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The National Health Service Pension Scheme (Scotland) Regulations 2008

Type Scottish-Statutory-Instrument

Publication 2008-06-04

State In force

Jurisdiction Scotland

Department Queen's Printer for Scotland

Source legislation.gov.uk

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(a) all salary, wages, fees and other regular payments paid to the practitioner by an employing authority in respect of the performance of essential services, additional services, enhanced services, dispensing services, OOH services, commissioned services, certification services, collaborative services, general dental services or pharmaceutical services;

(b) allowances and other sums (but excluding payments made to cover expenses) paid by an employing authority in respect of Board and advisory work; and

(c) practice-based work carried out in educating or training, or organising the education or training of, GP Registrars or practitioners,

but does not include bonuses or payments made to cover expenses or for overtime.

(2) In the case of a locum practitioner, pensionable earnings means all fees and other payments made to the locum practitioner in respect of the provision of locum services (but excluding payments made to cover expenses or for overtime), less such expenses as are deductible in accordance with guidance laid down by the Scottish Ministers.

(3) In this regulation, references to the provision of locum services, in relation to a practitioner, are to primary medical services, commissioned services, collaborative services or pharmaceutical services performed by a practitioner engaged by an employing authority under a contract for services to deputise for a registered medical practitioner or to temporarily assist in the provision of such services.

Exclusions and deductions from pensionable earnings: all practitioners

3.A.13

Any sum that is withheld or otherwise recovered from a practitioner under the National Health Service (Service Committees and Tribunal) (Scotland) Regulations 1992[^f00125] will be excluded or deducted from the practitioner’s pensionable earnings in such manner and to such extent as the Scottish Ministers may approve.

Limit on pensionable earnings: dental practitioners carrying on deceased person’s business

3.A.14

In the case of a dental practitioner employed by persons carrying on a deceased practitioner’s dentistry business, pensionable earnings cannot exceed the total of the amount paid to him or her by those persons, plus any amounts paid to him or her by a Health Board that those persons allow him or her to retain.

Out of hours providers

3.A.15

(1) For the purposes of these Regulations, an “OOH provider” is–

(a) a company limited by guarantee (which is not otherwise an employing authority)–

(i) in which all the members of the company are registered medical practitioners, HBPMS contractors, GMS practices or section 17C agreement providers and the majority of those members are–

(aa) HBPMS contractors, GMS practices or section 17C agreement providers whose HBPMS contracts, GMS contracts or section 17C agreements require them to provide OOH services; or

(bb) registered medical practitioners who are partners or shareholders in a HBPMS contractor, a GMS practice or section 17C agreement provider which is a partnership or a company limited by shares and which is required to provide OOH services under its HBPMS contract, GMS contract or section 17C agreement;

(ii) which has a contract with a Health Board, an HBPMS contractor, a GMS practice or a section 17C agreement provider for the provision of OOH services; and

(iii) in respect of which a Health Board appointed by the Scottish Ministers to act on their behalf–

(aa) is satisfied that the provision of OOH services by the company is wholly or mainly a mutual trading activity;

(bb) is satisfied that the company has met all the conditions for being an OOH provider in this regulation; and

(cc) has, pursuant to a written application made by the company to it for that purpose, approved the company as an employing authority; or

(b) some other body corporate (which is not otherwise an employing authority) which–

(i) operates in the interests of those who are the recipients of the primary medical services it provides or of the general public;

(ii) operates on a not for profit basis;

(iii) is not an associated company in relation to another person;

(iv) has memorandum or articles or rules which–

(aa) prohibit the payment of dividends to its members;

(bb) require its profits (if any) or other income to be applied in promoting its objects; and

(cc) require all assets which would otherwise be available to its members generally to be transferred on its winding up either to another body which operates on a not for profit basis and whose purpose is to provide health or social care for the benefit of the community or to another body the objects of which are the promotion of charity and anything incidental or conducive thereto;

(v) has at least one member who is–

(aa) an HBPMS contractor, GMS practice or a section 17C agreement provider;

(bb) a partner in a partnership which is an HBPMS contractor, GMS practice or a section 17C agreement provider; or

(cc) a shareholder in a company limited by shares that is a HBPMS contractor, GMS practice or a section 17C agreement provider;

(vi) has a contract with a Health Board, an HBPMS contractor, GMS practice or section 17C agreement provider, for the provision of OOH services; and

(vii) is approved as an employing authority by a Health Board appointed by the Scottish Ministers to act on their behalf–

(aa) pursuant to a written application made by the body to it for that purpose; and

(bb) that Board being satisfied that the body has met all the conditions for being an OOH provider in this regulation.

(2) For the purposes of paragraph (1)(b)(iii), a body corporate is to be treated as another person’s “associated company” if that person has control of it, except where that person is an employing authority, and for these purposes a person is taken to have control of a body corporate if they exercise, or are able to exercise, or are entitled to acquire direct or indirect control over its affairs.

(3) A company limited by guarantee or other body corporate which provides or is to provide OOH services and which wishes to be approved as an employing authority must make a written application to a Health Board appointed by the Scottish Ministers to act on their behalf (“the appointed Board”).

(4) An application referred to in paragraph (3) may specify a date from which approval by the appointed Board (if given) has effect (“the nominated date”).

(5) Where a company limited by guarantee or other body corporate makes an application and–

(a) the appointed Board is satisfied that the company or other body corporate meets the conditions for approval or will do so at any nominated date which is later than the approval date; and

(b) it approves that application,

that approval has effect on the later of the nominated date and approval date.

(6) The NHS employment shall be treated as commencing on the nominated date.

(7) For the purposes of this regulation–

(a) the conditions for approval are those referred to in paragraph (1)(a) or (b) as the case may be; and

(b) the nominated date cannot be earlier than 1st April 2004.

(8) The appointed Board may give an OOH provider a notice in writing terminating its participation in the scheme where that provider–

(a) does not have in force a guarantee, indemnity or bond as required by the Scottish Ministers in accordance with regulation 3.C.4(2) (guarantees, indemnities and bonds); or

(b) has ceased to satisfy the conditions for approval; or

(c) has notified or has an obligation to notify the Board that any one of the following events has occurred in respect of it–

(i) a proposal for a voluntary arrangement has been made or approved under Part 1 (company voluntary arrangements) of the Insolvency Act 1986[^f00126] (“the 1986 Act”);

(ii) an administration application has been made, or a notice of intention to appoint an administrator has been filed with the court, or an administrator has been appointed under Schedule B1 to the 1986 Act;

(iii) a receiver, manager or administrative receiver has been appointed under Part III (receivership) of the 1986 Act;

(iv) a winding up petition has been presented, a winding up order has been made or a resolution for voluntary winding up has been passed under Part IV (winding up of companies registered under the Companies Acts) or Part V of the 1986 Act or an instrument of dissolution has been drawn up in accordance with section 58 of the Industrial and Provident Societies Act 1965[^f00127]; or

(v) notice has been received by it that it may be struck off the register of companies, or an application to strike it off has been made, under Part XX (winding up of companies registered under this Act or the former Companies Acts) of the Companies Act 1985[^f00128].

(9) An OOH provider–

(a) must give the appointed Board notice in writing upon the occurrence of any of the events referred to in paragraph (8)(c) and must give such notice on the same day as that event; and

(b) that wishes to cease to participate in the scheme must give the appointed Board and its employees not less than 3 months notice in writing (to commence with the date of the notice) of that fact.

(10) An OOH provider ceases to participate in the scheme on–

(a) such date as the appointed Board may specify in notice under paragraph (8); or

(b) the day upon which the period referred to in paragraph (9)(b) expires where a notice under that paragraph has been given.

CHAPTER 3.B — MEMBERSHIP

Eligibility: general

3.B.1

(1) A person is eligible to be an active member of the scheme if conditions A to C are met and the person is not prevented by regulation 3.B.2, 3.B.3 or 3.B.6.

(2) Condition A is that the person is in practitioner service.

(3) Condition B is that the person–

(a) enters practitioner service on or after 1st April 2008 and meets any one of the other scheme conditions (see paragraph (5)); or

(b) entered that service before that date and on that date was not an active member of the NHS superannuation scheme for Scotland 1995 in that employment or any other NHS employment.

(4) Condition C is that the person has not reached the age of 75.

(5) The other scheme conditions are that–

(a) the person has not previously been an active member of the NHS superannuation scheme for Scotland 1995;

(b) the person ceased to be an active member of that scheme at least 12 months before entering the employment mentioned in paragraph (3)(a) or (b) without becoming a pensioner member or a deferred member of that scheme;

(c) the person ceased to be an active member of the NHS superannuation scheme for Scotland 1995 less than 12 months before entering the employment mentioned in paragraph (3)(a) or (b) without becoming a pensioner member or a deferred member of that scheme and has received a repayment of contributions in respect of that membership; or

(d) the person ceased to be an active member of the NHS superannuation scheme for Scotland 1995 on or after that date on leaving NHS employment and before the person re entered such employment–

(i) a transfer payment was made in respect of the person under Part M of that scheme; or

(ii) the person made an application under regulation M2 of that scheme (exercising a right to transfer or buy-out) from which the person may not withdraw,

but sub-paragraph (d) will not apply if the Scottish Ministers have permitted such a person to rejoin the NHS superannuation scheme for Scotland 1995 in the circumstances described in regulation B5 of the 1995 Regulations[^f00129].

(6) This regulation applies to any person who has previously been an active member of a corresponding health service scheme as though in paragraph (3) any reference to–

(a) “NHS Pension scheme for Scotland 1995” includes a reference to that corresponding health service scheme; and

(b) “NHS employment” includes a reference to–

(i) employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967[^f00130];

(ii) employment to which regulations made under section 10 of the Superannuation Act 1972[^f00131] and having effect in England and Wales apply,

(iii) employment to which regulations made under Article 12 of the Superannuation (Northern Ireland) Order 1972 apply;

(iv) employment to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald) applies; and

(v) employment with an employer with whom an agreement has been made under section 235 of the National Health Service Act 2006[^f00132].

Restrictions on eligibility: general

3.B.2

(1) A person is not eligible to be an active member of the scheme if the person–

(a) became a pensioner member of the NHS superannuation scheme for Scotland 1995 before 1st April 2008; or

(b) became a pensioner member or a deferred member of that scheme on or after that date.

(2) A person is not eligible to be an active member of that scheme in respect of service in an employment if the person is an active member of a superannuation scheme established under section 1 or 9 of the Superannuation Act 1972 in respect of service in that employment.

(3) A person who holds an honorary appointment and does not at the same time hold any other employment which entitles him or her to be a member of the scheme is not eligible to be an active member of the scheme.

(4) A person is not eligible to be an active member of the scheme in any further employment if the person–

(a) becomes entitled to an upper tier ill health pension under regulation 3.D.7 (early retirement ill health (active members); and

(b) opts to exchange that pension for a lump sum in accordance with regulation 3.D.11 (option for members in serious ill health to exchange pension for lump sum).

(5) A person who is entitled to the immediate payment of a pension under the scheme under a regulation that requires the person not to be in NHS employment may only be an active member in accordance with–

(a) regulation 3.D.5 (partial retirement (members aged at least 55)); or

(b) Chapter 3.G (re-employment and rejoining the scheme).

Concurrent employments

3.B.3

A practitioner may participate in the scheme in respect of employment as a practitioner even if he or she also participates in the scheme in Part 2 in respect of concurrent whole-time or part time employment as an officer (within the meaning of Part 2).

Joining and leaving the scheme

Joining the scheme

3.B.4

(1) A person entering employment with an employing authority in which the person is eligible to be an active member of the scheme becomes such a member, unless regulation 3.B.5(4) or 3.B.7 applies.

(2) A person who is eligible to be such a member by virtue of falling within regulation 3.B.1(3)(b) may opt to become such a member by giving notice in writing to the employing authority.

(3) A person who whilst an active member in any employment has exercised the option to opt out of the scheme under regulation 3.B.5(1) and is eligible to be an active member–

(a) in that employment; or

(b) in a later employment to which paragraph (1) does not apply because of regulation 3.B.5(5),

may opt to become an active member in the employment in which the member is eligible to be such a member by giving notice in writing to the employing authority in such form as the Scottish Ministers require.

(4) A notice under paragraph (3) takes effect–

(a) from the beginning of the first pay period to begin after the notice is received by the employing authority; or

(b) if the notice specifies a date that is the first day of a later pay period, from that date.

(5) A notice under paragraph (3) may not be given by a person who is absent from work for any reason.

(6) Paragraph (1) is subject to regulation 3.B.5(5).

Opting out of the scheme

3.B.5

(1) A person who is an active member of the scheme in any employment may opt at any time to cease to be such a member by giving notice in writing to the person’s employing authority.

(2) A person who so opts ceases to be such a member on the date the notice takes effect.

(3) The notice takes effect–

(a) from the beginning of the first pay period to begin after the notice is received by the employing authority; or

(b) if the notice specifies a later date, from the beginning of the first pay period after that in which the specified date falls.

(4) A person within regulation 3.B.4(1) (automatic membership on entering employment) in respect of an employment who gives notice in writing under paragraph (1) before the end of the person’s first pay period in the employment is treated as not having become an active member under that regulation.

(5) Regulation 3.B.4(1) does not apply to a person entering an employment with an employing authority (“the later employment”) if–

(a) the person has previously given notice under paragraph (1) in respect of an employment with the same authority that has ceased (“the earlier employment”); and

(b) either–

(i) the period beginning with the day following that on which the earlier employment ceased and ending with the day before the later employment begins; or

(ii) the period beginning with the day following that on which a relevant intermediate employment ceased and ending with the day before the later employment begins,

is less than 12 months.

(6) An employment is a relevant intermediate employment for the purposes of paragraph (5) if–

(a) regulation 3.B.4(1) did not apply to the person on entering it because of paragraph (5); and

(b) the person did not opt to become a member of the scheme in that employment under regulation 3.B.4(3).

(7) A practitioner who opts not to contribute to the scheme in respect of his or her employment as a practitioner may, nevertheless, participate in the scheme in respect of concurrent employment as an officer under Part 2.

Restriction on further participation in the scheme

3.B.6

(1) A person who ceases to meet conditions A, B and C in regulation 3.B.1 in an employment or is prevented by regulation 3.B.2 from continuing to be an active member in an employment must cease to be an active member of the scheme in that employment.

(2) Accordingly–

(a) a person within paragraph (1) may not make any further contributions to the scheme under Chapter 3.C; and

(b) any further service of the person is not pensionable service for the purposes of the scheme.

Membership: locum practitioners

3.B.7

(1) Regulation 3.B.4 does not apply to a locum practitioner.

(2) A locum practitioner may apply to join the scheme by sending an application to the employing authority and submitting such evidence relating to his or her service as a locum practitioner and the contributions payable in respect of it as are required by the authority.

(3) On receiving such an application, such evidence and such contributions, the employing authority must submit the application to the Scottish Ministers.

(4) No application may be made under paragraph (2) in respect of a period of engagement as a locum practitioner ending earlier than 10 weeks before the date of the application.

CHAPTER 3.C — CONTRIBUTIONS

Basic contributions by members

Contributions by members

3.C.1

(1) Each active member must make contributions to the scheme in respect of the member’s pensionable earnings in accordance with regulation 3.C.2.

(2) Contributions under paragraph (1) will be paid at the rate specified in regulation 3.C.2 and in accordance with this Chapter.

(3) A member who is absent from service in circumstances within regulation 3.A.4(1) to (3) (pensionable service: breaks in service) may make contributions to the scheme in respect of the member’s pensionable earnings in accordance with those provisions and regulation 3.C.2.

Members' contribution rate

3.C.2

(1) Contributions under regulation 3.C.1(1) must be paid at the member’s contribution rate for the period in question.

(2) Subject to paragraph (3), a member’s contribution rate for that period is the percentage specified in column 2 of the following table in respect of the corresponding pensionable earnings range specified in column 1 of the table into which the member’s pensionable earnings fall.

Column 1	Column 2
Amount of pensionable earnings	Contribution rate
Up to 19,682	5%
£19,683 to £65,002	6.5%
£65,003 to £102,499	7.5%
£102,500 to any higher amount	8.5%

(3) The Scottish Ministers may make a determination substituting any or all of the pensionable earnings amounts or contribution rates specified in the table in paragraph (2) with effect from a date specified in the determination.

(4) Before making a determination under paragraph (3), the Scottish Ministers must consider–

(a) the advice of the scheme actuary; and

(b) in accordance with regulation 1.B.2 (cost sharing), advice from such employee and employer representatives as the Scottish Ministers consider appropriate.

(5) If a practitioner commences practitioner service for the first time (having no earlier practitioner service or earlier Officer service) at any time during the 2008–2009 scheme year–

(a) that practitioner’s pensionable earnings in respect of that scheme year is the amount agreed between the contracting Health Board or person acting on its behalf on the one hand and the practitioner on the other hand as representing their estimate of practitioner’s pensionable earnings from all practitioner sources for that year; and

(b) contributions payable for that part year are those specified in column 2 of the table in paragraph (2) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to those estimated earnings.

(6) If a practitioner–

(a) commences further practitioner service (“the later service”) at any time during the 2008–2009 scheme year;

(b) at the time of commencing that later service–

(i) has other practitioner service as a practitioner in respect of which he or she is liable to pay contributions in accordance with paragraph (5); or

(ii) had previously been, but no longer is, in other practitioner service in respect of which he or she was liable to pay contributions in accordance with paragraph (5), (“the earlier service”); and

(c) regardless of whether or not the practitioner also is, or previously also was, in NHS employment under Part 2 of these Regulations during the 2008–2009 scheme year,

the practitioner must pay contributions in respect of the later service at the rate determined in accordance with paragraph (5) in respect of the earlier service.

(7) If a practitioner–

(a) commences practitioner service as a practitioner (“the later service”) at any time during the 2008–2009 scheme year; and

(b) regardless of whether or not the practitioner also is, or previously also was, in NHS employment under Part 2 of these Regulations during the 2008–2009 scheme year,

the practitioner must pay contributions in respect of the later service at the rate determined in accordance with paragraph (5) in respect of the earlier service.

(8) If a practitioner–

(a) commences practitioner service as a practitioner (“the later service”) at any time during the 2008–2009 scheme year;

(b) at the time of commencing that later service had not been in any other practitioner service;

(c) prior to commencing that later service has been in NHS whole-time or part time employment in respect of which he or she was liable to pay contributions to the scheme as an officer in accordance with regulation 2.C.2 (“the earlier service”); and

(d) had ceased all those earlier officer services prior to commencing the later service,

the practitioner must pay contributions in respect of the later service at the rate determined in accordance with paragraph (5) of this regulation in respect of the earlier service.

(9) Where paragraph (8) applies and the practitioner had 2 or more earlier officer services, that practitioner shall pay contributions in respect of the later service referred to in paragraph (8)(a) at the rate determined–

(a) in accordance with regulation 2.C.2 in respect of whichever of the earlier officer services is the last to cease; or

(b) where all of those earlier officer services, or the last 2 or more of them, cease on the same day, in accordance with paragraph (5).

(10) Where paragraph (8) applies the practitioner must pay contributions in respect of the later service referred to in paragraph (8)(a) at the rate determined in accordance with paragraph (5).

(11) If, apart from this paragraph, the earnings for a scheme year in respect of a member’s whole-time employment would not be a whole number of pounds, it must be rounded down to the nearest whole pound.

(12) If, in the 2008–2009 scheme year a member is in practitioner service and concurrently in NHS employment in respect of which he or she is liable to pay contributions in accordance with regulation 2.C.2, contributions payable in respect of the member’s practitioner service are determined under this Part and contributions payable in respect of the member’s NHS employment are determined under Part 2.

Contributions by employing authorities: general

3.C.3

(1) Each employing authority must contribute to the scheme, in respect of each person who is an active member of the scheme in an employment with the authority, at such a rate as the Scottish Ministers specify from time to time.

(2) In specifying such a rate, the Scottish Ministers must take account of the cost of providing for any increase in pensions under the scheme as a result of orders made under the provisions of the Pensions (Increase) Act 1971 and section 59 of the Social Security Pensions Act 1975[^f00133].

(3) Any contributions payable under this regulation must be paid to the Scottish Ministers.

(4) If for any period a person holds more than one employment with an employing authority in respect of which the person is an active member of the scheme, this regulation applies in respect of each of those employments as if it were the only employment held.

(5) The rate for the period commencing on 1st April 2008 and ending on 31st March 2009 is 14.0 per cent.

Guarantees, indemnities and bonds

3.C.4

(1) This regulation applies if–

(a) an employing authority fails to pay contributions in accordance with regulation 3.C.3; and

(b) the authority is–

(i) a GMS practice;

(ii) an HBPMS practice;

(iii) a section 17C agreement provider; or

(iv) an OOH provider.

(2) The Scottish Ministers may require the authority to have in force a guarantee, indemnity or bond which provides for payment to the Scottish Ministers, should that authority fail to meet them, of all future liabilities of the authority under–

(a) these Regulations; or

(b) the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998[^f00134].

(3) The guarantee, indemnity or bond must be in such form, in respect of such an amount and provided by such a person as the Scottish Ministers approve for the purpose.

Payment of Contributions

3.C.5

(1) Contributions under this part must be paid in respect of all periods of practitioner service–

(a) until the member completes 45 years pensionable service; or

(b) where the notice required by regulation 3.A.3(3) (meaning of “pensionable service”) has been received, until the member ceases practitioner service.

(2) Except where paragraph ( 3) applies, principal practitioners must pay C1 contributions to the contracting Health Board or someone appointed to act on its behalf, and dental practitioners must pay such contributions to the Common Services Agency for the Scottish Health Service[^f00135].

(3) Where a principal practitioner is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority must–

(a) deduct C1 contributions from any pensionable earnings it pays to him or her; and

(b) where it is not also the contracting Health Board, pay those contributions to that Health Board or to someone appointed to act on their behalf.

(4) Subject to paragraph (5), where a principal practitioner is–

(a) an employing authority which is a GMS practice, a section 17C provider or an HBPMS contractor; or

(b) a shareholder or partner in such an employing authority,

that employing authority must pay C3 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(5) Where the principal practitioner is a shareholder or partner in more than one employing authority referred to in sub-paragraph (4), each employing authority must pay C3 contributions on any pensionable earnings it pays to the practitioner or, as the case may be, on the practitioner’s share of the partnership profits, to the contracting Health Board, or someone appointed to act on its behalf.

(6) If paragraph (3) applies (but paragraph (4) does not) and the employing authority referred to in that paragraph is–

(a) not the contracting Health Board, that authority must pay C3 contributions to that Board; or

(b) is the contracting Health Board that Board must pay C.3 contributions to the Scottish Ministers in respect of any pensionable earnings it pays to him or her.

(7) Where an assistant practitioner (other than a locum practitioner) is engaged under a contract of service or for services by an employing authority, that authority must–

(a) deduct C1 contributions from any pensionable earnings it pays to the assistant practitioner; and

(b) where it is not also the contracting Board, pay those contributions to that Board, or someone appointed to act on its behalf.

(8) In the cases of an assistant practitioner, if paragraph (7) applies, and the employing authority referred to in that paragraph–

(a) is not the contracting Health Board, that authority must pay C3 contributions to the contracting Health Board or to someone appointed to act on its behalf; or

(b) is the contracting Health Board that Board must pay C1 and C3 contributions to the Scottish Ministers in respect of any pensionable earnings it pays to such a practitioner.

(9) Locum practitioners must pay C1 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(10) If a locum practitioner is liable to pay contributions under paragraph (9) in respect of pensionable locum work done for an employing authority which is not–

(a) the contracting Health Board;

(b) a GMS practice;

(d) an HBPMS contractor,

that employing authority must pay C1 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(11) If contributions are payable by a locum practitioner under sub-paragraph (9) in respect of pensionable locum work carried out for an employing authority which is–

(a) a contracting Health Board;

(b) a GMS practice;

(d) an HBPMS contractor,

the contracting Health Board must pay C3 contributions in respect of such a practitioner.

(12) C1 Contributions that are required to be paid to the contracting Health Board in accordance with this regulation must be paid to that Board or someone appointed on its behalf not later than the 7th day of the month following the month in which the earnings were paid.

(13) Where an employing authority–

(a) is not the contracting Health Board, it shall be a function of that employing authority to provide the contracting Board or someone appointed to act on its behalf, with a record of any–

(i) pensionable earnings paid by it to a practitioner; and

(ii) contributions deducted by it in accordance with paragraph (3) or (7),

not later than the 7th day of the month following the month in which the earnings were paid; or

(b) is the contracting Health Board, or someone appointed on its behalf, that has deducted contributions in accordance with paragraph (3) or (7) and is liable to pay C3 contributions in respect of any pensionable earnings it pays to a practitioner, it shall be a function of that Board to maintain a record of–

(i) the matters referred to in sub-paragraph (a) (i) and (ii);

(ii) any contributions paid to it by a principal practitioner; and

(iii) any contributions paid to it by a locum practitioner.

(14) It shall be a function of the contracting Health Board, or someone appointed to act on its behalf, to pay the contributions–

(a) paid to it by a principal practitioner or locum practitioner;

(b) paid to it by another employing authority; and

in accordance with the provisions of this paragraph, to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid.

(15) Without prejudice to any other method of recovery, in respect of C1 contributions, if–

(a) a principal practitioner, assistant practitioner or locum practitioner has failed to pay contributions; or

(b) an employing authority has failed to deduct such contributions,

in accordance with this paragraph, the Scottish Ministers may recover any sum that remains due in respect of those contributions by deduction from any payment by way of benefits to, or in respect of, the member entitled to them if the circumstances in paragraph (16) are met.

(16) The conditions described in paragraph (15) are that–

(a) the member agrees to such a deduction; and

(b) the deduction is to the member’s advantage.

(17) For the purposes of this regulation–

(a) “C1 contributions” means contributions payable under regulation 3.C.1 by a practitioner under the scheme; and

(b) “C3 contributions” means contributions payable under regulation 3.C.3 by an employing authority in respect of a practitioner.

Additional contributions to purchase additional pensions

Member’s option to pay additional periodical contributions to purchase additional pension

3.C.6

(1) An active member may opt to make additional periodical contributions by monthly instalments during the contribution option period–

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for 3 or 6 months under Chapter 3E (death benefits)); or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 3E (death benefits) in respect of the member.

(2) A member may exercise an option under paragraph (1) more than once.

(3) If a member exercises an option under paragraph (1), any regular additional contributions must be deducted from the member’s earnings, and paid to the Scottish Ministers, in the same manner as is specified in respect of C1 contributions (within the meaning of regulation 3.C.5) in relation to that member.

(4) The annual amount of the periodical contributions payable at the beginning of the contribution option period must not be–

(a) less than the minimum amount; or

(b) an amount other than a multiple of the minimum amount.

(5) In paragraph (4) “the minimum amount” means the amount that would, in accordance with tables prepared for the Scottish Ministers by the scheme actuary for the scheme year in which the contributions are paid, be the amount of the contributions required to secure an increase in the member’s pension of–

(a) £250; or

(b) such other amount as the Scottish Ministers may for the time being determine,

assuming that the contributions are made in accordance with the option for the remainder of the option period.

(6) The tables referred to in paragraph (5)–

(a) may specify different amounts for different descriptions of members; and

(b) may be amended during a scheme year,

but no such amendment affects the contributions payable during that year under any option, except an option under which contributions begin to be paid after the date on which the amendment takes effect.

(7) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of–

(a) contributions made under regulation 3.C.8; or

(b) contributions made under regulation 3.C.9,

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine (taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 2.C.8 to 2.C.17).

(8) In this Part “the contribution option period”, in relation to an option under this regulation, means a period of whole years, that–

(a) is specified in the option;

(b) begins with the pay period in respect of which the first contribution is made under the option;

(d) does not end later than the member’s 65th birthday.

Effect of member being absent or leaving and rejoining the scheme during the contribution option period

3.C.7

(1) This paragraph applies if during the contribution option period a member who has exercised the option under regulation 3.C.6–

(a) is absent from work because of illness or injury;

(b) is on maternity leave;

(d) is on paternity leave;

(e) is on parental leave; or

(f) is on a leave of absence of the kind mentioned in regulation 3.A.4(3).

(2) If paragraph (1) applies–

(a) the contributions under the option continue to be payable unless the member ceases paying contributions under regulation 3.C.1; and

(b) if the member does so cease, the member may continue to make contributions in accordance with the option if the member resumes making contributions under regulation 3.C.1 before the end of the period of 12 months beginning with the day on which the member first ceased to pay those contributions.

(3) This paragraph applies if–

(a) a member exercises the option under regulation 3.C.6;

(b) the member ceases to be an active member during the contribution option period; and

(c) the member becomes an active member again before the end of the period of 12 months beginning with the day on which the member ceased to be an active member.

(4) If paragraph (3) applies, the member may continue to make contributions in accordance with the option after becoming an active member again unless a repayment of contributions has been made to the member under regulation 3.C.16.

(5) For the purposes of paragraph (4) it does not matter whether the member has paid any of the repaid contributions back to the Scottish Ministers.

Member’s option to pay lump sum contribution to purchase additional pension

3.C.8

(1) An active member may opt to make a single lump sum contribution–

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for 3 or 6 months under Chapter 3.E (death benefits)); or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 3.E (death benefits) in respect of the member.

(2) A member may only make a contribution under this regulation of an amount that is–

(a) not less than the minimum amount; and

(b) in the case of an amount exceeding the minimum amount, a multiple of the minimum amount.

(3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the Scottish Ministers by the scheme actuary, the amount of the single contribution required at the time that the option is exercised to secure an increase in the member’s pension of–

(a) £250; or

(b) such other amount as the Scottish Ministers may for the time being determine.

(4) A member may exercise the option under paragraph (1) more than once.

(5) If a member exercises an option under paragraph (1)–

(a) the additional contribution is payable by the member to the employing authority–

(i) by deduction from the member’s earnings or otherwise; and

(ii) before the end of the period of one month beginning with the day on which the member is notified by the Scottish Ministers that the option is accepted; and

(b) the employing authority must pay it to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid or, as the case may be, the authority received payment of the contribution.

(6) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of–

(a) contributions made under regulation 3.C.6; or

(b) contributions made under regulation 3.C.9,

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with the regulations 2.C.8 to 2.C.17.

Payment of additional lump sum contributions by employing authority

3.C.9

(1) The employing authority of an active member may opt to make a single lump sum contribution–

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for 3 or 6 months under Chapter 3.E (death benefits)); or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 3.E (death benefits) in respect of the member.

(2) An employing authority may only make a contribution under this regulation of an amount that is–

(a) not less than the minimum amount (as defined in regulation 3.C.8(3)); and

(b) in the case of an amount exceeding the minimum amount, a multiple of the minimum amount (as so defined).

(3) An employing authority may only exercise the option under paragraph (1) with the member’s consent, but may exercise it more than once in respect of the same member.

(4) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of–

(a) contributions made under regulation 3.C.6; or

(b) contributions made under regulation 3.C.8,

(5) A contribution under this regulation must be paid by the employing authority to the Scottish Ministers within one month of the date on which the authority gave the Scottish Ministers notice under regulation 3.C.10(2).

Exercise of options under regulations 3.C.6, 3.C.8 and 3.C.9

3.C.10

(1) A member exercising an option under regulation 3.C.6 or 3.C.8 must do so by giving notice in writing to the employing authority, giving such information as may be required and must at the same time provide the Scottish Ministers with a copy of that notice.

(2) An employing authority exercising an option under regulation 3.C.9 must do so by giving notice in writing to the Scottish Ministers, giving such information as may be required.

(3) An option under regulation 3.C.6, 3.C.8 or 3.C.9 may not be exercised during a period whilst the member is absent from work for any reason.

(4) For the purposes of this Part–

(a) a member is treated as exercising an option under regulation 3.C.6 or 3.C.8 on the date on which the employing authority receives the member’s notice under paragraph (1); and

(b) an employing authority is treated as exercising an option under regulation 3.C.9 on the date on which the Scottish Ministers receive the authority’s notice under paragraph (2).

(5) The Scottish Ministers may refuse to accept an option exercised under regulation 3.C.6, 3.C.8 or 3.C.9 and must do so if not satisfied that–

(a) the member is in good health; and

(b) in the case of an option exercised under regulation 3.C.6, there is no reason why the member’s health should prevent the member from paying the contributions for the whole contribution period.

(6) If the Scottish Ministers refuse to accept such an option–

(a) the Scottish Ministers must give notice in writing of that fact–

(i) in the case of an option exercised under regulation 3.C.6 or 3.C.8, to the member; and

(ii) in the case of an option exercised under regulation 3.C.9, to the employing authority and the member; and

(b) this Part applies as if the option had not been exercised.

(7) These Regulations also apply as if an option under regulation 3.C.8 or 3.C.9 had not been exercised if–

(a) in the case of an option under regulation 3.C.8, the payment is not received by the employing authority–

(i) before the end of the period of one month beginning with the day on which the Scottish Ministers notify the member of the acceptance of the option; or

(ii) if it is earlier, on or before the member’s 65th birthday; and

(b) in the case of an option under regulation 3.C.9, the payment is not received by the Scottish Ministers–

(i) before the end of the period of one month beginning with the day on which the authority gave the Scottish Ministers notice under paragraph (2); or

(ii) if it is earlier, on or before the member’s 65th birthday.

Cancellation of options under regulation 3.C.6

3.C.11

(1) A member may cancel an option under regulation 3.C.6(1) by giving the employing authority notice in writing.

(2) If a member cancels such an option, the additional periodical contributions cease to be payable for the first pay period beginning after the date on which the employing authority receives the notice and all subsequent pay periods.

(3) If it appears to the Scottish Ministers that the requirement in regulation 3.C.6(7) will not be met if the member continues to make periodical contributions under an option exercised under regulation 3.C.6, the Scottish Ministers may cancel the option by giving the member notice in writing.

(4) If the Scottish Ministers cancel such an option, the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods.

Effect of payment of additional contributions under this Chapter

3.C.12

(1) This regulation applies if–

(a) an option is exercised by a member under regulation 3.C.6 and all the contributions to be made under the option are made; or

(b) an option is exercised by a member under regulation 3.C.8 or by a member’s employing authority under regulation 3.C.9 and the lump sum payment is made.

(2) Subject to paragraph (9) the member’s pension is increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 3.C.15.

(3) Paragraph (2) is without prejudice to any increase or reduction falling to be made in the total amount of the member’s pension under Chapter 3.D (members' retirement benefits) as a result of the member becoming entitled to payment of the pension before or after reaching the age of 65 (see regulations 3.D.3 to 3.D.5).

(4) In the case of an option under regulation 3.C.6(1)(b), 3.C.8(1)(b) or 3.C.9(1)(b), any pension payable under Chapter 3.E (death benefits) in respect of the member is increased by the appropriate amount.

(5) In paragraph (4), subject to regulations 3.C.13 and 3.C.14(3), “the appropriate amount” means–

(a) in the case of a pension under regulation 3.E.1 (surviving adult dependant’s pension) the amount of which is determined under regulation 3.E.3 (active members) or 3.E.5 (deferred members), 37.5 per cent of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3));

(b) in the case of a pension under regulation 3.E.1 the amount of which is determined under regulation 3.E.4 (pensioner members), 37.5 per cent of the amount of the increase in the member’s pension under paragraph (2) as a result of the option;

(c) in the case of a pension under regulation 3.E.8 (surviving children’s pension) the amount of which is determined under regulation 3.E.10 (amount of children’s pension under regulation 3.E.8: deceased active members) or 3.E.12 (amount of children’s pension under regulation 3.E.8: deceased deferred members), the appropriate fraction (within the meaning of regulation 3.E.10 or, as the case may be, 3.E.12) of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)); and

(d) in the case of a pension under regulation 3.E.8 the amount of which is determined under regulation 3.E.11 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75 per cent of the amount of the increase in the member’s pension as a result of the option.

(6) Except as provided in regulation 3.D.5 (partial retirement (members aged at least 55), no separate claim is required as respects any additional pension payable by virtue of this regulation.

(7) This regulation is subject to regulation 3.C.13.

(8) For the effect of the options under regulation 3.C.6 where this regulation does not apply, see regulation 3.C.14 (effect of part payment of periodical contributions).

(9) Paragraph (10) applies only to an option under regulation 3.C.6(1)(a), 3.C.8(1)(a) or 3.C.9(1)(a), where a pension is to be paid for either 3 or 6 months at the same rate as the member’s pension was being paid at the date of that member’s death.

(10) Any increase to the member’s pension shall be included only in a benefit payable to a surviving partner or a dependent child in respect of the member under these Regulations whilst it is being paid at the rate and for the duration of one of the periods referred to in paragraph (9).

Effect of death or early payment of pension after option exercised under regulation 3.C.6, 3.C.8 or 3.C.9

3.C.13

(1) If a member in respect of whom an option under regulation 3.C.6, 3.C.8 or 3.C.9 has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised–

(a) an amount equal to the contributions paid under the option must be paid–

(i) in the case of an option under regulation 3.C.6 or 3.C.8, to the member’s personal representatives; and

(ii) in the case of an option under regulation 3.C.9, to the employing authority which made the contribution; and

(b) regulation 3.C.12(4) does not apply.

(2) If a member in respect of whom an option under regulation 3.C.6 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation 3.C.12(4) applies as if all contributions due after the date of death had been made.

(3) If a member in respect of whom an option under regulation 3.C.6, 3.C.8 or 3.C.9 has been exercised becomes entitled to a pension under regulation 3.D.7 (early retirement on ill health (active members)) as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised–

(a) regulation 3.C.12(2) and (4) does not apply; and

(b) an amount equal to the contributions paid under the option must be paid–

(i) in the case of an option under regulation 3.C.6 or 3.C.8, to the member; and

(ii) in the case of an option under regulation 3.C.9, to the employing authority which made the contribution.

(4) If a member in respect of whom an option under regulation 3.C.6 has been exercised becomes entitled to a pension under regulation 3.D.7 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 3.C.12(2) and (4) applies as if all contributions under the option had been made.

(5) If a member in respect of whom an option under regulation 3.C.6, 3.C.8 or 3.C.9 has been exercised–

(a) becomes entitled to a pension under regulation 3.D.4 (early payment of pensions with actuarial reduction) or 3.D.9 (early retirement on ill health (deferred members)); or

(b) becomes entitled to a pension under regulation 3.D.5 before reaching the age of 65,

the increase in the member’s pension under Chapter 3.D which would otherwise be due under regulation 3.C.12(2) or (4) is reduced.

(6) The amount of the reduction is such amount as the Scottish Ministers determine, after consulting the scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.

(type=start time=12244950810517type=end time=1224495081051) This regulation is subject to regulation 3.C.14.

Effect of part payment of periodical contributions

3.C.14

(1) This regulation applies if–

(a) the full number and amount of contributions due under an option under regulation 3.C.6 for the whole contribution option period are not made; and

(b) regulation 3.C.13(1) to (4) does not apply.

(2) The increase in the member’s pension under Chapter 3.D is the appropriate proportion of the increase that would have been made under regulation 3.C.12(2) if the full number and amount of contributions had been made (but taking account of regulation 3.C.13(5) if that applies).

(3) In the case of an option under regulation 3.C.6(1)(b), the increase in any benefit payable under Chapter 3.E (death benefits) in respect of the member is the appropriate proportion of the increase that would have been made under regulation 3.C.12(4) if the full number and amount of contributions had been made (but taking account of regulation 3.C.13(5) if that applies).

(4) For the purposes of paragraphs (2) and (3), the appropriate proportion is calculated in accordance with such method as the scheme actuary may determine and specify in guidance given to the Scottish Ministers.

(5) In making a determination under paragraph (4), the scheme actuary must have regard to–

(a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation 3.C.6 for the whole contribution option period; and

(b) the preservation requirements.

Revaluation of increases bought under options: members' pensions

3.C.15

(1) This regulation applies for the purposes of determining the final amount of the increase in a member’s pension as a result of the exercise of an option under regulation 3.C.6, 3.C.8 or 3.C.9.

(2) The amount of that increase immediately before the beginning date for that pension is found as follows–

Step 1– calculate the amount of the increase in accordance with regulations 3.C.14 to 3.C.16 immediately before that date (“the basic amount”);

Step 2– multiply the basic amount by the retail prices index for the second month before that in which the person becomes entitled to it, to find the Step 2 amount;

Step 3– divide the Step 2 amount by the retail prices index for the month in which the option was exercised to find the Step 3 amount;

Step 4– add to the Step 3 amount any amount by which the Step 3 amount would be increased under the Pensions (Increase) Act 1971 if it were the amount of the member’s pension, to find the Step 4 amount;

Step 5– divide the Step 4 amount by the Step 3 amount to find the Step 5 factor; and

Step 6– divide the Step 3 amount by the Step 5 factor to find the adjusted basic amount.

(3) The amount of the increase in a member’s pension as a result of the exercise of an option under regulation 3.C.6, 3.C.8 or 3.C.9 as at the beginning date for that pension is–

(a) if the adjusted basic amount is greater than the basic amount, the adjusted basic amount; and

(b) otherwise the basic amount.

(4) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) (meaning of “pension” and other supplementary provisions) of that Act).

Repayment of contributions

3.C.16

(1) The contributions made by a member under this Chapter are not repayable in any circumstances except if–

(a) paragraph (2) applies; or

(b) Chapter 5 of Part 4 of the 1993 Act (early leavers: cash transfer sums and contribution refunds) applies and the payment is made in accordance with that Chapter.

(2) This paragraph applies if–

(a) a person who is not a pensioner member ceases to be an active member and does not continue to be, or become, an active member for the purposes of Part 2 within 12 months of ceasing practitioner service;

(b) the person does not fall within regulation 3.D.1(2)(a) to (d) (former members entitled to a pension);

(d) the person claims repayment of contributions under this regulation by applying in writing to the Scottish Ministers.

(3) If paragraph (1)(b) applies, the person is entitled to be paid the amount to which the person is entitled under Chapter 5 of Part 4 of the 1993 Act, less–

(a) such part of any contributions equivalent premium paid in respect of the person as is permitted by or under section 61 (deduction of contributions equivalent premium) of the 1993 Act; and

(b) an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act as a result of the repayment.

(4) If paragraph (2) applies, the person is entitled to be paid an amount equal to the sum of the contributions made by the person under this Chapter, less the amounts mentioned in paragraph (3)(a) and (b).

(5) If a repayment is made under this regulation, the member’s rights under the scheme are extinguished unless the person or the person’s spouse or civil partner is entitled to a guaranteed minimum pension under the scheme and a contributions equivalent payment has not been paid.

(6) A person–

(a) who is entitled to a repayment of contributions under this regulation; and

(b) whose pensionable service did not cease because the person’s employment was terminated at the person’s request,

is entitled to interest on the amount of the repayment unless the person’s pensionable service ceased because the person’s employment was terminated by reason of misconduct or inefficiency.

(7) Subject to paragraphs (8) and (9), the interest is calculated on a compound basis at the rate of 2.5 per cent per year, with yearly rests, for the period starting on 1st April after the contributions were paid and ending with the day the member leaves pensionable service.

(8) Paragraph (7) does not apply if paragraph (1)(b) applies and the person is entitled to a greater amount of interest under Chapter 5 of Part 4 of the 1993 Act.

(9) So far as the contributions were paid under another scheme and were included in a transfer payment to the scheme–

(a) interest for the period before the transfer payment was made is calculated in accordance with the scheme making the transfer payment (subject to any provision made in any enactment applicable to the transfer); and

(b) paragraph (7) does not apply as respects that period.

CHAPTER 3.D — MEMBERS' RETIREMENT BENEFITS

Entitlement to pensions

Normal retirement pensions

3.D.1

(1) The general rule is that a member is entitled to a pension payable for life in respect of any period of pensionable service (“the relevant service”) if the member–

(a) has reached the age of 65; and

(b) either–

(i) has ceased to be employed in NHS employment and has claimed payment of the pension; or

(ii) will reach the age of 75 on the next day.

This is subject to paragraph (2) and the following provisions of this Part.

(2) A person to whom paragraph (1) applies is not entitled to a pension under this regulation unless–

(a) the member is entitled to count at least 2 years of qualifying service in respect of the relevant service;

(b) a transfer value payment has been accepted by the scheme during the relevant service under Chapter 3.F (transfers), otherwise than from an occupational pension scheme;

(c) the member is entitled to a pension under this regulation in respect of any previous period of pensionable service; or

(d) the member has reached the age of 65.

(3) A pension to which a member is entitled under this regulation becomes payable immediately the member becomes entitled to it.

(4) The–

(a) amount of the annual pension payable to a practitioner member under this regulation (disregarding any additional pension) will be equal to 1.87 per cent of the member’s uprated earnings; and

(b) member’s uprated earnings are to be calculated by uprating the member’s pensionable earnings by the amount of the annual increase due under the provisions of the Pensions (Increase) Act 1971 and section 59 of the Social Security Pensions Act 1975, plus 1.5 per cent annually.

(5) A claim referred to in paragraph (1)(b)(i) and made by notice in writing in accordance with regulation 3.J.2. (claims for benefits) takes effect from the date received by the Scottish Ministers.

(6) This regulation does not apply to pensions derived from pension credit rights.

(7) In this Chapter “NHS employment” includes employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967[^f00136].

Pension credit members

3.D.2

(1) The general rule is that a pension credit member is entitled to a pension for life derived from the member’s pension credit rights if the member has reached 65 and has claimed payment of the pension.

(2) The pension becomes payable–

(a) when the pension credit member reaches 65; or

(b) if it is later, when the pension sharing order under which the member is entitled to the pension credit takes effect.

(3) The pension must be of such an amount that its value is equal to the member’s pension credit, as calculated in accordance with regulations made under paragraph 5(b) (appropriate rights) of Schedule 5 to the 1999 Act.

(4) A claim under paragraph (1) must be made by notice in writing in such form as the Scottish Ministers require and takes effect from the date specified in the claim as the date on which the pension is to become payable.

Late payment of pension with actuarial increase

3.D.3

(1) This regulation applies if a member becomes entitled to immediate payment of pension under regulation 3.D.1 after reaching the age of 65.

(2) So much of the amount of the pension to which the member would otherwise be entitled under that regulation (before any commutation under regulation 3.D.10) as is attributable–

(a) to the member’s pensionable service before that age; or

(b) to any contributions paid under regulations 3.C.6 or 3.C.9 before that age,

is increased.

(3) The amount of the increase must be calculated in accordance with guidance and tables provided by the scheme actuary to the Scottish Ministers for the purposes of this regulation.

(4) In preparing that guidance and those tables the scheme actuary must use such factors as the scheme actuary considers appropriate, having regard, in particular, to the period after reaching the age of 65 before the member becomes entitled to immediate payment of the pension and the life expectancy of the member.

Early payment of pension with actuarial reduction

3.D.4

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

(a) has reached the age of 55;

(b) meets the condition in regulation 3.D.1(2)(a) or (b);

(d) has claimed payment of the pension.

(2) The amount of the annual pension under this regulation is calculated in the following way–

(a) as mentioned in regulation 3.D.1(4) (and, if additional pension is payable, in accordance with regulation 3.C.12(2) or 3.C.14(2)); and

(b) that amount is reduced by such amount as the Scottish Ministers determine, after consulting the scheme actuary, to be appropriate by reason of the payment of the pension before the member reaches 65.

(3) A claim under paragraph (1) must be made by notice in writing in such form as the Scottish Ministers require and takes effect–

(a) in the case of a deferred member, from the date specified in the claim as the date on which the pension is to become payable; and

(b) in the case of an active member, from the day immediately following the day on which the member ceased to be employed in NHS employment.

(4) A member is not entitled to a pension under this regulation if the Scottish Ministers determine, having taken advice from the scheme actuary, that the pension, as reduced under paragraph (1), would be insufficient to meet their liability to provide a guaranteed minimum pension.

Partial retirement (members aged at least 55)

3.D.5

(1) An active member may exercise an option under this regulation if–

(a) the member has reached the age of 55 and continues to be employed in the employment in which the member is an active member, or where the member has more than one such employment, in at least one of those employments;

(b) the member would be entitled to a pension for life, by virtue of regulation 3.D.1(1)(b)(i) and not regulation 3.D.1(1)(b)(ii), if the member had–

(i) reached the age of 65;

(ii) ceased to be so employed; and

(iii) claimed payment of the pension;

(d) as a result of that change, the member’s engagement in such employment reduces to 90 per cent or less of its pre-change level.

(2) The option may only be exercised by notice in writing in such form as the Scottish Ministers require and must be accompanied by–

(i) appropriate supporting evidence; and

(ii) a statement in writing approved by the contracting Health Board or someone appointed on its behalf that the conditions in paragraph (1)(c) and (d) are met.

(3) The option must specify–

(a) the percentage of the member’s pension (excluding any additional pension) in respect of which the member claims immediate payment (“the specified percentage”); and

(b) whether the member claims immediate payment of additional pension (if any).

(4) A member who duly exercises the option under this regulation is entitled–

(a) in the case of a member who has reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 3.D.1 if the member had ceased to be employed in all his or her employments on the option day (disregarding any additional pension, but subject to any increase under regulation 3.D.3);

(b) in the case of a member who has not reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 3.D.4 if the member had ceased to be employed in all his or her employments on the option day (disregarding any additional pension); and

(c) if the option specifies that the member claims immediate payment of additional pension, the additional pension, subject–

(i) in a case within sub-paragraph (a), to an increase of the same percentage as would be made in that pension under regulation 3.D.3 if the member had ceased to be employed on the option day; and

(ii) in a case within sub-paragraph (b), to a reduction of the same amount as would have been made in that pension under regulation 3.D.4 if the member had so ceased.

(5) The specified percentage must be such that–

(a) the pension to which the member becomes entitled as a result of the option (before the exercise of the option under regulation 3.D.10 and disregarding any additional pension)–

(i) is not less than 20 per cent of the pension that would have been payable if the member had ceased to be employed in all his or her employments at the end of the option day (disregarding any additional pension); and

(ii) taken together with any such increase to which the member becomes entitled as a result of the option (before any such commutation), is not less than 0.05 per cent of the member’s lifetime allowance on the option day;

(b) the percentage of the pension (other than additional pension) in respect of which the member does not require immediate payment is not less than 20 per cent of the amount of the pension that would have been payable if the member had ceased to be employed in all his or her employments at the end of the option day (disregarding any additional pension).

(6) The option under this regulation may only be exercised on no more than 2 occasions and the Scottish Ministers must take advice from the scheme actuary regarding–

(a) any benefits to be paid after the exercise of the first option (but before the exercise of the second option);

(b) any benefits to be paid after the exercise of any second option; and

(7) For the purposes of–

(a) paragraph (1) and regulation 3.D.6, “pre-change level” means the level of the member’s engagement in the employment referred to in paragraph (1)(a) during the period of 12 months ending with the option day; and

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