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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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(ii) in the case of a member who engages in further HSC employment during the period of three years referred to in paragraph (1)(b), before the first anniversary of the day on which that employment commences or, if sooner, before the end of that period;

(b) the application for a review is accompanied by further written medical evidence—

(i) relating to whether the condition in regulation 182(3)(a) is satisfied at the date of the Department’s review, and

(ii) that evidence relates to the same physical or mental impairment as a result of which the member met the condition in regulation 182(2)(a);

(d) the member has not become entitled to a tier 2 ill-health pension in respect of any later service under regulation 240.

(3) If, after considering the further medical evidence provided by the member, the Department determines that the member meets the condition in regulation 182(3)(a), then as from the date on which that determination is made the member—

(a) ceases to be entitled to a tier 1 ill-health pension; and

(b) becomes entitled to a tier 2 ill-health pension under regulation 182, which shall be calculated as if paragraph (8) of that regulation included the words “from the date of the Department's determination under regulation 183” after “continued in service”.

(4) In the case of a 2008 Section Optant, this regulation is subject to regulations 260O and 260P.

Early retirement on ill-health (deferred members)

184

(1) A deferred member who has not reached the age of 65 is entitled to immediate payment of a pension that is payable for life if—

(a) in the opinion of the Department the member suffers from physical or mental infirmity as a result of which the member is permanently incapable of engaging in regular employment of like duration, and

(b) the member has claimed the pension.

(2) A deferred member who is in HSC employment and has not reached the age of 65 is entitled to immediate payment of a pension that is payable for life if—

(a) in the opinion of the Department the member—

(i) does not fall within paragraph (1)(a), but

(ii) suffers from physical or mental infirmity as a result of which the member is permanently incapable of discharging the duties of the member's employment efficiently, and

(b) the member has claimed the pension.

(3) The amount of the annual pension payable under this regulation (disregarding any additional pension) is calculated as specified in regulation 176(4).

(4) For the purposes of determining whether a member is permanently incapable of discharging the duties of the member's employment efficiently under paragraph (2)(a)(ii), the Department shall have regard to the factors in paragraph (6) (no one of which shall be decisive) and disregard the member's personal preference for or against engaging in that employment.

(5) For the purposes of determining whether a member is permanently incapable of engaging in regular employment of like duration under paragraph (1)(a), the Department shall have regard to the factors in paragraph (7) (no one of which shall be decisive) and disregard the factors in paragraph (8).

(6) The factors to be taken into account for paragraph (4) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity;

(b) the member's—

(i) mental capacity; and

(ii) physical capacity;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of his incapacity, irrespective of whether such rehabilitation is undergone; and

(d) any other matter which the Department considers appropriate.

(7) The factors to be taken into account for paragraph (5) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity; and

(b) such reasonable employment as the member would be capable of engaging in if due regard is given to the member's—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience,

irrespective of whether or not such employment is actually available to the member;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of his incapacity (irrespective of whether such rehabilitation is undergone) having due regard to the member's—

(i) mental capacity; and

(ii) physical capacity;

(d) such type and period of training which it would be reasonable for the member to undergo in respect of his incapacity (irrespective of whether such training is undergone) having due regard to the member's—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience;

(e) any other matter which the Department considers appropriate.

(8) The factors to be disregarded for paragraph (5) are—

(a) the member's personal preference for or against engaging in any particular employment; and

(b) the geographical location of the member.

(9) For the purpose of this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the incapacity, but does not include any treatment that the Department considers—that it would be reasonable for the member to refuse,would provide no benefit to restoring the member's capacity for—discharging the duties of the member's employment efficiently under paragraph (2)(a)(ii), orengaging in regular employment of like duration under paragraph (1)(a),before the member reaches age 65, orthat, through no fault on the part of the member, it is not possible for the member to receive before the member reaches age 65;

“permanently” means the period until age 65; and

“regular employment of like duration” means such employment as the Department considers would involve a similar level of engagement to the member's pensionable service as a practitioner immediately before that service ceased.

(10) In the case of a 2008 Section Optant, this regulation is subject to regulation 260K.

Options to exchange pension for lump sum

General option to exchange part of pension for lump sum

185

(1) A member, (other than a pension credit member whose rights under this Section of the Scheme are attributable to a disqualifying pension credit for the purpose of paragraph 2 of Schedule 29 to the Finance Act 2004 ) may opt to exchange part of a pension to which the member would otherwise be entitled for a lump sum.

(2) If a member so opts, for every £1 by which the member's annual amount of a pension is reduced, the member is to be paid a lump sum of £12.

(3) An option under paragraph (1) must relate to an annual amount of pension that is a whole number of pounds (and accordingly the lump sum will be exactly divisible by 12).

(4) In paragraphs (2) and (3) “annual amount”, in relation to a pension, means the amount of the annual pension to which the member would be entitled under this Chapter apart from the option, together with any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971, calculated as at the time payment would first be due.

(5) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 of the Finance Act 2004 (see, in particular, section 241 of, and paragraph 1 of Schedule 29 to, that Act).

(6) If the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the whole or part of a pension, paragraph (1) only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member's description in tables provided by the Scheme actuary.

(7) The option under this regulation may only be exercised by giving notice in writing to the Department in such form as it requires—

(a) at the time of claiming the pension, or

(b) before such later time as the Department specifies in writing.

This is subject to paragraphs (8) and (9).

(8) If the pension is an ill-health pension under regulation 182, the option under this regulation may only be exercised by giving notice in writing to the Department in such form as it requires—

(a) where the member is awarded—

(i) a tier 1 ill-health pension under paragraph (2) of that regulation, at the time of claiming that tier 1 ill-health pension,

(ii) a tier 2 ill-health pension under paragraph (3) of that regulation, at the time of claiming that tier 2 ill-health pension; or

(b) before such later time as the Department specifies in writing.

(9) If the pension is a tier 2 ill-health pension under regulation 183, in substitution for a tier 1 ill-health pension under regulation 182, the option under this regulation may only be exercised—

(a) in relation to the difference between the tier 1 ill-health pension that ceases to be payable in accordance with paragraph (3) of regulation 183 and the tier 2 ill-health pension to which the member becomes entitled under that paragraph; and

(b) by giving notice in writing to the Department in such form as it requires—

(i) at the time of award of the tier 2 ill-health pension under that paragraph, or

(ii) before such later time as the Department specifies in writing.

(10) In the case of a 2008 Section Optant, this regulation is subject to paragraph (4) of regulation 260H and regulation 260K.

Option for members in serious ill-health to exchange whole pension for lump sum

186

(1) An active member or a non-contributing member , a deferred member or a pension credit member may opt to exchange a relevant pension for a lump sum if the Department is satisfied that the conditions for the lump sum to be a serious ill-health lump sum for the purposes of the Finance Act 2004 will be met (see paragraph 4 of Schedule 29 to that Act).

(2) For the purposes of paragraph (1), a “relevant pension” is a pension payable to that member under regulation—

(a) 176 (normal retirement pensions),

(b) 177 (pension credit members' pensions),

(d) 184 (early retirement on ill-health (deferred members)).

(3) The option may only be exercised—

(a) in the case of a pension payable under regulation 176 or 177, before or at the time when the pension becomes payable,

(b) in the case of a pension payable under regulation 182 or 184, before the pension becomes payable to the member.

(4) An active member or a non-contributing member aged 65 or over who exercises the option is to be paid, as soon as is reasonably practicable ..., an amount equal to the sum of—

(a) the maximum lump sum to which the member could have become entitled on exercising the option under regulation 185 if at the appropriate time the member had become entitled to a pension under regulation 176, and

(b) the total annual amount of the pension to which the member would have been entitled under regulation 176 after exercising that option, multiplied by 5.

(5) A pension credit member who exercises the option is to be paid, as soon as reasonably practicable ..., an amount equal to the sum of—

(a) the maximum lump sum (if any) to which the pension credit member could have become entitled on exercising the option under regulation 185 at the appropriate time; and

(b) the total annual amount of the pension to which the pension credit member is entitled under regulation 177 after exercising that option, multiplied by 5.

(6) An active member or a non-contributing member entitled to a pension under regulation 182 who exercises the option is to be paid, as soon as is reasonably practicable, an amount equal to the sum of—

(a) the maximum lump sum to which the member could have become entitled on exercising the option under regulation 185 at the appropriate time, and

(b) the total annual amount of the pension to which the member is entitled under regulation 182 after exercising that option, multiplied by 5.

(7) A deferred member entitled to a pension under regulation 184 who exercises the option is to be paid, as soon as is reasonably practicable, an amount equal to the sum of—

(a) the maximum lump sum to which the member could have become entitled on exercising the option under regulation 185 at the appropriate time, and

(b) the total annual amount of the pension to which the member is entitled under regulation 184 after exercising that option, multiplied by 5.

(8) In this regulation “the appropriate time” means—

(a) for the purposes of paragraphs (4) and (5) the time when the option under this regulation is exercised, and

(b) for the purposes of paragraphs (6) and (7) the time payment of the pension under regulation 182 or, as the case may be, regulation 184 would otherwise first be due.

(9) In this regulation references to the “annual amount” of a pension are to the amount of the annual pension to which the member would be entitled, together with any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971, calculated as at the appropriate time.

(10) The option under this regulation may only be exercised by notice in writing to the Department in such form as the Department requires.

Pension debit members and pension credit members

Reduction in pension debit member’s benefits

187

(1) The benefits to which a pension debit member is entitled under this Chapter are subject to the reduction to be made under Article 28 of the 1999 Order (Reduction under pension sharing order following divorce or nullity of marriage).

(2) In the case of a 2008 Section Optant, this regulation is subject to paragraph (2) of regulation 260H.

Pension credit member's rights

188

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Allocation

Election to allocate pension

189

(1) A member may elect to allocate a part of the annual amount of the member's pension under this Section of the Scheme for the provision of a pension after the member's death for an individual who is the member's spouse or civil partner or another person who is the member's dependant within the meaning of paragraph 15 of Schedule 28 to the Finance Act 2004 if conditions A and B are met.

(2) Condition A is that the member has not become entitled to the payment of any pension under this Section of the Scheme other than a pension payable under regulation 180 (partial retirement: members aged at least 55).

(3) Condition B is that in the case of a member who is not making the election on claiming the pension, the member—

(a) has reached the age of 65 and has completed 45 years of pensionable service, or

(b) the member has reached the age of 70.

(4) Any pension provided as a result of such an election must be calculated in accordance with tables prepared by the Scheme actuary.

(5) The member may not elect to allocate more than one-third of the member's relevant annual pension.

(6) The member may not elect to allocate an amount that would result in—

(a) the allocated annual pension exceeding the member's unallocated relevant annual pension,

(b) the allocated pension exceeding such amount as the Department may determine for the purposes of this paragraph, after consultation with the Scheme actuary, having regard to any restrictions imposed under Part 4 of the Finance Act 2004, or

(c) the value of the allocated annual pension being such that a lump sum could be paid under regulation 252 (commutation of small pensions) by way of commutation of a pension of that amount if the person entitled to the pension was not entitled to any other benefits under this Section of the Scheme.

(7) The annual pension that is allocated must be an exact number of pounds.

(8) If a member—

(a) elects to allocate a part of the member's pension under paragraph (1) after reaching the age of 65 and whilst in pensionable service, and

(b) dies before the pension becomes payable,

for the purposes of paragraphs (5) to (7) the member is treated as entitled to the relevant pension to which the member would have been entitled if the member had become entitled to the pension immediately before death.

(9) References in this regulation to the member's relevant pension, in relation to any pension, are references to so much of the pension as would be payable if the member had exercised the option under regulation 185 (general option to exchange part of pension for lump sum) so as to obtain the maximum lump sum possible.

Procedure for election under regulation 189

190

(1) An election under regulation 189 in respect of a member's pension must be made—

(a) at the time when the member claims the pension or, if the member does not become entitled to the pension at that time, when the member does become so entitled, or

(b) if the member is in pensionable service after reaching the age of 65, at any time after reaching that age and before reaching the age of 75.

(2) The election must be made by giving notice in writing to the Department.

(3) The notice must be in such form and contain such information as the Department requires.

(4) Subject to paragraphs (6) and (7), an election under regulation 189 takes effect once it has been accepted by the Department.

(5) The election may not be withdrawn, amended or revoked after it has taken effect.

(6) The election does not take effect if—

(a) the member or the person in whose favour the election was made (“the beneficiary”) dies on or before the day on which the Department accepts it, or

(b) the Department is not satisfied that at the time when the election is made the member is in good health.

(7) The election is treated as not having taken effect if the beneficiary dies before the member is notified in writing that the Department has accepted the election.

Effect of allocation

191

(1) If an election under regulation 189 for the allocation of a member's pension to another person (“the beneficiary”) has taken effect—

(a) the member's pension is reduced accordingly (even if the beneficiary predeceases the member), and

(b) if the beneficiary survives the member, on the member's death the beneficiary becomes entitled to the payment of a pension for life of such amount as is determined in accordance with regulation 189.

(2) An allocation is disregarded for the purposes of this regulation if it would result in a pension being paid under this regulation to a beneficiary who is neither—

(a) the member's spouse or civil partner on the date when the member becomes entitled to the pension or dies, nor

(b) a dependant of the member for the purposes of paragraph 15(2) or (3) of Schedule 28 to the Finance Act 2004 when the member dies.

(3) References in this Part to pensions under this Chapter do not include pensions under this regulation except where the context otherwise requires.

(4) Any such pension is payable in addition to any pension payable to the beneficiary in respect of the member's death under Chapter 5 (death benefits).

Dual capacity membership

192

(1) This paragraph applies if a member is—

(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 or a non-contributing member ,

(b) a deferred member,

(d) a pension credit member.

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

(a) benefits are payable to the member under this Chapter (or to any person to whom the member has opted to allocate pension under regulation 189) as if the member were two or more members of the kinds in question (so that two or more pensions or lump sums are payable in respect of the one member), and

(b) the amounts payable are determined accordingly.

(4) The rule in paragraph (3) is subject to any indication to the contrary and, in particular, does not affect the interpretation of—

(a) regulation 139(3) (45 year limit),

(b) regulation 180(9) in a case where a member is both an active member or a non-contributing member and a pensioner member by virtue of that regulation,

(d) regulation 239 (effect of re-employment on tier 2 ill-health pensions),

(e) regulation 240 (re-employed tier 1 ill-health pensioners), or

(f) Chapter 8 (abatement).

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

(a) benefits are payable to the person under this Section of the Scheme (or to any person to whom the member has opted to allocate pension under regulation 189) 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 to the one pension credit member), and

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

Contracting-out obligations (GMPs, etc.)

Guaranteed minimum pensions etc

193

(1) If a member has a guaranteed minimum under section 10 of the 1993 Act in relation to benefits 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 member and such a member's rights under this Section of the Scheme not to be met in the case of the member,

(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 member, and

(2) If apart from this rule—

(a) no pension would be payable to the member under this Section of the Scheme, or

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

a pension at a weekly rate equal to the guaranteed minimum is payable to the member for life from the date on which the member reaches State pension age or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Subject to paragraph (4), if—

(a) on reaching State pension age the member is still in employment (whether or not it is scheme employment), and

(b) if it is not scheme employment, the member consents to a postponement of the member's entitlement under paragraph (2),

paragraph (2) does not apply until the member leaves employment, unless paragraph (4) applies.

(4) If the member continues in employment for a further 5 years after reaching State pension age and does not then leave employment, the member is entitled from the end of that period to so much of the member's pension under this Chapter as equals the member's guaranteed minimum (or, as the case may be, to so much of the member's pensions under this Chapter as together have a weekly rate equal to the member's guaranteed minimum), unless the member consents to a further postponement of the entitlement.

(5) If paragraph (3) or (4) applies, the amount of the guaranteed minimum to which the member is entitled under this rule is increased in accordance with section 11 of the 1993 Act.

(6) If—

(a) before State pension age the member becomes entitled to the immediate payment of a pension, and

(b) the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the whole or part of the pension,

the weekly rate of the pension, so far as attributable to that service, must not be less than that guaranteed minimum, multiplied by such factor as is indicated in tables provided by the Scheme actuary for a person of the member's age and sex at the date on which the pension becomes payable.

(7) This paragraph applies if a person has ceased to be in employment that is contracted-out by reference to this Section of the Scheme, and either—

(a) all the person's rights to benefits under this Section of the Scheme, except the person's rights in respect of the person's guaranteed minimum or rights under section 5(2B) of the 1993 Act (“the person's contracting-out rights”), have been transferred under Chapter 6 (transfers), or

(b) the person has no rights to benefits under this Section of the Scheme apart from the person's contracting-out rights.

(8) If paragraph (7) applies—

(a) from the date on which the person reaches State pension age the person is entitled to a pension payable for life at a weekly rate equal to his guaranteed minimum, if any, and

(b) from the date on which the person reaches pension age the person is entitled to a pension in respect of his rights under section 5(2B) of the 1993 Act,

but a person falling within paragraph (7) is not to be regarded as a pensioner for the purposes of Chapter 5 (death benefits).

(9) Paragraphs (2) to (8) do not apply to—

(a) a pension that is forfeited—

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

(ii) in a case where an offence within regulation 254(2)(b) is committed,

(b) a pension that is commuted under regulation 186 (option for members in serious ill-health to exchange whole pension for lump sum), or

(c) a pension that is commuted under regulation 252 (commutation of small pensions) where the conditions in regulation 60 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 are met,

but if any other provision of the Scheme is inconsistent with this rule, this rule prevails.

(10) In this regulation—

(a) “scheme employment”, in relation to a member, means employment in the employment by virtue of which the member is eligible for membership of the Scheme, and

(b) references to the amount of a pension are to its amount—

(i) disregarding any additional pension,

(ii) after the subtraction of any amount exchanged under regulation 185 (general option to exchange part of pension for lump sum), and

(iii) before the subtraction of any amount allocated under regulation 189 (election to allocate pension).

CHAPTER 5 — DEATH BENEFTS

Pensions for surviving adults

Surviving adult dependants' pensions

194

(1) If an active member, , a non-contributing member a deferred member or a pensioner member dies leaving a surviving adult dependant, the surviving adult dependant is entitled to a pension that is payable for life.

(2) In this Part “surviving adult dependant”, in relation to a deceased member or former member, means the member's or former member's surviving spouse, civil partner or scheme partner .

(3) For the rate at which the pension referred to in paragraph (1) is payable see regulations 196 to 200 and, in any case where that pension includes additional pension, regulations 171(4) and 173(3).

Meaning of “surviving nominated partner”

195

(1) In this Part, a person (P) is a “surviving scheme partner” if the Department is satisfied that for a continuous period of at least two years, ending with the member’s death—

(a) the member and P were living together as if they were husband and wife or civil partners,

(b) the member and P were not prevented from marrying or entering into a civil partnership,

(d) neither the member nor P were living with a third person as if they were husband and wife or as if they were civil partners.

Amount of pensions under regulation 194: active and non-contributing members

196

(1) In the case of an active member or a non-contributing member, for the period of 6 months beginning with the day after the member’s death (“the initial period”) the rate of the pension payable under regulation 194 (if that amount is greater than the amount of the pension payable to the surviving adult under this Chapter apart from this paragraph), is equal to—

(a) in the case of a deceased active member, the rate of the member’s pensionable earnings during the last complete quarter before the member’s death;

(b) in the case of a deceased non-contributing member, the monthly average of the deceased’s uprated earnings on the member’s last day of pensionable service.

(2) Subject to paragraph (3), after the initial period, if the member dies with 2 or more years of qualifying service, the annual amount of the pension payable under regulation 194—

(a) if the member has not reached the age of 65, is equal to the appropriate proportion of the tier 2 ill-health pension under regulation 182 to which the member would have been entitled if on the date of death the member had become entitled to such a pension, and

(b) if the member has reached the age of 65, is equal to the appropriate proportion of the pension under regulation 176 (normal retirement pensions) to which the member would have been entitled if on the date of death the member had become entitled to such a pension in respect of any period of pensionable service that the member is entitled to count.

Sub-paragraph (b) is subject to paragraph (7).

(3) After the initial period, if the member dies with less than 2 years of qualifying service but after reaching the age of 65, the annual amount of the pension payable under regulation 194 is equal to the appropriate proportion of the pension to which the member would have been entitled (disregarding any additional pension) if on the date of death the member had become entitled to a pension under regulation 176 (normal retirement pensions) in respect of any period of pensionable service that the member is entitled to count.

This is subject to paragraph (7).

(4) After the initial period, if—

(a) the member dies with less than 2 year's qualifying service and before reaching the age of 65, and

(b) the surviving adult 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,

the annual amount of the pension payable under regulation 194 is equal to that guaranteed minimum, unless paragraph (5) applies.

(5) This paragraph applies if the Department's liability to provide a guaranteed minimum pension in respect of the surviving adult is discharged by the payment of a contributions equivalent premium under section 51(2) of the 1993 Act.

(6) This regulation is subject to regulation 200 (re-employed pensioners; adult survivor pensions in initial period).

(7) For the purposes of paragraphs (2)(b) and (3) any increase under—

(a) regulation 178; or

(b) regulation 260Q,

is ignored.

Amount of pensions under regulation 194: pensioner members

197

(1) In the case of a pensioner member, for the initial period the rate of the pension payable under regulation 194(1) is equal to the rate of the member's pension in payment at the time of death if that amount is greater than the sum of—

(a) the amount of the pension payable to the surviving adult dependant under this Chapter apart from this paragraph, and

(b) the amount of the children's pensions otherwise payable under this Part.

(2) At any time when the rate is not the rate mentioned in paragraph (1), the rate of the surviving adult dependant's pension in the case of the death of a pensioner member is equal to the appropriate proportion of the pension to which the member was entitled on the date of death (disregarding any additional pension).

(3) For the purposes of paragraph (1) any reduction in the member’s pension under—

(a) Chapter 8 of this Part;

(b) regulation 185; or

is ignored.

(3A) For the purpose of paragraph (2)—

(a) any reduction in the rate of member’s pension under—

(i) regulation 179,

(ii) regulation 185, or

(iii) regulation 260K; and

(b) any increase in the rate of the member’s pension under—

(i) regulation 178, or

(ii) regulation 260Q,

is ignored.

(4) In this regulation “the initial period” means—

(a) if the member leaves one or more dependent children who are dependant on the surviving adult dependant, the period of 6 months beginning with the day after the member's death, and

(b) otherwise the period of 3 months beginning with that day.

(5) For the purposes of paragraph (4) a child born after the member's death is treated as having been born before it.

(6) If a member who has had a tier 2 ill-health retirement pension under regulation 182 replaced by a tier 1 ill-health retirement pension (by virtue of regulation 239(2))—

(a) is in further HSC employment and dies before the end of the initial period (within the meaning of that regulation), or

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

the member's pension referred to in paragraph (1) means that member's original tier 2 ill-health pension.

(7) This regulation is subject to regulation 200 (re-employed pensioners: adult survivor pensions in initial period).

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of pensions under regulation 194: deferred members

198

(1) In the case of a deferred member—

(a) who left pensionable service less than 12 months before the date of death, and

(b) whose surviving adult dependant would have been the member's surviving adult dependant if the member had died on the member's last day of pensionable service,

the rate of the pension payable under regulation 194(1) is equal to the appropriate proportion of the tier 2 ill-health pension under regulation 182 to which the member would have been entitled if on the date the member's pensionable service ceased the member had become entitled to such a pension under regulation 182 (but disregarding any additional pension).

(2) In the case of any other deferred member, the rate of the pension payable under regulation 194(1) is equal to the appropriate proportion of the pension under regulation 176 (normal retirement pensions) in respect of any period of pensionable service to which the member would have been entitled if on the date of death the member had become entitled to such a pension.

Recent leavers

199

(1) If—

(a) a recent leaver dies leaving a surviving spouse or civil partner who has a guaranteed minimum under section 13 of the 1993 Act in relation to benefits in respect of the recent leaver under this Section of the Scheme, and

(b) the member has died before reaching the age of 65,

the surviving spouse or civil partner is entitled to a pension that is payable for life of an amount equal to that person's guaranteed minimum pension (disregarding any additional pension), unless paragraph (2) applies.

(2) This paragraph applies if the Department's liability to provide a guaranteed minimum pension in respect of the surviving adult is discharged by the payment of a contributions equivalent premium under section 51(2) of the 1993 Act.

(3) In this Part “recent leaver” means a person—

(a) who left pensionable service less than 12 months before the date of death,

(b) who is not a deferred member or a pensioner member because of rights resulting from that employment, and

Re-employed pensioners: adult survivor pensions in initial period

200

(1) This regulation applies if, apart from this regulation, both regulations 196(1) and 197(1) would apply on the death of a member.

(2) Where this regulation applies, the rate of pension payable by virtue of regulations 196(1) and 197(1) during the initial period (as defined in the respective regulations) shall instead be the rate provided in paragraph (3).

(3) Subject to paragraph (4), for the relevant initial period the rate of the pension payable under regulation 194 is equal to the sum of—

(a) in the case of—

(i) a deceased active member, the rate of the deceased’s pensionable earnings during the last complete quarter before the member’s death, or

(ii) a deceased non-contributing member, the rate of the monthly average of the deceased’s uprated earnings on the member’s last day of pensionable service; and

(b) the rate of the deceased member’s pension payable at the time of death after taking account of any reduction in the rate of the pension under—

(i) Chapter 8 of this Part,

(ii) regulation 185, and

(iii) regulation 260K.

(4) Paragraph (3)(a) does not apply if—

(a) the rate of the pension payable to the surviving adult in respect of later service, and

(b) any children's pension that would otherwise be payable in respect of later service under this Part,

would be greater.

Pensions for dependent children

Surviving children's pensions

201

(1) If a member or a recent leaver dies leaving one or more dependent children, a pension is payable in respect of them.

(2) This is subject to paragraphs (7) to (9).

(3) If a dependent child ceases to be a dependent child after the date of death, the pension ceases to be payable in respect of that child.

(4) If a dependent child is born after the date of death, the same pension is payable in respect of the child as if the child had been born on the date of death.

(5) If a member or a recent leaver dies leaving two or more dependent children, they are entitled to such shares of the pension as the Department may from time to time decide.

(6) An amount payable under this regulation in respect of a dependent child is payable to the dependent child or, if the Department so decides, to another person for the dependent child's benefit.

(7) No pension is payable in respect of any dependant children who on the deceased's death are dependant on an adult who is entitled to a surviving adult's pension whilst that pension is payable at the rate mentioned in regulation 197(1) or 200(3)(b), except so much of that pension as is additional pension.

(8) If a dependent child is incapable of earning a living because of physical or mental infirmity for any period and the child is maintained out of money provided by Parliament in a hospital or other institution for a period exceeding one month, no pension is payable in respect of the child for any part of that period after the first month.

(9) If, apart from this paragraph, a pension would be payable in respect of any person as a dependent child of three or more persons who were deceased members or recent leavers—

(a) a pension is only payable in respect of two of them, and

(b) the amount payable is equal to the sum of the two highest pensions.

(10) For the rate at which the pension referred to in paragraph (1) is payable, see regulations 203 to 208 and, in any case where that pension includes additional pension, regulations 171(4) and 173(3).

Meaning of “dependent child”

202

(1) In this Part “dependent child”, in relation to a deceased member or recent leaver, means a person who—

(a) meets the relationship condition in paragraph (2),

(b) either—

(i) has not reached the age of 23, or

(ii) in the opinion of the Scheme administrator was financially dependent on the deceased at the date of death because of physical or mental impairment and remains so,

(i) before the deceased ceased to be an active member , or

(ii) within one year after the deceased ceased to be an active member,

(d) in the case of a person within sub-paragraph (c)(i), was dependent on the deceased—

(i) at the date of death, and

(ii) if the deceased died after ceasing to be an active member, when the deceased ceased to be an active member, and

(e) in the case of a person within sub-paragraph (c)(ii)—

(i) was dependent on the deceased both at birth and at the deceased's death, or

(ii) if the person was born after the deceased's death, would have been dependent on the deceased had the deceased not died before the person's birth.

(2) A person meets the relationship condition if the person is—

(a) a natural child or natural grandchild of the deceased,

(b) an adopted child of the deceased who was adopted whilst the deceased was an active member,

(c) a step-child of the deceased whose natural or adoptive parent is the deceased's surviving spouse or civil partner from a marriage entered into, or a civil partnership formed, whilst the deceased was an active member,

(d) in a case where the deceased left a surviving scheme partner with whom the deceased was living as mentioned in regulation 195(a) and (b) when the deceased ceased to be an active member, a person whose natural or adoptive parent is the deceased's surviving scheme partner ,

(e) a brother or sister, or a child of a brother or sister, of the member or the member's spouse or civil partner or scheme partner ,

(f) a half-brother or half-sister, or a child of a half-brother or half-sister, of the member or the member's spouse or civil partner or scheme partner ,

(g) a person whom, in the opinion of the Scheme administrator, the deceased intended when the deceased ceased to be an active member to adopt, or

(h) a person who had been dependent on the deceased for 2 years or (if less) half the person's life when the deceased ceased to be an active member.

Amount of children's pension under regulation 201: deceased active members and deceased non-contributing members

203

(1) This regulation applies for determining the annual amount of the pension payable under regulation 201(1) (surviving children's pensions) if at the date of death the deceased was an active member ,or a non-contributing member of this Section of the Scheme who was not also a pensioner member.

(2) Subject to paragraphs (5) and (6) , that amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension” means twice the appropriate proportion of the deceased member’s pension under regulation 176 and—

(a) in the case of an active member, that pension will include the greater of—

(i) any increase due to such enhancement period (if any) that would have applied for the purposes of regulation 182(5) if the deceased had become entitled to a tier 2 ill-health pension on the date of death, and

(ii) 10 years' pensionable service;

(b) in the case of a non-contributing member, will be based on the pensionable service that the deceased was entitled to count on the date of death.

In the case of a 2008 Section Optant, this is subject to regulation 260W and in the case of a Waiting Period Joiner, this is subject to regulation 260ZB.

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

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult dependant's pension is payable under regulation 194—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) if there is such a parent or spouse or partner of a parent, but no surviving adult dependant's pension is payable under regulation 194—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children,

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

(5) If—

(a) a surviving adult dependant's pension is payable under regulation 194, and

(b) there is a dependent child who is not dependent on the person entitled to that pension,

the rate of the pension payable in respect of that child for the first 3 months after the deceased's death is equal to—

in the case of a deceased active member, the average rate of the deceased’s pensionable earnings during the last complete quarter before the member died, and

in the case of a deceased non-contributing member, the rate of the monthly average of the deceased’s uprated earnings on the member’s last day of pensionable service.

(6) In a case within paragraph (4)(b) or (c), the rate of pension in respect of the dependent child or children for the period of 6 months beginning with the deceased’s death is equal to—

(a) in the case of a deceased active member, the average rate of the deceased’s pensionable earnings during the last complete quarter before the member died; and

(b) in the case of a deceased non-contributing member, the rate of the monthly average of the deceased’s uprated earnings on the member’s last day of pensionable service.

Amount of children's pension under regulation 201: deceased pensioner members

204

(1) This regulation applies for determining the annual amount of the pension payable under regulation 201(1) (surviving children's pensions) if at the date of death the deceased was a pensioner member of this Section of the Scheme who was not also an active member or a non-contributing member .

(2) Subject to paragraphs (5), (6) and (7) that amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension” means the greater of—

(a) twice the appropriate proportion of the deceased's annual pension (disregarding any additional pension), and

(b) twice the appropriate proportion of the annual pension to which the deceased would have been entitled if the deceased had been entitled to count 10 years' pensionable service (disregarding any additional pension).

In the case of a 2008 Section Optant, this is subject to regulation 260W and in the case of a Waiting Period Joiner, this is subject to regulation 260ZB.

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

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult dependant's pension is payable under regulation 194—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) if there is such a parent or spouse or partner of a parent, but no surviving adult dependant's pension is payable under regulation 194—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children,

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

(5) If—

(a) a surviving adult dependant's pension is payable under regulation 194, and

(b) there is a dependent child who is not dependent on the person entitled to that pension,

the rate of the pension in respect of that child for the first 3 months after the deceased's death is equal to the rate of the member's pension at the date of death (disregarding any additional pension).

(6) In a case within paragraph (4)(b) or (c), the rate of the pension in respect of the dependent child or children for the period of 6 months beginning with the deceased’s death is equal to the greater of—

(a) the rate of the member’s pension at the date of death disregarding any reduction made under Chapter 8 (Abatement) and any additional pension, and

(b) the amount of children’s pension that would otherwise be payable under these Regulations.

(7) If the deceased member's pension was payable under regulation 179 (early payment of pensions with actuarial reduction), the reference in paragraph (3)(a) and (b) to the member's pension is a reference to the amount that the member's pension would have been if it had been calculated without the reduction mentioned in paragraph (2)(b) of that regulation.

(8) For the purposes of paragraphs (3), (5) and (6), any reduction in the member’s pension under regulation 185 and regulation 260K will be ignored.

Amount of children's pension under regulation 201: deceased deferred members

205

(1) This regulation applies for determining the annual amount of the pension payable under regulation 201(1) if at the date of death the deceased was a deferred member of this Section of the Scheme who was not also an active member or a non-contributing member or a pensioner member.

(2) That amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension”—

(a) if the deceased died within 12 months after ceasing to be an active member or a non-contributing member , means the amount that would be the basic death pension for the purposes of regulation 203 if the deceased had died on the day of so ceasing (disregarding any additional pension), and

(b) otherwise, means the greater of—

(i) twice the appropriate proportion of the pension to which the deceased would have been entitled if the deceased had become entitled to a pension under regulation 176 on the date of death (disregarding any additional pension), and

(ii) twice the appropriate proportion of the pension to which the deceased would have been entitled if the deceased had become so entitled and the pension had been calculated on the assumption that the member was entitled to 10 years' pensionable service (disregarding any additional pension).

In the case of a 2008 Section Optant, this is subject to regulation 260W and in the case of a Waiting Period Joiner, this is subject to regulation 260ZB.

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

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult's pension is payable—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) otherwise—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

Amount of children's pension under regulation 201: recent leavers

206

(1) This regulation applies for determining the annual amount of the pension payable under regulation 201(1) (surviving children's pensions) if at the date of death the deceased was a recent leaver.

(2) That amount is the appropriate fraction of the basic death pension.

(3) In this regulation—

(a) “the basic death pension” means twice the appropriate proportion of the pension to which the deceased would be entitled to—

(i) if the deceased had become entitled to a pension under regulation 182(5), or

(ii) if greater, the amount that the member’s pension would have been if it had been based on 10 years' pensionable service (disregarding any additional pension), and

(b) “the appropriate fraction” means—

(i) if there is a surviving parent of the dependant child or children or a surviving spouse or civil partner of a parent of the dependant child or children and a surviving adult's pension is payable—

(aa) one-quarter if there is only one dependant child, and

(bb) one-half if there are two or more dependant children,

(ii) otherwise—

(aa) one-third if there is only one dependant child, and

(bb) two-thirds if there are two or more dependant children.

Power to increase pension in respect of children not maintained by surviving parent etc

207

(1) This regulation applies if—

(a) a member dies leaving a dependent child or children,

(b) there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children, and

(2) The Department may increase the amount of the pension that would otherwise be payable under this Chapter in respect of the dependant child or children.

(3) The increased amount may not exceed the amount that would have been payable under this Chapter if there had been no such surviving parent or spouse or partner of a parent.

Amount of children's pension under regulation 201: re-employed pensioners

208

(1) This regulation applies for determining the annual amount of a pension payable under regulation 201(1) if at the date of death the deceased was an active member or a non-contributing member who was also a pensioner member of this Section of the Scheme.

(2) If there is no surviving adult dependant, the rate of the pension in respect of the dependent child or children for the period of 6 months beginning with the deceased's death is equal to the sum of—

(a) in the case of—

(i) a deceased active member, the rate of the deceased’s pensionable earnings during the last complete quarter before the member died, or

(ii) a deceased non-contributing member, the rate of the monthly average of the deceased’s uprated earnings on the last day of the member’s pensionable service, and

(b) the rate of the pension being received by the deceased (if any) at the date of death.

(3) Subject to paragraph (5), except where a pension is payable at the rate mentioned in paragraph (2), the pension in respect of the member's later service shall be paid as the appropriate fraction of twice the appropriate proportion of the rate of pension described in—

(a) regulation 182(5) if the deceased has not reached the age of 65 on the date of death, or

(b) regulation 176 if the deceased has reached the age of 65 on the date of death.

(4) In this regulation “appropriate fraction” has the meaning given in regulation 203(4).

(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 203 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 204 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 service taken into account (in regulation 203(3)) for the purposes of the calculation of the 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

209

(1) If a member or a recent leaver 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 180 employments)

210

(1) The lump sum payable on death of an active member or a non-contributing member, who is not a deferred member or a pensioner member, is an amount equal to—

(a) in the case of a deceased active member, twice the annual average of the member’s uprated earnings at the date of death; or

(b) in the case of a deceased non-contributing member, twice the annual average of the member’s uprated earnings on the member’s last day of pensionable service.

In the case of a 2008 Section Optant, this is subject to regulation 206V and in the case of a Waiting Period Joiner, this is subject to regulation 260ZA.

(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 annual average of the member’s uprated earnings 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 185, and

(ii) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 260K.

This is subject to regulations 213A and 214.

(3) The lump sum payable on the death of a deferred member, who was not an active member or a 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 176 (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 185; and

(b) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 260K.

(7) If a pensioner member exercised the option under regulation 189 (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 180 (partial retirement),

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

Amount of lump sum: dual capacity members (disregarding regulation 180 employments)

211

(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 has exercised the option under regulation 180 (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 182(5) (tier 2 ill-health pension), if the deceased had not reached the age of 65,

(ii) payable under regulation 176 (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 185(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 annual average of the member's uprated earnings at the date of death 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 185 (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 189, 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 260K; and

(b) the amount of the Optant’s uprated earnings 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 260K, and

(ii) the lump sum under regulation 185 referred to in paragraph (2)(b)(ii).

Amount of lump sum: dual capacity members: members with pensions under regulation 180

212

(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 180 (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—

(a) equal to the sum of—

(i) in the case of a deceased active member, twice the appropriate fraction of the annual average of the member’s uprated earnings at the date of death, or

(ii) in the case of a deceased non-contributing member, twice the appropriate fraction of the annual average of the member’s uprated earnings at the member’s last day of pensionable service, and

(b) if the member had been entitled to any pensions under regulation 180 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));

(3) The guarantee amount for a pension under regulation 180 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 annual average of the member’s uprated earnings by reference to which the pension to which the member became entitled on last exercising the option under regulation 180 was calculated, less the total of any lump sums paid to the member—

(a) in exchange for pensions under regulation 180 as a result of the member exercising the option under regulation 185; and

(b) in the case of a 2008 Section Optant the lump sum paid to that Optant under regulation 260K.

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

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

Amount of lump sum: pension credit members

213

(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 177 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

$$2AUE-CLS,$where—AUE is the amount as at the valuation day of the annual average of the uprated earnings of the debit member from whose rights the pension credit member's pension credit is derived, andCLS is the amount of the lump sum (if any) paid to the pension credit member as a result of the member exercising the option under regulation 185 (general option to exchange part of pension for lump sum) on becoming entitled to the pension under regulation 177.$

(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

214

(1) A lump sum payable under regulation 209 or a pension payable under regulation 213A 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 254(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 213A 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 or body 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 254 (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 259 (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 260L.

(14) In the case of a Waiting Period Joiner, this regulation is subject to regulation 260Y.

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

215

(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 209 to which regulation 210(2) applies, or

(b) so much of a lump sum payable under regulation 209 as is calculated under regulation 211(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

216

(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

217

(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

218

(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 196 (amount of pensions under regulation 194: active members),

(b) regulation 197 (amount of pensions under regulation 194: pensioner members),

(d) regulation 201 (surviving children's pensions),

(e) regulation 208 (amount of children's pension under regulation 201: re-employed pensioners),

(f) regulation 209 (lump sum benefits on death: introduction),

(g) regulation 211 (amount of lump sum: dual capacity members (disregarding regulation 180 employments)),

(h) regulation 212 (amount of lump sum: dual capacity members: members with pensions under regulation 180), and

(hh) regulation 213A (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

219

(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 254(2)(b) is committed.

CHAPTER 6 — TRANSFERS

Transfers out

Introduction: rights to transfer value payment

220

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

(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

221

(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

222

(1) A member who has applied for and received a statement of entitlement under regulation 221 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 223(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

223

(1) An application under regulation 222(1) must be made before the end of the period of 3 months beginning with the guarantee date, and, subject to paragraph (4), 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 this Section of 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 254 (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 254 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 220(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 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

224

(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

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