The Health and Social Care Pension Schemes (Remediable Service) Regulations (Northern Ireland) 2023

Made: 7th September 2023

Coming into operation: 1st October 2023

In accordance with section 27(1) of PSPJOA 2022, the powers conferred by sections 18 to 26 of that Act are exercised in accordance with Department of Finance directions[^f00004].

PART 1 — General provisions

Citation and commencement

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These Regulations may be cited as the Health and Social Care Pension Schemes (Remediable Service) Regulations (Northern Ireland) 2023 and come into operation on 1st October 2023.

Interpretation

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• (1) In these Regulations—

• “PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022[^f00005];

• “2004 Act” means the Finance Act 2004[^f00006];

• “the 1995 Regulations” means The Health and Personal Social Service (Superannuation) Regulations (Northern Ireland) 1995[^f00007];

• “the 1995 Section” means the section of the legacy scheme set out in the 1995 Regulations;

• “the 2008 Regulations” means The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 [^f00008];

• “the 2008 Section” means the section of the legacy scheme set out in the 2008 Regulations;

• “the 2015 Regulations” means The Health and Social Care Pension Scheme Regulations (Northern Ireland) 2015 [^f00009];

• “2015 scheme” means The Health and Social Care Pension Scheme Regulations (Northern Ireland) set out in the 2015 Regulations;

• “2015 scheme contributions” means contributions under regulation 37[^f00010] of the 2015 Regulations (Members’ contributions: supplementary: medical practitioners and non-GP providers);

• “the 2015 Transitional Regulations” means The Health and Social Care Pension Scheme (Transitional and Consequential Provisions) Regulations (Northern Ireland) 2015 [^f00011];

• “the 2023 Directions” means the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions (Northern Ireland) 2023;

• “active or deferred remedy member” means a member who— on 30th September 2023 was an active member or deferred member in respect of remediable service in the legacy scheme or the 2015 scheme, and is not a pensioner remedy member;

• “deferred choice member” means a member with remediable service who is not an immediate choice member or a deceased member;

• “deferred choice pension” means a pension the rate of which- is not determined (by any extent) by reference to the member’s remediable service; and is not affected by the coming into force of section 2(1) of PSPJOA 2022;

• “designated person” has the meaning given in regulation 7(2);

• “end of the deferred choice election period” means— the end of the period of three months beginning with the day on which a remediable service statement is provided to the deferred choice member or, as the case may be, the designated person in accordance with regulation 6, or such earlier or later time as specified in the remediable service statement as the scheme manager considers reasonable in all the circumstances of the case, which also meets the requirements of regulation 12(8);

• “end of the immediate choice election period” means— the end of the period of one year beginning with the day on which a remediable service statement is provided to the immediate choice member or, as the case may be, the designated person in accordance with regulation 6, or such— later time as specified in the remediable service statement as the scheme manager considers reasonable in all the circumstances of the case; or earlier time as agreed by the scheme manager with the immediate choice member or designated person;

• “immediate choice member” means a member with remediable service who, immediately before 1 October 2023 was deceased or entitled to the present payment of a pension which— is a pension under the legacy scheme or the 2015 scheme, and is not a deferred choice pension;

• “legacy scheme” means The Health and Social Care Pension Scheme for Northern Ireland set out in the 1995 Regulations and the 2008 Regulations;

• “legacy scheme contributions” means contributions under paragraph 10[^f00012] of Schedule 2 to the 1995 Regulations (practitioners and non-GP providers: contributions to the 1995 Section) or regulation 161 of the 2008 Regulations (Members’ contribution rate) (whichever is relevant);

• “lump sum benefit” means any benefit payable under the legacy scheme or the 2015 scheme by way of a lump sum;

• “medical practitioner” has the same meaning as in regulation 150 of the 2015 Regulations[^f00013];

• “non-GP provider” has the same meaning as in Schedule 13 to the 2015 Regulations;

• “pension benefit” means any benefit payable under the legacy scheme or the 2015 scheme otherwise than by a lump sum;

• “pensioner remedy member” means a member who on 30th September 2023 was entitled to a retirement pension in respect of— remediable service in the legacy scheme or the 2015 scheme, or pensionable service in the legacy scheme, where— the member became entitled to the retirement pension on or after 1st April 2015, and on 30th September 2023, the member was an active or deferred member in respect of remediable service in the 2015 scheme;

• “relevant scheme year” means any of the seven scheme years beginning with 1st April 2015 to 31st March 2016 (both dates inclusive) and ending with 1st April 2021 to 31st March 2022 (both dates inclusive);

• “remedy member” means a member who has pensionable service under the legacy scheme or the 2015 scheme that is remediable service[^f00014];

• “scheme administrator” means the regional Business Services Organisation (RBSO) [^f00015];

• “scheme manager” means the Department or, where the Department has made arrangements for any of the functions and responsibilities as scheme manager under the 2015 Regulations to be performed on the Department’s behalf by another person pursuant to regulation 3(2) of those Regulations, that other person.

• (2) In these Regulations, “in writing” includes by electronic communication where such communication is approved by the scheme manager from time to time and “electronic communication” has the same meaning as in section 4(1) of the Electronic Communications Act (Northern Ireland) 2001[^f00016].

• (3) For the purposes of these Regulations, a reference in PSPJOA 2022 to section 2(1) of that Act coming into force is to be understood as a reference to that section coming into force in relation to members of the legacy scheme and the 2015 scheme.

• (4) A term used in these Regulations which—

• (a) is defined in, or for the purposes of, a provision in Chapter 1 of Part 1 of PSPJOA 2022; and

• (b) is not defined differently in these Regulations,

has the meaning given in, or for the purposes of, that provision.

• (5) The Interpretation Act (Northern Ireland) 1954[^f00017] applies to these Regulations as it applies to an Act of the Assembly.

PART 2 — Remediable service

Pension contributions of medical practitioners and non-GP providers: deferred choice members (immediate correction)

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• (1) This regulation applies in relation to a relevant member (“M”) who has remediable service under the legacy scheme that is pensionable service under that scheme by virtue of section 2(1) of PSPJOA 2022 (“M’s remediable service”) in the circumstances described in paragraph (2).

• (2) The circumstances are that—

• (a) the paid contributions amount in relation to M exceeds

• (b) the adjusted contributions amount in relation to M.

• (3) In these circumstances, the scheme manager must, as soon as reasonably practicable after 1st October 2023, pay an amount of compensation equal to the difference to the appropriate person in accordance with paragraph (4).

• (4) The amount of compensation paid to the appropriate person must be reduced by tax relief amounts calculated in accordance with paragraphs (5) to (8) and, if relevant, (11) and (12) of direction 4 of the 2023 Directions (powers to reduce or waive liabilities).

• (5) M may waive M’s right to the compensation payment otherwise due under this regulation in accordance with the 2023 Directions, but, if M or, as the case may be, the designated person does not make an election under regulation 12 (election for 2015 scheme benefits:, deferred choice members and deceased members) before the end of the deferred choice election period—

• (a) that waiver is void; and

• (b) on the payment of M’s 1995 Section or 2008 Section benefits in respect of M’s remediable service, compensation again becomes payable under this regulation.

• (6) For the purposes of paragraph (5), a waiver must be given to the scheme manager by notice in writing and in such form as the scheme manager determines.

• (7) The scheme manager must send a notice in writing to M of M’s right to claim an amount of compensation under this regulation or to waive M’s right to compensation in accordance with paragraph (5).

• (8) The notice must be sent to M before 1st October 2024 or such later time as the scheme manager considers reasonable in all the circumstances of the case.

• (9) In this regulation—

• “adjusted contributions amount” means the aggregate of the contributions M would have paid in respect of M’s remediable service in the relevant scheme years if M had been required to pay legacy scheme contributions;

• “appropriate person” means— M, or if M is deceased, M’s personal representatives;

• “paid contributions amount” means the aggregate of the pension contributions paid by M under regulation 37 of the 2015 Regulations in the relevant scheme years in respect of M’s remediable service;

• “relevant member” means a member who is— a deferred choice member, and a medical practitioner or non-GP provider who paid contributions in respect of their certified or final pensionable earnings uprated according to the formula in paragraph (3)(a) of regulation 37 of the 2015 Regulations in respect of any scheme year falling within the period of their remediable service.

• (10) Where this regulation applies, section 16 of PSPJOA 2022 (pension contributions: active and deferred members (immediate correction)) does not apply.

Pension contributions of medical practitioners and non-GP providers: immediate choice members and deceased members

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• (1) This regulation applies in relation to a relevant member (“M”) who has remediable service under the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022 (Remediable service treated as pensionable under Chapter 1 legacy schemes (“M’s remediable service”) in the circumstances described in paragraph (2)(a) or (b).

• (2) The circumstances are that, at the operative time—

• (a) the paid contributions amount in relation to M exceeds the adjusted contributions amount in relation to M; or

• (b) the paid contributions amount in relation to M is less than the adjusted contributions amount in relation to M.

• (3) In the circumstances described in paragraph (2)(a), the scheme manager must pay an amount of compensation equal to the difference to the appropriate person adjusted in accordance with paragraph (4).

• (4) The amount of compensation paid to the appropriate person must be reduced by tax relief amounts calculated in accordance with paragraphs (5) to (8) and, if relevant, (11) and (12) of direction 4 of the 2023 Directions (powers to reduce or waive liabilities).

• (5) In the circumstances described in paragraph (2)(b), the appropriate person must pay contributions equal to the difference to the scheme adjusted in accordance with paragraph (6).

• (6) The contributions owed to the scheme by the appropriate person must be reduced by tax relief amounts calculated in accordance with paragraphs (5) to (8) and, if relevant, (11) and (12) of direction 4 of the 2023 Directions.

• (7) In this regulation—

• “adjusted contributions amount” means— if an election under regulation 9 is made in relation to M’s remediable service, the aggregate of the contributions M would have paid in respect of M’s remediable service in the relevant scheme years if M had been required to pay 2015 scheme contributions in respect of that service, otherwise, the aggregate of M’s legacy scheme contributions in respect of M’s remediable service in the relevant scheme years;

• “appropriate person” means— M, or if M is deceased, M’s personal representatives;

• “operative time” means— if an election under regulation 9 is made in relation to M’s remediable service, the time the election is made; otherwise, the end of the immediate choice election period in relation to M;

• “paid contributions amount” means— the aggregate of the legacy scheme contributions, or the aggregate of the 2015 scheme contributions; paid by M in relation to M’s remediable service in the relevant scheme years;

• “relevant member” means a member other than an immediate detriment remedy member who— either— is an immediate choice member, or died before 1st October 2023, and is or was a medical practitioner or non-GP provider who paid or would have paid contributions in respect of any scheme year falling within the period of their remediable service in respect of M’s certified or final pensionable earnings in accordance with— paragraph 10 of Schedule 2 to the 1995 Regulations; regulation 161 of the 2008 Regulations; or regulation 37(3)(a) of the 2015 Regulations.

• (8) Where this regulation applies, section 15 of PSPJOA 2022 (Pension contributions: pensioner and deceased members) does not apply.

Pension contributions of medical practitioners and non-GP providers: deferred choice members

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• (1) This regulation applies in relation to a relevant member (“M”) who has remediable service under the legacy scheme that is pensionable service under that scheme whether or not by virtue of section 2(1) of PSPJOA 2022 (“M’s remediable service”) in the circumstances described in paragraph (2).

• (2) The circumstances are that, at the operative time—

• (a) the paid contributions amount in relation to M is less than

• (b) the adjusted contributions amount in relation to M.

• (3) In these circumstances, the appropriate person must pay an amount equal to the difference to the scheme adjusted in accordance with paragraph (5).

• (4) Paragraph (3) does not apply where M has waived M’s right to the compensation payment otherwise due under regulation 3 (see regulation 3(5)) unless that waiver is void.

• (5) The contributions owed to the scheme by the appropriate person must be reduced by tax relief amounts calculated in accordance with paragraphs (5) to (8) and, if relevant, (11) and (12) of direction 4 of the 2023 Directions (powers to reduce or waive liabilities).

• (6) In this regulation—

• “adjusted contributions amount” means— if an election under regulation 12 is made in relation to M’s remediable service, the aggregate of the contributions M would have paid in respect of M’s remediable service in the relevant scheme years if M had been required to pay 2015 scheme contributions in respect of that service; or otherwise, the aggregate of M’s legacy scheme contributions in respect of M’s remediable service in the relevant scheme years;

• “appropriate person” means— M, or if M is deceased, M’s personal representatives;

• “operative time” means— if an election under regulation 12 is made in relation to M’s remediable service, the time the election is made, or otherwise, the end of the deferred choice election period in relation to M;

• “paid contributions amount” means the aggregate of— the legacy scheme contributions, or the 2015 scheme contributions, paid by M in relation to M’s remediable service in the relevant scheme years;

• “relevant member” means a member who is— a deferred choice member, and a medical practitioner or non-GP provider who paid or would have paid contributions in respect of any scheme year falling within the period of their remediable service in respect of their certified or final pensionable earnings in accordance with— paragraph 10 of Schedule 2 to the 1995 Regulations; regulation 161 of the 2008 Regulations; or regulation 37(3)(a) of the 2015 Regulations.

• (7) Where this regulation applies, section 17 of PSPJOA 2022 (pension contributions: active and deferred members (deferred correction)) does not apply.

Remediable service statements

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• (1) The scheme manager must provide a remediable service statement in accordance with section 29 of PSPJOA 2022[^f00018], direction 20 of the 2023 Directions and this regulation to each remedy member or, as the case may be, designated person who has not made an election in respect of that service pursuant to—

• (a) regulation 9; or

• (b) regulation 12.

• (2) The scheme manager must provide the statement to each such remedy member or designated person on or before the relevant date[^f00019].

• (3) The scheme manager must provide a further remediable service statement—

• (a) where the remedy member has remediable service in an employment or office in relation to which the member is for the time being an active member, at least once in each year ending with the anniversary of the relevant date;

• (b) where the remedy member has remediable service in an employment or office in relation to which the member is for the time being a deferred member, on request and within three months beginning with the day of that request.

PART 3 — Elections

Eligibility to make an election: designated persons

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• (1) This regulation applies where for the purposes of regulation 8, 9 or 12 a designated person may make an election on behalf of a remedy member.

• (2) Where this regulation applies, the designated person is—

• (a) in the circumstances described in regulation 8(2)(b)(i), 9(2)(b)(i) or 12(2)(b)(i)—

• (i) a person who is capable and—

• (aa) entitled to a surviving partner pension in relation to that member under regulations 23 to 31H of the 1995 Regulations;