The National Health Service Superannuation Scheme (Scotland) Regulations 1995

• (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.

• (4) Subject to paragraphs (5) to (8) and regulation H7 if the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent), the allowance will be equal to one-quarter of the pension described in paragraph (2) if there is only one dependent child, and one-half if there are two or more.

• (5) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G2(2), no allowance shall be payable in respect of any dependent child who is dependent on the widow or widower until the end of the first six months after the member’s death.

• (6) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G2(2), but there is a dependent child who is not dependent on that widow or widower, the allowance is respect of that child for the first three months after the member’s death will be equal to the rate of the member’s pensionable pay when he died.

• (7) If the member dies leaving a dependent child and there is no surviving parent (or spouse of a parent), the allowance will be equal to one-third of the pension described in paragraph (2) if there is only one dependent child and two-thirds if there are two or more; except that the allowance for the first six months after the member’s death will be equal to the rate of the member’s pensionable pay when he died.

• (8) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow’s or widower’s pension under regulation G2 or regulation G2(5) applies the allowance will be paid at the rates described in paragraph (7).

Child allowance when member dies after pension becomes payable

H4

• (1) The child allowance payable in the case of a member who dies after a pension under the scheme becomes payable will be as described in this regulation.

• (2) Subject to paragraph (8) the allowance will be calculated, as described in whichever apply of paragraphs (3) to (5) or regulation H7, as a proportion of the amount of the member’s pension without regard to any actuarial reduction under regulation E5 or, if greater, the amount that the member’s pension would have been if it had been based on the shorter of—

• (a) 10 years' pensionable service, and

• (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.

• (3) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent), the allowance will, subject to paragraphs (5), (6) and (7), be equal to one-quarter of the pension described in paragraph (2) if there is only one dependent child, and one-half if there are two or more.

• (4) If the member dies leaving a dependent child and there is no surviving parent (or spouse of a parent), the allowance will be equal to one-third of the pension described in paragraph (2) if there is only one dependent child and two-thirds if there are two or more, except that the allowance for the six months after the member’s death will be equal to the member’s pension.

• (5) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow’s or widower’s pension under regulation G3 (member dies after pension becomes payable) the allowance will be paid at the rates described in paragraph (4).

• (6) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G3(2), no allowance shall be payable in respect of any dependent child who is dependent on the widow or widower until the end of the first six months after the member’s death.

• (7) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G3(2) but there is a dependent child who is not dependent on that widow or widower, the allowance in respect of that child for the first three months after the member’s death, will be equal to the rate of the member’s pension.

• (8) Where the member was in receipt of a pension payable under regulation E5 (early retirement pension (with actuarial reduction)), the member’s pension referred to in paragraph (2) means the member’s pension calculated without regard to the reduction made under regulation E5(2).

Child allowance when member dies with preserved pension

H5

• (1) The child allowance payable on the death of a member with a preserved pension under regulation E6 (preserved pension) that has not become payable will be as described in this regulation.

• (2) If the member dies within 12 months after leaving pensionable employment, the allowance will be calculated, as described in whichever apply of paragraphs (4) to (6) or regulation H7, as a proportion of the amount of the pension described in regulation H3(2) and where applicable H3(3) as if the member had died on the day he left pensionable employment.

• (3) If the member dies 12 months or more after leaving pensionable employment, the allowance will be calculated, as described in whichever apply of paragraphs (4) to (6) or regulation H7, as a proportion of the amount of the member’s preserved pension or, if greater, the amount that the preserved pension would have been if it had been based on the shorter of—

• (a) 10 years' pensionable service, and

• (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.

• (4) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent), the allowance will be equal to one-quarter of the pension described in paragraph (2) or (3) (whichever is applicable) if there is only one dependent child, and one-half if there are two or more.

• (5) If the member dies leaving a dependent child and there is no surviving parent (or spouse of a parent), the allowance will be equal to one-third of the pension described in paragraph (2) or (3) (whichever is applicable) if there is only one dependent child, and two-thirds if there are two or more.

• (6) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow or widower’s pension under regulation G4 (member dies with preserved pension) except where regulation G1(2) applies the allowance will be paid at the rate described in paragraph (5).

Child allowance when member dies within 12 months after leaving pensionable employment without immediate or preserved pension

H6

• (1) This regulation applies if a member leaves pensionable employment without becoming entitled to a pension under any of regulations E1 to E6 and dies within 12 months after leaving.

• (2) If the member dies before receiving a refund of contributions under regulation E9 the dependent child shall be entitled to a child’s allowance as described in this regulation.

• (3) The child allowance will be calculated as described in regulation H5 (member dies with a preserved pension) as if, on leaving pensionable employment, the member had become entitled to a preserved pension calculated as described in regulation E6.

Increase of child allowance when child not dependent on surviving parent or spouse of a parent

H7

• (1) If a member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) and at least one dependent child who is not being maintained by the surviving parent (or spouse of a parent), the Secretary of State may increase the amount of the child allowance that would otherwise be payable under these Regulations.

• (2) The allowance may, at the Secretary of State’s discretion, be increased up to an amount equal to the amount that would have been payable if there were no surviving parent (or spouse of a parent).

PART J — ALLOCATION TO A SPOUSE OR DEPENDENT

Allocation of pension by member for benefit of dependent

J1

• (1) Subject to the following provisions of this Part, a member may elect to allocate part of his pension under the scheme so as to provide, following his death, a pension for a spouse or dependent.

• (2) Any pension provided for a spouse under this regulation shall be payable in addition to any other widow’s or widower’s pension under these Regulations.

• (3) Any pension provided under this regulation will be calculated in accordance with tables prepared by the Government Actuary.

• (4) A member wishing to allocate part of his pension under this regulation may elect to do so—

• (a) on, or within one month after the date on which a pension under the scheme becomes payable; or

• (b) at any time after reaching age 60 (55 for special class officers) and completing 40 years' service; or

• (c) at any time after reaching age 65 (60 for special class officers).

• (5) A member wishing to allocate part of his pension as described in this regulation shall do so by giving notice in writing to the employing authority on the form provided, giving such information as may be required.

• (6) The Secretary of State shall not accept an election unless satisfied that the member is in good health.

Limits on allocation

J2

• (1) A member may not allocate more than one-third of his pension to provide a pension on his death for a surviving spouse or a dependent and must keep a pension at least equal to the member’s guaranteed minimum pension and, if applicable, the amount specified in paragraph 11 of Schedule 10 to the 1980 Regulations.

• (2) A member may not allocate so much pension as to provide a bigger spouse’s pension or dependent’s pension under regulation J1 than the pension he has retained.

• (3) The part of a member’s pension that is allocated must be an exact number of pounds and must be sufficient to provide a pension for the spouse or dependent of at least £260 a year or, if greater, of the minimum amount that cannot be treated as trivial for the purposes of regulation T7 (commutation of trivial pensions).

Date on which allocation has effect

J3

• (1) An allocation becomes effective once the election to allocate is accepted by the Secretary of State.

• (2) The allocation will not take effect if—

• (a) the member dies on or before the day on which the Secretary of State accepts the member’s election;

• (b) the dependent or spouse dies before the member is told that the Secretary of State accepts the election; or

• (c) the member withdraws his application before it is accepted by the Secretary of State.

• (3) An allocation may not be withdrawn or cancelled, once the Secretary of State has accepted the member’s election to allocate.

Death of member after allocation

J4

• (1) If a member elects to allocate part of his pension in the circumstances described in regulation J1(4)(b) or (c) and then dies before becoming entitled to receive a pension the member will be treated, for the purposes of regulation J2, as entitled to the pension he would have received if he had retired immediately before his death.

• (2) If a member allocates part of his pension as described in this regulation and then dies after becoming entitled to receive a pension, the amount of pension already paid to the member under the scheme will be treated, for the purpose of calculating the lump sum payable under regulation F2 (member dies after becoming entitled to receive a pension), as including the amount of the additional pension that would have been paid to the member if the member had not allocated part of his pension.

PART K — CONTRACTING OUT AND GUARANTEED MINIMUM PENSIONS

Contracting-out requirements to be overriding

K1

The scheme will be administered in conformity with the contracting-out requirements and regulations K2 to K7 will override any inconsistent provisions of these Regulations except regulation T7 (commutation of trivial pensions).

Guaranteed minimum pensions

K2

• (1) This regulation applies where the member has a guaranteed minimum, in relation to the pension provided for the member under the scheme, in accordance with section 14 of the Pension Schemes Act 1993[^f00020] (earner’s guaranteed minimum).

• (2) The weekly rate of the member’s pension from State pension age will not be less than the member’s guaranteed minimum, except that—

• (a) payment may at the discretion of the Secretary of State be postponed for up to 5 years if the member remains in NHS employment, or for any period if the postponement continues or occurs more than 5 years after State pension age if the member consents; in which case the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement);

• (b) payment may be reduced or suspended under regulation S1 to S3 (members who return to NHS employment after becoming entitled to receive a pension) if the member returns to NHS employment; in which case the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement); and

• (c) payment may be reduced or suspended where the Secretary of State has made a direction under regulation T6 (loss of rights to benefit) or where he has discharged his liability by making a payment under regulation T7 or under Part M (transfers or buy-outs).

• (3) If the member is a man and dies leaving a widow, the weekly rate of the widow’s pension will not be less than half the member’s guaranteed minimum for any period such as is mentioned in section 17(5) of the Pension Schemes Act 1993.

• (4) If the member is a woman and dies leaving a widower, the weekly rate of the widower’s pension will not be less than half the part of the member’s guaranteed minimum that is attributable to earnings for the tax year 1988-89 and subsequent tax years for any period such as is mentioned in section 17(6) of the Pension Schemes Act 1993.

• (5) The part of any guaranteed minimum pension that is attributable to earnings for the tax year 1988-89 and subsequent tax years will increase in each year by the percentage specified in any order made by the Secretary of State under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions).

• (6) If a member becomes entitled to a refund of contributions under regulation E9 on leaving pensionable employment or exercises a right to require a transfer or buy-out in accordance with regulation M1 but (in either case) remains entitled to a guaranteed minimum pension, no benefit will be payable on the member’s death, except for a widow’s or widower’s pension of the amount described in paragraph (3) or (4) as the case may be.

• (7) Where paragraph (3) of regulation K7 applies, a guaranteed minimum pension of the amount described in paragraph (4) will be payable.

Late retirement

K3

If a member’s pension is postponed for more than 7 weeks after state pension age, or is reduced or suspended after it becomes payable, the member’s guaranteed minimum pension as increased under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions) will be increased by 1/7th per cent for each complete 7 days of postponement.

Early leavers

K4

• (1) Subject to paragraph (2), if a member leaves contracted-out employment under the scheme before state pension age, the member’s guaranteed minimum pension at the date of leaving will be increased when the member reaches state pension age or dies (if earlier) by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992[^f00021] (revaluation of earnings factors) to come into force before the tax year in which the member reaches state pension age or dies (if earlier).

• (2) If a guaranteed minimum pension is to be transferred to another scheme, or bought out by a buy-out policy, under which early leavers' guaranteed minimum pensions are increased by a method other than that described in paragraph (1), the Secretary of State may adopt that other method for the guaranteed minimum pension in question.

• (3) If a member returns to contracted-out employment under the scheme within six months after leaving, the two periods of contracted-out employment will be treated as continuous, unless the first period is covered by—

• (a) a state scheme premium under Chapter III of Part III of Pension Schemes Act 1993, or

• (b) a transfer to another occupational pension scheme or to a personal pension scheme, or

• (c) any guaranteed minimum pensions being bought out under a buy-out policy.

Guaranteed minimum pensions transferred to the scheme

K5

• (1) Where a guaranteed minimum pension has been transferred to the scheme and the member subsequently leaves contracted-out employment under the scheme, the guaranteed minimum pension transferred to the scheme will be increased for each complete tax year after the date on which the member left contracted-out employment under the scheme in which the transferred guaranteed minimum pension accrued, until the member reaches state pension age or dies (if earlier).

• (2) If the transfer is from another occupational pension scheme, the guaranteed minimum pension will be increased by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches state pension age or dies (if earlier).

• (3) If the transfer is from a buy-out policy, the guaranteed minimum pension will be increased by the same method as was in use under the policy or by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 to come into force before the tax year in which the member reaches state pension age or dies (if earlier).

Protected rights transferred to the scheme

K6

• (1) Where protected rights have been transferred to the scheme from another occupational pension scheme or a personal pension scheme, the protected rights will be used to provide guaranteed minimum pensions equal to those to which the member and the member’s spouse would have been treated as entitled under the transferring scheme had the transfer not been made.

• (2) Any guaranteed minimum pensions to which a member and his spouse are entitled by virtue of paragraph (1) will be revalued as described in regulation K5(2) (transferred guaranteed minimum pensions).

State scheme premiums

K7

• (1) Subject to paragraph (3) the Secretary of State may discharge his liability to provide guaranteed minimum pensions by paying a state scheme premium under Chapter III of Part III of the Pension Schemes Act 1993.

• (2) Where a member, or a member’s widow or widower, is entitled to a pension under the scheme in respect of a period for which a contributions equivalent premium has been paid under section 55(2) of the Pension Schemes Act 1993 the pension will be reduced by the amount of the guaranteed minimum pension that would have been payable under the scheme to the member, widow or widower, as the case may be, if the contributions equivalent premium had not been paid.

• (3) Notwithstanding paragraph (1) the Secretary of State may not discharge any liability under paragraph (1) when a female member dies with less than 2 years' service.

PART L — EARLY LEAVERS RETURNING TO PENSIONABLE EMPLOYMENT

Treatment of pensionable service of early leavers returning to pensionable employment

L1

• (1) This regulation applies to any member who leaves pensionable employment without becoming entitled to an immediate pension under regulation E1 to E5 (pensions for members) and later returns to pensionable employment before becoming entitled to receive a pension under the scheme.

• (2) Subject to paragraph (5), if the member leaves pensionable employment with a preserved pension and then returns to pensionable employment within 12 months after leaving, the member will cease to be entitled to the preserved pension under regulation E6 and the member’s pensionable service before and after the break will be treated as continuous.

• (3) Where the member leaves NHS employment with a preserved pension and then returns to pensionable employment 12 months or more after leaving—

• (a) the member’s pensionable service before and after the break will be treated separately unless, when the member becomes entitled to receive a pension or the member dies (whichever occurs first), it would be more favourable to the member to treat the member’s pensionable service before and after the break and all other such breaks (if any) as continuous; in which case it will be treated as continuous; and

• (b) where the member becomes entitled to receive a pension under regulation E2 (early retirement pension (ill health)), the pensionable service upon which that pension is based will be increased as described in paragraphs (4) to (6) of that regulation if the member’s pensionable service before and after the break is treated as continuous; but where the member’s pensionable service before and after the break is treated separately the increase as described in paragraph (4) to (6) of regulation E2 will be the proportion that the service is to the total pensionable service in the scheme calculated as—

$proportioned increase=service after the breaktotal pensionable service×total increase$

and the said proportioned increase will be added to the pensionable service after the break.

• (4) Subject to regulation L2, if the member leaves pensionable employment without becoming entitled to a preserved pension and then returns to pensionable employment within 12 months after leaving, the member’s pensionable service before and after the break will be treated as continuous.

• (5) Where paragraph (4) applies and the member has received a refund of contributions in respect of pensionable service before the break, the member’s pensionable service before and after the break will be treated as continuous provided that the member returns within 12 months, and, within 6 months after rejoining the scheme, the member pays to the Secretary of State an amount equal to the refund of contributions including any interest paid.

Calculation of benefits

L2

• (1) If the member’s pensionable service before and after the break is treated as continuous, the member’s pensionable employment before and after the break will be treated as continuous for the purpose of calculating the member’s final year’s pensionable pay under regulation A2 for any specified period of pensionable employment.

• (2) If a member’s pensionable service before and after a break in pensionable employment is treated separately, the member’s benefits in respect of each period of pensionable employment will be calculated separately, by reference to the member’s pensionable service and final year’s pensionable pay under regulation A2 in respect of each period.

Preserved pension to count as qualifying service

L3

If a member leaves pensionable employment with a preserved pension and, after returning, again leaves pensionable employment without becoming entitled to an immediate pension under regulation E1 to E5 (pensions for members), the member will be entitled to a preserved pension under regulation E6 in respect of the period after the break whether or not he has 2 years' qualifying service in respect of that period.

Continuation of additional contributions

L4

A member whose pensionable service before and after a break is treated as continuous and who, before the break, was paying for additional benefits by regular additional contributions under regulation Q5 (paying for additional service or unreduced retirement lump sum) must continue to pay for those additional benefits after the break.

PART M — TRANSFER-OUT ARRANGEMENTS AND BUY-OUTS

Member’s right to transfer or buy-out

M1

• (1) A member who leaves pensionable employment with a preserved pension before reaching age 60, or age 59 where paragraph (3) applies, may require the Secretary of State to transfer or buy-out his rights under the scheme as described in this regulation.

• (2) Subject to paragraphs (3) and (4), the right referred to in paragraph (1) is a right to require the Secretary of State to use the cash equivalent of the member’s benefits under the scheme—

• (a) to purchase one or more buy-out policies from one or more insurance companies chosen by the member; or

• (b) to acquire rights under another occupational pension scheme, or under a personal pension scheme, or self-employed pension arrangement that satisfies the requirements of the transfer values laws; or

• (c) in any combination of the ways described in sub-paragraphs (a) and (b),

provided that the right is exercised in relation to each and every portion of the cash equivalent.

• (3) A member may require the Secretary of State to use the cash equivalent of the member’s benefits under the scheme to purchase buy-out policies or to acquire rights under a personal pension scheme or self employed pension arrangement only if—

• (a) the member leaves pensionable employment on or after 1st January 1986; and

• (b) where the transfer is to a buy-out policy the member has at least 2 years' pensionable service and does not rejoin the scheme until more than one month after leaving pensionable employment; and the member leaves pensionable employment before reaching age 59.

• (4) A member who leaves pensionable employment with a preserved pension after reaching age 59 may require the Secretary of State to use the cash equivalent only to acquire rights under another occupational pension scheme, personal pension scheme or self-employed pension arrangement.

• (5) Where a member leaves pensionable employment by opting-out and on so doing becomes entitled to a preserved pension under regulation E6 then, if the member has at least 2 years' pensionable service before 6th April 1988, the member’s right to require a transfer or buy-out will be limited to the cash equivalent of the part of his benefits that is attributable to pensionable service after 5th April 1988 and the member will acquire a right to the cash equivalent of the remaining benefits only if he actually leaves NHS employment before reaching age 60.

• (6) Subject to paragraph (7) and to paragraph (2) of regulation M5 a member loses the right referred to in paragraph (1) if any pension or other benefit becomes payable to the member before the member reaches age 60.

• (7) This regulation applies to a member who leaves NHS employment with an immediate pension under regulation E3 (early retirement pension (redundancy etc.)) only if, before exercising the right to transfer or buy-out, the member pays to the Secretary of State an amount equal to the total benefits already paid to the member under the scheme and the member will be treated as if the benefits represented by that amount had never been payable to the member.

• (8) Where the Secretary of State has done what is needed to carry out what the member requires under this regulation, the Secretary of State will be discharged from any obligation to provide benefits for or in respect of the member under the scheme, except that the Secretary of State will continue to be liable to provide guaranteed minimum pension in respect of the member where regulation M3(2) applies unless the Secretary of State discharges that liability under regulation K7 (state scheme premiums).

Exercising a right to transfer or buy-out

M2

• (1) A member shall exercise the right to require a transfer or buy-out by making application in writing to the Secretary of State.

• (2) A member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme, personal pension scheme or self-employed pension arrangement may exercise the right at any time before reaching age 60.

• (3) Subject to paragraph (4), a member who requires all or part of the cash equivalent to be used to purchase one or more buy-out policies may exercise the right at any time before reaching age 59.

• (4) A member who leaves pensionable employment less than six months before his 59th birthday may exercise the right under paragraph (3) at any time up to six months after leaving.

• (5) Subject to paragraph (6), a member may withdraw the application by giving notice in writing to the Secretary of State that he no longer wishes to exercise that right.

• (6) The member may not withdraw the application after the Secretary of State, in order to comply with what the member previously required, has entered into an agreement with a third party to use the member’s cash equivalent in a way specified in regulation M1(2).

• (7) A member who withdraws an application may make another.

Amount of member’s cash equivalent

M3

• (1) Subject to paragraphs (2) to (6), the member’s cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971[^f00022], calculated and verified as required by Chapter IV of Part IV of the Pension Schemes Act 1993[^f00023] (transfer values).

• (2) If the member requires the cash equivalent to be used to acquire rights under an occupational pension scheme which is not a contracted-out scheme within the meaning of Chapter I of Part III of the Pension Schemes Act 1993, or under a personal pension scheme or self-employed pension arrangement which is not an appropriate scheme within the meaning of that Chapter of that Part of that Act, and the trustees or managers of the receiving scheme are unable or unwilling to accept liability for the member’s rights to guaranteed minimum pensions, the cash equivalent will be reduced by an amount sufficient for the Secretary of State to meet his liability to provide guaranteed minimum pensions in respect of the member and the Secretary of State may discharge that liability by payment of a state scheme premium under regulation K7.

• (3) If the cash equivalent is not to be used to acquire rights in a scheme that participates in the Public Sector Transfer Arrangements and the Secretary of State fails, without reasonable excuse, to do what is needed to carry out what the member requires within 6 months of the member’s leaving pensionable employment or, if later, exercising the right, the member’s cash equivalent will be increased.

• (4) The amount of the increase under paragraph (3) will be equal to the greater of—

• (a) interest on the cash equivalent at the same rate as that payable for the time being on judgment debts by virtue of section 17 of the Judgment Act 1838[^f00024] (judgment debts to carry interest), calculated on a daily basis over the period between the date of the member’s leaving pensionable employment or, if later, exercising the right to transfer or buy-out and the date on which the Secretary of State carries out what the member requires; and

• (b) the amount (if any) by which the cash equivalent is less than what it would have been if the date of the member’s leaving pensionable employment or, if later, exercising the right, had been the date on which the Secretary of State carries out what the member requires.

• (5) Subject to paragraph (7), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under Part N (transfers-in from other pension arrangements), plus the amount of the member’s contributions to the scheme.

• (6) Subject to paragraph (7), if a member’s cash equivalent is used to acquire rights under another occupational pension scheme, any part of the cash equivalent that relates to pensionable service before 12th December 1988 will be calculated as described in the 1980 Regulations as applicable immediately before that date, if that would be more favourable to the member.

• (7) Paragraphs (5) and (6) do not apply where the member requires the cash equivalent to be used to acquire rights under another occupational pension scheme that participates in the Public Sector Transfer Arrangements.

• (8) In any case where prior to the last date he is required to make a transfer payment under these Regulations the Secretary of State has directed, under regulation T6 (loss of rights to benefit), that any part of a member’s benefits under these Regulations shall be forfeited, the cash equivalent payable in respect of that member shall be withheld or reduced to the extent of the capitalised value of that part of those benefits.

Time limit for doing what member requires

M4

• (1) Subject to paragraphs (2) and (3), the Secretary of State shall do what is needed to carry out what the member requires under regulation M1 (member’s right to transfer or buy-out) within 12 months after receiving the member’s application or by age 60 if that is earlier.

• (2) Where regulation M2(3) applies, if the member leaves pensionable employment within six months before reaching age 59 and the Secretary of State receives the member’s application after the member reaches age 59 but within six months after the member’s leaving, the Secretary of State shall do what is needed to carry out what the member requires under regulation M1 within 6 months or by the date on which the member reaches age 60 if that is earlier.

• (3) If disciplinary or court proceedings are commenced against the member within 12 months after the member leaves pensionable employment and it appears to the Secretary of State that the proceedings may lead to all or part of the member’s benefits being forfeited under regulation T6 (loss of rights to benefits), the Secretary of State may defer doing what is needed to carry out what the member requires until the date three months after the conclusion of those proceedings (including any proceedings on appeal) where that date is later than the date which would otherwise apply under paragraph (1) or (2) above.

Early leaver without preserved pension

M5

• (1) Subject to paragraphs (2) and (3), this regulation applies where a member leaves pensionable employment before reaching age 60, without becoming entitled to a pension under any of regulations E1 to E6 (pensions for members).

• (2) This regulation applies to a member who has received a refund of contributions under regulation E9 (refund of contributions) only if, before exercising the right to transfer, the member pays to the Secretary of State an amount equal to that refund of contributions (including any interest).

• (3) Where this regulation applies the member will be treated, for the purposes of regulations M1 to M4, as if he had left pensionable employment or opted out of the scheme with a preserved pension, except that—

• (a) sub-paragraph (2)(a) of regulation M1 will not apply; and

• (b) a member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme or under a personal pension scheme or self-employed pension arrangement, must join that other scheme within 12 months after leaving pensionable employment and exercise the right to transfer within 12 months after joining that other scheme.

• (4) A member who pays an amount to the Secretary of State as described in paragraph (2) of this regulation will be treated, for the purposes of regulation M1(6), as if the benefits represented by that amount had never become payable to the member.

Transfers in respect of more than one member

M6

• (1) If two or more members leave pensionable employment, join another occupational pension scheme and exercise a right to transfer to that scheme under regulation M1 (member’s right to transfer or buy-out), the Secretary of State may, after consulting the Government Actuary, make a single transfer payment to that scheme in respect of those members.

• (2) The Secretary of State will calculate the amount of any transfer payment under this regulation after taking advice from the Government Actuary.

Waiver of transfer payments

M7

If an occupational pension scheme waives payment of any cash equivalent or transfer payment that would otherwise be payable to it under regulations M1 to M6, the payment will nevertheless be treated as made for the purposes of these Regulations.

PART N — TRANSFERS-IN FROM OTHER PENSION ARRANGEMENTS

Member’s right to transfer accrued rights to benefits to the scheme

N1

• (1) Within 12 months after joining the scheme, a member in pensionable employment may, in writing, request the Secretary of State to accept a transfer payment in respect of the member’s rights under another occupational pension scheme, a personal pension scheme, a self-employed pension arrangement or a buy-out policy, but not in respect of rights under a scheme that is approved by the Commissioners of Inland Revenue by virtue of section 591(2)(h) of the Taxes Act (freestanding AVC schemes).

• (2) The Secretary of State shall not accept the transfer payment unless—

• (a) the transferring scheme or insurance company provides all the information about the member’s rights that the Secretary of State reasonably requires; and

• (b) the amount of the transfer payment is not less than the yearly rate of the guaranteed minimum pension for which the Secretary of State would be liable as a result of accepting the transfer payment, multiplied by the factor appropriate to the member’s age, as set out in the following table:—

Member’s age	Appropriate factor
29 or under	8
30-39	9
40-49	10
50 or over	12

• (3) The Secretary of State shall not accept the transfer payment if the member joins the scheme, or requests the Secretary of State to accept the transfer payment, after reaching age 60.

• (4) If the Secretary of State accepts the transfer payment, the member will be credited with an additional period of service under the scheme in respect of the transfer payment, as described in whichever of regulations N2 (transfers made under the Public Sector Transfer Arrangements) and N3 (transfers that are not made under the Public Sector Transfer Arrangements) is applicable.

• (5) For the purposes of calculating a member’s final year’s pensionable pay any period of service with which a member is credited in respect of a transfer payment will be treated as pensionable employment and the pensionable pay by reference to which that service is calculated will be treated as pensionable pay received in respect of that employment.

Transfers made under the Public Sector Transfer Arrangements

N2

• (1) Subject to paragraph (2), if the transfer is from another occupational pension scheme that participates in the Public Sector Transfer Arrangements, the additional period of pensionable service to be credited to the member in respect of the transfer payment will be equal to the period that, if used to calculate a cash equivalent under regulation M3 (amount of member’s cash equivalent), would produce an amount equal to the amount of the transfer payment.

• (2) Paragraph (1) applies only if the transfer payment—

• (a) represents all the member’s benefits under the transferring scheme; and

• (b) is calculated in a manner that is consistent with the actuarial methods and assumptions used by the Secretary of State to calculate cash equivalents under regulation M3, in the case of transfers under the Public Sector Transfer Arrangements.

• (3) For the purpose of calculating the additional period of pensionable service under paragraph (1), regard shall be had to the member’s age and marital status, and to the yearly rate of pay and any other factor notified to the Secretary of State by the trustees or managers of the transferring scheme as having been taken into account for the purpose of calculating the amount of the transfer payment.

Transfers that are not made under the Public Sector Transfer Arrangements

N3

• (1) Except where regulation N2 (transfers made under the Public Sector Transfer Arrangements) applies, the additional period of pensionable service to be credited to the member in respect of the transfer payment will be calculated in a manner that is consistent with the actuarial methods and assumptions used by the Secretary of State to calculate cash equivalents under regulation M3 (amount of member’s cash equivalent), in the case of transfers that are not made under Public Sector Transfer Arrangements.

• (2) When calculating the additional period of pensionable service under paragraph (1), due allowance shall be made for the expected increase in the pensionable pay of all members of the same age as the member in respect of whom the transfer payment is being accepted between the date on which that member joins the scheme (or the date on which the transfer payment is accepted, if this is more than 12 months later) and the date on which the member will reach age 60.

Transfers in respect of more than one member

N4

• (1) With the consent of each member and after consulting the Government Actuary, the Secretary of State may accept a single transfer payment from another occupational pension scheme, in respect of two or more members.

• (2) Where the Secretary of State accepts a single transfer payment in respect of two or more members, each such member shall be credited with an additional period of pensionable service calculated by the Secretary of State on the advice of the Government Actuary.

Waiver of transfer payments

N5

• (1) The Secretary of State may waive payment of any transfer payment.

• (2) If the Secretary of State waives payment of any transfer payment, regulations N1 to N4 will apply as if the transfer payment had been accepted.

PART P — ABSENCE FROM WORK

Maternity absence

P1

• (1) A period of absence for pregnancy or confinement will count as pensionable service for so long as the member contributes to the scheme.

• (2) If the earnings used to calculate a member’s pensionable pay are reduced during a period of absence for pregnancy or confinement, then for the purpose of calculating the member’s contributions to the scheme, pensionable pay for the period of absence will be calculated on the basis of the member’s reduced earnings and if the member’s earnings are subsequently suspended the member’s contributions will be calculated on the basis of the member’s reduced earnings immediately before the commencement of unpaid absence.

• (3) If a member is not entitled to paid maternity leave under her terms of employment or under statute, for the purpose of calculating the member’s contributions to the scheme, pensionable pay for the period of absence will be calculated on the basis of the member’s pensionable pay immediately before the absence started.

• (4) For all purposes (including employer contributions) other than calculating the member’s contributions to the scheme, a member’s pensionable pay for the period of absence for pregnancy or confinement will be calculated as if no reduction were being made.

Absence because of illness or injury

P2

• (1) This regulation applies to members who are absent from work because of illness or injury.

• (2) If the earnings used to calculate a member’s pensionable pay are reduced during a period of absence for illness or injury—

• (a) for the purpose of calculating the member’s contributions to the scheme, pensionable pay for the period of absence will be calculated on the basis of the member’s reduced earnings; and

• (b) for all other purposes, the member’s pensionable pay for the period of absence will be calculated as if no reduction were being made.

• (3) Except for the purpose of regulation Q3(4) (in which event no account will be taken of the suspension), if a member’s earnings are suspended during a period of absence for illness or injury, the member will be treated as if he had left pensionable employment, except that the member will not be entitled to any benefits or refund of contributions until the member actually leaves pensionable employment.

• (4) If, on account of illness or injury, a member leaves pensionable employment or, by virtue of paragraph (3), is treated as if he had left pensionable employment, without becoming entitled to a preserved pension, then if the member later returns to pensionable employment, regulation L1(4) (early leavers returning to pensionable employment) will apply as if the reference to “12 months” was a reference to “3 years”.

• (5) The benefits payable on the death of a member whose earnings are suspended during a period of absence from work for illness or injury will be calculated as if the member had died in pensionable employment on the day before his earnings were suspended, unless the member has exercised the right to require a transfer or buy-out in accordance with regulation M1 (member’s right to require a transfer or buy-out).

Absence for reasons other than illness or injury

P3

• (1) This regulation applies to members who are absent from work for reasons other than illness or injury.

• (2) If the earnings used to calculate a member’s pensionable pay are reduced or suspended during a period of leave of absence for reasons other than illness or injury, “pensionable pay” (and, consequently, the member’s contributions and benefits) for the period of absence will be calculated on the basis of the member’s earnings immediately before the absence started.

• (3) A member who is absent from work without leave and whose earnings are suspended will be treated as if he had left pensionable employment, except that the member shall not be entitled to any benefits or a refund of contributions until the member returns to or actually leaves pensionable employment.

PART Q — RIGHT TO BUY ADDITIONAL SERVICE AND UNREDUCED LUMP SUM

Right to buy additional service

Q1

• (1) Provided a member will be able to complete at least 9 years' pensionable service prior to reaching age 60 and subject to the provisions of this regulation and regulations Q3 (paying by single payment) and Q5 (paying by regular additional contributions) a member in pensionable employment may increase his rights to benefits by buying additional pensionable service in accordance with the regulations in this Part.

• (2) The member may choose to pay for additional service by making a single payment in accordance with regulation Q3 or by making regular additional contributions in accordance with regulation Q5 or partly in one way and partly in the other.

• (3) A member must exercise his right to buy additional service within the time limits described in regulation Q3 or, as the case may be, regulation Q5 and before becoming entitled to receive a pension under regulation E1 (normal retirement pension) or E6 (preserved pension).

• (4) Any period of additional service that a member buys will count as pensionable service for all the purposes of the scheme, except—

• (a) for the purpose of calculating whether and, if so, by how much the member’s pensionable service should be (or, where the member dies in pensionable employment, would have been) increased as described in regulation E2 (early retirement pension (illhealth)); and

• (b) for the purpose of calculating the member’s qualifying service in accordance with regulation C3 (qualifying service).

• (5) For the purposes of regulation G7 (widower’s pension), if a woman exercised her right to buy additional service before 6th April 1988, the additional service bought as a result of that exercise of her right will be treated as service before 6th April 1988.

• (6) Subject to paragraph (7) and regulation C2(4), the maximum period of additional service that a member may buy is the period set out in the following table opposite the number of years of pensionable service that the member could complete (“potential years of service”) if he stayed in pensionable employment until age 60. A member who will not be able to complete at least 9 years' pensionable service prior to reaching age 60 may not buy any additional service:—

Potential years of service	Maximum period of additional service that member may buy
9	1 year
10	2 years
11	3 years
12	4 years
13	5 years
14	7 years
15	9 years
16	11 years
17	13 years
18	15 years
19	17 years
20 or more	20 years

• (7) The member’s right to buy additional service is subject to any limits imposed by the Inland Revenue.

• (8) Where a special class officer buys a period of additional service, the amount of the benefits attributable to that period of additional service will be those that would be payable in the case of a member who is not a special class officer.

• (9) Where a member, following a break in pensionable employment in respect of which he received a refund of contributions which has not been repaid, rejoins the scheme, he may buy all or any part of the previous pensionable service provided that the employment giving rise to that pensionable service was not employment to which the contracting out requirements applied.

Right to buy an unreduced retirement lump sum

Q2

• (1) Subject to the provisions of this regulation and regulations Q4 (paying by single payment) and Q5 (paying by regular additional contributions) a member in pensionable employment whose service started before 25th March 1972 and who is, or has been, married may make payments to the scheme to off-set all or part of any reduction in the lump sum payable to the member under regulation E7 (lump sum on retirement).

• (2) The member may choose to pay for an unreduced retirement lump sum by making a single payment in accordance with regulation Q4 or by making regular additional contributions in accordance with regulation Q5 or partly in one way and partly in the other.

• (3) A member must exercise the right to buy an unreduced retirement lump sum within the time limits described in regulation Q4, or as the case may be, regulation Q5 and before the lump sum becomes payable.

Paying for additional service by single payment

Q3

• (1) A member who wishes to pay for additional service by a single payment must elect to do so within 12 months of first joining the scheme.

• (2) A member who, following a break in pensionable employment rejoins the scheme, may pay for additional service by a single payment only if—

• (a) he again becomes a member having become entitled, in respect of earlier pensionable service, to a pension under regulation E6 (preserved pension) which has not become payable; or

• (b) he again becomes a member having, in respect of earlier pensionable service, received a refund of contributions which has not been repaid; or

• (c) he again becomes a member having, in respect of earlier pensionable service, required a transfer of rights to another scheme in circumstances where those rights are preserved in that other scheme,

and he elects to do so within 12 months of rejoining the scheme.

• (3) The amount of a single payment for additional service will be calculated in accordance with Table 1 of Schedule 2.

• (4) For the purposes of Table 1 of Schedule 2, “remuneration” means, subject to paragraph (5), the yearly average of a member’s pensionable pay in respect of the three months' pensionable employment immediately preceding the date on which the member elects to buy the additional service or unreduced retirement lump sum.

• (5) If the member has not been in pensionable employment for three months before electing to buy the additional service or unreduced retirement lump sum, “remuneration” means the yearly average of the member’s pensionable pay in respect of the first three months' pensionable employment.

• (6) The member must make any single payment for additional service within three months after electing to do so or, if later, within six months after starting pensionable employment.

• (7) Where a person elects to buy additional service in the circumstances described in regulation Q1(9), the cost will be calculated as one-half of the cost calculated under paragraph (3).

Paying for unreduced retirement lump sum by single payment

Q4

• (1) A man who wishes to pay for an unreduced retirement lump sum by a single payment must elect to do so within 12 months after getting married, or if he is not then a member, within 12 months of first rejoining the scheme after getting married.

• (2) A woman who wishes to pay for an unreduced retirement lump sum by a single payment must elect to do so within 12 months after nominating her husband to receive a dependent widower’s pension under regulation G8 (dependent widower’s pension).

• (3) The amount of a single payment for an unreduced retirement lump sum will be calculated in accordance with Table 2 of Schedule 2.

• (4) For the purposes of Table 2 of Schedule 2, “remuneration” means, subject to paragraph (5), the same as in regulation Q3(4) and (5) (meaning of “remuneration” for the purposes of Table 1 of Schedule 2).

• (5) In the case of a member who elects to buy an unreduced retirement lump sum but who is no longer required to contribute under regulation D1 (contributions by members) because regulation D1(3) or (4) applies, “remuneration” means the amount to which a pension equal to the member’s final year’s pensionable pay and beginning on the day on which regulation D1(3) or (4) started to apply would have been increased under Part I of the Pension (Increases) Act 1971[^f00025] at the date on which the member elects to buy an unreduced retirement lump sum.

• (6) The member must make any single payment for an unreduced retirement lump sum within three months after electing to do so or, if later, within six months after starting pensionable employment.

Paying by regular additional contributions

Q5

• (1) A member who wishes to pay for additional service or unreduced retirement lump sum by regular additional contributions must elect to do so before reaching age 63.

• (2) Regular additional contributions shall be deducted from the member’s earnings, and paid to the Secretary of State, in like manner as under regulation D1(5) (contributions by members).

• (3) Subject to paragraph (4), the member must start paying the regular additional contributions from the member’s next birthday following the date on which the member elects to buy the additional service or unreduced retirement lump sum until either his 60th or 65th birthday, whichever the member chooses (the “chosen date”).

• (4) The period for which a member elects to pay regular additional contributions must be at least 2 years.

• (5) The regular additional contributions will be calculated as a percentage of the member’s pensionable pay, in accordance with Table 3 of Schedule 2, (if the member is buying additional service) or Table 4 of Schedule 2 (if the member is buying an unreduced retirement lump sum).

• (6) The member’s total regular contributions to the scheme (including contributions under regulation D1) may not exceed 15 per cent of pensionable pay, or any other limit specified for the time being by the Inland Revenue.

• (7) If a member who has elected to pay for additional service or unreduced retirement lump sum by regular additional contributions stops paying the contributions before the chosen date under paragraph (3), regulation Q7 (part payment for additional service) will apply.

• (8) Where a member elects to make payment for additional service in the circumstances described in regulation Q1(9), the cost will be calculated as one-half of the cost calculated under paragraph (5).

Electing to buy additional service or unreduced retirement lump sum

Q6

• (1) A member electing to buy additional service or unreduced retirement lump sum shall do so by giving notice in writing to the Secretary of State on the form provided, giving such information as may be required.

• (2) A member may not exercise a right to buy additional service or unreduced retirement lump sum benefits during a period of absence from work without leave or because of ill-health or injury, or while his earnings are reduced or suspended.

• (3) For the purposes of these Regulations, the date on which a member elects to buy additional service or unreduced lump sum means the date on which the Secretary of State receives the member’s completed form exercising that right.

• (4) If a member who elects to pay for additional service or unreduced retirement lump sum by a single payment leaves pensionable employment within three months after starting that employment, the election will cease to have effect.

• (5) For the purposes of paragraph (4), and notwithstanding regulation P2(3) (temporary absence through illness or injury), a member whose earnings are suspended during a period of absence from work for illness or injury will not be treated as if he had left pensionable employment.

• (6) A member who wishes to pay for additional service or unreduced retirement lump sum by regular additional contributions must be able to sign a declaration, in the form provided, that he knows of no reason why his health should prevent him from paying the additional contributions for the whole period for which he has chosen to pay them.

• (7) Where payment in accordance with regulation Q5(5) is causing, or continuation would cause, financial hardship the Secretary of State may consent to the discontinuance of the payments and regulation Q7 will apply.

Part payment for additional service or unreduced retirement lump sum

Q7

• (1) If a member who is paying for additional service or unreduced retirement lump sum by regular additional contributions stops paying before the chosen date under regulation Q5(3), the member’s benefits will be calculated as described in this regulation.

• (2) If the member dies or becomes entitled to a pension under regulation E2 (early retirement pension (ill health)) within 12 months after starting to pay the additional contributions, an amount equal to the contributions (less any tax that may be payable) will be returned to the member or the member’s personal representatives.

• (3) If 12 months or more after starting to pay the additional contributions but before reaching the age of 60 the member dies in pensionable employment or becomes entitled to a pension under regulation E2 the member will be treated as if the contributions have been paid, and the member’s benefits will be increased to include the additional service or unreduced retirement lump sum that the member has chosen to buy. If a member who retires through ill health later returns to pensionable employment before the chosen date under regulation Q5(3), he must continue paying the additional contributions until the chosen date.

• (4) If neither of paragraphs (2) or (3) apply, the member’s benefits will include a proportion of the additional service or unreduced retirement lump sum that the member has chosen to buy, calculated as described in whichever of paragraphs (5) and (6) applies.

• (5) If the member becomes entitled to receive benefits at or after the chosen date under regulation Q5(3) the proportion will be calculated as—

$period for which contributions were paidperiod for which contributions should have been paid.$

• (6) If the member other than a member to whom paragraph (3) applies dies or becomes entitled to receive benefits before the chosen date under regulation Q5(3), the benefits will be calculated as described in paragraph (5) but, except in a case where benefits are reduced under E5(2) or E8(7)(b), will then be reduced on a basis determined by the Government Actuary and consistent with the preservation requirements.

PART R — SPECIAL PROVISIONS FOR CERTAIN MEMBERS

Medical and dental practitioners and trainee practitioners

R1

• (1) These Regulations apply to members who are or have been practitioners as if they were officers employed by the relevant Health Board, but with the modifications described in Schedule 1 to these Regulations.

• (2) These Regulations apply to members who are or have been trainee practitioners as if they were whole-time officers employed by the relevant Health Board.

Nurses, physiotherapists, midwives and health visitors

R2

• (1) Subject to paragraph (2) this regulation applies to a member—

• (a) who, at the coming into force of these Regulations—

• (i) is in pensionable employment as a nurse, physiotherapist, midwife or health visitor, or

• (ii) has accrued rights to benefits under the scheme arising out of a previous period in which the member was engaged in such employment and at no time since the last occasion on which the member was so engaged has had a break in pensionable employment for any one period of 5 years or more, and

• (b) who spends the whole of the last 5 years of pensionable employment as a nurse, physiotherapist, midwife or health visitor.

• (2) This regulation shall cease to apply if the member has a break in pensionable employment of 5 years or more ending after the coming into force of these Regulations.

• (3) Where this regulation applies—

• (a) regulation E1 (normal retirement pension) will apply to the member as if the references, in paragraph (1) of that regulation, to age 60 were a reference to age 55;

• (b) if the member leaves NHS employment because of redundancy but without becoming entitled to an immediate pension under regulation E3 (early retirement pension (redundancy etc.)), regulation E6 (preserved pension) will apply as if the references in that regulation to age 60 were references to age 55.

• (4) Where, in accordance with paragraph (3), a member becomes entitled to receive a pension before age 60, the amount payable shall—

• (a) in the case of a female member, be calculated by reference to all of her pensionable service under the scheme; and

• (b) in the case of a male member, be calculated only by reference to pensionable service on or after 17th May 1990.

• (5) Subject to paragraph (6), if the member chooses to pay for additional service or unreduced retirement lump sum by regular additional contributions under regulation Q5, contributions may be made from the next birthday following the exercise of the right to do so, until the member’s 55th, 60th or 65th birthday, whichever the member chooses, and that date will be the chosen date under regulation Q5(3).

• (6) The period for which a member chooses to pay regular additional contributions under regulation Q5 must be at least 2 years.

• (7) For the purposes of paragraph (1), “pensionable employment” includes employment that qualified the member for benefit under a health service scheme from which a transfer payment has been made to the scheme.

• (8) For the purposes of paragraph (1) and (2), a person shall not be treated as having ceased to be in pensionable employment during any period in respect of which he is a member of a health service scheme.

• (9) For the purpose of calculating the 5 year period referred to in paragraph (1)(b), “pensionable employment” does not include additional service bought under regulation Q1 or a period in respect of which a refund of contributions has been paid under regulation E9.

Mental health officers

R3

• (1) Subject to paragraph (2), this regulation applies to a member who at the coming into force of these Regulations—

• (a) is in pensionable employment under the scheme as a mental health officer, or

• (b) has accrued rights to benefits under the scheme arising out of a previous period in which he was engaged in such employment and at no time since the last occasion on which he was so engaged has he had a break in pensionable employment for any one period of 5 years or more.

• (2) Subject to paragraph (3), this regulation shall cease to apply if the member has a break in pensionable employment for any period of 5 years or more ending after the coming into force of these Regulations.

• (3) Paragraph (2) shall be without prejudice to the operation of paragraph (5)(a) in relation to any period prior to this regulation ceasing to apply.

• (4) For the purposes of paragraphs (1) and (2), a person shall not be treated as having had a break in pensionable employment during any period in respect of which he is a member of a health service scheme.

• (5) Subject to paragraphs (6) to (8), where this regulation applies—

• (a) each complete year of the member’s pensionable service as a mental health officer in excess of 20 years will count as 2 years' pensionable service; and

• (b) where there is 20 years or more of such pensionable service the member shall be entitled to a pension under regulation E1 (normal retirement pension) on leaving NHS employment at any time after reaching age 55 but only if the member was in pensionable employment as a mental health officer immediately before leaving.

• (6) For the purposes of calculating the 20 year period referred to in paragraph (5) the pensionable service as a mental health officer will be based on either—

• (a) a total of 20 years' pensionable service as a mental health officer (including any period that counted towards the 20 year period referred to in regulation 8(1) of the 1980 Regulations) unless it would be more favourable to the member (or, if the member has died, to the person entitled to benefits in respect of the member) to disregard this paragraph; or

• (b) in the case of a member who has reached age 50, any period before he became a mental health officer in which he was employed on the staff of a hospital used wholly or partly for the treatment of persons suffering from mental disorder and in which he devoted the whole or substantially the whole of his time to the treatment and care of such persons unless it would be more favourable to the member (or, if the member has died, to the person entitled to benefits in respect of the member) to disregard this paragraph;

and pensionable service does not include additional service bought under regulation Q1 (right to buy additional service) or service credited under regulations N2 or N3 (transfers from other pension arrangements).

• (7) If both sub-paragraphs (6)(a) and (6)(b) apply to a member the member’s pensionable service will be calculated so as to produce the more favourable result to the member or, if the member has died, to the person entitled to benefits in respect of the member.

• (8) Paragraph (5) does not apply—

• (a) for the purpose of calculating, under regulations E2 (early retirement pension (ill health)) and H3(3)(b), H4(2)(b) and H5(3)(b) (child allowances), the pensionable service the member could have completed if he stayed in NHS employment until a particular age;

• (b) for the purpose of calculating a minimum widow’s or widower’s pension based on the member’s pensionable service on or after 6th April 1978 under regulation G6(2) (member marries after leaving pensionable employment) or from 6th April 1988 under regulation G7(3) (widower’s pension);

• (c) for the purpose of calculating a member’s benefits where it would be more favourable to the member or other person entitled to the benefits not to apply that paragraph and to calculate the member’s final year’s pensionable pay when the member leaves pensionable employment, completes 45 years' pensionable service (calculated without regard to paragraph (5)(a)), reaches age 65 or dies, whichever occurs first.

• (9) Where, by virtue of paragraph (8)(c), paragraph (5) does not apply to a member’s benefits because it is more favourable to the member or other person entitled to the benefits not to apply that paragraph, the amount of any contributions that should have been paid under regulation D1 (contributions by members) but which were not deducted from the member’s earnings will be deducted from the lump sum payable on the member’s retirement or death.

• (10) If a member to whom paragraph (5) applies leaves NHS employment before reaching age 55 because of redundancy but without becoming entitled to an immediate pension under regulation E3 (early retirement pension (redundancy etc.)), and was in pensionable service as a mental health officer immediately before leaving, regulation E6 (preserved pension) will apply as if the references to age 60 were to age 55.

• (11) Subject to paragraph (13), if any member to whom this regulation applies becomes entitled to a preserved pension under regulation E6 on ceasing to be a mental health officer, the pension will be based on the greater of the member’s basic pensionable service and a period of service calculated as—

$$basic servicepotential basic service×potential service$ where— “basic service” means the member’s pensionable service calculated without regard to paragraph (5); “potential basic service” means the pensionable service the member could have completed if he had stayed in pensionable employment until age 55, calculated without regard to paragraph (5); and “potential service” means the pensionable service the member could have completed, taking account of paragraph (5), if he had stayed in pensionable employment as a mental health officer until age 55.$

• (12) Subject to paragraph (13), if a member with at least 2 years' qualifying service ceases to be a mental health officer while continuing in pensionable employment, the member’s pension in respect of the period before ceasing to be a mental health officer will be equal to the preserved pension to which the member would have become entitled in accordance with paragraph (11) if he had left pensionable employment on the day he ceased to be a mental health officer, if this would be more favourable to the member.

• (13) Paragraphs (11) and (12) do not apply if the member again becomes a mental health officer within 12 months after the date on which he ceased to be a mental health officer.