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The National Health Service Pension Scheme Regulations 2008

Type Statutory-Instrument

Publication 2008-03-11

Last updated 2026-03-28

State In force

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with the amount determined under (a) being the member’s pensionable pay for the purposes of this paragraph if that employment is whole-time employment and the amount determined under (b) being the member’s pensionable pay for the purposes of this paragraph if the further employment is part-time employment.

(21) If none of paragraphs (4) to (17) apply—

(a) the Secretary of State must determine the amount of the member’s pensionable pay, and in doing so shall, in addition to the matters referred to in paragraph (4) of regulation 2.C.2, have regard to the pensionable pay attributable to pensionable employment comparable to the member’s employment, prevailing pay scales and prevailing rates of pensionable allowances, and

(b) the member shall pay contributions at the rate specified in column 2 of the table in paragraph (2) of regulation 2.C.2 in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (a).

(22) If, during the current scheme year—

(a) a payment is made to a member in respect of work that was undertaken by that member—

(i) during an earlier scheme year, or

(ii) during a period before the percentage rate at which contributions are due from that member changed by virtue of paragraphs (16) or (17) of this regulation, or

(iii) in part during the scheme year referred to in paragraph (i) and in part during the period referred to in paragraph (ii);

(b) that member is in pensionable employment with the employing authority making that payment on the day that it is made; and

for all purposes under this Section of the scheme—

(i) that payment shall be treated as if it has been made to the member in respect of work undertaken by that member in the current scheme year, and

(ii) contributions shall be payable in respect of that payment at the rate applicable to the member on the day that the payment is made.

(23) If, during the current scheme year—

(a) a payment is made to a member in respect of work that was undertaken by that member—

(i) during an earlier scheme year, or

(ii) during a period before the percentage rate at which contributions are due from that member changed by virtue of paragraphs (16) or (17) of this regulation, or

(iii) in part during the scheme year referred to in paragraph (i) and in part during the period referred to in paragraph (ii);

(b) that member is not in pensionable employment with the employing authority making that payment on the day that it is made; and

for all purposes under this Section of the scheme—

(i) that payment shall be treated as if it has been made to the member in respect of work undertaken by that member in the scheme year in which the member’s pensionable employment with that employing authority ceased, and

(ii) contributions shall be payable in respect of that payment at the rate applicable to the member on the day that the member’s employment ceased.

(24) If, during the current scheme year—

(a) a payment is made to a member that is determined by that member’s employing authority to have been made in respect of work done during unsocial hours;

(b) that payment is made in respect of work undertaken by that member during a period falling within the two calendar months immediately preceding the calendar month in which that payment is made, and

(c) on the day that payment is made that member is in pensionable employment with the employing authority by which that payment is made,

for all purposes under this Section of the scheme—

(i) that payment shall be treated as if it has been made to that member in respect of work undertaken by that member in the current scheme year,

(ii) contributions shall be payable in respect of that payment at the rate applicable to the member on the day that the payment is made.

(25) If, during the current scheme year—

(a) a payment is made to a member that is determined by that member’s employing authority to have been made in respect of work done during unsocial hours;

(b) that payment is made in respect of work undertaken by that member during a period falling within the two calendar months immediately preceding the calendar month in which that payment is made, and

(c) on the day that payment is made that member is not in pensionable employment with the employing authority by which that payment is made,

for all purposes under this Section of the scheme—

(i) that payment shall be treated as if it has been made to that member in respect of work undertaken by that member in the current scheme year,

(ii) contributions shall be payable in respect of that payment at the rate applicable to the member on the day the member’s pensionable employment with that employing authority ceased as determined in accordance with this regulation.

(26) In any case where paragraph (16) applies and it is apparent at the time when the person becomes an active member in an employment under this Part that the person’s pensionable pay in that employment includes any amount that is variable, that amount is to be taken as such amount as the employing authority consider appropriate for the current scheme year and, in the case of a member who works part time, is the variable amount that would be paid in respect of a comparable whole time employment.

(27) If a transfer payment from a corresponding health service scheme is accepted in respect of a person, the person is treated for the purposes of this regulation as if—

(a) the person was an active member of this Section of the Scheme during any period during which the person was an active member of that scheme, and

(b) the pay by reference to which the person’s benefits under that scheme were calculated was pensionable pay for the purposes of this Section of the Scheme.

Part-time employees

2.C.4

(1) Member contributions payable by a non-GP provider under regulation 2.C.1(1)(b) must be paid at the member’s contribution rate for the scheme year in question.

(2) A member’s contribution rate is the percentage specified in column 2 of the relevant table in paragraph (15) in respect of the corresponding pensionable earnings band specified in column 1 of that table into which the member’s pensionable earnings fall.

(3) The Secretary of State shall, with the consent of the Treasury, determine the pensionable earnings bands and contribution percentage rates specified in the relevant table in respect of each scheme year.

(4) Before determining those pensionable earnings bands or contribution percentage rates, the Secretary of State must consider the advice of the Scheme actuary.

(5) A non-GP provider member whose pensionable earnings fall into a pensionable earnings band specified in column 1 of the relevant table in paragraph (20) must, in respect of the scheme year in question, contribute the percentage of that person’s pensionable earnings specified in column 2 of that table in respect of that amount: such contributions must be paid in 12 equal monthly instalments throughout that year.

(6) For the purposes of paragraph (5), a non-GP provider member’s pensionable earnings are—

(a) the estimated amount of that member’s earnings agreed between the host Board and that member having regard to any estimates of pensionable earnings which have been provided pursuant to regulation 2.J.14(12);

(b) in the absence of an agreement referred to in sub-paragraph (a), whichever of the following the host Board considers the most appropriate in the circumstances—

(i) an estimate of the amount of that member’s earnings that corresponds to that member’s most recent certified pensionable earnings referred to in regulation 2.J.14, or

(ii) the amount of earnings that corresponds to the host Board’s estimate of that member’s pensionable earnings from all non-GP provider sources for that year.

(7) Where during the scheme year the host Board and the non-GP provider member agree that the estimated amount of that member’s earnings should be different to that last agreed under paragraph (a) of paragraph (6) or last determined under paragraph (b) of that paragraph, that member must pay the monthly contributions determined in accordance with paragraph (8).

(8) Those contributions are to be determined as follows—

Step 1: agree the member’s new estimated pensionable earnings (Amount A)

Step 2: find the percentage rate of contributions payable on Amount A applying the relevant table in paragraph (20)

Step 3: find Amount B by dividing Amount A by the percentage rate found at Step 2

Step 4: find Amount C by deducting from Amount B the amount of any contributions already paid prior to the new estimate of earnings being agreed

Step 5: divide Amount C by the number of whole months of the scheme year remaining to find the amount payable in each such month.

(9) A non-GP provider member must pay monthly contributions determined in accordance with paragraph (10), where—

(a) during the scheme year the host Board is satisfied that the member’s pensionable earnings will exceed those last agreed under sub-paragraph (a) of paragraph (6) or last determined under sub-paragraph (b) of that that paragraph,

(b) an agreement referred to in sub-paragraph (a) of that paragraph cannot be reached, and

(c) the host Board determines what the new estimated amount of earnings is for the purpose of identifying the rate of contributions to be paid by the member.

(10) Those contributions are to be determined as follows—

Step 1: take the new estimated pensionable earnings determined in accordance with paragraph (9)(c) (Amount D)

Step 2: find the percentage rate of contributions payable on Amount D earnings applying the relevant table in paragraph (20)

Step 3: find Amount E by dividing Amount D by the percentage rate found at Step 2

Step 4: find Amount F by deducting from Amount E the amount of any contributions already paid prior to the new estimate of earnings being agreed

Step 5: divide Amount F by the number of whole months of the scheme year remaining to find the amount payable in each such month.

(11) A non-GP provider member must pay contributions determined in accordance with paragraph (12) where, in respect of a scheme year to which one or more of paragraphs (6), (7) and (9) applied throughout that year, that member has—

(a) in accordance with regulation 2.J.14, certified their pensionable earnings for that year and forwarded it to the host Board, or the host Board has the figure that represents that member’s final pensionable earnings for that scheme year where that member was not required to certify them, and

(b) the amount of earnings referred to in paragraph (a) exceed the amount of earnings used for the purposes of, as the case may be, one or more of paragraphs (6), (7) or (9).

(12) Those contributions are determined as follows—

Step 1: find the member’s aggregate earnings for the scheme year in question (Amount G)

Step 2: find the percentage rate of contributions payable on Amount G applying the relevant table in paragraph (20)

Step 3: find Amount H by dividing Amount G by the percentage rate found at Step 2

Step 4: find the amount of contributions to be paid by deducting from Amount H the amount of any contributions already paid in respect of that scheme year in accordance with any or all of paragraphs (6), (7) or (9) prior to the certification of earnings in accordance with regulation 2.J.14.

(13) For the purposes of paragraph (12), a member’s aggregate earnings are the aggregate of—

(a) the certified or final pensionable earnings from all non-GP provider sources, and

(b) any additional pensionable earnings the member is treated as having received during an absence from work in accordance with regulation 2.A.9.

(14) If a non-GP provider member is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority must—

(a) deduct contributions due under this regulation from any pensionable earnings it pays to that person, and

(b) if it is not also the host Board, pay those contributions to that Board not later than—

(i) except in the circumstances described in paragraph (11), the 7th day of the month following the month in which the earnings were paid;

(ii) in the circumstances described in paragraph 11, at the same time as providing that Board with the certificate referred to in regulation 2.J.14.

(15) If a member is in non-GP provider service and concurrently in practitioner service in respect of which the member is liable to pay contributions in accordance with regulation 3.C.1, contributions payable in respect of the member’s non-GP provider service shall be determined under this regulation and contributions payable in respect of the member’s practitioner service shall be determined under regulation 3.C.2.

(16) In determining member contributions payable in accordance with this regulation, a host Board must take account of pensionable earnings from all non-GP provider sources, including any pensionable earnings as a non-GP provider determined by another host Board.

(17) An employing authority that is not a host Board shall, in respect of any pensionable earnings it pays to a non-GP provider, take advice from any relevant host Board in determining the contributions payable in accordance with this regulation.

(18) Where paragraph (17) does not apply, a non-GP provider shall pay member contributions to the host Board.

(19) If a non-GP provider is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority must—

(a) deduct contributions due under this regulation from any pensionable earnings it pays to that person, and

(b) if it is not also the host Board, pay those contributions to that Board not later than the 7th day of the month following the month in which the earnings were paid.

(20) For the purposes of this paragraph, the “relevant table” means—

in respect of the 2014-2015 scheme year, table 1;

in respect of each scheme year from 2015-2016, table 2.

Column 1Pensionable Earnings Band	Column 2Contribution Percentage Rate
Up to £15,431	5%
£15,432 to £21,477	5.6%
£21,478 to £26,823	7.1%
£26,824 to £49,472	9.3%
£49,473 to £70,630	12.5%
£70,631 to £111,376	13.5%
£111,377 to any higher amount	14.5%
Column 1Pensionable Earnings Band	Column 2Contribution Percentage Rate
---	---
Up to £15,431	5%
£15,432 to £21,477	5.6%
£21,478 to £26,823	7.1%
£26,824 to £47,845	9.3%
£47,846 to £70,630	12.5%
£70,631 to £111,376	13.5%
£111,377 to any higher amount	14.5%

Contributions by employing authorities

Contributions by employing authorities: general

2.C.5

(1) The employing authority of a member who is an active member of this Section of the Scheme under this Part must contribute to the scheme, in respect of the pensionable pay, or as the case may be, pensionable earnings of that member, at the rate determined by the Secretary of State and specified in paragraph (4) (“the employer’s standard rate”).

(2) In specifying the employer’s standard rate, the Secretary of State must—

(a) obtain the consent of the Treasury, and

(b) take account of the advice of the Scheme actuary and the cost of providing for any increase in pensions under this Section of the Scheme as a result of orders made under the provisions of the Pensions (Increase) Act 1971 and section 59 of the Social Security Pensions Act 1975.

(3) If for any period a person holds more than one employment (whether under a contract of service or for services) with an employing authority in respect of which the person is an active member of the Scheme, this regulation and regulation 2.C.6 apply in respect of each of those employments as if it were the only employment held.

(4) The employer’s standard rate is 20.6%.

(5) In any particular case the Secretary of State may direct that, for the purposes of this Chapter, “employing authority” includes one or more of—

(a) the transferee under a transfer of staff order pursuant to—

(i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act;

(ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act;

(b) without limiting sub-paragraph (a), a successor, transmittee or assignee of an employing authority’s business or functions;

(6) If a non-GP provider is—

(a) an employing authority which is a GMS practice, a PMS practice or an APMS contractor, or

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

that employing authority shall pay employer’s standard rate contributions to the host ... Board not later than the 7th day of the month following the month in which the earnings were paid.

Contributions by employing authorities: members becoming entitled to pensions under regulation 2.D.11

2.C.6

(1) If a pension becomes payable to a member under regulation 2.D.11 (early retirement on termination of employment by employing authority) in circumstances where regulation 2.D.11A does not apply, the employing authority must subject to paragraph (6), make a contribution to the Secretary of State in respect of—

(a) the cost of providing the pension under that regulation for the period between the member leaving the employment in which the member was an active member and reaching age 65—

(i) before any part of that pension is exchanged for a lump sum under regulation 2.D.14, and

(ii) in the case of a 2008 Section Optant, after that pension is reduced in accordance with regulation 2.K.12;

(b) the cost of providing for any increase in the rate of the benefits referred to in sub-paragraph (a) for that period as a result of orders made under section 59 of the Social Security Pensions Act 1975 (so far as not already met by contributions made under regulation 2.C.5(1)) ; and

(c) in the case of a 2008 Section Optant, the additional cost attributable to the early payment of the lump sum to be paid to such an Optant under regulation 2.K.12.

(2) If, on a pension under regulation 2.D.11 becoming payable to a member in respect of the termination of the member’s employment with an employing authority (“the first authority”), a pension also becomes payable to the member in respect of pensionable service with one or more other employing authorities, the first authority must , subject to paragraph (6), also make any additional contributions due in accordance with paragraph (1) in respect of that other pension.

(2A) Where, on leaving pensionable employment, a pension becomes payable to a member under regulation 2.D.11 in circumstances where regulation 2.D.11A applies, the employing authority must make a single lump sum contribution to the Secretary of State of the relevant amount not less than one month before the pension becomes payable.

(2B) The relevant amount is whichever is the lesser of—

(a) the amount the Secretary of State determines, having regard to the advice of the Scheme actuary, is required to meet the cost of the pension under regulation 2.D.11 and any lump sum under regulation 2.K.12 in circumstances where regulation 2.D.11A applies; and

(b) the amount the employing authority would otherwise be required to pay to the member in consequence of the member’s redundancy.

(3) An employing authority is not responsible for meeting any costs in respect of the early payment of benefits to the extent that the benefits are attributable to contributions made under regulation 2.C.8, 2.C.10 or 2.C.11.

(4) Any contributions payable under this regulation must be paid—

(a) except in a case within paragraph (b), by a single payment made within one month of the date on which the pension under regulation 2.D.11 became payable, or

(b) if the Secretary of State agrees, by not more than 5 equal annual instalments, the first of which is to be paid within one month of the date on which the pension under regulation 2.D.11 became payable and the others by 31 October in each of the following 4 scheme years.

(4A) Sub-paragraph (b) of paragraph (4) does not apply where the member leaves the employment in which the member was an active member on, or after, 1st April 2013.

(5) The following amounts must be determined by the Secretary of State on the advice of the Scheme actuary—

(a) the costs mentioned in paragraph (1),

(b) the amount of the payment mentioned in paragraph (4)(a), and

(6) In the case of an employing authority which is an Independent Provider, any contributions that are due to the Secretary of State under this regulation must be—

(a) determined by the Secretary of State on the advice of the Scheme actuary;

(b) paid by way of a single lump sum payment;

(c) received by the Secretary of State within 1 month of the date on which the Provider is notified of the amount of those contributions due.

(7) Where a Provider fails to make the payment in accordance with paragraph (6)(c), entitlement to benefits under regulation 2.D.11 ceases.

Guarantees, indemnities and bonds

2.C.7

(1) This regulation applies if—

(a) an employing authority fails to pay contributions or has previously failed to do so in accordance with regulation 2.C.5 or 2.C.6, and

(b) the authority is—

(i) a GMS practice;

(ii) a PMS practice;

(iii) an APMS contractor; or

(iv) an OOH provider.

(v) an Independent Provider.

(2) The Secretary of State may require the authority to have in force a guarantee, indemnity or bond which provides for payment to the Secretary of State, should that authority fail to meet them, of all future liabilities of the authority (or such liabilities as are specified by the Secretary of State) under—

(a) this Part, or

(b) the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000³³.

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

Additional contributions to purchase additional pensions

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

2.C.8

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (retirement benefits for members)(including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or six months under Chapter 2.E (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 2.E (death benefits) in respect of the member.

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

(3) If a member exercises an option under paragraph (1), the member’s employing authority must —

(a) deduct the member’s contributions from the member’s earnings, and

(b) pay them to the Secretary of State not later than the 19th day of the month following the month in which the earnings were paid.

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

(a) an amount less than the minimum amount, or

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

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

(a) £250, or

(b) such other amount as the Secretary of State may for the time being determine,

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

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

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

(b) may be amended during a scheme year,

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

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

(a) contributions made under regulation 2.C.10 (member’s option to pay additional lump sum contributions to purchase additional pension), or

(b) contributions made under regulation 2.C.11 (payment of additional lump sum contributions by employing authority),

may not exceed £5000 or such other amount as the Secretary of State may for the time being determine (taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 3.C.6 to 3.C.15).

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

(a) is specified in the option,

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

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

(9) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Effect of member being absent or leaving and rejoining this Section of the Scheme during the contribution option period

2.C.9

(1) This paragraph applies if during the contribution option period a member who has exercised the option under regulation 2.C.8—

(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, or

(f) is on a leave of absence of the kind mentioned in regulation 2.A.4(3).

(2) If paragraph (1) applies—

(a) the contributions under the option continue to be payable unless the member ceases paying contributions under regulation 2.C.1, and

(b) where the member does so cease, the member may continue to make contributions in accordance with the option if the member resumes making contributions under regulation 2.C.1 before the end of the period of 12 months beginning with the day on which the member first ceased to pay those contributions.

(3) This paragraph applies if—

(a) a member exercises the option under regulation 2.C.8,

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

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

(4) If paragraph (3) applies, the member may continue to make contributions in accordance with the option after becoming an active member again unless a repayment of contributions has been made to the member under regulation 2.C.18.

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

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

2.C.10

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (retirement benefits for members) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or six months under Chapter 2.E (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners or dependent children under Chapter 2.E (death benefits) in respect of the member.

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

(a) not less than the minimum amount, or

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

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

(a) £250, or

(b) such other amount as the Secretary of State may for the time being determine.

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

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

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

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

(ii) before the end of the period of 1 month beginning with the day on which the member is notified by the Secretary of State that the option is accepted, and

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

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

(a) contributions made under regulation 2.C.8 (member’s option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 2.C.11 (payment of additional lump sum contributions by employing authority),

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Payment of additional lump sum contributions by employing authority

2.C.11

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (retirement benefits for members) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or six months under Chapter 2.E (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners or dependent children under Chapter 2.E (death benefits) in respect of the member.

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

(a) not less than the minimum amount (as defined in regulation 2.C.10(3)), and

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

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

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

(a) contributions made under regulation 2.C.8 (member’s option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 2.C.10 (member’s option to pay lump sum contribution to purchase additional pension),

(5) A contribution under this regulation must be paid by the employing authority to the Secretary of State within one month of the date on which the authority gave the Secretary of State notice under regulation 2.C.12(2).

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Exercise of options under regulations 2.C.8, 2.C.10 and 2.C.11

2.C.12

(1) A member exercising an option under regulation 2.C.8 or 2.C.10 must do so by giving notice in writing to the employing authority giving such information as may be required and must, at the same time, provide the Secretary of State with a copy of that notice.

(2) An employing authority exercising an option under regulation 2.C.11 must do so by giving notice in writing to the Secretary of State, giving such information as may be required.

(3) An option under regulation 2.C.8, 2.C.10 or 2.C.11 may not be exercised during a period whilst the member is absent from work for any reason.

(4) For the purposes of this Part—

(a) a member is treated as exercising an option under regulation 2.C.8 or 2.C.10 on the date on which the employing authority receives the member’s notice under paragraph (1), and

(b) an employing authority is treated as exercising an option under regulation 2.C.11 on the date on which the Secretary of State receives the authority’s notice under paragraph (2).

(5) The Secretary of State may refuse to accept an option exercised under regulation 2.C.8, 2.C.10 or 2.C.11 and must do so if not satisfied that—

(a) the member is in good health, and

(b) in the case of an option exercised under regulation 2.C.8, there is no reason why the member’s health should prevent the member from paying the contributions for the whole contribution period.

(6) If the Secretary of State refuses to accept such an option—

(a) the Secretary of State must give notice in writing of that fact—

(i) in the case of an option exercised under regulation 2.C.8 or 2.C.10, to the member, and

(ii) in the case of an option exercised under regulation 2.C.11, to the employing authority and the member, and

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

(7) This Part also applies as if an option under regulation 2.C.10 or 2.C.11 had not been exercised if—

(a) in the case of an option under regulation 2.C.10, the payment is not received by the employing authority—

(i) before the end of the period of 1 month beginning with the day on which the Secretary of State notifies the member of the acceptance of the option, or

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

(b) in the case of an option under regulation 2.C.11, the payment is not received by the Secretary of State—

(i) before the end of the period of 1 month beginning with the day on which the authority gave the Secretary of State notice under paragraph (2), or

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

Cancellation of options under regulation 2.C.8

2.C.13

(1) A member may cancel an option under regulation 2.C.8(1) by giving the employing authority notice in writing.

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

(3) If it appears to the Secretary of State that the requirement in regulation 2.C.8(7) (overall maximum) will not be met if the member continues to makes periodical contributions under an option exercised under regulation 2.C.8, the Secretary of State may cancel the option by giving the member notice in writing.

(4) If the Secretary of State cancels such an option in accordance with paragraph (3), the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods.

(5) If, after the exercise of the option under regulation 2.C.8, the Secretary of State has reasonable grounds to believe that the member’s health will prevent the member from paying contributions for the whole contribution period, the Secretary of State may cancel the option by giving the member notice in writing.

(6) If the Secretary of State cancels such an option in accordance with paragraph (5)—

(a) the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice (“date of cancellation”) and all subsequent pay periods, and

(b) any periodical payments made prior to the date of cancellation shall be returned to the member.

Effect of payment of additional contributions under this Chapter

2.C.14

(1) This regulation applies if—

(a) an option is exercised by a member under regulation 2.C.8 and all the contributions to be made under the option are made,

(b) an option is exercised by a member under regulation 2.C.10 or by a member’s employing authority under regulation 2.C.11 and the lump sum payment is made.

(2) Subject to paragraph (9), the member’s pension is increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 2.C.17 (revaluation of increases bought under options).

(3) Paragraph (2) is without prejudice to any increase or reduction falling to be made in the total amount of the member’s pension under Chapter 2.D or Chapter 2.K as a result of the member becoming entitled to payment of the pension before or after reaching the age of 65 (see regulations 2.D.3 to 2.D.5 and 2.K.21).

(4) In the case of an option under regulation 2.C.8(1)(b), 2.C.10(1)(b) or 2.C.11(1)(b), any pension payable under Chapter 2.E (death benefits) in respect of the member is increased by the appropriate amount.

(5) In paragraph (4), subject to regulations 2.C.15 and 2.C.16(3), “the appropriate amount” means—

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

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

(c) in the case of a pension under regulation 2.E.8 the amount of which is determined under regulation 2.E.10 (active members) or 2.E.12 (deferred members), the appropriate fraction (within the meaning of regulation 2.E.10 or, as the case may be, 2.E.12) of 75% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)), and

(d) in the case of a pension under regulation 2.E.8 the amount of which is determined under regulation 2.E.11 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75% the amount of the increase in the member’s pension as a result of the option.

(6) Except as provided in regulation 2.D.5, no separate claim is required as respects any additional pension payable by virtue of this regulation.

(7) This regulation is subject to regulation 2.C.15.

(8) For the effect of the options under 2.C.8 where this regulation does not apply, see regulation 2.C.16 (effect of part payment of periodical contributions).

(9) Paragraph (10) applies only to an option under regulations 2.C.8(1)(a), 2.C.10(1)(a) or 2.C.11(1)(a), where a pension is to be paid for either three or six months at the same rate as the member’s pension was being paid at the date of that member’s death.

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

(11) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Effect of death or early payment of pension after option exercised under regulation 2.C.8, 2.C.10 or 2.C.11

2.C.15

(1) If a member in respect of whom an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised—

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

(i) in the case of an option under regulation 2.C.8 or 2.C.10, to the member’s personal representatives, and

(ii) in the case of an option under regulation 2.C.11, to the employing authority which made the contribution, and

(b) regulation 2.C.14(4) does not apply.

(2) If a member in respect of whom an option under regulation 2.C.8 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation 2.C.14(4) applies as if all contributions due after the date of death had been made.

(3) If a member in respect of whom an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised becomes entitled to a pension under regulation 2.D.8 as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised—

(a) regulation 2.C.14(2) and (4) does not apply, and

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

(i) in the case of an option under regulation 2.C.8 or 2.C.10, to the member, and

(ii) in the case of an option under regulation 2.C.11, to the employing authority which made the contribution.

(4) If a member in respect of whom an option under regulation 2.C.8 has been exercised becomes entitled to a pension under regulation 2.D.8 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 2.C.14(2) and (4) applies as if all contributions under the option had been made.

This is subject to regulation 2.C.13(5) and (6).

(5) If a member in respect of whom an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised—

(a) becomes entitled to a pension under regulation 2.D.4, 2.D.10, or 2.D.11, or

(b) becomes entitled to a pension under regulation 2.D.5 before reaching the age of 65,

the increase in the member’s pension under Chapter 2.D which would otherwise be due under regulation 2.C.14(2) or regulation 2.C.16 is reduced.

(6) The amount of the reduction is such amount as the Secretary of State determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.

(7) This regulation is subject to regulation 2.C.16.

Effect of part payment of periodical contributions

2.C.16

(1) This regulation applies if—

(a) the full number and amount of contributions due under an option under regulation 2.C.8 for the whole contribution option period are not made, and

(b) regulation 2.C.15(1) to (4) does not apply.

(2) The increase in the member’s pension under Chapter 2.D is the appropriate proportion of the increase that would have been made under regulation 2.C.14(2) if the full number and amount of contributions had been made (but taking account of regulation 2.C.15(5) if that applies).

(3) In the case of an option under regulation 2.C.8(1)(b), the increase in any benefit payable under Chapter 2.E (death benefits) in respect of the member is the appropriate proportion of the increase that would have been made under regulation 2.C.14(4) if the full number and amount of contributions had been made (but taking account of regulation 2.C.15(5) if that applies).

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

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

(a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation 2.C.8 for the whole contribution option period, and

(b) the preservation requirements.

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Revaluation of increases bought under options: members’ pensions

2.C.17

(1) Where an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised, the final amount of the increase in a member’s pension immediately before the beginning date for that pension shall be determined in accordance with this regulation.

(2) Where the increase in pension is in respect of an option that was exercised less than 2 months before the increase becomes payable, the final amount is calculated in accordance with paragraph (4).

(3) Where the increase in pension is in respect of an option that was exercised 2 or more months before the increase in pension becomes payable, the final amount is calculated in accordance with whichever of paragraphs (5) or (5A) applies.

(4) The calculation referred to in paragraph (2) is as follows—

Step 1 –	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 –	Add to the Step 1 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 1 amount when it first falls into payment, to find the Step 2 amount.
Step 3 –	Divide the Step 2 amount by the Step 1 amount, to find the Step 3 factor.
Step 4 –	Divide the Step 1 amount by the Step 3 factor to find the final amount referred to in paragraph (1).

(5) If the member exercised the option on or before 31 March 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 –	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 –	Multiply the Step 1 amount by the retail prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 –	Divide the Step 2 amount by the retail prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 –	Take the greater of the Step 1 amount and Step 3 amount, to find the Step 4 amount.
Step 5 –	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.
Step 6 –	Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.
Step 7 –	Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(5A) If the member exercised the option on or after 1 April 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 –	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 –	Multiply the Step 1 amount by the prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 –	Divide the Step 2 amount by the prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 –	Take the greater of the Step 1 amount and Step 3 amount, to find the Step 4 amount.
Step 5 –	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.
Step 6 –	Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.
Step 7 –	Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(6) In this regulation, “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) of that Act) and “the prices index” means, as regards any month, the change in the general level of prices for that month used to determine increases to official pensions for the purposes of that Act.

Repayment of contributions

2.C.18

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

(a) paragraph (2) applies, or

(b) Chapter 2 of Part 4ZA of the 1993 Act (early leavers: cash transfer sums and contribution refunds) applies and the payment is made in accordance with that Chapter.

(2) This paragraph applies if—

(a) a person who is not a pensioner member ceases to be an active member and does not continue to be, or become, an active member for the purposes of Part 3 within 12 months of ceasing officer service,

(b) the person does not fall within sub-paragraph (a), (b), (c) or (d) of regulation 2.D.1(2) (former members entitled to a pension),

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

(3) If paragraph (1)(b) applies, the person is entitled to be paid the amount to which the person is entitled under Chapter 2 of Part 4ZA of the 1993 Act, less—

(a) such part of any contributions equivalent premium paid in respect of the person under section 55 of the 1993 Act or article 3 of the 2016 Order, and

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

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

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

(6) A person—

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

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

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

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

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

(8) Paragraph (7) does not apply if paragraph (1)(b) applies and the person is entitled to a greater amount of interest under Chapter 2 of Part 4ZA of the 1993 Act.

(9) So far as the contributions were paid under another scheme and were included in a transfer payment to this Section of the Scheme—

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

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

CHAPTER 2.D — MEMBERS’ RETIREMENT BENEFITS

Entitlement to pensions

Normal retirement pensions

2.D.1

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

(a) has reached the age of 65, and

(b) either—

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

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

This is subject to paragraph (2), regulation 2.D.13 (exceptions to requirement that NHS employment must have ceased) and the following provisions of this Part.

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

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

(b) a transfer value payment has been accepted by the Scheme during the relevant service under Chapter 2.F (transfers), otherwise than from an occupational pension scheme,

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

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

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

(4) The amount of the annual pension payable under this regulation (disregarding any additional pension) is given by the formula—

$$RP60×LRS365$where—RP is the member’s reckonable pay, andLRS is the length of the member’s relevant service, expressed in days.$

(5) A claim referred to in paragraph (1)(b)(i) and made in accordance with regulation 2.J.2, takes effect from the date the claim is received by the Secretary of State.

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

(7) In this Chapter “NHS employment” includes—

(a) employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967³⁴, and

(b) employment with an employer with whom an agreement has been made under section 235 of the 2006 Act.

(8) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.12.

Pension credit members

2.D.2

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

(2) The pension becomes payable—

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

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

This is subject to paragraphs (5) and (8).

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

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

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

(a) reached the age of 55, and

(b) claimed the payment of the pension.

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

(a) is first calculated as mentioned in paragraph (3) of this regulation, and

(b) then that amount is reduced by such amount as the Secretary of State determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the pension before the member reaches 65.

(7) A claim under paragraph (5) must be made by notice in writing in such form as the Secretary of State requires and takes effect from the date specified in the claim as the date on which the pension is to become payable.

(8) A pension credit member who has not reached the age of 65 is entitled to immediate payment of a pension payable for life if, in the opinion of the Secretary of State, the pension credit member—

(a) meets the ill-health condition specified 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

(9) The amount of the pension under paragraph (8) is calculated as specified in paragraph (3) of this regulation.

(10) For the purpose of paragraph (8), the Secretary of State may require whatever medical evidence that the Secretary of State considers necessary.

Late payment of pension with actuarial increase

2.D.3

(1) This regulation applies if a member becomes entitled to immediate payment of pension under regulation 2.D.1 after reaching the age of 65.

(2) So much of the amount of the pension to which the member would otherwise be entitled under that regulation (before any commutation under regulation 2.D.14) as is attributable—

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

(b) to any contributions paid under regulations 2.C.8, 2.C.10 or 2.C.11 before that age,

is increased.

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

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

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.21.

Early payment of pensions with actuarial reduction

2.D.4

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

(a) has reached the age of 55,

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

(d) has claimed payment of the pension.

(2) The amount of the annual pension under this regulation—

(a) is first calculated as mentioned in regulation 2.D.1(4) (and, if additional pension is payable, in accordance with regulation 2.C.14(2) or 2.C.16(2)), and

(b) then that amount is reduced by such amount as the Secretary of State determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the pension before the member reaches 65.

(3) A claim under paragraph (1) must be made by notice in writing in such form as the Secretary of State requires and takes effect—

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

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

(4) A member shall not be entitled to a pension under this regulation if the Secretary of State determines, having taken advice from the Scheme actuary, that the pension, as reduced under paragraph (1), would be insufficient to meet his liability to provide a guaranteed minimum pension.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.12.

Partial retirement (members aged at least 55)

2.D.5

(1) An active member of the 2015 Scheme may exercise an option under this regulation if—

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

(b) the member would be entitled to a pension for life, by virtue of regulation 2.D.1(1)(b)(i) and not regulation 2.D.1(1)(b)(ii), if the member had—

(i) reached the age of 65,

(ii) ceased to be so employed, and

(iii) claimed payment of the pension,

(d) as a result the annual rate of the member’s pensionable pay is reduced (disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement) to 90% or less of the amount of the member’s pensionable pay during the period of 12 months ending with the option day.

(2) If the member was not an active member of the 2015 Scheme during the whole of the period of 12 months mentioned in paragraph (1)(d), that paragraph applies as if the member’s pensionable pay during that period were—

$$PP×365N$where—PP is the member’s pensionable pay for the part of that period during which the member was an active member of the 2015 Scheme, andN is the number of days in that period on which the member was an active member of the 2015 Scheme.$

(3) The option may only be exercised by notice in writing in such form as the Secretary of State requires and must be accompanied by a statement in writing by the employing authority, or employing authorities, that the conditions in paragraph (1)(c) and (d) are met.

(4) The option must specify—

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

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

(5) A member who duly exercises the option under this regulation is entitled—

(a) in the case of a member who has reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 2.D.1 if the member had ceased to be employed in one or more employments on the option day (disregarding any additional pension, but subject to any increase under regulation 2.D.3),

(b) in the case of a member who has not reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 2.D.4 if the member had ceased to be employed in one or more employments on the option day (disregarding any additional pension), and

(i) in a case within sub-paragraph (a), to an increase of the same percentage as would be made in that pension under regulation 2.D.3 if the member had ceased to be employed on the option day, and

(ii) in a case within sub-paragraph (b), to a reduction of the same amount as would have been made in that pension under regulation 2.D.4 if the member had so ceased.

(6) The specified percentage must be such that—

(a) the pension to which the member becomes entitled as a result of the option (before the exercise of the option under regulation 2.D.14 and disregarding any additional pension)—

(i) is not less than the amount of the pension payable by reference to 20% of the member’s pensionable service at the end of the option day (disregarding any additional pension), and

(ii) taken together with any such increase to which the member becomes entitled as a result of the option (before any such commutation), is not less than 0.05% of the member’s lump sum and death benefit allowance on the option day,

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

(7) The option under this regulation may only be exercised on no more than two occasions and the Secretary of State shall take advice from the Scheme actuary regarding—

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

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

(8) In this regulation “the option day” means the day before the reduction in pensionable pay by virtue of which the option is exercisable takes effect.

(9) For the purposes of this Part, a member who has exercised the option under this regulation—

(a) is a pensioner member as respects the pension to which the member is immediately entitled as a result of exercising the option and the specified percentage of the pensionable service that pension represents, as respects which the member is an active member on the option day,

(b) if the member continues in pensionable service in the 2015 Scheme after the option day, is an active member or a non-contributing member as respects—

(i) the pensionable service after that day in which the member continues, and

(ii) so much of the pensionable service as respects which the member is an active member on the option day as does not fall within sub-paragraph (a) (“the unspecified service”), and

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

(9A) For the purposes of this regulation, in the case of a non-contributing member, “pensionable pay” means the member’s pensionable earnings for the purposes of the 2015 Scheme.

(10) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.12.

Increase in pensionable pay following exercise of option under regulation 2.D.5

2.D.6

(1) This regulation applies if, in a case where a member has exercised the option under regulation 2.D.5—

(a) during the period of 12 months beginning with the day after the option day the terms on which the member holds the employment or employments referred to in 2.D.5(1)(a) change again, and

(b) as a result the member’s pensionable pay in that employment or those employments is increased (disregarding any increase in pensionable pay resulting from the member leaving a salary sacrifice arrangement) to more than 90% of the member’s pensionable pay during the period of 12 months ending with the option day, or

(c) following an increase referred to in (b), the member’s pensionable pay in that employment or those employments is reduced (disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement) to 90 per cent or less of the member’s pensionable pay during the period of 12 months ending with the option day.

(2) In the circumstances referred to in—

(a) paragraph (1)(b), the amount of the member’s pension mentioned in sub-paragraphs (a) and (b) of regulation 2.D.5(5) shall be abated to zero from the first pension day immediately following the day on which the level of the member’s pensionable pay increased;

(b) paragraph (1)(c), subject to any adjustments in accordance with (c), the member shall again be entitled to receive payment of the full amount of the pension mentioned in sub-paragraphs (a) and (b) of that regulation as from the first pension day immediately following the day on which the level of the member’s engagement reduced,

(c) where (b) applies, before restoring the payment of a pension the Secretary of State shall have regard to the 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 in accordance with (a).

(3) If the member was not an active member or a non-contributing member during the whole of the period of 12 months mentioned in paragraph (1)(b), that paragraph applies as if the member’s pensionable pay during that period were—

$$PP×365N$where—PP is the member’s pensionable pay for the part of that period during which the member was an active member or a non-contributing member, andN is the number of days in that period on which the member was an active member or a non-contributing member.$

(4) If, in the opinion of the Secretary of State, had the terms and conditions of the member’s employment remained the same after the option day (apart from pensionable pay), the annual rate of pensionable pay for the employment as at the time of the change mentioned in paragraph (1)(a) would have exceeded the annual rate referred to in paragraph (1)(b)—

(a) paragraph (2)(a) does not apply, and

(b) this regulation applies as if paragraph (1)(b) referred to that annual rate instead of the actual annual rate.

(5) For the purposes of this regulation, if during the period of 12 months beginning with the day after the option day the member enters a further employment, or employments, in which the member is an active member or a non-contributing member of this Section of the Scheme—

(a) that event is treated as if the terms on which the member holds the employment in respect of which the option was exercised (“the option employment”) had changed again, and

(b) the member’s pensionable pay in the further employment is treated as an increase in the member’s pay in the option employment.

(6) In this regulation “the option day” has the same meaning as regulation 2.D.5 (see paragraph (8) of that regulation).

Application of regulations 2.D.5 and 2.D.6 where concurrent part-time employments held

2.D.7

(1) This regulation provides for the application of regulations 2.D.5 and 2.D.6 if a person is an active member or of the 2015 Scheme in two or more part-time employments held concurrently on the option day.

(2) Those regulations apply in relation to each of the employments as if it were the only employment held by the member on that day, but subject to the following modifications.

(3) In regulation 2.D.5(1) for sub-paragraph (d) substitute—

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