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The National Health Service Pension Scheme (Scotland) Regulations 2015

Type Scottish-Statutory-Instrument

Publication 2015-03-02

Last updated 2025-10-31

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(b) without such agreement, if the Health Board (or someone appointed to act on its behalf) is satisfied that M's pensionable earnings will exceed the amount used to determine the contribution rate.

CHAPTER 2 — Refund: short service

Eligibility for refund

39

(1) Contributions made by a member (M) may be repaid to M only if—

(a) the 1993 Act condition applies; or

(b) the short service condition applies.

(2) The “1993 Act condition” is that—

(a) Chapter 2 of Part 4ZA of the 1993 Act applies to M; and

(b) the repayment is made in accordance with that Chapter.

(3) The short service condition applies if—

(a) M has not attained normal pension age;

(b) M does not qualify for benefits under regulation 71;

(d) M ceases to be an active member;

(e) the 1993 Act condition does not apply to M; and

(f) M makes a claim in writing to the scheme manager for the repayment.

Amount of refund

40

(1) The amount of a repayment to a member (M) pursuant to regulation 39 is—

(a) if the 1993 Act condition applies, the amount which M is entitled to be paid pursuant to Chapter 2 of Part 4ZA of that Act, less the appropriate deductions;

(b) if the short service condition applies, an amount equal to the sum of the contributions paid by M, less the appropriate deductions.

(2) The appropriate deductions are—

(a) so much of the contributions equivalent premium paid in respect of M as is permitted pursuant to section 61 of the 1993 Act; and

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

(3) M is entitled to interest on the amount of the repayment unless M's pensionable service ceases because M's employment is terminated—

(a) pursuant to M's contract of employment;

(b) at M's request; or

(4) The rate of interest is 2.5% per year calculated on a compound basis with yearly rests.

(5) Interest is payable in respect of the period starting on 1st April following the day when M started to pay contributions and ending on the day M leaves pensionable service.

(6) Paragraphs (4) and (5) do not apply if—

(a) regulation 39(1)(a) applies; and

(b) M is entitled to a greater amount of interest under Chapter 2 of Part 4ZA of the 1993 Act.

(7) So far as contributions paid by M were paid under another scheme and were included in a transfer payment to this scheme—

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

(b) paragraphs (4) and (5) do not apply as respects that period.

Effect of refund

41

(1) If a repayment of contributions is made pursuant to regulation 39, the rights of the member (M) under this scheme are extinguished unless—

(a) M or M's spouse or civil partner is entitled to a guaranteed minimum pension under the scheme; and

(b) no contributions equivalent payment has been paid.

(2) Paragraph (1) does not apply if—

(a) M again becomes a member of this scheme; and

(b) before the end of the period of 6 months starting on the date M again becomes a member, M repays to the scheme manager the contributions together with any interest paid in respect of them.

CHAPTER 3 — Buy-out: actuarial reduction

Eligibility to make a buy-out election

42

(1) A member (M) who has a prospective normal pension age over 65 may elect to pay contributions to buy out the actuarial reduction (“buy-out election”) in accordance with this Chapter.

(2) A buy-out election ceases to have effect when the earliest of the following occurs—

(a) M reaches normal pension age;

(b) a retirement pension other than a partial retirement pension becomes payable to M;

(3) A buy-out election may only be made before the end of the period of 3 months after—

(a) M enters pensionable service under this scheme in accordance with paragraph (3A); or

(b) the beginning of a subsequent scheme year.

(3A) For the purposes of paragraph (3)(a), M is treated as entering pensionable service on each occasion that an active member’s account is established in respect of that service in accordance with regulation 24(1)(a).

(4) When making a buy-out election, M must—

(a) be in pensionable service; and

(b) not have reached normal pension age.

(5) M may make an election under this regulation on one occasion only during each period of pensionable service in respect of which an active member’s account is established in accordance with regulation 24(1)(a).

Making and varying a buy-out election

43

(1) A buy-out election made by a member (M) must state the number of years in respect of which the actuarial reduction is to be bought out.

(2) The number of years—

(a) must not exceed 3 or (if less) the number of years from the date of M's 65th birthday until M's prospective normal pension age; and

(b) must be a whole number of years unless—

(i) M's prospective normal pension age is expressed otherwise than as a whole number of years; or

(ii) the scheme manager (having considered the advice of the scheme actuary) considers in M's circumstances it is unreasonable to restrict the period to whole years.

(3) A buy-out election must be made by written notice to the scheme manager.

(4) The notice of election must—

(a) if M is a member of this scheme by virtue of more than one employment, specify the names of each of the employing authorities; and

(b) be in such form and provide such other information as the scheme manager requires.

(5) The scheme manager may ask M to provide further information.

(6) M may by written notice to the scheme manager vary a buy-out election to increase the period for which the actuarial reduction is bought out at any time before a retirement pension becomes payable to M.

(7) Paragraph (6) is subject to paragraph (2) and regulation 42(3) and (4).

(8) Regulation 45 applies to a notice under paragraph (6) as it applies to an election under regulation 42(1) and, for the purposes of this paragraph, the amount found under regulation 45(2) includes the value of any increase mentioned in paragraph (6).

Accepting a buy-out election

44

(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (M).

(2) The notice must state—

(a) the rate of the monthly payments determined under regulation 46; and

(b) the date on which M reaches prospective normal pension age.

(3) A buy-out election takes effect when M receives notice that the scheme manager has accepted the election.

(4) The buy-out period is the number of scheme years starting with (and including) the scheme year in which the buy-out election takes effect and ending with (and including) the scheme year in which the earliest of the following occurs—

(a) M revokes or is taken to have revoked the election;

(b) M ceases to be a member of the scheme;

(5) The buy-out period does not include a scheme year in which payment of buy-out contributions is suspended by virtue of regulation 48.

Overall limit on extra pension

45

(1) The scheme manager must not accept an election under regulation 42(1) from a member if—

(a) the member has made an election under regulation 54; and

(b) paragraph (2) applies.

(2) This paragraph applies if the value of the actuarial reduction bought out exceeds the greater of the first and second amounts in paragraph (3).

(3) In this paragraph—

(a) the first amount is B – A;

(b) the second amount is L – A,

(4) A reference to the value of an additional pension is, in the case of a member who has made more than one election under regulation 54, a reference to the aggregate value of all the additional pensions in respect of which the member has made an election.

Determination of contributions payable

46

(1) The scheme manager must, after consultation with the scheme actuary, determine the rate of the monthly payments to be paid in respect of a buy-out election.

(2) The scheme manager—

(a) may determine the rate of the monthly payments by reference to the length of the period between the date of the buy-out election and the date when the member will reach prospective normal pension age; and may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during that period; and

(b) may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during the contributions payment period.

(3) Unless the scheme manager re-determines the amount, monthly payments following a gap in service not exceeding 5 years are the same as before the gap.

Payment of buy-out contributions

47

(1) A member (M) must—

(a) make the first monthly payment within 2 months after the end of the month in which a buy-out election is accepted; and

(b) continue to make the monthly payments until the end of the period mentioned in regulation 46(2)(a).

(2) If the scheme manager re-determines the amount of the monthly payment during the period mentioned in regulation 46(2)(a), M must pay the re-determined amount from—

(a) the start of the next scheme year, or

(b) such later date as the scheme manager specifies.

(3) If the member's employing authority agrees to pay any or part of the contributions, the amount payable by the employing authority must be paid at the time the member would otherwise have been required to pay them.

(4) For the purpose of determining the amount of contributions payable during any period in which M's pensionable earnings are reduced as mentioned in regulation 28, the reduction in pensionable earnings must be disregarded.

(5) In this regulation, “the first monthly payment” includes any monthly payment due in arrears for the period between the start of the scheme year in which the buy-out election is accepted and the date of the first payment.

Suspension of buy-out: hardship

48

(1) The scheme manager may, at the request of the member (M), agree to the suspension of the payment of contributions if the scheme manager is satisfied that M's circumstances are such that M will suffer hardship if the payments are not suspended.

(2) A period of suspension is permitted only if—

(a) there has been no previous suspension; or

(b) if there has been an earlier suspension, contributions have been paid for not less than a full scheme year since the earlier suspension ended.

(3) If the scheme manager agrees to the suspension, paragraph (4) applies unless—

(a) not later than one year after the request under paragraph (1) is made M applies to resume making contributions; and

(b) M resumes making the contributions at the start of the following scheme year.

(4) If this paragraph applies—

(a) M is taken to have revoked the buy-out election; and

(b) M is not entitled to make any other buy-out election under the scheme.

(5) Paragraph (6) applies if—

(a) the scheme manager agrees to the suspension of payment of contributions by M; and

(b) M's employing authority has agreed to pay contributions as mentioned in regulation 47(3).

(6) Payment of contributions by M's employer is suspended for the same period as the payment of contributions by M is suspended.

Revoking a buy-out election

49

(1) A member (M) may revoke a buy-out election at any time before the end of the period mentioned in regulation 46(2)(a).

(2) The scheme manager may revoke M's buy-out election if M does not pay contributions for a period of 12 months.

(3) If a buy-out election is or is taken to have been revoked, M's monthly payments cease to be payable on the date of revocation.

(4) If, at the revocation date, the buy-out period during which the contributions were paid was less than 12 months—

(a) the contributions must be repaid to M; and

(b) the buy-out election ceases to have effect.

(5) If, at the revocation date, the buy-out period during which the contributions were paid is 12 months or more—

(a) contributions paid during the scheme year in which the election is revoked must be repaid to M; and

(b) the buy-out period ends at the end of the previous scheme year.

(6) The revocation date is the date the buy-out election is, or is taken to have been, revoked.

CHAPTER 4 — Allocation

Election to allocate pension

50

(1) A member (M) may elect to allocate a part of the annual amount of M's pension for the provision of a pension after M's death for not more than one individual who is—

(a) M's spouse or civil partner; or

(b) a dependant of M (within the meaning of paragraph 15(2) or (3) of Schedule 28 to the 2004 Act).

(2) An election under this regulation may be made only—

(a) at the time M claims the pension under paragraph 4 of Schedule 3; and

(b) if M is not already entitled to payment of such a pension.

(3) Paragraph (2)(b) does not apply in the case of a pension payable under regulation 83.

(4) A pension provided as a result of the election must be calculated in accordance with tables prepared by the scheme actuary.

Amount of allocation

51

(1) An election under regulation 50 may not allocate more than one-third of the member's (M) relevant annual pension.

(2) An election may not allocate an amount that would result in—

(a) the allocated annual pension exceeding M's unallocated relevant annual pension;

(b) the allocated annual pension exceeding such amount as the scheme manager determines for the purposes of this paragraph—

(i) after consultation with the scheme actuary; and

(ii) having regard to any restrictions imposed under Part 4 of the 2004 Act; or

(c) the value of the allocated annual pension being such that a lump sum could be paid under paragraph 6 of Schedule 3 by way of commutation of a pension of that amount if the person entitled to the pension is not entitled to any other benefits under the scheme.

(3) The annual pension allocated must be an exact number of pounds.

(4) A pension provided pursuant to the election must be calculated in accordance with tables prepared by the scheme actuary.

Procedure for election under regulation 50

52

(1) An election under regulation 50 in respect of a member's (M) pension must be made by notice in writing given to the scheme manager.

(2) The notice must be in such form and contain such information as the scheme manager requires.

(3) Subject to paragraph (6), the election takes effect when it is accepted by the scheme manager.

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

(5) The election does not take effect if—

(a) M or the person in whose favour the election is made (the beneficiary) dies on or before the day on which the scheme manager accepts it; or

(b) the scheme manager is not satisfied that at the time the election is made M is in good health.

(6) The election is treated as not having taken effect if the beneficiary dies before M is notified in writing that the scheme manager has accepted the election.

Effect of allocation

53

(1) If an election by a member (M) under regulation 50 has taken effect—

(a) M's pension is reduced accordingly (even if the beneficiary predeceases M); and

(b) if the beneficiary survives M, on M's death the beneficiary becomes entitled to the payment of a pension for life of such amount as is determined in accordance with regulation 51.

(2) An allocation is disregarded if it would result in a pension being paid to a beneficiary who is neither—

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

(b) at the time of M's death, a dependant of M (within the meaning of paragraph 15(2) or (3) of Schedule 28 to the 2004 Act).

(3) References in these Regulations to pensions under Part 5 do not include pensions under this regulation, except where the context otherwise requires.

(4) A pension under this regulation is payable to the beneficiary in addition to a pension payable in respect of M's death under Part 6.

CHAPTER 5 — Additional pension

Election to pay contributions for additional pension

54

(1) This paragraph applies in relation to a member of the scheme (M) who—

(a) is in pensionable service under the scheme; and

(b) has not reached normal pension age.

(2) M or, with M's consent, M's employing authority may elect to pay contributions for an additional pension in respect of M (“additional pension election”).

(3) An additional pension election may be made in respect of—

(a) an additional (self only) pension; or

(b) an additional (self only) pension and an additional (survivor's) pension.

(4) M may make an election under this regulation more than once.

(5) In this Chapter, the refund period is the period ending one year after the date on which an election under this regulation is accepted.

Annual rate of additional (self only) pension

55

The annual rate of additional (self only) pension specified in an additional pension election must be a whole number multiple of—

(a) £250; or

(b) such other amount as is determined by the scheme manager.

Lump sum or periodic payments

56

(1) An employing authority's additional pension contributions must be made by lump sum.

(2) A member's additional pension contributions may be paid either by lump sum or by periodic payments.

Making an additional pension election

57

(1) An additional pension election by a member (M) must be made by written notice to the scheme manager stating whether additional pension contributions are to be paid—

(a) as a lump sum; or

(b) by periodic payments.

(2) An additional pension election by M's employing authority must be made by written notice to the scheme manager.

(3) A notice under this regulation must be accompanied by a declaration by M that M is in good health.

(4) An additional pension election must not be made at any time when M is absent from work for any reason.

(5) For the purposes of this Chapter—

(a) a member is treated as having made an additional pension election on the date on which the employing authority receives the member’s notice under paragraph (1); and

(b) an employing authority is treated as having made an additional pension election on the date on which the scheme manager receives the authority’s notice under paragraph (2).

Accepting an additional pension election

58

(1) The scheme manager may accept an additional pension election by giving written notice to—

(a) the member (M); and

(b) M's employing authority.

(2) The scheme manager may refuse to accept an election if there are reasonable grounds to believe—

(a) that M is not in good health at the time the election is made; or

(b) in the case of an election where the contributions are to be made by periodic payments, that M's health is likely to prevent the payment of contributions for the whole of the contributions payment period.

(3) For the purposes of these Regulations, an additional pension election is accepted when M receives notice from the scheme manager.

Determination of contribution payable

59

(1) The scheme manager must determine the amount to be paid as a lump sum or as a periodic payment.

(2) The amount of the lump sum or periodic payment must be—

(a) not less than the minimum amount; or

(b) an amount which is a multiple of the minimum amount.

(3) In paragraph (2), the minimum amount is the amount that would, in accordance with tables prepared by the scheme actuary for the scheme year in which the contributions are paid, be the amount of contribution required to secure the additional pension specified under regulation 55.

(4) The tables mentioned in paragraph (3)—

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

(b) may be amended during a scheme year.

(5) An amendment under paragraph (4)(b) must not affect 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.

Overall limit on extra pension

60

(1) The scheme manager must not accept an election under regulation 54 from a member (M) in so far as the effect of accepting the election would be to provide M with one or more additional pensions which exceeds, or in aggregate exceed, the overall limit.

(2) The overall limit is—

(a) £6,500 for a scheme year ending before 1st April 2016;

(b) for a scheme year beginning on or after that date—

(i) the overall limit of extra pension determined by the Treasury in respect of that scheme year as published before the start of that scheme year; or

(ii) if no such determination is made, the amount calculated under paragraph (3).

(3) The amount is the amount to which the annual rate of a pension of an amount equal to the overall limit of extra pension for the previous scheme year would have been increased under the Pensions (Increase) Act 1971 if—

(a) that pension were eligible to be so increased; and

(b) the beginning date for that pension were the first day of the previous scheme year.

(4) In determining the value of an extra pension for the purposes of paragraph (1), the scheme manager must include the value by reference to an annual pension of any actuarial reduction buy-out election having effect in relation to M.

(5) A valuation for the purposes of paragraph (4) must have regard to the advice of the scheme actuary.

Lump sum contributions: payment of contributions and credit of additional pension

61

(1) This paragraph applies to a member (M)—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by lump sum.

(2) M's additional pension account is to be credited with an amount equal to the annual rate of additional (self only) pension stated in the notice of election (“the amount of additional pension”) if the lump sum contribution is paid within one month after the additional pension election is accepted.

(3) If the lump sum contribution is not paid within that time, an election under regulation 54 is taken not to have been made.

Refund of lump sum contribution

62

(1) This regulation applies if a member (M) has paid a lump sum contribution for additional pension.

(3) If M dies before the end of the refund period—

(a) the amount of the lump sum paid by M must be repaid to M’s executors;

(b) the amount of lump sum paid by M’s employing authority pursuant to regulation 56 must be repaid to the authority; and

(4) If an ill-health pension becomes payable to M before the end of the refund period—

(a) the amount of the lump sum paid by M must be repaid to M;

(b) the amount of lump sum paid by M’s employing authority pursuant to regulation 56 must be repaid to the authority; and

Periodic Contributions

63

(1) This regulation and regulations 64, 65 and 67 to 70 apply in relation to a member (M)—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by periodic payments during the contributions payment period.

(2) M's employing authority must—

(a) deduct the contributions from M's pensionable earnings; and

(b) pay them to the scheme manager not later than the 19th day of the month following that in which the earnings were paid to M.

(3) The contributions payment period must—

(a) be a whole number of years;

(b) begin with the pay period in respect of which the first contribution is paid;

(d) end before M reaches normal pension age.

(4) If the scheme manager re-determines the amount of the periodic payment during the contributions payment period, the re-determined amount must be paid from—

(a) the beginning of the next scheme year; or

(b) such later date as the scheme manager determines.

Retirement pension (other than ill-health pension) becomes payable before the end of the contributions payment period

64

(1) This regulation applies if any of the following retirement pensions becomes payable to M before the end of the contributions payment period—

(a) a partial retirement (if M has elected to receive additional pension with it);

(b) a premature retirement pension;

(2) If this regulation applies—

(a) periodic payments for additional pension cease to be payable on the entitlement day for that pension; and

(b) the amount of accrued additional pension as at the day M leaves the pensionable service concerned is an amount determined by the scheme manager, having regard to—

(i) the period over which the contributions were paid; and

(ii) the length of the contribution payment period.

Revoking an additional pension election (periodic payments)

65

(1) A member (M) may revoke an additional pension election at any time before the end of the contributions payment period.

(2) A revocation must be by notice in writing to—

(a) the scheme manager; and

(b) M's employing authority.

(3) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

(4) On the date of revocation under paragraph (1)—

(a) periodic payments for additional pension under the election cease to be payable; and

(b) the amount of accrued additional pension as at that date is an amount determined by the scheme manager.

(5) The scheme manager may revoke the election if there are reasonable grounds for believing—

(a) that M's health will prevent M from paying contributions for the whole of the contributions payment period;

(b) that M was aware of the state of M's health at the time of making the declaration under regulation 57(3); and

(6) A revocation under paragraph (5) must be given to M by notice in writing.

(7) If the scheme manager revokes an election under paragraph (5)—

(a) periodic payments for additional pension under the election cease to be payable; and

(b) payments made by M before the date of revocation must be returned to M or, if M is deceased, M's executors.

Revocation of election by scheme manager (lump sum)

66

(1) The scheme manager may revoke an additional pension election made by a member (M) where the contribution was paid by lump sum if the scheme manager has reasonable grounds for believing that—

(a) at the time the declaration under regulation 57(3) was made, M was aware that the state of M's health was such that not less than 12 months after the election it was reasonable to assume that M would become entitled to an ill-health pension or M's survivors would become entitled to a pension under Part 6; and

(b) M failed to disclose the state of M's health at the time of making the declaration.

(2) If the scheme manager revokes an election under paragraph (1), the scheme manager must repay the lump sum—

(a) if the lump sum was paid by M, to M, or if M is deceased, to M's executors;

(b) if the lump sum was paid by M's employing authority, to the employing authority.

Effect of being absent or leaving and rejoining scheme during contributions payment period

67

(1) This paragraph applies if, during the contributions payment period, a member (M) who has made an election under regulation 54—

(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, shared parental leave or parental bereavement leave; ...

(ea) is on carer’s leave; ...

(eb) is on neonatal care leave, or

(f) is within regulation 21(4) or (6).

(2) If paragraph (1) applies—

(a) the contributions payable under regulation 63 continue to be payable unless M ceases paying basic contributions;

(b) M may resume paying contributions under regulation 63 only if—

(i) M ceases to pay basic contributions; but

(ii) resumes paying basic contributions before the end of the period of 12 months beginning with the day on which M first ceased to pay basic contributions.

(3) This paragraph applies if—

(a) a member (M) has made an election under regulation 54;

(b) M ceases to be an active member during the contributions payment period; and

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

(4) If paragraph (3) applies, M may continue to make contributions in accordance with the election unless a repayment of contributions has been made to M under regulation 39.

(5) For the purposes of paragraph (4), it is immaterial whether M has paid any repaid contributions back to the scheme manager.

(6) In this regulation, “basic contributions” means contributions payable under regulation 30 or 31.

Death in service before end of contributions payment period

68

(1) This regulation applies on the death of a member (D)—

(a) whose additional pension election is for—

(i) an additional (self only) pension; or

(ii) an additional (self only) pension and an additional (survivor’s) pension;

(b) who dies while an active member before the end of the contributions payment period for that election.

(2) If D dies before the end of the refund period—

(a) the amount of the contributions paid by D must be repaid to D's executors;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) If D dies after the end of the refund period—

(a) the periodic payments cease to be payable as at the date of D's death; and

(b) paragraph (4) applies.

(4) For the purpose of calculating a survivor's pension—

(a) if the scheme manager believes that the declaration that accompanied the additional pension election was made in good faith—

(i) the periodic payments under the additional pension election are treated as being paid until the end of the contributions payment period for the election;

(ii) the amount of accrued additional pension calculated is under paragraph 28 of Schedule 7 as at the date of D's death;

(b) if the scheme manager has reasonable grounds to believe that declaration was not made in good faith, paragraph (2)(a) to (c) applies.

Ill-health pension becomes payable before end of contributions payment period

69

(1) This regulation applies if an ill-health pension becomes payable to a member (M) before the end of the contributions payment period for an additional pension election.

(2) If an ill health pension becomes payable to M in consequence of a claim made before the end of the refund period—

(a) any periodic payments that have been made under the election must be repaid to M;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the amount of accrued additional pension attributable to the election as at the last day of pensionable service must be disregarded.

(4) If an ill-health pension becomes payable to M in consequence of a claim made after the end of the refund period—

(a) the periodic payments under the additional pension election are treated as being paid until the end of the contributions payment period for the election; and

(b) paragraph (4) applies.

(5) For the purpose of calculating the annual rate of ill-health pension—

(a) if, on consideration of the evidence available, the scheme manager believes that the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional pension is calculated under paragraph 28 of Schedule 7 as at the last day of pensionable service;

(b) if the scheme manager believes that the declaration was not made in good faith, paragraph (2)(a) to (c) applies.

Effect of part payment of contributions

70

(1) This regulation applies if—

(a) the full amount of contributions payable by a member (M) under an additional pension election is not paid; and

(b) neither regulation 68(2) nor 69(2) applies.

(2) The amount of accrued additional pension under paragraph 28(3) of Schedule 7 is the appropriate portion of the amount of accrued additional pension if the full amount of contributions had been paid.

(3) In the case of an election under regulation 54(3)(b), the amount of accrued additional pension under Part 6 in respect of M is the appropriate proportion of the amount had the full amount of contributions been paid.

(4) For the purposes of paragraphs (2) and (3), the appropriate proportion is calculated in accordance with such method as the scheme actuary determines and specifies in guidance given to the scheme manager.

(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 to be paid under the election for the full contributions payment period; and

(b) the requirements of Chapter 1 of Part 4 of the 1993 Act relating to the preservation of benefits under occupational pension schemes.

PART 5 — Members' benefits

CHAPTER 1 — Qualification

Qualifying for retirement benefits

71

A member is qualified for retirement benefits under this scheme if—

(a) the member has at least 2 years' qualifying service; or

(b) a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to the member.

CHAPTER 2 — Age retirement

Entitlement to age retirement pension

72

(1) A member is entitled to payment of an age retirement pension from the entitlement day if that member—

(a) has reached normal pension age;

(b) is qualified for retirement benefits or the member ceases pensionable service after reaching normal pension age;

(d) has applied under paragraph 4 of Schedule 3 for the payment of an age retirement pension.

(2) An age retirement pension is payable for life.

(3) This regulation does not apply to a pension derived from pension credit rights (see section 101B of the 1993 Act).

Annual rate of age retirement pension

73

The annual rate of age retirement pension payable to an active member or a deferred member who becomes entitled to payment of an age retirement pension is calculated in accordance with paragraph 1 of Schedule 11.

Late payment of pension with actuarial increase

74

(1) Paragraph (2) applies where a member becomes entitled to the immediate payment of an age retirement pension on ceasing pensionable employment after reaching normal pension age.

(2) An increase amount (“the late payment actuarial increase”) must be calculated in accordance with paragraph 2 of Schedule 11.

Pension credit member

75

(1) A pension credit member is entitled to a pension derived from the member's pension credit rights (see section 101B of the 1993 Act) if—

(a) the relevant event occurs; and

(b) the member claims payment of the pension.

(2) The relevant event is whichever is the later of the following—

(a) the pension credit member reaches whichever is the later of the age of 65 or state pension age; and

(b) the date on which the pension sharing order or provision under which the member is entitled to the pension credit takes effect.

(3) The pension becomes payable on the occurrence of the relevant event.

(4) The amount of the pension is equal to the member's pension credit calculated in accordance with regulations under paragraph 5(b) of Schedule 5 to the 1999 Act.

(5) A pension credit member who does not fall within paragraph (2)(a) is entitled to immediate payment of a reduced pension if the member—

(a) has reached normal minimum pension age; and

(b) claims payment of the pension.

(6) The amount of the pension under paragraph (5) is—

(a) the amount calculated pursuant to paragraph (4); less

(b) such amount as the scheme manager determines to be appropriate in consequence of payment of the pension before the pension credit member is within paragraph (2)(a).

(7) For the purposes of making a determination under paragraph (6)(b) the scheme manager must consult the scheme actuary.

(8) A claim under paragraph (1) or (5)—

(a) must be made in writing in such form as the scheme manager requires;

(b) takes effect from the date specified in the claim as the date on which the pension is to become payable.

(9) A pension credit member in relation to whom the relevant event has not occurred is entitled to immediate payment of a pension if, in the opinion of the scheme manager, the pension credit member—

(a) meets the ill health condition in paragraph 1 of Schedule 28 to the 2004 Act;

(b) had previously been engaged in regular employment but is now permanently incapable of engaging in regular employment due to mental or physical infirmity; and

(10) The amount of the pension under paragraph (9) is calculated as mentioned in paragraph (4).

(11) For the purposes of paragraph (9), the scheme manager may require whatever medical evidence the scheme manager thinks necessary.

(12) A pension sharing order or provision is an order or provision mentioned in section 28(1) of the 1999 Act.

Conversion of part of pension into lump sum

76

(1) Subject to paragraph (2) and Part 2 of Schedule 11, the following members may apply to the scheme manager to receive a lump sum in place of part of a pension—

(a) a member who is entitled to payment of a retirement pension;

(b) a pension credit member who is entitled to payment of a pension credit retirement pension.

(2) Paragraph (l)(b) only applies if—

(a) the member's pension credit is derived from rights attributable to the pensionable service of a pension debit member; and

(b) a retirement pension does not become payable to the pension debit member before the day on which a pension-sharing order takes effect in respect of that pensionable service.

(3) Subject to paragraph (4), where an application is made pursuant to paragraph (1), the amount of pension converted into a lump sum is £1 for every £12 paid as a lump sum to the member.

(4) Paragraph (5) applies if a retirement pension converted under this regulation—

(a) is adjusted by virtue of regulation 92; or

(b) is abated to zero by virtue of regulation 85(3) and regulation 86 applies.

(5) The amount of pension converted into a lump sum for any retirement pension that subsequently becomes payable to the member is an amount determined by the scheme manager after consulting the scheme actuary.

(6) If the pension is an ill health pension under regulation 89, the option under this regulation may only be exercised by giving notice to the scheme manager—

(a) at the time if claiming the pension; or

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

(7) If the pension is an Upper Tier IHP under regulation 92 in substitution for a Lower Tier IHP under regulation 89, the option under this regulation may only be exercised—

(a) in relation to the difference between the Lower Tier IHP that ceases to be payable pursuant to sub-paragraph (a) of regulation 92(5) and the Upper Tier IHP to which the member becomes entitled under sub-paragraph (b) of that regulation; and

(b) by giving notice to the scheme manager—

(i) at the time of the award of the Upper Tier IHP, or

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

(8) Notice under paragraph (6) or (7) must be—

(a) given in writing;

(b) in such form as the scheme manager requires.

(9) In paragraph (7) the references to a Lower Tier IHP and an Upper Tier IHP must be construed in accordance with regulation 89.

(10) This regulation does not apply to a pension credit member whose rights under this scheme are attributable to a disqualifying pension credit for the purposes of paragraph 2 of Schedule 29 to the 2004 Act .

Entitlement day

77

(1) The entitlement day for the purposes of an age retirement pension is—

(a) if the member (M) is in NHS employment on the day on which M reaches normal pension age—

(i) the day after M ceases to be in pensionable employment; or

(ii) the day on which M reaches the age of 75;

(b) if M is not in NHS employment on the day on which M reaches normal pension age, that day.

(2) If regulation 97 applies to M, for the purposes of M's entitlement to a pension in respect of old employment (within the meaning of regulation 100(3)) a reference in this regulation to M ceasing to be in NHS employment must be treated as a reference to M ceasing to be in the old employment.

CHAPTER 3 — Early and premature retirement

Early retirement

78

(1) A member (M) is entitled to payment of a reduced pension (an early retirement pension) from the entitlement day if M—

(a) has reached normal minimum pension age but has not reached normal pension age;

(b) is qualified for retirement pension benefits;

(d) has applied under paragraph 4 of Schedule 3 for payment of an early retirement pension.

(2) M is not entitled to payment of an early retirement pension if the scheme manager, after consultation with the scheme actuary, decides that the amount of the pension would be less than the amount of the guaranteed minimum pension (if any) to which M is entitled.

(3) An early retirement pension is payable for life.

(4) Part 3 of Schedule 11 has effect in respect of the calculation of the amount of an early retirement pension.

Entitlement day

79

(1) The entitlement day for the purposes of an early retirement pension is—

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

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

(2) If regulation 97 applies to M, for the purposes of M's entitlement to a pension in respect of old employment (within the meaning of regulation 100(3)) a reference in this regulation to M ceasing to be in NHS employment must be treated as a reference to M ceasing to be in the old employment.

Premature retirement in the interests of efficiency

80

(1) A relevant member (M) is entitled to payment of a premature retirement pension from the entitlement day if—

(a) M has reached normal minimum pension age but has not reached normal pension age;

(b) M is qualified for retirement pension benefits;

(c) M's pensionable service has been terminated by M's employer in the interests of the efficient discharge of the functions of M's employing authority;

(d) M's employing authority gives written notice to the scheme manager pursuant to paragraph (2);

(e) the scheme manager certifies that M's employment is terminated in the interests of the efficient discharge of the employing authority's functions;

(f) M has ceased to be employed in NHS employment; and

(g) not later than 6 months after M's employment is terminated, M applies under paragraph 4 of Schedule 3 for payment of a premature retirement pension.

(2) The notice must state that—

(a) M's pensionable service was terminated in the interests of the efficient discharge of the employing authority's functions;

(b) M has at least 2 years' continuous employment determined in accordance with any terms and conditions applying to the employment;

(d) M has not unreasonable refused—

(i) to seek suitable alternative employment, or

(ii) to accept an offer of such employment.

(3) A certificate under paragraph (1)(e) may be given only with the agreement of M's employing authority.

(4) A premature retirement pension is payable for life.

(5) A relevant member is a member who is not—

(a) a practitioner;

(b) a non-GP provider; or

(6) Part 4 of Schedule 11 has effect in respect of the calculation of the amount of a premature retirement pension.

Premature retirement on grounds of redundancy

81

(1) A relevant member (M) is entitled to payment of a premature retirement pension from the entitlement day if—

(a) M has reached normal minimum pension age but has not reached normal pension age;

(b) M is qualified for retirement pension benefits;

(d) M's employing authority gives written notice to the scheme manager pursuant to paragraph (2);

(e) the scheme manager certifies that M's employment is terminated by reason of redundancy;

(f) M has ceased to be employed in NHS employment; and

(g) not later than 6 months after M's employment is terminated, M applies under paragraph 4 of Schedule 3 for payment of a premature retirement pension.

(2) The notice must state that—

(a) M's pensionable service was terminated by reason of M's redundancy;

(b) M has at least 2 years continuous employment determined in accordance with any terms and conditions applying to the employment;

(d) M has not unreasonable refused—

(i) to seek suitable alternative employment, or

(ii) to accept an offer of such employment; and

(e) M is entitled to claim a pension under this regulation as an alternative to receiving (in whole or in part) the lump sum payment otherwise payable to M in accordance with those terms and conditions.

(3) A certificate under paragraph (1)(e) may be given only with the agreement of M's employing authority.

(4) A premature retirement pension is payable for life.

(5) M is not entitled to payment of an early retirement pension if the scheme manager, after consultation with the scheme actuary, decides that the amount of the pension would be less than the amount of the guaranteed minimum pension to which M is entitled.

(6) A relevant member is a member who is not—

(a) a practitioner;

(b) a non-GP provider; or

(7) Part 4 of Schedule 11 has effect in respect of the calculation of the amount of a premature retirement pension.

Premature retirement entitlement day

82

The entitlement day for a premature retirement pension is the day immediately following the day on which M ceased to be employed in NHS employment

CHAPTER 4 — Partial retirement

Election for partial retirement (members over normal minimum pension age)

83

(1) This regulation applies to a member (M) if—

(a) M has reached normal minimum pension age;

(b) M continues to be employed in an employment in which M is an active member;

(d) the terms on which M holds or engages in the employment mentioned in sub-paragraph (b) change; and

(e) as a result of the change, M is subject to a relevant reduction.

(2) In paragraph (1), M is subject to a relevant reduction if—

(a) where M is neither a practitioner nor a non-GP provider, M's pensionable earnings in employment mentioned in paragraph (1)(b) are reduced (disregarding any reduction in pensionable earnings resulting from the member entering into a salary sacrifice arrangement) to 90% or less of the amount of M's pensionable earnings during the period of 12 months ending with the election day;

(b) where M is a practitioner or a non-GP provider, M's engagement in the employment is reduced to 90% or less of its level during that period.

(3) If this regulation applies M may elect to claim immediate payment of pension as specified in the election pursuant to paragraphs (a) and (b)—

(a) M must specify the percentage of pension M claims (the specified percentage);

(b) M must specify whether M claims any additional pension to which M is entitled.

(4) The election must be exercised by notice in writing to the scheme manager in such form as the scheme manager determines and must be accompanied by—

(a) where M is neither a practitioner nor a non-GP provider, a statement in writing by the employing authority that the conditions in paragraph (1)(d) and (e) are met;

(b) where M is a practitioner or a non-GP provider—

(i) appropriate supporting evidence; and

(ii) a statement in writing by the contracting Health Board (or, in the case of a dentist or an ophthalmic medical practitioner, the Health Board with whom that person has an arrangement to provide general dental services or ophthalmic services) or someone appointed to act on the Health Board's behalf that the conditions in paragraph (1)(d) and (e) are met.

(5) The specified percentage must be such that—

(a) the amount of the pension to which M becomes entitled as a result of the election—

(i) is not less than 20% of the pension that would have been payable if M had ceased to be employed in all M's employments at the end of the election day; and

(ii) taken together with any increase to which M is entitled in consequence of the election, is not less than 0.05% of M's lump sum and death benefit allowance on the election day;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In applying paragraph (5)—

(a) any additional pension to which M is entitled must be ignored; and

(b) the amount in sub-paragraph (a) is the amount of the pension disregarding the effect of an application under regulation 76.

(7) An election under this regulation may be made on not more than two occasions and the scheme manager must take advice from the scheme actuary regarding—

(a) any benefits to be paid after the first election (but before the second election);

(b) any benefits to be paid after a second election; and

(8) If M was not an active member during the whole of the period of 12 months mentioned in paragraph (2)(a), that paragraph applies as if M's pensionable earnings during that period were—

$$P E × 365 N$where—PE is M's pensionable earnings for the part of that period during which M was an active member; andN is the number of days in that period on which M was an active member.$

(9) In this regulation and regulations 84 to 88, the election day is the day before the relevant reduction takes effect.

Effect of election

84

(1) This regulation applies if a member (M) makes an election under regulation 83.

(2) M is entitled—

(a) if M has reached normal pension age, to immediate payment of the specified percentage of the pension to which M would be entitled by virtue of regulation 72(1) if M had ceased to be employed in one or more employments on the election day;

(b) if M has not reached normal pension age, to immediate payment of the specified percentage of the pension to which M would be entitled by virtue of regulation 78 if M had ceased to be employed in one or more employments on the election day; and

(i) where sub-paragraph (a) applies, to an increase of the same amount as would be made in that pension pursuant to paragraph 2 of Schedule 11 if M had ceased to be employed on the election day; and

(ii) where sub-paragraph (b) applies, to a reduction of the same amount as would have been made in that pension pursuant to regulation 78 if M had so ceased to be employed.

(3) For the purposes of this Part—

(a) M is a pensioner member as respects—

(i) the pension to which M is immediately entitled as a result of making the election; and

(ii) the specified percentage of the pensionable service that pension represents, as respects which M is an active member on the election day;

(b) if M continues in pensionable service after the election day, M is an active member as respects—

(i) the pensionable service after that day in which M continues; and

(ii) so much of the pensionable service in respect of which M is an active member as is not within sub-paragraph (a) (the unspecified service); and

(c) if M does not continue in pensionable service after the election day, M is a deferred member as respects the unspecified service.

Terms of employment improve after election

85

(1) This regulation applies if—

(a) a member (M) has made an election under regulation 83(3);

(b) during the period of 12 months beginning with the day following the election day the terms on which M holds the employment (or employments) mentioned in regulation 83(1)(b) change again; and

(2) In paragraph (1), M is subject to a relevant increase if—

(a) where M is neither a practitioner nor a non-GP provider, M's pensionable earnings in the employment (or employments) is increased (disregarding any increase in pensionable earnings resulting from the member leaving a salary sacrifice arrangement) to more than 90% of M's pensionable earnings during the period of 12 months ending with the election day;

(b) where M is a practitioner or a non-GP provider, the level of M's engagement in the employment is increased to more than 90% of M's pre-change level.

(3) The amount of M's pension mentioned in regulation 84(2)(a) and (b) is abated to zero from the first pension day following the day on which the relevant increase occurred.

(4) If, during the period of 12 months beginning with the day following the election day, M enters further employment in which M is an active member—

(a) the terms on which M holds the employment in respect of which the election was made (the election employment) are treated as having changed again; and

(b) for the purpose of determining whether M is subject to a relevant increase—

(i) where M is a practitioner or a non-GP provider, M's level of engagement in the further employment is treated as engagement in the election employment; and

(ii) where M is neither a practitioner nor a non-GP provider, M's pensionable earnings in the further employment are treated as pensionable earnings from the election employment.

(5) Paragraph (3) does not apply if—

(a) the only change to M's terms as mentioned in paragraph (1)(b) is to M's pensionable earnings;

(b) the scheme manager thinks that the annual rate of M's pensionable earnings at the time of the change would have exceeded the annual rate mentioned in paragraph (2)(a).

(6) If M was not an active member during the whole of the period of 12 months mentioned in paragraph (1)(b), that paragraph applies as if M's pensionable earnings during that period were—

$$PE × 365 N$where—PE is M's pensionable earnings for the part of the period during which M was an active member; andN is the number of days in the period on which M was an active member.$

(7) In paragraph (2)(b), the pre-change level is the level of M's engagement in the employment during the period of 12 months ending on the election day.

Member becomes subject to reduction following abatement

86

(1) This regulation applies if—

(a) regulation 85 applies to a member (M) such that M's pension is abated to zero pursuant to paragraph (3) of that regulation; and

(b) M again becomes subject to a relevant reduction (within the meaning of regulation 83(2)).

(2) The scheme manager must restore the payment of M's pension with effect from the first pension day immediately following the day on which M became subject to the relevant reduction as mentioned in paragraph (1)(b).

(3) The scheme manager must not act under paragraph (2) unless the scheme manager obtains and has regard to advice of the scheme actuary as to whether the amount of the pension should be adjusted in view of the length of time during which it was abated to zero.

Payment of pension after abatement

87

(1) This regulation applies if—

(a) a member's (M) pension is abated pursuant to regulation 85(3); and

(b) M's pensionable earnings are not reduced in consequence of M again becoming subject to a relevant reduction as mentioned in regulation 86(2).

(2) M's pension is payable by the scheme manager—

(a) when M partially retires or retires again from pensionable employment; or

(b) M attains the age of 75.

(3) For the purposes of paragraph (2), the scheme manager must—

(a) have regard to any pension already paid, including any lump sum paid as a result of M making an application under regulation 76 (conversion or part of pension into lump sum); and

(b) obtain advice from the scheme actuary.

Application of regulations 83 to 87: concurrent employments

88

(1) This regulation applies if a person (M) is an active member in two or more employments held concurrently on the election day.

(2) Regulations 83 to 87 apply in relation to each of the employments as if it were the only employment held by M on that day, subject to the following modifications.

(3) In regulation 83—

(a) for paragraph (2)(a) substitute—

(a) where M is neither a practitioner nor a non-GP provider, if the sum of the annual rate of M's pensionable earnings in that employment and every other employment held by M on the election day is reduced (disregarding any reduction in pensionable earnings resulting from the member entering into a salary sacrifice arrangement) to 90% or less of the sum of— (i) M's pensionable earnings in the employment during the period of 12 months ending with the election day; and (ii) M's pensionable pay during that period in every other employment held by M on that day.

; and

(b) in paragraph (8), after “paragraph (2)(a)” insert “ in respect of any of the employments held by M ”.

(4) In regulation 85, for paragraph (2)(a) substitute—

(a) where M is neither a practitioner nor a non-GP provider, the annual rate of M's pensionable earnings in the employment is increased (disregarding any increase in pensionable earnings resulting from the member leaving a salary sacrifice arrangement) to more than 90% of the sum of— (i) M's pensionable earnings in the employment during the period of 12 months ending with the election day; and (ii) M's pensionable earnings during that period in every other employment held by M on that day.

(5) In the case of a practitioner or non-GP provider, a reference to M's employment is a reference to M's pensionable service as a practitioner together with any concurrent NHS employment, and “terms of employment” must be construed accordingly.

CHAPTER 5 — Ill-health pension

Entitlement to ill-health pension

89

(1) An active member (M) is entitled to immediate payment of—

(a) an ill-health pension at Lower Tier (a Lower Tier IHP) if the Lower Tier conditions are satisfied in relation to M;

(b) an ill-health pension at Upper Tier (an Upper Tier IHP) if the Upper Tier conditions are satisfied in relation to M.

(2) The Lower Tier conditions are that—

(a) M is qualified for retirement benefits and has not attained normal pension age;

(b) M has ceased to be employed in NHS employment;

(c) the Scheme Manager is satisfied that M suffers from physical or mental infirmity as a result of which M is permanently incapable of efficiently discharging the duties of M's employment;

(d) M's employment is terminated because of the physical or mental infirmity; and

(e) M claims payment of the pension.

(3) The Upper Tier conditions are that—

(a) the Lower Tier conditions are satisfied in relation to M; and

(b) the scheme manager is also satisfied that M suffers from physical or mental infirmity as a result of which M is permanently incapable of engaging in regular employment of like duration.

(4) M is not entitled to payment of a pension under this regulation if M's NHS employment is terminated because—

(a) M is dismissed (unless the scheme manager is satisfied that the dismissal was because of M's infirmity);

(b) M retires or resigns at a time when—

(i) M is subject to disciplinary proceedings; or

(ii) had been notified that such proceedings were being contemplated; or

(i) at the time of doing so M's employing authority has notified the scheme manager in writing that M's physical or mental infirmity is the reason for the termination; and

(ii) the scheme manager is satisfied that is the case.

(5) In paragraph (3)(b), “regular employment of like duration” means—

(a) in the case of a practitioner or non-GP provider, such employment as the scheme manager considers would involve a similar level of engagement to M's current pensionable service as a practitioner or non-GP provider;

(b) in any other case, where prior to ceasing NHS employment M was employed—

(i) on a whole-time basis, regular employment on a whole time basis;

(ii) on a part-time basis, regular employment on a part-time basis, regard being had to the number of hours, half days and sessions the M worked in the employment.

(6) A pension under this regulation is payable for life: but see regulations 94 and 95.

Member's incapacity

90

(1) For the purpose of determining whether a member (M) is permanently incapable of discharging the duties of M's employment efficiently, the scheme manager must—

(a) have regard to the factors in paragraph (2), no one of which is to be decisive; and

(b) disregard M's personal preference for or against engaging in the employment.

(2) The factors mentioned in paragraph (1)(a) are—

(a) whether M has received appropriate medical treatment in respect of the infirmity;

(b) M's mental capacity;

(d) the type and period of rehabilitation it would be reasonable for M to undergo in respect of the infirmity, regardless of whether M has undergone the rehabilitation; and

(e) any other matter the scheme manager thinks appropriate.

(3) For the purpose of determining whether M is permanently incapable of engaging in regular employment of like duration as mentioned in paragraph (3)(b) of regulation 89, the scheme manager must—

(a) have regard to the factors in paragraph (4), no one of which is to be decisive; and

(b) disregard the factors in paragraph (5).

(4) The factors mentioned in paragraph (3)(a) are—

(a) whether M has received appropriate medical treatment in respect of the infirmity;

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

(i) M's mental capacity;

(ii) M's physical capacity;

(iii) M's previous training; and

(iv) M's previous practical, professional and vocational experience,

irrespective of whether or not such employment is available to M.

(c) the type and period of rehabilitation it would be reasonable for M to undergo in respect of the infirmity, regardless of whether M has undergone the rehabilitation, having regard to—

(i) M's mental capacity; and

(ii) M's physical capacity.

(d) the type and period of training it would be reasonable for M to undergo in respect of the infirmity, regardless of whether M has undergone the training, having regard to—

(i) M's mental capacity;

(ii) M's physical capacity;

(iii) M's previous training; and

(iv) M's previous practical, professional and vocational experience; and

(e) any other matter the scheme manager considers appropriate.

(5) The factors mentioned in paragraph (3)(b) are—

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

(b) the geographical location of M.

(6) In this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the infirmity, but does not include any treatment that the scheme manager considers—that it would be reasonable for M to refuse;would provide no benefit to restoring M's capacity for—discharging the duties of M's employment efficiently for the purposes of paragraph (2)(c) of regulation 89 before M reaches prospective normal pension age; orengaging in regular employment of like duration for the purposes of paragraph (3)(b) of that regulation before M reaches prospective normal pension age; or;that through no fault on the part of M, it is not possible for M to receive before M reaches prospective normal pension age.

“permanently” means until M attains M's prospective normal pension age; and

“regular employment of like duration” has the same meaning as in regulation 89.

Annual rate of ill-health pension

91

(1) The annual rate of Lower Tier IHP payable to a member (M) is found by—

(a) taking the amount of full retirement earned pension specified in M's pensioner member's account;

(b) subtracting the conversion amount (if any) specified in that account in relation to that amount; and

(c) adding the amount of accrued additional pension (if any) calculated in accordance with regulation 69(3)(b), less the conversion amount (if any) specified in the account in relation to the additional pension.

(2) The annual rate of Upper Tier IHP payable to M is the sum of—

(a) the annual rate of Lower Tier IHP; and

(b) the Upper Tier addition.

(3) The Upper Tier addition is found by applying the following formula—

$$A × (C + E) C − A$where—A is the aggregate of the amounts of all of M's pensions from pensionable service on the day after M's last day of pensionable service (L+1)—disregarding any additional pension; andincluding any increases applied by virtue of the Pensions (Increase) Act 1971 ;C is the total period of pensionable service counted in days over which the pensions aggregated to find A were accrued; andE is the period counted in days equal to 50% of the length of the period starting on L+1 and ending on the day before M reaches prospective normal pension age, and any part of a day must be taken to be a whole day.$

Re-assessment of entitlement

92

(1) This regulation applies if—

(a) in respect of a member (M) the scheme manager is satisfied as mentioned in regulation 89(2)(c); and

(b) at the time M is awarded a pension the scheme manager gives M notice in writing as mentioned in paragraph (2).

(2) The notice is that M's case may be considered once within a period of three years beginning with the date of the award to determine whether, at the date of the consideration, M meets the condition in regulation 89(3)(b).

(3) M may apply to the scheme manager for a review of whether M subsequently meets the condition in regulation 89(3)(b) if—

(a) M makes the application in writing not later than the relevant date;

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

(i) relating to whether, at the date of the scheme manager's review, M has the physical or mental infirmity mentioned in regulation 89(3)(b); and

(ii) that relates to the same physical or mental infirmity as a result of which M met the condition in regulation 89(2)(c);

(d) M has not become entitled to an Upper Tier IHP in respect of any later service under regulation 96.

(4) The relevant date in paragraph (3)(a) is—

(a) the last day of the period of three years after the giving of notice under paragraph (1)(b); or

(b) if M engages in further NHS employment during that period, the first anniversary of the day on which the employment commences or, if sooner, the last day of that period.

(5) If, after considering the further medical evidence the scheme manager determines that M has the physical or mental infirmity for the purposes of regulation 89(3)(b), with effect from the date the determination is made, M—

(a) ceases to be entitled to a Lower Tier IHP; and

(b) becomes entitled to an Upper Tier IHP.

(6) If a determination is made under paragraph (5), in calculating the Upper Tier addition pursuant to regulation 91(3), in the explanation of factor E for “period starting on L+1” substitute “ period starting on day of the determination under regulation 92(5) ”.

Early retirement on ill-health (deferred members)

93

(1) A deferred member (DM) is entitled to immediate payment of a pension if—

(a) DM is not in NHS employment;

(b) DM has not attained normal pension age;

(c) the scheme manager is satisfied that DM suffers from physical or mental infirmity as a result of which DM is permanently incapable of engaging in regular employment of like duration; and

(d) DM claims payment of the pension.

(2) DM is entitled to immediate payment of a pension if—

(a) DM is in NHS employment;

(b) DM has not attained normal pension age;

(i) is not within paragraph (1); but

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

(d) DM leaves the employment and claims payment of the pension.

(3) The amount of a pension payable under this regulation is found by applying regulation 91(1) as if—

(a) a reference to M is a reference to DM; and

(b) the pension under this regulation is a Lower Tier IHP.

(4) Regulation 90 applies for the purposes of this regulation as if—

(a) a reference to M is a reference to DM; and

(b) a reference to regular employment of like duration is a reference to such employment for the purposes of paragraph (1)(c).

Effect of re-employment on Upper Tier IHP

94

(1) This regulation applies if a member (M)—

(a) is entitled to an Upper Tier IHP under regulation 89 in respect of earlier service;

(b) did not opt to exchange the pension for a lump sum in accordance with regulation 108; and

(2) M continues to be entitled to an Upper Tier IHP if M's further employment—

(a) is not NHS employment; and

(b) is an excluded employment.

(3) M continues to be entitled to an Upper Tier IHP during the initial period if M's further employment—

(a) is NHS employment; and

(b) is an excluded employment.

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