b) may be revoked at any time by a further notice in writing.

(9) The Department may pay the lump sum to any person claiming to be the member's personal representative or otherwise to fall within paragraph (3)(a), without requiring proof that the person is such a person concerned, if the lump sum does not exceed—

(a) £5,000, or

(b) any higher amount specified in an order made under section 6(1) of the Administration of Estates (Small Payments) (Northern Ireland) Act 1967 as the amount to be treated as substituted for references to £500 in section 1 of that Act.

(10) The member’s personal representatives may, as part of the distribution of the member’s estate, give irrevocable notice to the Department—

(a) specifying—

(i) one or more individuals, or

(ii) one incorporated or unincorporated body,

to whom the benefit of the pension under regulation 86A from the date of receipt of the notice by the Department is to be assigned; and

(b) where two or more individuals are specified, specifying the percentage of the pension payable to each of them,

and the pension (or, as the case may be, the percentage of it specified in respect of the person) may be paid to the person or body, unless paragraph (11) applies.

(11) This paragraph applies if—

(a) the person specified in the notice has died before the payment can be made;

(b) payment to that person is not, in the opinion of the Department, reasonably practicable; or

(c) the person to whom the pension (or a specified percentage of the pension) would otherwise be payable has been convicted of an offence specified in regulation 130 (4) (Forfeiture of rights to benefit) and the Department has directed, as a consequence of that conviction, that the person’s right to a payment in respect of the member’s death is forfeited.

(12) The prohibition on assignment of benefits in regulation 135 (Prohibition on assignment or charging of benefits) shall not apply to an assignment by personal representatives under this regulation.

(13) In the case of a 2008 Section Optant, this regulation is subject to regulation 136T.

(14) In the case of a Waiting Period Joiner, this regulation is subject to regulation 136Z.

Tax treatment under the Finance Act 2004 of lump sums payable on pensioners' deaths

88

(1) A pensioner's lump sum (less any amount deducted under paragraph (4) where that applies) is treated for the purposes of the Finance Act 2004 as a pension protection lump sum death benefit if the member has given the Scheme administrator a statement in writing that any such lump sum is to be treated as such a benefit.

(2) In this regulation “pensioner's lump sum” means—

(a) a lump sum payable under regulation 82 to which regulation 83(2) applies, or

(b) so much of a lump sum payable under regulation 82 as is calculated under regulation 84(2).

(3) Paragraph (4) applies if the person who is the Scheme administrator for the purposes of section 206 of the Finance Act 2004 (“the administrator”) is liable for tax under that section in respect of a pension protection lump sum death benefit.

(4) The administrator may deduct from the lump sum the tax payable in respect of it.

Miscellaneous and general provisions

Death during period of absence

89

(1) This regulation applies if a person dies during a period when the person is absent from work because of—

(a) illness or injury,

(b) ordinary maternity leave,

(ca) parental bereavement leave,

(d) paternity leave ...

(e) parental leave or shared parental leave,

and the earnings used to calculate the person's pensionable pay have ceased to be paid before the person's death.

(2) Any benefits payable under this Chapter must be calculated as if the person had died in pensionable service on the day before those earnings ceased.

Polygamous marriages

90

(1) This regulation applies if—

(a) a member dies without leaving a surviving adult dependant, and

(b) at the date of death the member was married to one or more persons under a law which permits polygamy.

(2) If, had the member left a surviving adult dependant, any benefit would have been payable to the surviving adult dependant as such, that benefit is payable—

(a) if there is one such person, to that person, or

(b) if there are two or more such persons, to those persons in equal shares.

(3) Such a person's share of a pension will not be increased on the death of any such person.

Dual capacity membership: death benefits

91

(1) This paragraph applies if the deceased member was—

(a) a member of this Section of the Scheme of two or more of the kinds specified in paragraph (2),

(b) a pensioner member in respect of two or more pensions, or

(2) The kinds of member are—

(a) an active member,

(b) a deferred member,

(d) a pension credit member.

(3) If paragraph (1) applies, the general rule is that—

(a) benefits are payable in respect of the member under this Chapter as if two or more members of the kinds in question had died (so that two or more pensions or lump sums are payable in respect of the one deceased member), and

(b) the amounts payable are determined accordingly.

(4) Paragraph (3) does not apply where specific provision to the contrary is made about a person to whom that paragraph would otherwise apply.

(5) See, in particular—

(a) regulation 69 (amount of pensions under regulation 67: active members),

(b) regulation 70 (amount of pensions under regulation 67: pensioner members),

(d) regulation 74 (surviving children's pensions),

(e) regulation 81 (amount of children's pension under regulation 74: re-employed pensioners),

(f) regulation 82 (lump sum benefits on death: introduction),

(g) regulation 84 (amount of lump sum: dual capacity members (disregarding regulation 49 employments)),

(h) regulation 85 (amount of lump sum: dual capacity members: members with pensions under regulation 49), and

(hh) regulation 86A (Pension payable when member dies on or after age 75);

(i) Chapter 7 (re-employment and rejoining this Section of the Scheme).

(6) If a person who is a pension credit member is entitled to two or more pension credits—

(a) benefits are payable in respect of the person under this Chapter as if the person were two or more persons, each being entitled to one of the pension credits (so that two or more pensions or lump sums are payable in respect of the one pension credit member), and

(b) the amounts of those benefits are determined accordingly.

Guaranteed minimum pensions for surviving spouses and civil partners

92

(1) If a person who is the surviving spouse or civil partner of a deceased active, deferred or pensioner member has a guaranteed minimum under section 13 of the 1993 Act in relation to benefits in respect of the deceased member under this Section of the Scheme—

(a) nothing in this Part permits or requires anything that would cause requirements made by or under that Act in relation to such a person and such a person's rights under a scheme not to be met in the case of the person,

(b) nothing in this Part prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the person, and

(2) If apart from this regulation—

(a) no pension would be payable to the surviving spouse or civil partner under this Chapter, or

(b) the weekly rate of the pensions payable would be less than the guaranteed minimum,

a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving spouse or civil partner for life or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Paragraph (2) does not apply to a pension that is forfeited—

(a) as a result of a conviction for treason, or

(b) in a case where an offence within regulation 130(2)(b) (forfeiture of rights to benefit) is committed.

CHAPTER 6 — TRANSFERS

Transfers out

Introduction: rights to transfer value payment

93

(1) This Chapter supplements the rights conferred by or under Chapter IV of Part IV of the 1993 Act (transfer values).

(2) This Chapter is without prejudice to that Chapter or Chapter V of that Part (early leavers: cash transfer sums and contribution refunds).

(3) Accordingly—

(a) a member to whom Chapter IV of that Part applies (see section 89 of that Act) is entitled to require the payment of a transfer value in respect of the rights to benefit that have accrued to or in respect of the member under this Section of the Scheme, and

(b) a member to whom Chapter V of that Part applies (see section 97AA(1) of that Act) is entitled to a cash transfer sum or a contribution refund in accordance with that Chapter.

(4) Subject to paragraph (5) and the other provisions of this Chapter, any other member is entitled to require such a payment as if such rights had accrued to or in respect of him by reference to the pensionable service the member is entitled to count under this Section of the Scheme (and references in this Chapter to the member's accrued rights or benefits are to be read accordingly).

(5) Paragraph (4) does not—

(a) give any rights to an active member,

(b) give any rights to a pensioner member in respect of the pension to which the member has become entitled, or

Applications for statements of entitlement

94

(1) A member who requires a transfer value payment to be made must apply in writing to the Department for a statement of the amount of the cash equivalent of the member's accrued benefits under this Section of the Scheme at the guarantee date (“a statement of entitlement”).

(2) In this Part, “the guarantee date” means any date that—

(a) falls within the required period,

(b) is chosen by the Department,

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

(3) In counting the period of 10 days referred to in sub-paragraph (d), Saturdays, Sundays, Christmas Day, New Year's Day and Good Friday are excluded.

(4) In paragraph (2) “the required period” means—

(a) the period of 3 months beginning with the date of the member's application for a statement of entitlement, or

(b) such longer period beginning with that date (but not exceeding six months) as may reasonably be required if, for reasons beyond the control of the Department, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

Applications for transfer value payments: general

95

(1) A member who has applied for and received a statement of entitlement under regulation 94 may apply in writing to the Department for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of regulation 96(2)).

(3) In this Part such a payment is referred to as “the guaranteed cash equivalent transfer value payment”.

(4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.

(5) The application must meet such other conditions as the Department may require.

(6) An application under this regulation may be withdrawn by notice in writing to the Department, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.

Applications for transfer value payments: time limits

96

(1) Subject to paragraph (4), an application under regulation 95(1) must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than—

(a) 6 months after that date, or

(b) if it is earlier, the date on which the member reaches 65.

(2) If the payment is made later than 6 months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—

(a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made, or

(b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of 1% above the base rate.

(3) Paragraph (4) applies if—

(a) disciplinary or court proceedings against the member are begun within 12 months after the member leaves the employment which qualified the member to belong to the Scheme, and

(b) it appears to the Department that the proceedings may lead to all or part of the member's benefits being forfeited under regulation 130 (forfeiture of rights to benefit).

(4) The Department may defer doing what is needed to carry out what the member requires until the end of the period of 3 months beginning with the date on which those proceedings (including any proceedings on appeal) are concluded.

(5) In any case where a direction is given under regulation 130 for the forfeiture of a member's benefits, this regulation applies as if the amount specified in the statement of entitlement were reduced by an amount equal to the value of the benefits forfeited, as determined by the Scheme actuary.

(6) In respect of an applicant who falls within regulation 93(4) —

(a) in the case of an application that requires the guaranteed cash equivalent transfer value payment to be made to a registered occupational pension scheme or a registered personal pension scheme, an application under paragraph (1) may only be made if—

(i) the applicant became a member of that scheme not later than the end of the period of 12 months beginning with the day after the date on which the member ceased to be in the pensionable service in which the rights accrued (“the leaving date”), and

(ii) the application is made not later than—

(aa) the end of the period of 12 months beginning with the day on which the applicant became a member of that scheme, or

(bb) if the applicant became a member of that scheme on or before the leaving date, the end of the period of 12 months beginning with the day after the leaving date;

(b) in any other case, an application under paragraph (1) may only be made before the end of the period of 12 months beginning with the day after the leaving date.

Ways in which transfer value payments may be applied

97

(1) If Chapter IV of Part IV of the 1993 Act applies to a member, that member may only require the Department to apply the guaranteed cash equivalent transfer value payment in one or more of the ways permitted under section 91 of the 1993 Act.

(2) In any other case, a member may only require the Department to apply the guaranteed equivalent transfer value payment in one or more of the ways permitted under section 97AE of the 1993 Act.

(3) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (4) applies.

(4) The benefits attributable to—

(a) the member's accrued rights to a guaranteed minimum pension, or

(b) the member's accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the guaranteed cash equivalent transfer value payment if section 92(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member's other rights).

(5) A transfer payment may only be made to—

(a) a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004, or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes of that Part (see section 169(2) of that Act).

Calculating amounts of transfer value payments

98

(1) The amount of the guaranteed cash equivalent transfer value payment is to be calculated and verified by the Department in accordance with the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996. This is subject to paragraphs (2), (3) and (5).

(2) Before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent, the Department shall take advice from the Scheme actuary.

(3) If, subject to paragraph (5), the amount calculated in accordance with paragraph (1) is less than the member's minimum transfer value (if any), the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.

(4) In paragraph (3) “minimum transfer value” means—

(a) in the case of a person other than a 2008 Section Optant, the sum of—

(i) any transfer value payments that have been made to this Section of the Scheme in respect of the person as a result of which the person is entitled to count any pensionable service under this Section of the Scheme by reference to which the accrued rights subject to the transfer are calculated, and

(ii) any contributions paid by the person under Chapter 3 of this Part as a result of which the person is entitled to count such service;

(b) in the case of a 2008 Section Optant, the sum of—

(i) any transfer value payments that have been made to this Section of the Scheme in respect of the person as a result of which the person is entitled to count any pensionable service under this Section of the Scheme by reference to which the accrued rights subject to the transfer are calculated,

(ii) any contributions paid by the person under Chapter 3 of this Part as a result of which the person is entitled to count such service, and

(iii) the aggregate of any—

(aa) transfer value payments that have been made to the 1995 Section in respect of the Optant;

(bb) any contributions paid by the Optant under regulation 10 of the 1995 Regulations (Contributions by members) in respect of superannuable employment in that Section on or before 31st March 2008; and

(cc) any payments made by the Optant under regulation 67 of the 1995 Regulations (Right to buy additional service) for the purchase of additional service,

which entitle the Optant to count, under Chapter 10 of this Part, any pensionable service by reference to which the accrued rights subject to the transfer are calculated.

(5) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is calculated—

(a) in accordance with those arrangements rather than paragraphs (1) and (3), and

(b) by reference to the guidance and tables provided by the Scheme actuary for the purposes of this paragraph that are in use on the date used for the calculation.

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 136L.

Effect of transfers-out

99

If a transfer value payment is made under this Chapter in respect of a person's rights under this Section of the Scheme, those rights are extinguished.

Transfers in

Right to apply for acceptance of transfer value payment from another scheme

100

(1) Subject to the provisions of this Chapter, an active member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of him under any kind of scheme or arrangement to which paragraph (2) applies, other than a FSAVC, to be accepted by this Section of the Scheme.

(2) This paragraph applies to—

(a) a registered occupational pension scheme other than a corresponding health service scheme ,

(b) a registered personal pension scheme,

(d) a corresponding 1995 scheme, and

(e) a corresponding 2008 scheme.

(2A) A member who makes an application for a transfer value to be accepted by the Department in respect of his rights under a corresponding 2008 scheme may not also make an application for a transfer value to be accepted in respect of his rights under a corresponding 1995 scheme.”;

(3) Paragraph (1) does not apply to rights that are directly attributable to a pension credit.

(4) In this regulation “FSAVC” means—

(a) a scheme which—

(i) immediately before 6th April 2006 was approved by the Commissioners for Her Majesty's Revenue and Customs by virtue of section 591(2)(h) of the Income and Corporation Taxes Act 1988 (free-standing AVC schemes), and

(ii) became a registered scheme for the purposes of the Finance Act 2004 by virtue of Schedule 36 to that Act, or

(b) a scheme established on or after that date as a registered free-standing AVC scheme.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 136M.

Procedure for applications under regulation 100

101

(1) An application under regulation 100—

(a) must be made in writing,

(b) must specify the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment,

(i) during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of this Section of the Scheme and before the applicant reaches the age of 65, or

(ii) where the applicant is not eligible to be an active member of this Section of the Scheme and the application is made in respect of a transfer from a corresponding 2008 Scheme, during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of the 2015 Scheme if on that day paragraph 2 of Schedule 7 to the 2014 Act applies to the period of service in respect of which the transfer value payment will be made,

(d) if the Department so requires, may only be made if the member has first requested a statement—

(i) in the case of a transfer made under the public sector transfer arrangements, of the service that the member will be entitled to count as a result of the transfer if the payment is accepted by the Department, and

(ii) in a case where the transfer is not made under those arrangements (including a transfer of rights from a corresponding 1995 scheme) , of the service that member will be entitled so to count if the payment is so accepted by the Department within such period as is specified in the statement, and

(e) must meet such other conditions as the Department may require.

(2) A statement given to the member in pursuance of such a request as is mentioned in paragraph (1)(d)—

(a) in the case mentioned in paragraph (1)(d)(i), must inform the member of the effect (if any) of regulation 17 (restriction on reckonable pay used for calculating benefits in respect of capped transferred-in service) in the member's case, and

(b) in the case mentioned in paragraph (1)(d)(ii), must specify such amount as is calculated in accordance with guidance and tables provided by the Scheme actuary for the purpose.

(3) A statement given to the member of a corresponding 1995 scheme in pursuance of such a request as is mentioned in paragraph (1)(d) must inform the member of the amount of pensionable service that will count under this Section of this Scheme for the purposes of—

(a) calculating benefits payable to or in respect of the member; and

(b) determining whether or not the member has reached 45 years of pensionable service for the purposes of regulations 7 and 8.

Acceptance of transfer value payments

102

(1) If an application is duly made by a member under regulation 100, the Department may accept the transfer value payment if such conditions as it may require are met, unless paragraph (5) applies.

(2) If the Department accepts the payment—

(a) the member is entitled to count the appropriate period of pensionable service for the purposes of calculating benefits payable to or in respect of the member under this Section of the Scheme, but

(b) in the case of a member any of whose service falls to be treated as capped transferred-in service, with such period as so falls counting as such service.

(3) In paragraph (2)(a) “the appropriate period” means the period calculated in accordance with regulation 103.

(3A) If the Department accepts the payment from the member of a corresponding 1995 scheme, the relevant period of pensionable service shall count when determining whether or not the member has reached 45 years of pensionable service for the purposes of regulations 7 and 8.

(3B) In paragraph (3A) “the relevant period” means the period calculated in accordance with regulation 103.

(4) For the meaning of “capped transferred-in service”, see regulation 104.

(5) The Department may not accept a transfer value payment if—

(a) it would be applied in whole or in part in respect of the member's or the member's spouse's entitlement to a guaranteed minimum pension, and

(b) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the Scheme actuary for the purposes of this paragraph.

(6) Paragraph (5) does not apply if the transfer would be paid under the public sector transfer arrangements.

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 136M.

Calculation of transferred-in pensionable service

103

(1) Subject to paragraphs (2) to (6), the period of service that the member is entitled to count under regulation 102 as the result of a transfer is to be calculated in accordance with any guidance, tables and other relevant factors provided by the Scheme actuary for that purpose.

(2) For the purposes of the calculation under paragraph (1) the member's annual pensionable pay is to be taken to be the amount of that pay as at the day on which the member's pensionable service begins (“the starting day”), unless paragraph (3) applies.

(3) If the transfer payment is received by the Department more than 12 months after the starting day, the member's annual pensionable pay is to be taken to be the amount of that pay as at the day on which the transfer payment is received.

(4) But paragraph (3) does not apply if—

(a) a written statement estimating the pensionable service that the member would be entitled to count as a result of the transfer was given to the member by the Department during the period of 3 months ending 12 months after the starting day, and

(b) the transfer payment is received by the Department less than 3 months after the date of the statement.

(5) If the transfer value payment is accepted under the public sector transfer arrangements, the period of pensionable service the member is entitled to count is calculated—

(a) in accordance with those arrangements, and

(b) by reference to the guidance and tables provided by the Scheme actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.

(6) If the transfer value payment is accepted from a corresponding 2008 scheme , the period of pensionable service the member is entitled to count is the period that the member would be entitled to count if—

(a) the member's employment to which that scheme applied was HSC employment in respect of which the member was a member of this Section of the Scheme, and

(b) the member's contributions to that scheme were contributions to this Section of the Scheme.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 136M.

Meaning of “capped transferred-in service”

104

(1) This regulation applies if—

(a) the Department accepts a transfer value payment in respect of a member under a transfer to which the public sector transfer arrangements apply, and

(b) the service in respect of which the transfer is made was, or included, capped service in employment to which the Scheme from which the transfer value payment is made (“the transferring scheme”) applied.

(2) For the purposes of this Part, the same proportion of the service that the member is entitled to count under regulation 102(2)(a) as the capped service bears to the whole of the service in respect of which the transfer is made is capped transferred-in service.

(3) For the purposes of paragraph (1)(b), the service in respect of which the transfer is made was capped service so far as—

(a) in the case of service before 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) of the Income and Corporation Taxes Act 1988 , or

(b) in the case of service on or after 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under that section was calculated for tax years ending before that date.

(4) For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the member's remuneration in any tax year would have exceeded the amount of the limit.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 136M.

Public sector transfer arrangements

105

(1) This Chapter applies to a transfer where—

(a) the member is an active member of the 2015 Scheme,

(b) the member makes an application under regulation 100 for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of the member under—

(i) an existing scheme listed in Schedule 5 to the 2014 Act,

(iii) another occupational pension scheme that participates in the Public Sector Transfer Club,

(c) the application under regulation 100 is made within one year beginning with the day the member became eligible to be an active member of the 2015 Scheme and before the member reaches the member’s normal pension age in the 2015 Scheme,

(d) the transfer value payment is made and accepted under the public sector transfer arrangements, and

(e) on the day the transfer is completed, paragraph 2 of Schedule 7 to the 2014 Act applies to the period of service in respect of which the transfer value payment is made.

(2) This Chapter also applies in the case of any other transfer to which the public sector transfer arrangements apply (not being a transfer referred to in paragraph (1)) as it applies in other cases, except to the extent that—

(a) any provision in this Chapter provides otherwise, or

(b) the arrangements themselves make different provision.

Bulk transfers out

106

(1) This regulation applies if—

(a) the employment of one or more active members (“the transferring employees”) is transferred without their consent to a new employer,

(b) on that transfer the transferring employees cease to be eligible to be active members of this Section of the Scheme,

(c) after that transfer the transferring employees become active members of another occupational pension scheme (“the new employer's scheme”),

(d) the Department has agreed special terms for the making of transfer value payments in respect of the transferring employees to the new employer's scheme, after consultation with the Scheme actuary, and

(e) the transferring employees have consented in writing to their rights being transferred in accordance with those terms.

(2) In the case of the transferring members or the transferred members the transfer value payment to be paid—

(a) is not calculated in accordance with regulation 98, but

(b) is to be such amount as the Department determines to be appropriate in accordance with the special terms after consulting the Scheme actuary.

(3) This Chapter has effect with such modifications as are necessary to give effect to those terms.

(4) If the transfer is directly or indirectly attributable to a statutory provision this Chapter has effect with such modifications as the Department considers necessary in consequence of the transfer.

(5) Where a member to whom this regulation applies is also a member to whom Part 3 applies, a bulk transfer under this regulation also operates as a transfer of that member's rights under Part 3.

Bulk transfers in

107

(1) This regulation applies if—

(a) the employment of one or more persons (“the transferred employees”) is transferred without their consent to a new employer,

(b) on that transfer the transferred employees cease to be active members of an occupational pension scheme (“the former employer's scheme”),

(d) the Department has agreed special terms for the acceptance of transfer value payments in respect of the transferred employees from the former employer's scheme, after consulting the Scheme actuary, and

(e) the transferred employees have consented in writing to their rights being transferred in accordance with those terms.

(2) This Section of the Scheme has effect with such modifications as are necessary to give effect to the terms mentioned in paragraph (1)(e).

(3) If the transfer is directly or indirectly attributable to a statutory provision this Section of the Scheme has effect with such modifications as the Department considers necessary in consequence of the transfer.

EU and other overseas transfers

108

(1) This regulation applies in the case of a member whose transfer is subject to transfer arrangements concluded with any scheme for the provision of retirement benefits established outside the United Kingdom.

(2) The Scheme applies in relation to the member with such modifications as the Department considers necessary to comply with—

(a) the terms of those arrangements,

(b) any applicable provision contained in or made under any statutory provision, and

CHAPTER 7 — RE-EMPLOYMENT AND REJOINING this Section of THE SCHEME

Preliminary

Application of Chapter 7

109

(1) Subject to paragraphs (4) to (7), this Chapter applies to persons who—

(a) have been active members of this Section of the Scheme in respect of their service in an employment,

(b) have ceased to be employed in that employment and have become deferred members or pensioner members of this Section of the Scheme because of their rights in respect of that service,

(d) become active members of this Section of the Scheme in respect of their service in that employment.

(2) In these regulations a member to whom this Chapter applies is referred to as a “re-employed member”.

(3) In this Chapter, in relation to any re-employed member—

(a) the service referred to in paragraph (1)(a) is referred to as “the earlier service”, and

(b) the service referred to in paragraph (1)(d) is referred to as “the later service”.

(4) This Chapter also applies to members who—

(a) cease to be active members in respect of their service in an employment as the result of exercising the option under regulation 25, and

(b) later become active members in that or another employment,

as it applies to members who cease to be employed in the employment in which they are active members, and paragraph (3) must be read accordingly.

(5) This Chapter does not apply if the earlier service and the later service are treated as a single continuous period of pensionable service under regulation 9(5) (pensionable service: breaks in service).

(6) Regulation 112 applies whether or not the employment mentioned in paragraph (1)(c) is employment that qualifies the member to belong to this Section of the Scheme.

(7) Regulation 114 (deferred pension becoming payable during HSC re-employment as a result of a transfer of undertaking) applies whether or not the deferred member becomes an active member in the HSC employment in which the deferred member is re-employed.

(8) If a re-employed member ceases to be an active member again, this Chapter applies again in respect of the later service as if it were the earlier service (and so on).

General rule: separate treatment of service etc except where unfavourable to member

General rule: separate treatment of service etc

110

(1) The general rule is that, in accordance with regulations 65 and 91—

(a) the re-employed member's pensionable service in respect of the earlier service and the later service are treated separately, and

(b) the re-employed member's reckonable pay in respect of the earlier service and the later service is determined separately.

(2) This regulation is subject to the provisions mentioned in regulations 65(4) and 91(5).

Exception to general rule in regulation 110

111

(1) The general rule in regulation 110 does not apply if—

(a) at the time that the member first becomes entitled to a pension under this Section of the Scheme in respect of the earlier service or the later service, or

(b) if it is earlier, at the time of the member's death,

in the opinion of the Department the benefits payable to or in respect of the member would be more valuable if that general rule were disregarded.

(2) Accordingly, in a case within paragraph (1)—

(a) the member's pensionable service in respect of the earlier service and the later service are treated as one single continuous period,

(b) the member's qualifying service in respect of the earlier service and the later service are each treated as one single continuous period,

(d) the member's reckonable pay in respect of the later period may be determined by reference to the earlier period as well as the later period (as a result of regulation 15(8)).

(3) This regulation is subject to regulation 114.

Special rules about re-employment of ill-health pensioners

Effect of re-employment on tier 2 ill-health pensions

112

(1) This regulation applies if a member who is entitled to a tier 2 ill-health pension under regulation 52 in respect of earlier service—

(a) did not opt to exchange that pension for a lump sum in accordance with regulation 59, and

(b) has re-entered employment (the “further employment”).

(2) Subject to paragraphs (3) and (4), the member ceases to be entitled to the tier 2 ill-health pension under regulation 52, and becomes entitled to a tier 1 ill-health pension under that regulation.

(3) In a case where the further employment is—

(a) not HSC employment, and

(b) an excluded employment,

paragraph (2) does not apply.

(4) In a case where the further employment is—

(a) HSC employment, and

(b) an excluded employment

paragraph (2) does not apply during the initial period.

(5) As regards a further employment in HSC employment—

(a) paragraph (2) applies from the first tier 1 ill-health pension payment date which falls after the first anniversary of the member's re-entry into HSC employment, whether or not that day is part of a continuous period of further HSC employment beginning with entry into that employment, and

(b) the member may not rejoin the Scheme in respect of that employment or any other HSC employment until after the first anniversary of the member's re-entry into HSC employment, whether or not that or any other HSC employment is an excluded employment.

(6) For the purposes of this regulation—

(a) an employment is an excluded employment at any time in a tax year, in relation to a member, if the member's earnings at that time for the purposes of national insurance from the employment and any other employments are such that the lower earnings limit for that year is not exceeded,

(b) for the purposes of paragraph (2) an employment that has been an excluded employment in a tax year is not treated as ceasing to be such an employment until the first day following the end of the pension pay period for the tier 2 ill-health pension in which the limit described in sub-paragraph (a) is first exceeded, and

(c) “the initial period” means the period of 12 months beginning with the day on which the member first enters an employment which results in this regulation applying.

(7) A member who, before attaining the age of 65, has ceased to be entitled to a tier 2 ill-health pension under paragraph (2), and who—

(a) is in further HSC employment and ceases to be employed at all during the initial period, or

(b) is in further employment that is not HSC employment and ceases to be employed in that further employment within a period of one year beginning with the day on which that further employment ceased to be an excluded employment,

may apply to the Department under this paragraph to become entitled to a tier 2 ill-health pension.

(8) An application under paragraph (7)—

(a) where paragraph (7)(a) applies, must—

(i) state that the member has ceased to be employed at all,

(ii) be made within the initial period,

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 52(3)(a);

(b) where paragraph (7)(b) applies, must—

(i) state that the member has ceased to be employed at all,

(ii) be made within a period of one year beginning with the day on which that employment ceased to be an excluded employment,

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 52(3)(a).

(9) If on an application under paragraph (7) the Department is satisfied that the member meets the condition in regulation 52(3)(a), from the day following that on which the member's last employment ceased—

(a) the member ceases to be entitled to the tier 1 ill-health pension under regulation 52, and

(b) becomes entitled to a tier 2 ill-health pension under that regulation in respect of the earlier service.

(10) A member who falls within paragraph (1) must—

(a) notify the Department if the member is in HSC employment at the end of the initial period,

(b) notify the Department if the member's aggregate earnings for the purposes of national insurance from employments held in a tax year are such that the lower earnings limit for that year is exceeded,

(c) provide the Department or any other person specified by the Department with such further information as the Department specifies concerning any further employment.

(11) This regulation is subject to regulation 113 (re-employed tier 1 ill-health pensioners).

Re-employed tier 1 ill-health pensioners

113

(1) This regulation applies to re-employed members who are entitled to a tier 1 ill-health pension under regulation 52 in respect of the earlier service.

(2) For the purposes of determining whether a member can count 45 years of pensionable service for any purpose, the earlier service and the later service are aggregated.

(3) If the re-employed member became entitled to a tier 1 ill-health pension for the earlier service, and on the termination of the later service the member becomes entitled to—

(a) a tier 1 ill-health pension, or

(b) a tier 2 ill-health pension,

under regulation 52 in respect of the later service, the re-employed member is entitled to the benefits set out in paragraph (4).

(4) The benefits mentioned in paragraph (3) are—

(a) the member's original tier 1 ill-health pension in respect of his earlier service, and

(b) a tier 1 or, as the case may be, tier 2 ill-health pension in respect of the later service.

This is subject to paragraph (5).

(5) If the re-employed member—

(a) ceases to be entitled to a tier 1 ill-health pension in respect of the earlier service;

(b) becomes entitled to a tier 2 ill-health pension in respect of that earlier service in accordance with regulation 53(3); and

(c) on the termination of the later service, the member becomes entitled to a tier 1 or, as the case may be, tier 2 ill-health pension in respect of that later service,

the re-employed member is entitled to the benefits set out in paragraph (6).

Special rule for members transferred out on transfer of undertaking

Deferred pension becoming payable during HSC re-employment as a result of a transfer of undertaking

114

(1) This regulation applies if a re-employed member becomes entitled to a pension under regulation 45 or 48 by virtue of the application of regulation 57(2)(a) (transfer of undertaking to employing authority).

(2) Regulation 111 does not apply.

(3) Accordingly, subject to paragraph (4), any benefits payable in respect of the later service are calculated without regard to pensionable service in respect of the earlier service.

(4) For the purposes of determining whether a member can count 45 years pensionable service for any purpose, the earlier service and the later service are aggregated.

CHAPTER 8 — ABATEMENT

Application of Chapter 8

115

(1) This Chapter applies if—

(a) a person who is a pensioner member of this Section of the Scheme is employed in HSC employment,

(b) the person's employment is not employment to which the person was transferred as a result of a transfer of an undertaking to the person's employer,

(i) regulation 52 (early retirement on ill-health: active members),

(ii) regulation 54 (early retirement on ill-health: deferred members), or

(iii) regulation 55(1)(d)(ii) (early retirement on termination of employment by employing authority) in a case where the Department certified that the member's employment was terminated in the interests of the efficiency of the service in which the member was employed, and

(d) the person has not reached the age of 65.

(2) In this Chapter “HSC employment” includes—

(a) employment to which regulations made under sections 10 (1) and (2) and 12 (1) and (2) of, and Schedule 3 to, the Superannuation Act 1972 apply,

(b) employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967 ,

(c) employment to which regulations made under section 10 of the Superannuation Act 1972 and having effect in Scotland apply,

(d) employment commencing on or before 31st March 2012 to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald) applies,

(e) employment with an employer with whom an agreement has been made under section 235 of the National Health Service Act 2006.

(3) In this Chapter, subject to paragraph (4)—

(a) a person to whom this Chapter applies is referred to as an “employed pensioner”,

(b) the pension to which the employed pensioner is entitled is referred to as the “old service pension”,

(d) the employment in which the employed pensioner is employed is referred to as the “new employment”.

(4) This Chapter applies whether or not the person is an active member of this Section of the Scheme in the new employment.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information

116

(1) A person who becomes an employed pensioner must—

(a) inform the person’s employer in the new employment and any other person that the Department may specify that the old service pension is payable; and

(b) where requested, provide any information about their relevant income in the new employment to the Department or to any other person that the Department may specify.

(2) A person who ceases to be an employed pensioner in one new employment and becomes an employed pensioner in another new employment must—

(a) inform the person’s employer in the other new employment, and any other person that the Department may specify, that the old service pension is payable; and

(b) where requested, provide any information about their relevant income in the other new employment to the Department or to any person that the Department may specify.

Reduction of pension

117

(1) If the condition in paragraph (2) is met, the amount of the old service pension for any financial year is reduced.

(2) The condition is that the employed pensioner's relevant income for the financial year exceeds the employed pensioner's previous pay.

(3) The amount of the reduction under paragraph (1) is equal to that excess but cannot exceed the enhancement amount.

(4) For the meaning of “relevant income” and “enhancement amount” see regulation 118.

(5) For the meaning of “previous pay” see regulation 119.

(6) For the purpose of calculating the reduction to be made under paragraph (1) in respect of any part of a financial year, the amount of the member’s previous pay will be reduced proportionately.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) If the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the old service pension, nothing in this regulation requires the reduction of the old service pension below the amount of the member's guaranteed minimum in relation to it.

Meaning of “relevant income”

118

(1) The employed pensioner's relevant income for a financial year is the aggregate of—

(a) the amount of pay received by the employed pensioner during that year from the new employment (assuming, in any case where the employed pensioner is not an active member of this Section of the Scheme in the new employment, that the employed pensioner is such a member), and

(b) the enhancement amount in relation to the old service pension.

(2) The enhancement amount, in relation to an old service pension, is the difference between—

(a) the amount of that pension for that year, and

(b) the amount that that pension would have been had it been payable under regulation 48.

(3) If the old service pension is payable under regulation 52 or 54 (ill-health pensions) to an employed pensioner who had not reached the age of 55 at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)—

(a) the fact that entitlement to a pension under regulation 48 depends on reaching that age is ignored, but

(b) the employed person's actual age at the relevant time is taken into account in determining the reduction to be made under regulation 48(2).

(4) If the old service pension is a tier 2 ill-health pension, for the purposes of paragraph (2)(b), only the employed pensioner's actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 48.

(5) If the employed pensioner exercised the option under regulation 58 (general option to exchange part of pension for lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

(6) The resulting reduction in the pension is taken into account for the purposes of this regulation if the employed pensioner—

(a) exercised the option under regulation 62 in relation to the old service pension; or

(b) is a 2008 Section Optant who was entitled to a lump sum under regulation 136L in relation to the old service pension.

(7) References in this regulation to the amount of a pension for any financial year are to its amount for that year after any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971 in respect of that pension, including the increases that would have been payable in respect of any amount not paid because of a reduction ignored under paragraph (5).

Meaning of “previous pay”: general

119

(1) For the purposes of this Chapter an employed pensioner's previous pay, subject to paragraph (3) and regulations 120 and 121 (members with concurrent employments) is the greater of—

(a) the employed pensioner's reckonable pay for the purposes of the old service pension, and

(b) the annual rate of pay for the old employment at the time it ceased.

(2) In this regulation “annual rate of pay” means the sum of—

(a) the annual rate of so much of the employed pensioner's pensionable pay immediately before the old service pension became payable as consisted of—

(i) salary,

(ii) wages, or

(iii) other regular payments,

of a fixed nature, and

(b) so much of any fees and other regular payments not of a fixed nature as—

(i) was payable to the employed pensioner during the period of 12 months ending with the day the old employment ceased, and

(ii) formed part of the employed pensioner's pensionable pay.

(3) Subject to regulation 120, the amount to be taken as the employed pensioner's previous pay must be adjusted in each financial year for inflation.

(4) The reference in paragraph (3) to adjusting that amount in each financial year for inflation is to increasing it by the same amount as that by which an annual pension equal to that amount would have been increased under the Pensions (Increase) Act (Northern Ireland) 1971 at 6th April in that financial year if—

(a) that pension was eligible to be so increased, and

(b) the beginning date for that pension were the same as the beginning date for the old service pension.

(5) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of section 8(2) of the Pensions (Increase) Act (Northern Ireland) 1971.

Meaning of “previous pay”: members with concurrent employments

120

(1) In the case of an employed pensioner who held one or more other HSC employments at the same time as the old employments, the amount to be taken as the employed pensioner's previous pay is the sum of—

(a) the amount of the employed pensioner's previous pay, in accordance with regulation 119, and

(b) in respect of any of the other HSC employments which are held in the financial year mentioned in regulation 117(2), the annual rate of pay for that employment in that financial year , and

(c) in respect of any of the other HSC employments which are not held in the financial year mentioned in 117(2), the pensionable pay for that employment for the period of 12 months ending with the day before the old employment ceased or, if the employed pensioner was not a member of the Scheme in that employment in that period, the amount that would have been the pensionable pay for it assuming that the employed pensioner had been such a member.

(2) The amount to be taken as the employed pensioner's previous pay in accordance with paragraph (1) must be adjusted in each financial year for inflation in the manner set out in regulation 119(4) .

Application of this Chapter to part-time employment

121

(1) This regulation provides for the application of this Chapter where the old employment or the new employment is a part-time employment.

(2) The amount of the employed pensioner’s reckonable pay for the purposes of the old service pension, as referred to in regulation 119(1)(a), shall be determined without reference to regulation 18 or 19 (reckonable pay for non-concurrent and concurrent part-time workers).

Employed pensioners with more than one pension

122

(1) This regulation provides for the application of this Chapter where a person is entitled to more than one old service pension falling within regulation 115(1)(c) in any financial year .

(2) In regulation 117—

(a) for paragraphs (1) and (2) substitute—

(1) If the condition in paragraph (2) is met, the amount of the old service pensions for any financial year is reduced. (2) The condition is that the employed pensioner's relevant income for the financial year exceeds the employed pensioner's previous pay for all the old employments. (2A) The amount of the reduction under paragraph (1) in the case of each of the pensions is equal to the same proportion of that excess as the amount of the pension for the financial year before the reduction, bears to the sum of the pensions for that year before the reduction

(3) In regulation 118(1)(b) for “the old service pension” there shall be substituted “ all the old service pensions ”.

(4) Regulation 123 applies as if references to the old service pensions were references to all those pensions.

Provisional reductions and later adjustments

123

(1) If it appears to the Department that the condition in regulation 117(2) will be met in any financial year in respect of the old service pension for that year, the Department may reduce the amount of that pension paid at any time in the financial year .

(2) Where the old service pension for a financial year is being reduced under this Chapter, the Department must review the amount of the reduction—

(a) at the end of the financial year, and

(b) at any time during the financial year if it appears to the Department that—

(i) the amount of the reduction made for the year is or may become incorrect, or

(ii) no reduction should be made.

(3) If at any time during the financial year it so appears the Department must make such adjustments, whether by altering the amount of the reduction or by repaying to the employed pensioner any amount that should not have been deducted from the pension, as appear to the Department to be required.

(4) If at the end of the financial year it is apparent that—

(a) the reduction in the old service pension for the year was excessive, or

(b) no such reduction should have been made,

the Department must repay the amount due to the employed pensioner.

(5) If at the end of the financial year it is apparent that the old service pension paid for the year exceeded the amount due because the reduction in the old service pension required under regulation 117 was not made, the employed pensioner must repay the excess to the Department.

(6) Paragraph (5) does not affect the Department's right to recover a payment or overpayment in any case where the Department considers it appropriate to do so.

CHAPTER 9 — MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

Scheme administrator

Appointment of scheme administrator

124

(1) For the purposes of this Part and of Part 4 of the Finance Act 2004, the Scheme administrator is the Department.

Claims

Claims for benefits

125

(1) A person claiming to be entitled to benefits under this Part (“the claimant”) shall make a claim in writing to the Department.

(2) Pursuant to such a claim, the claimant and, where appropriate, the member’s employing authority (including any previous employing authority of the member) shall provide such—

(a) evidence of entitlement;

(b) information required in order to deal with the claim; and

(c) authority or permission as may be necessary for the release by third parties of information in their possession relating to the claimant or member,

as the Department may from time to time require for the purposes of this Part.

(3) A claim referred to in paragraph (1) may be made by a person or persons other than the claimant where the Department so provides.

(4) Any claim for benefit required in writing under this Part, and any evidence, information, authority or permission given in connection with that claim, may be made or given by means of an electronic communication where such method of communication is approved by the Department from time to time.

(5) In this regulation, “electronic communication” has the same meaning as in section 15(1) of the Electronic Communications Act 2000.

Power to extend time limits

126

The Department may extend any time limit mentioned in this Part as it applies in any particular case.

Beneficiaries who are incapable of looking after their affairs

127

(1) In the case of a beneficiary who, in the opinion of the Department, is by reason of illness, mental disorder, minority or otherwise unable to look after the beneficiary's affairs, the Department may—

(a) use any amount due to the beneficiary under the Scheme for the beneficiary's benefit, or

(b) pay it to some other person to do so.

(2) Payment of an amount to a person other than the beneficiary under paragraph (1) discharges the Department from any obligation under the Scheme in respect of the amount.

Commutation of small pensions

128

(1) The Department may pay any person entitled to a pension under this Section of the Scheme a lump sum representing the capital value of the pension and of any benefits that might have become payable under this Section of the Scheme on the person's death apart from the payment if the conditions specified in paragraph (2) are met.

(2) The conditions are that the payment complies with the following requirements (in so far as they apply)—

(a) the contracting-out requirements,

(b) the preservation requirements,

(c) regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations (Northern Ireland) 1997 ,

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) the lump sum rule (see, in particular, paragraph 7 of Schedule 29 to the Finance Act 2004: trivial commutation lump sums for the purposes of Part 4 of that Act), ...

(f) the lump sum death benefit rule (see, in particular, paragraph 20 of that Schedule: trivial commutation lump sum death benefit for the purposes of that Part); and

(g) Regulation 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (payment by larger pension schemes).

(3) The lump sum must be calculated by the Department in accordance with advice from the Scheme actuary.

(4) The payment of a lump sum under this regulation discharges all liabilities of the Department in respect of the pension in question and of any other such benefits as mentioned in paragraph (1).

Reduction in and forfeiture of benefits

Reduction in benefits in cases where loss caused by member's crime, negligence or fraud

129

(1) If, as a result of a member's criminal, negligent or fraudulent act or omission, a loss to public funds occurs that arises out of or is connected with the member's employment relationship with the member's employer, the Department—

(a) may reduce any pension or other benefit payable to, or in respect of, the member under these Regulations by an amount less than or equal to the loss, or

(b) in a case where the loss equals or exceeds the value of the pension or other benefit, reduce them to nil or by any amount less than that value.

(2) Paragraph (1) does not apply so far as the pension or other benefit—

(a) is a guaranteed minimum pension or safeguarded rights which are derived from rights to such a pension, or

(b) arise out of a transfer payment.

(3) If the Department proposes to exercise the power under paragraph (1), the Department must give the member a certificate specifying the amount of the loss to public funds and of the reduction in benefits.

(4) If the amount of the loss is disputed, no reduction may be made under paragraph (1) until the member's obligation to make good the loss has become enforceable—

(a) under the order of a competent court, or

(b) in consequence of an award of an arbitrator.

(5) If the loss is suffered by an employing authority, the amount of any reduction under paragraph (1) must be paid to that authority.

Forfeiture of rights to benefits

130

(1) The Department may direct that all or part of any rights to benefits or other amounts payable to or in respect of a member under these Regulations be forfeited if—

(a) the member is convicted of any of the offences specified in paragraph (2), and

(b) the offence was committed before the benefit or other amount becomes payable.

(2) The offences are—

(a) an offence in connection with employment that qualifies the member to belong to this Section of the Scheme, in respect of which the Secretary of State has issued a forfeiture certificate,

(b) one or more offences under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the member has been sentenced on the same occasion to—

(i) a term of imprisonment of at least 10 years, or

(ii) two or more consecutive terms amounting in aggregate to at least 10 years.

(3) In paragraph (2)(a) “forfeiture certificate” means a certificate that the Secretary of State is satisfied that the offence—

(a) has been gravely injurious to the State, or

(b) is liable to lead to serious loss of confidence in the public service.

(4) The Department may direct that all or part of any rights to benefits or other amounts payable in respect of a member under these Regulations be forfeited where the benefits or amounts are payable to a person to whom paragraph (5) applies who has been convicted of the murder or manslaughter of that member or of any other offence of which unlawful killing of that member is an element.

(5) This paragraph applies to a person who is—

(a) the member's widow, widower, surviving scheme partner or surviving civil partner,

(b) a dependant of the member,

(c) a person not falling within sub-paragraph (a) or (b) who is specified in a notice given under regulation 87(3) or (10) , or

(d) a person to whom such benefits or amounts are payable under the member's will or on the member's intestacy.

(6) Subject to paragraph (7), a guaranteed minimum pension or safeguarded rights which are derived from rights to such pensions may be forfeited only if paragraph (1) applies in the case of an offence within paragraph (2)(b).

(7) This regulation is without prejudice to section 2 of the Forfeiture Act 1870 (under which forfeiture is required in cases of treason, subject to whole or partial restoration under section 9(2) of the Criminal Justice Act (Northern Ireland) 1953 ).

Provisions about tax

Deduction of tax

131

(1) The Department may deduct from any payment under this Section of the scheme any tax which is required to be paid in respect of it.

(2) Without prejudice to the generality of paragraph (1), if a person becoming entitled to a benefit under this Part—

(a) is a benefit crystallisation event occurring on or before 6th April 2024, under section 216 of the Finance Act 2004, and

(b) a lifetime allowance charge under section 214 of that Act arises when that event occurs,

the tax charged must be paid by the Scheme administrator.

(2A) If a person becomes entitled to a lump sum under this Part which is a relevant benefit crystallisation event, occurring on or after 6th April 2024, for the purposes of section 637Q or section 637S of the Income Tax (Earnings and Pensions) Act 2003, the Scheme administrator shall determine—

(a) whether any tax is payable in respect of the lump sum in accordance with section 204 of the 2004 Act, and if so;

(b) the amount of tax payable; and

(3) Paragraph (4) applies if—

(a) a member has given the scheme administrator a statement in accordance with regulation 87 (tax treatment under the Finance Act 2004 of lump sums payable on pensioners' death) that a lump sum payable under that regulation is to be treated as a pension protection lump sum death benefit in accordance with paragraph 14 of Schedule 29 to the Finance Act 2004, and

(b) has not withdrawn that statement.

(4) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the scheme administrator may deduct the tax payable under section 206 of that Act (special lump sum death benefits charge) from the lump sum.

(5) Paragraph (6) applies if—

(a) a lump sum death benefit is payable on the death of a pensioner member in accordance with paragraph (2) of regulation 83 (Amount of lump sum: single capacity members and recent leavers (disregarding regulation 49 employments)); and

(b) that lump sum is payable in respect of a member who had reached the age of 75 at the date of the member’s death.

(6) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Department may deduct the tax payable under section 206 of the Finance Act 2004 (special lump sum benefits charge).

(7) Paragraph (8) applies if—

(a) an active, non-contributing or pension credit member opts to exchange a relevant pension for a lump sum in accordance with paragraph (3)(a) of regulation 59 (Option for members in serious ill-health to exchange whole pension for lump sum); and

(b) that lump sum payment is made to a member who has reached the age of 75.

(8) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Department may deduct the tax payable under section 205A of the Finance Act 2004 (serious ill-health lump sum charge).

(9) Without prejudice to the generality of paragraph (1), a person who—

(a) is liable for an annual allowance charge in accordance with section 237A of the 2004 Act, and

(b) meets the conditions specified in paragraph (1) of section 237B of that Act,

may give notice in writing to the Department specifying that the Department and that person are to be jointly and severally liable for the payment of the annual allowance charge due in respect of that person in accordance with section 237B of the 2004 Act.

(10) Unless the Department’s liability for an annual allowance charge referred to in paragraph (9) is discharged in accordance with section 237D of the 2004 Act—

(a) that annual allowance charge will be paid by the Department on behalf of the member, and

(b) that person’s present or future benefits in respect of which that charge arises shall be adjusted in accordance with section 237E of the 2004 Act and shall be calculated by reference to advice provided by the Scheme Actuary for that purpose.

Interest on delayed payments

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