Legalize / United Kingdom / Statutory-Instrument

The National Health Service Pension Scheme Regulations 2008

Type Statutory-Instrument

Publication 2008-03-11

Last updated 2026-03-28

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

PDF Download

articles Not indexed

Reform history JSON API

(c) a pension that is commuted under regulation 2.J.5 (commutation of small pensions) where the conditions in regulation 25 of the Occupational Pension Schemes (Schemes that were Contracted-out) (No.2) Regulations 2015 are met,

but if any other provision of this Section of the Scheme is inconsistent with this rule, this rule prevails.

(10) In this regulation—

(a) “scheme employment”, in relation to a member, means employment in the employment by virtue of which the member is eligible for membership of this Section of the Scheme, and

(b) references to the amount of a pension are to its amount—

(i) disregarding any additional pension,

(ii) after the subtraction of any amount exchanged under regulation 2.D.14 (general option to exchange part of pension for lump sum), and

(iii) before the subtraction of any amount allocated under regulation 2.D.18 (election to allocate pension).

CHAPTER 2.E — DEATH BENEFITS

Pensions for surviving adults

Surviving adult dependants’ pensions

2.E.1

(1) If an active member , a non-contributing member, a deferred member or a pensioner member dies leaving a surviving adult dependant, the surviving adult dependant is entitled to a pension that is payable for life.

(2) In this Part “surviving adult dependant”, in relation to a deceased member or former member, means the member’s or former member’s surviving spouse, civil partner or scheme partner.

(3) For the rate at which the pension referred to in paragraph (1) is payable see regulations 2.E.3 to 2.E.7 and, in any case where that pension includes additional pension, regulations 2.C.14(4) and 2.C.16(3).

Meaning of “surviving nominated partner”

2.E.2

In this Part, a person (P) is a “surviving scheme partner” if the Secretary of State is satisfied that for a continuous period of at least two years, ending with the member’s death—

(a) the member and P were living together as if they were husband and wife or civil partners,

(b) the member and P were not prevented from marrying or entering into a civil partnership,

(d) neither the member nor P were living with a third person as if they were husband and wife or as if they were civil partners.

Amount of pensions under regulation 2.E.1: active and non-contributing members

2.E.3

(1) In the case of an active member or a non-contributing member, for the period of 6 months beginning with the day after the member’s death (“the initial period”) the rate of the pension payable under regulation 2.E.1 (if that amount is greater than the amount of the pension payable to the surviving adult under this Chapter apart from this paragraph), is equal to—

(a) in the case of a deceased active member, the rate of the member’s pensionable pay at the time of death; and

(b) in the case of a deceased non-contributing member, the rate of the deceased’s reckonable pay.

(2) Subject to paragraph (3), after the initial period, if the member dies with 2 or more years of qualifying service, the annual amount of the pension payable under regulation 2.E.1—

(a) if the member has not reached the age of 65, is equal to 37.5% of the tier 2 ill-health pension under regulation 2.D.8 to which the member would have been entitled if on the date of death the member had become entitled to such a pension, and

(b) if the member has reached the age of 65, is equal to 37.5% of the pension under regulation 2.D.1 (normal retirement pensions) to which the member would have been entitled if on the date of death the member had become entitled to such a pension in respect of any period of pensionable service that the member is entitled to count.

Sub-paragraph (b) is subject to paragraph (7).

(3) After the initial period, if the member dies with less than 2 years of qualifying service but after reaching the age of 65, the annual amount of the pension payable under regulation 2.E.1 is equal to 37.5% of the pension to which the member would have been entitled (disregarding any additional pension) if on the date of death the member had become entitled to a pension under regulation 2.D.1 (normal retirement pensions) in respect of any period of pensionable service that the member is entitled to count.

This is subject to paragraph (7).

(4) After the initial period, if—

(a) the member dies with less than 2 year’s qualifying service and before reaching the age of 65, and

(b) the surviving adult has a guaranteed minimum under section 17 of the 1993 Act in relation to benefits in respect of the deceased member under this Section of the Scheme,

the annual amount of the pension payable under regulation 2.E.1 is equal to that guaranteed minimum, unless paragraph (5) applies.

(5) This paragraph applies if the Secretary of State’s liability to provide a guaranteed minimum pension in respect of the surviving adult is discharged by the payment of a contributions equivalent premium under section 55 of the 1993 Act or article 3 of the 2016 Order.

(6) This regulation is subject to regulation 2.E.7 (re-employed pensioners).

(7) For the purposes of paragraphs (2)(b) and (3) any increase under—

(a) regulation 2.D.3, or

(b) regulation 2.K.21,

is ignored.

Amount of pensions under regulation 2.E.1: pensioner members

2.E.4

(1) In the case of a pensioner member, for the initial period the rate of the pension payable under regulation 2.E.1 is equal to the rate of the member’s pension in payment at the time of death if that amount is greater than the sum of—

(a) the amount of the pension payable to the surviving adult dependant under this Chapter apart from this paragraph, and

(b) the amount of the children’s pensions otherwise payable under this Part.

(2) At any time when the rate is not the rate mentioned in paragraph (1), the rate of the surviving adult dependant’s pension in the case of the death of a pensioner member is equal to 37.5% of the pension to which the member was entitled on the date of death (disregarding any additional pension).

(3) For the purposes of paragraph (1) any reduction in the rate of the member’s pension under—

(a) Chapter 2.H,

(b) regulation 2.D.14, or

is ignored.

(3A) For the purpose of paragraph (2)—

(a) any reduction in the rate of the member’s pension under—

(i) regulation 2.D.4,

(ii) regulation 2.D.14, or

(iii) regulation 2.K.12; and

(b) any increase in the rate of the member’s pension under—

(i) regulation 2.D.3, or

(ii) regulation 2.K.21,

is ignored.

(4) In this regulation “the initial period” means—

(a) if the member leaves one or more dependent children who are dependant on the surviving adult dependant, the period of 6 months beginning with the day after the member’s death, and

(b) otherwise the period of 3 months beginning with that day.

(5) For the purposes of paragraph (4) a child born after the member’s death is treated as having been born before it.

(6) If a member who has had a tier 2 ill-health retirement pension under regulation 2.D.8 replaced by a tier 1 ill-health retirement pension (by virtue of regulation 2.G.4(2))—

(a) is in further NHS employment and dies before the end of the initial period (within the meaning of regulation 2.G.4(6)(c) and in accordance with regulation 2.G.4(2)); or

(b) is in further employment that is not NHS employment and dies within a period of one year beginning with the day on which that further employment ceased to be an “excluded employment” (within the meaning of regulation 2.G.4(6)(a)),

the member’s pension referred to in paragraph (1) means that member’s original tier 2 ill-health pension.

(7) This regulation is subject to regulation 2.E.7 (re-employed pensioners: adult survivor pensions in initial period).

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of pensions under regulation 2.E.1: deferred members

2.E.5

(1) In the case of a deferred member—

(a) who left pensionable service less than 12 months before the date of death, and

(b) whose surviving adult dependant would have been the member’s surviving adult dependant if the member had died on the member’s last day of pensionable service,

the rate of the pension payable under regulation 2.E.1 is equal to 37.5% of the tier 2 ill-health pension under regulation 2.D.8 to which the member would have been entitled if on the date the member’s pensionable service ceased the member had become entitled to such a pension under regulation 2.D.8 (but disregarding any additional pension).

(2) In the case of any other deferred member ..., the rate of the pension payable under regulation 2.E.1 is equal to 37.5% of the pension under regulation 2.D.1 (normal retirement pensions) in respect of any period of pensionable service to which the member would have been entitled if on the date of death the member had become entitled to such a pension.

Recent leavers

2.E.6

(1) If—

(a) a recent leaver dies leaving a surviving spouse or civil partner who has a guaranteed minimum under section 17 of the 1993 Act in relation to benefits in respect of the recent leaver under this Section of the Scheme, and

(b) the member has died before reaching the age of 65,

the surviving spouse or civil partner is entitled to a pension that is payable for life of an amount equal to that person’s guaranteed minimum pension (disregarding any additional pension), unless paragraph (2) applies.

(2) This paragraph applies if the Secretary of State’s liability to provide a guaranteed minimum pension in respect of the surviving adult is discharged by the payment of a contributions equivalent premium under section 55 of the 1993 Act or article 3 of the 2016 Order.

(3) In this Part “recent leaver” means a person—

(a) who left pensionable service less than 12 months before the date of death,

(b) who is not a deferred member or a pensioner member because of rights resulting from that employment, and

Re-employed pensioners: adult survivor pensions in initial period

2.E.7

(1) This regulation applies if, apart from this regulation, both regulations 2.E.3(1) and 2.E.4(1) would apply on the death of a member.

(2) Where this regulation applies, the rate of pension payable by virtue of regulation 2.E.3(1) and 2.E.4(1) during the initial period (as defined in the respective regulations) shall instead be the rate provided in paragraph (3).

(3) Subject to paragraph (4), for the relevant initial period the rate of the pension payable under regulation 2.E.1 is equal to the sum of—

(a) in the case of —

(i) a deceased active member, the rate of the deceased’s pensionable pay at the time of death, or

(ii) a deceased non-contributing member, the rate of the deceased’s reckonable pay on the deceased’s last day of pensionable service, and

(b) the rate of the deceased member’s pension payable at the time of death after taking account of any reduction in the rate of the pension under—

(i) Chapter 2.H,

(ii) regulation 2.D.14, and

(iii) regulation 2.K.12.

(4) Paragraph (3)(a) does not apply if—

(a) the rate of the pension payable to the surviving adult in respect of later service, and

(b) any children’s pension that would otherwise be payable in respect of later service under this Part,

would be greater.

Pensions for dependent children

Surviving children’s pensions

2.E.8

(1) If a member or a recent leaver dies leaving one or more dependent children, a pension is payable in respect of them.

(2) This is subject to paragraphs (7) to (9).

(3) If a dependent child ceases to be a dependent child after the date of death, the pension ceases to be payable in respect of that child.

(4) If a dependent child is born after the date of death, the same pension is payable in respect of the child as if the child had been born on the date of death.

(5) If a member or a recent leaver dies leaving two or more dependent children, they are entitled to such shares of the pension as the Secretary of State may from time to time decide.

(6) An amount payable under this regulation in respect of a dependent child is payable to the dependent child or, if the Secretary of State so decides, to another person for the dependent child’s benefit.

(7) No pension is payable in respect of any dependant children who on the deceased’s death are dependant on an adult who is entitled to a surviving adult’s pension whilst that pension is payable at the rate mentioned in regulation 2.E.4(1) or 2.E.7(3)(b), except so much of that pension as is additional pension.

(8) If a dependent child is incapable of earning a living because of physical or mental infirmity for any period and the child is maintained out of money provided by Parliament in a hospital or other institution for a period exceeding one month, no pension is payable in respect of the child for any part of that period after the first month.

(9) If, apart from this paragraph, a pension would be payable in respect of any person as a dependent child of three or more persons who were deceased members or recent leavers—

(a) a pension is only payable in respect of two of them, and

(b) the amount payable is equal to the sum of the two highest pensions.

(10) For the rate at which the pension referred to in paragraph (1) is payable, see regulations 2.E.10 to 2.E.15 and, in any case where that pension includes additional pension, regulations 2.C.14(4) and 2.C.16(3).

Meaning of “dependent child”

2.E.9

(1) In this Part “dependent child”, in relation to a deceased member or recent leaver, means a person who—

(a) meets the relationship condition (see paragraph (2)),

(b) either—

(i) has not reached the age of 23, or

(ii) in the opinion of the scheme administrator was financially dependent on the deceased at the date of death because of physical or mental impairment and remains so,

(i) before the deceased ceased to be an active member, or

(ii) within one year after the deceased ceased to be an active member,

(d) in the case of a person within sub-paragraph (c)(i), was dependent on the deceased—

(i) at the date of death, and

(ii) if the deceased died after ceasing to be an active member, when the deceased ceased to be an active member, and

(e) in the case of a person within sub-paragraph (c)(ii)—

(i) was dependent on the deceased both at birth and at the deceased’s death, or

(ii) if the person was born after the deceased’s death, would have been dependent on the deceased had the deceased not died before the person’s birth.

(2) A person meets the relationship condition if the person is—

(a) a natural child or natural grandchild of the deceased,

(b) an adopted child of the deceased who was adopted whilst the deceased was an active member,

(c) a step-child of the deceased whose natural or adoptive parent is the deceased’s surviving spouse or civil partner from a marriage entered into, or a civil partnership formed, whilst the deceased was an active member,

(d) in a case where the deceased left a surviving scheme partner with whom the deceased was living as mentioned in regulation 2.E.2(a) and (b) when the deceased ceased to be an active member, a person whose natural or adoptive parent is the deceased’s surviving scheme partner,

(e) a brother or sister, or a child of a brother or sister, of the member or the member’s spouse or civil partner or scheme partner,

(f) a half-brother or half-sister, or a child of a half-brother or half-sister, of the member or the member’s spouse or civil partner or scheme partner,

(g) a person whom, in the opinion of the scheme administrator, the deceased intended when the deceased ceased to be an active member to adopt, or

(h) a person who had been dependent on the deceased for 2 years or (if less) half the person’s life when the deceased ceased to be an active member.

Amount of children’s pension under regulation 2.E.8: deceased active members and deceased non-contributing members

2.E.10

(1) This regulation applies for determining the annual amount of the pension payable under regulation 2.E.8(1) if at the date of death the deceased was an active , or a non-contributing member member of this Section of the scheme who was not also a pensioner member.

(2) Subject to paragraphs (6) and (7), that amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension” means—

$$0.75×RP60×LRS365$where—RP is the deceased’s reckonable pay, andLRS is the length of the deceased’s relevant service, expressed in days.$

(4) For this purpose “relevant service” means—

(a) in the case of an active member, the greater of —

(i) the pensionable service the deceased was entitled to count on the date of death, increased by the enhancement period (if any) that would have applied for the purposes of regulation 2.D.8(5) if the deceased had become entitled to a tier 2 ill-health pension on the date of death, and

(ii) 10 years’ pensionable service;

(b) in the case of a non-contributing member, the pensionable service that the deceased was entitled to count on the date of death.

In the case of a 2008 Section Optant, this is subject to regulation 2.K.24 and in the case of a Waiting Period Joiner, this is subject to regulation 2.L.5.

(5) In this regulation “the appropriate fraction” means—

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult dependant’s pension is payable under regulation 2.E.1—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) if there is a such a parent or spouse or partner of a parent, but no surviving adult dependant’s pension is payable under regulation 2.E.1—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children,

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

(6) If—

(a) a surviving adult dependant’s pension is payable under regulation 2.E.1, and

(b) there is a dependent child who is not dependent on the person entitled to that pension,

the rate of the pension payable in respect of that child for the first 3 months after the deceased’s death is equal to—

(i) in the case of a deceased active member, the rate of the deceased’s pensionable pay at the date of death, and

(ii) in the case of a deceased non-contributing member, the rate of the deceased’s reckonable pay.

(7) In a case within paragraph (5)(b) or (c), the rate of the pension in respect of the dependant child or children for the period of 6 months beginning with the deceased’s death is equal to—

(i) in the case of a deceased active member, the rate of the deceased’s pensionable pay at the date of death, and

(ii) in the case of a deceased non-contributing member, the rate of the deceased’s reckonable pay.

Amount of children’s pension under regulation 2.E.8: deceased pensioner members

2.E.11

(1) This regulation applies for determining the annual amount of the pension payable under regulation 2.E.8(1) (surviving children’s pensions) if at the date of death the deceased was a pensioner member of this Section of the scheme who was not also an active member or a non-contributing member.

(2) Subject to paragraphs (5), (6) and (7), that amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension” means the greater of—

(a) 75% of the deceased’s annual pension (disregarding any additional pension), and

(b) 75% of the annual pension to which the deceased would have been entitled if the deceased had been entitled to count 10 years’ pensionable service (disregarding any additional pension).

In the case of a 2008 Section Optant, this is subject to regulation 2.K.24 and in the case of a Waiting Period Joiner, this is subject to regulation 2.L.5.

(4) In this regulation “the appropriate fraction” means—

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult dependant’s pension is payable under regulation 2.E.1—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) if there is such a parent or spouse or partner of a parent, but no surviving adult dependant’s pension is payable under regulation 2.E.1—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

(5) If—

(a) a surviving adult dependant’s pension is payable under regulation 2.E.1, and

(b) there is a dependent child who is not dependent on the person entitled to that pension,

the rate of the pension in respect of that child for the first 3 months after the deceased’s death is equal to the rate of the member’s pension at the date of death (disregarding any additional pension).

(6) In a case within paragraph (4)(b) or (c), the rate of the pension in respect of the dependent child or children for the period of 6 months beginning with the deceased’s death is equal to the greater of—

(a) the rate of the member’s pension at the date of death disregarding any reduction made under Chapter 2.H (abatement) and any additional pension, and

(b) the amount of children’s pension that would otherwise be payable under these Regulations.

(7) If the deceased member’s pension was payable under regulation 2.D.4 (early payment of pensions with actuarial reduction), the reference in paragraph (3)(a) and (b) to the member’s pension is a reference to the amount that the member’s pension would have been if it had been calculated without the reduction mentioned in paragraph (2)(b) of that regulation.

(8) For the purposes of paragraphs (1) and (2), any reduction in the member’s pension under regulation 2.D.14 and regulation 2.K.12 will be ignored.

Amount of children’s pension under regulation 2.E.8: deceased deferred members

2.E.12

(1) This regulation applies for determining the annual amount of the pension payable under regulation 2.E.8(1) if at the date of death the deceased was a deferred member of this Section of the scheme who was not also an active member or a non-contributing member or a pensioner member.

(2) That amount is the appropriate fraction of the basic death pension.

(3) In this regulation “the basic death pension”—

(a) if the deceased died within 12 months after ceasing to be an active member or a non-contributing member, means the amount that would be the basic death pension for the purposes of regulation 2.E.10 if the deceased had died on the day of so ceasing (disregarding any additional pension), and

(b) otherwise, means the greater of—

(i) 75% of the pension to which the deceased would have been entitled if the deceased had become entitled to a pension under 2.D.1 on the date of death (disregarding any additional pension), and

(ii) 75% of the pension to which the deceased would have been entitled if the deceased had become so entitled and the pension had been calculated on the assumption that the member was entitled to 10 years’ pensionable service (disregarding any additional pension).

In the case of a 2008 Section Optant, this is subject to regulation 2.K.24 and in the case of a Waiting Period Joiner, this is subject to regulation 2.L.5.

(4) In this regulation “the appropriate fraction” means—

(a) if there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children and a surviving adult’s pension is payable—

(i) one-quarter if there is only one dependent child, and

(ii) one-half if there are two or more dependent children,

(b) otherwise—

(i) one-third if there is only one dependent child, and

(ii) two-thirds if there are two or more dependent children.

Amount of children’s pension under regulation 2.E.8: recent leavers

2.E.13

(1) This regulation applies for determining the annual amount of the pension payable under regulation 2.E.8(1) if at the date of death the deceased was a recent leaver (within the meaning of regulation 2.E.6(3)).

(2) That amount is the appropriate fraction of the basic death pension.

(3) In this regulation—

(a) “the basic death pension” means 75% of the pension to which the deceased would have been entitled if the deceased had become entitled to—

(i) a pension under regulation 2.D.8(5) on the date of death, or

(ii) if greater, the amount that the member’s pension would have been if it had been based on 10 years’ pensionable service (disregarding any additional pension), and

(b) “the appropriate fraction” means—

(i) if there is a surviving parent of the dependant child or children or a surviving spouse or civil partner of a parent of the dependant child or children and a surviving adult’s pension is payable—

(aa) one-quarter if there is only one dependant child, and

(bb) one-half if there are two or more dependant children,

(ii) otherwise—

(aa) one-third if there is only one dependant child, and

(bb) two-thirds if there are two or more dependant children.

Power to increase pension in respect of children not maintained by surviving parent etc

2.E.14

(1) This regulation applies if—

(a) a member dies leaving a dependent child or children,

(b) there is a surviving parent of the dependent child or children or a surviving spouse or civil partner of a parent of the dependent child or children, and

(2) The Secretary of State may increase the amount of the pension that would otherwise be payable under this Chapter in respect of the dependant child or children.

(3) The increased amount may not exceed the amount that would have been payable under this Chapter if there had been no such surviving parent or spouse or partner of a parent.

Amount of children’s pension under regulation 2.E.8: re-employed pensioners

2.E.15

(1) This regulation applies for determining the annual amount of a pension payable under regulation 2.E.8(1) if at the date of death the deceased was an active member or a non-contributing member who was also a pensioner member of this Section of the Scheme.

(2) If there is no surviving adult dependant, the rate of the pension in respect of the dependent child or children for the period of 6 months beginning with the deceased’s death is equal to the sum of—

(a) in the case of —

(i) a deceased active member, the rate of the deceased’s pensionable pay at the date of death, or

(ii) a deceased non-contributing member, the rate of the deceased’s reckonable pay, and

(b) the rate of the pension being received by the deceased at the date of death (after taking account of any abatement under Chapter 2.H).

(3) Subject to paragraph (5), except where a pension is payable at the rate mentioned in paragraph (2), the pension in respect of the member’s later service shall be paid as the appropriate fraction of 75% of the rate of pension described in—

(a) regulation 2.D.8(5) of this Part if the deceased has not reached the age of 65 on the date of death, or

(b) regulation 2.D.1 of this Part if the deceased has reached the age of 65 on the date of death.

(4) In this regulation “appropriate fraction” has the meaning given in regulation 2.E.10(5).

(5) If any dependent child was a dependent child both at the time when the pensionable service in respect of which the pension is payable ceased and at the date of death, the annual amount of the pension in respect of the dependent child or children is the sum of—

(a) the annual amount that would be payable in respect of the child under regulation 2.E.10 as a result of the member dying whilst an active member or a non-contributing member if that regulation applied to members who are also pensioner members (disregarding the pensionable service in respect of which the pension is payable (“the pension service”) and any additional pension), and

(b) the annual amount that would be payable in respect of the child under regulation 2.E.11 as a result of the member dying whilst a pensioner member if that regulation applied to members who are also active members or non-contributing members (having regard only to the pension service and disregarding any additional pension).

(6) If, apart from this paragraph, the sum of—

(a) the relevant service (as defined in regulation 2.E.10(4)) for the purposes of the calculation of the annual amount referred to in paragraph (5)(a), and

(b) the pension service,

would be less than 10 years’ pensionable service, the deceased’s relevant service for the purposes of that calculation is increased by the length of the shortfall.

Lump sum death benefits

Lump sum benefits on death: introduction

2.E.16

(1) If a member or a recent leaver or a deferred member dies before reaching the age of 75, a lump sum is payable in accordance with this Chapter.

(2) Paragraph (1) is subject to the following provisions of this Chapter.

(3) This regulation does not apply if—

(a) the member is—

(i) a pensioner member, or

(ii) a pension credit member who dies after any benefits attributable to the pension credit have become payable, and

(b) the death takes place more than five years after the member’s pension becomes payable.

Amount of lump sum: single capacity members and recent leavers (disregarding regulation 2.D.5 employments)

2.E.17

(1) The lump sum payable on the death of an active member or a non-contributing member, who is not also a deferred member or a pensioner member, is an amount equal to twice the member’s reckonable pay.

In the case of a 2008 Section Optant, this is subject to regulation 2.K.23 and in the case of a Waiting Period Joiner, this is subject to regulation 2.L.4.

(2) The lump sum payable on the death of a pensioner member, who is not also an active member or a non-contributing member or a deferred member, is, in respect of each pension to which the member is entitled, the lesser of—

(a) an amount equal to five times the annual rate of the pension (other than any additional pension), less the amount of the pension payments already made to the member, and

(b) an amount equal to twice the member’s reckonable pay by reference to which the pension was calculated, less the aggregate of—

(i) any lump sum paid to the member when the pension came into payment as a result of the member exercising the option under regulation 2.D.14, and

(ii) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 2.K.12.

This is subject to regulations 2.E.20A and 2.E.21.

(3) The lump sum payable on the death of a deferred member, who was not an active member or a non-contributing member or a pensioner member, is an amount equal to the member’s deferred annual pension, multiplied by 2.25.

(4) The lump sum payable on the death of a recent leaver is an amount equal to the deferred annual pension to which the person would have been entitled if the person were entitled to such a pension calculated by reference to the pensionable service the recent leaver was entitled to count in the service that has ceased, multiplied by 2.25.

(5) References in this regulation to a member’s deferred annual pension are to the annual pension, in respect of any period of pensionable service, to which the member would have been entitled under regulation 2.D.1 (normal retirement pensions) if on the date of death the member had become entitled to such a pension (other than any additional pension).

(6) The reference in paragraph (2)(a) to the annual rate of the member’s pension is to the member’s pension after it has been reduced to take account of—

(a) the exercise by the member of an option under regulation 2.D.14, and

(b) in the case of a 2008 Section Optant, the lump sum paid to the Optant under regulation 2.K.12.

(7) If a pensioner member exercised the option under regulation 2.D.18 (election to allocate pension), the reference in paragraph (2)(a) to the amount of the pension payments already made to the member is a reference to the amount of the pension payments that would have been made apart from the election.

(8) For the purposes of this regulation, the fact that a person—

(a) was an active member or a non-contributing member in service in an employment in respect of which the member has exercised the option under regulation 2.D.5,

(b) is a deferred member as a result of service in an employment in respect of which the member has exercised that option, or

is ignored.

Amount of lump sum: dual capacity members (disregarding regulation 2.D.5 employments)

2.E.18

(1) Paragraph (2) applies for determining the lump sum payable by virtue of this regulation on the death of a member who—

(a) was an active member or a non-contributing member otherwise than in service in an employment in respect of which the member had exercised the option under regulation 2.D.5 (partial retirement: members aged at least 55), and

(b) was also a pensioner member.

(2) The lump sum is an amount equal to the sum of—

(a) five times the annual rate of pension—

(i) payable under regulation 2.D.8(5) (tier 2 ill-health pension), if the deceased had not reached the age of 65,

(ii) payable under regulation 2.D.1 (normal retirement pensions), if the deceased had reached the age of 65,

to which the member would have been entitled—

(aa) in the case of a deceased active member, at the member’s date of death, or

(bb) in the case of a deceased non-contributing member, on the last day of the member’s pensionable service, and

(b) in respect of each pension to which the person has been entitled for less than 5 years, the lesser of—

(i) five times the annual rate of the pension payable after exercising any option under regulation 2.D.14 (general option to exchange part of pension for lump sum), less the amount of the pension payments already made to the member, and

(ii) an amount equal to twice the member’s reckonable pay by reference to which the pension was calculated, less any lump sum paid to the member when the pension came into payment as a result of the member exercising the option under regulation 2.D.14 (general option to exchange part of pension for lump sum).

This is subject to paragraph (4).

(3) If the pensioner member exercised the option under regulation 2.D.18, the reference in paragraph (2)(b) to the amount of the pension payments already made to the member is a reference to the amount of the pension payments that would have been made apart from the election.

(4) In the case of a 2008 Section Optant—

(a) the reference to the annual rate of pension in paragraph (2)(b)(i) is to the annual rate of pension after it has been reduced to take account of the lump sum paid to the Optant under regulation 2.K.12, and

(b) the amount of the Optant’s reckonable pay for the purposes of paragraph (2)(b)(ii) shall be reduced by the aggregate of—

(i) the amount of the lump sum paid to the Optant under regulation 2.K.12, and

(ii) the lump sum under regulation 2.D.14 referred to in paragraph (2)(b)(ii).

Amount of lump sum: dual capacity members: members with pensions under regulation 2.D.5

2.E.19

(1) Paragraph (2) applies for determining the lump sum payable by virtue of this regulation on the death of a member who—

(a) was an active member or a non-contributing member in service in an employment in respect of which the member has exercised the option under regulation 2.D.5 (partial retirement: members aged at least 55), and

(b) was a pensioner member by virtue of being entitled to a pension under that regulation.

(2) The lump sum is an amount equal to the sum of—

(a) twice the appropriate fraction of the member’s reckonable pay in that employment at the date of death, and

(b) if the member had been entitled to any pensions under regulation 2.D.5 for less than 5 years, the lesser of—

(i) the total of the guarantee amounts for each of those pensions (see paragraph (3)), and

(ii) the aggregate lump sum cap (see paragraph (4)).

In the case of a 2008 Section Optant, this is subject to regulation 2.K.23.

(3) The guarantee amount for a pension under regulation 2.D.5 is five times the annual rate of the pension at the date of death, less the amount of the pension payments already made to the member in respect of the pension.

(4) The aggregate lump sum cap is equal to twice the appropriate fraction of the reckonable pay by reference to which the pension to which the member became entitled on last exercising the option under regulation 2.D.5 was calculated, less the total of any lump sums paid to the member—

(a) in exchange for pensions under regulation 2.D.5 as a result of the member exercising the option under regulation 2.D.14, and

(b) in the case of a 2008 Section Optant, the lump sum paid to that Optant under regulation 2.K.12.

(5) In this regulation “the appropriate fraction” means—

$$DPSTDPS$where—DPS is, where the member continues in pensionable service as an active member or a non-contributing member on the option day (or the last such option day if the option has been exercised more than once), the total number of days which do not form part of the specified percentage of pensionable service at the option day, andTDPS is the aggregate of DPS and the total number of days of pensionable service (at the option day or the last such option day if the option has been exercised more than once) which forms part of the specified percentage of pensionable service.$

Amount of lump sum: pension credit members

2.E.20

(1) The lump sum payable on the death of a pension credit member who dies before any benefits derived from the member’s pension credit have become payable is an amount equal to the amount of the annual pension to which the member would have become entitled under regulation 2.D.2 (pension credit members) if the member had reached the age of 65 on the date of death, multiplied by 2.25.

(2) The lump sum payable on the death of a pension credit member who dies after a pension under that regulation has become payable is equal to the lower of—

(a) the annual amount of the pension that would have been payable to the member during so much of the period of five years beginning with the date on which the pension became payable as falls after the date of death, and

(b) $2RP−CLS$,

where—

RP is the amount as at the valuation day of the reckonable pay of the debit member from whose rights the pension credit member’s pension credit is derived, and

CLS is the amount of the lump sum (if any) paid to the pension credit member as a result of the member exercising the option under regulation 2.D.14 (general option to exchange part of pension for lump sum) on becoming entitled to the pension under regulation 2.D.2.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this regulation—

“valuation day” means the day referred to in section 29(7) of the 1999 Act, ...

Payment of lump sums on death

2.E.21

(1) A lump sum payable under regulation 2.E.16 or a pension payable under regulation 2.E.20A must be paid in accordance with this regulation.

(2) The lump sum or pension must be paid to the member’s personal representatives, except so far as it is payable to a different person or body under paragraph (4), (6) or (10).

(3) A member may give notice to the Secretary of State—

(a) specifying—

(i) the member’s personal representatives,

(ii) one or more other individuals, or

(iii) one incorporated or unincorporated body,

to whom the lump sum or pension is to be paid, and

(b) where two or more individuals are specified, specifying the percentage of the payment payable to each of them.

(4) If the member—

(a) has given notice under paragraph (3) specifying a person, and

(b) has not revoked that notice,

the lump sum or pension (or, as the case may be, the percentage of it specified in respect of the person) may be paid to the person, unless paragraph (5) or (7) applies.

(5) This paragraph applies if—

(a) the person specified in the notice has died before the payment can be made, or

(b) payment to that person is not, in the opinion of the Secretary of State, reasonably practicable.

(6) If the member—

(a) leaves a surviving adult dependant, and

(b) has not given notice under paragraph (3) or has revoked any notice so given,

the lump sum or pension may be paid to that person unless paragraph (7) applies.

(7) This paragraph applies if the person to whom the lump sum or pension (or a specified percentage of the lump sum or pension) would otherwise be payable has been convicted of an offence specified in regulation 2.J.7(4) (forfeiture of rights to benefit) and the Secretary of State has directed, as a consequence of that conviction, that the person’s right to a payment in respect of the member’s death is forfeited.

(8) A notice under paragraph (3)—

(a) must be given in writing, and

(b) may be revoked at any time by a further notice in writing.

(9) The Secretary of State may pay the lump sum to any person claiming to be the member’s personal representative or otherwise to fall within paragraph (3)(a), without requiring proof that the person is such a person concerned, if the lump sum does not exceed—

(a) £5,000, or

(b) any higher amount specified in an order made under section 6(1) of the Administration of Estates (Small Payments) Act 1965[^f00051] as the amount to be treated as substituted for references to £500 in section 1 of that Act.

(10) The member’s personal representatives may, as part of the distribution of the member’s estate, give irrevocable notice to the Secretary of State—

(a) specifying—

(i) one or more individuals, or

(ii) one incorporated or unincorporated body,

to whom the benefit of the pension under regulation 2.E.20A from the date of receipt of the notice by the Secretary of State is to be assigned, and

(b) where two or more individuals are specified, specifying the percentage of the pension payable to each of them,

and the pension (or, as the case may be, the percentage of it specified in respect of the person) may be paid to the person or body, unless paragraph (11) applies.

(11) This paragraph applies if—

(a) the person specified in the notice has died before the payment can be made,

(b) payment to that person or body is not, in the opinion of the Secretary of State, reasonably practicable, or

(c) the person to whom the pension (or a specified percentage of the pension) would otherwise be payable has been convicted of an offence specified in regulation 2.J.7(4) (forfeiture of rights to benefit) and the Secretary of State has directed, as a consequence of that conviction, that the person’s right to a payment in respect of the member’s death is forfeited.

(12) The prohibition on assignment of benefits in regulation 2.J.13 (prohibition on assignment or charging of benefits) shall not apply to an assignment by personal representatives under this regulation.

(13) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.20.

(14) In the case of a Waiting Period Joiner, this regulation is subject to regulation 2.L.2.

Tax treatment under the 2004 Act of lump sums payable on pensioners’ deaths

2.E.22

(1) A pensioner’s lump sum (less any amount deducted under paragraph (4) where that applies) is treated for the purposes of the 2004 Act as a pension protection lump sum death benefit if the member has given the Scheme administrator a statement in writing that any such lump sum is to be treated as such a benefit.

(2) In this regulation “pensioner’s lump sum” means—

(a) a lump sum payable under regulation 2.E.16 to which regulation 2.E.17(2) applies, or

(b) so much of a lump sum payable under regulation 2.E.16 as is calculated under regulation 2.E.18(2).

(3) Paragraph (4) applies if the person who is the scheme administrator for the purposes of section 206 of the 2004 Act (“the administrator”) is liable for tax under that section in respect of a pension protection lump sum death benefit.

(4) The administrator may deduct from the lump sum the tax payable in respect of it.

Miscellaneous and general provisions

Death during period of absence

2.E.23

(1) This regulation applies if a person dies during a period when the person—

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

(b) is on ordinary maternity leave,

(d) is on paternity leave or parental leave,

is on paternity leave, parental leave , shared parental leave or parental bereavement leave,

and the earnings used to calculate the person’s pensionable pay have ceased to be paid before the person’s death.

(2) Any benefits payable under this Chapter must be calculated as if the person had died in pensionable service on the day before those earnings ceased.

Polygamous marriages

2.E.24

(1) This regulation applies if—

(a) a member dies without leaving a surviving adult dependant, and

(b) at the date of death the member was married to one or more persons under a law which permits polygamy.

(2) If, had the member left a surviving adult dependant, any benefit would have been payable to the surviving adult dependant as such, that benefit is payable—

(a) if there is one such person, to that person, or

(b) if there are two or more such persons, to those persons in equal shares.

(3) Such a person’s share of a pension will not be increased on the death of any of such persons.

Dual capacity membership: death benefits

2.E.25

(1) This paragraph applies if the deceased member was—

(a) a member of this Section of the Scheme of two or more of the kinds specified in paragraph (2),

(b) a pensioner member in respect of two or more pensions, or

(2) The kinds of member are–

(a) an active member,

(b) a deferred member,

(d) a pension credit member.

(3) If paragraph (1) applies, the general rule is that–

(a) benefits are payable in respect of the member under this Chapter as if two or more members of the kinds in question had died (so that two or more pensions or lump sums are payable in respect of the one deceased member), and

(b) the amounts payable are determined accordingly.

(4) Paragraph (3) does not apply where specific provision to the contrary is made about a person to whom that paragraph would otherwise apply.

(5) See, in particular—

(a) regulation 2.E.3 (amount of pensions under regulation 2.E.1: active members),

(b) regulation 2.E.4 (amount of pensions under regulation 2.E.1: pensioner members),

(d) regulation 2.E.8 (surviving children’s pensions),

(e) regulation 2.E.15 (amount of children’s pension under regulation 2.E.8: re-employed pensioners),

(f) regulation 2.E.16 (lump sum benefits on death: introduction),

(g) regulation 2.E.18 (amount of lump sum: dual capacity members (disregarding regulation 2.D.5 employments)),

(h) regulation 2.E.19 (amount of lump sum: dual capacity members: members with pensions under regulation 2.D.5),

(hh) regulation 2.E.20A (pension payable when member dies on or after reaching age 75), and

(i) Chapter 2.G (re-employment and rejoining this Section of the Scheme).

(6) If a person who is a pension credit member is entitled to two or more pension credits—

(a) benefits are payable in respect of the person under this Chapter as if the person were two or more persons, each being entitled to one of the pension credits (so that two or more pensions or lump sums are payable in respect of the one pension credit member), and

(b) the amounts of those benefits are determined accordingly.

Guaranteed minimum pensions for surviving spouses and civil partners

2.E.26

(1) If a person who is the surviving spouse or civil partner of a deceased active, deferred or pensioner member has a guaranteed minimum under section 17 of the 1993 Act in relation to benefits in respect of the deceased member under this Section of the Scheme—

(a) nothing in this Part permits or requires anything that would cause requirements made by or under that Act in relation to such a person and such a person’s rights under a scheme not to be met in the case of the person,

(b) nothing in this Part prevents anything from being done which is necessary or expedient for the purposes of meeting such requirements in the case of the person, and

(2) If apart from this regulation—

(a) no pension would be payable to the surviving spouse or civil partner under this Chapter, or

(b) the weekly rate of the pensions payable would be less than the guaranteed minimum,

a pension the weekly rate of which is equal to the guaranteed minimum is payable to the surviving spouse or civil partner for life or, as the case may be, pensions the aggregate weekly rate of which is equal to the guaranteed minimum are so payable.

(3) Paragraph (2) does not apply to a pension that is forfeited following a conviction for any of the following—

(a) treason;

(b) an offence ... referred to in regulation 2.J.7(2)(b);

CHAPTER 2.F — TRANSFERS

Transfers out

Introduction: rights to transfer value payment

2.F.1

(1) This Chapter supplements the rights conferred by or under Chapter 1 of Part 4ZA of the 1993 Act (transfer rights: general).

(2) This Chapter is without prejudice to that Chapter or Chapter 2 of that Part[^f00052] (early leavers: cash transfer sums and contribution refunds).

(3) Accordingly—

(a) a member to whom Chapter 1 of that Part applies (see section 93 of that Act) is entitled to require the payment of a transfer value in respect of the rights to benefit that have accrued to or in respect of the member under this Section of the Scheme, and

(b) a member to whom Chapter 2 of that Part applies (see section 101AA(1) of that Act) is entitled to a cash transfer sum or a contribution refund in accordance with that Chapter.

(4) Subject to paragraphs (5) and the other provisions of this Chapter, any other member is entitled to require such a payment as if such rights had accrued to or in respect of him by reference to the pensionable service the member is entitled to count under this Section of the Scheme (and references in this Chapter to the member’s accrued rights or benefits are to be read accordingly).

(5) Paragraph (4) does not—

(a) give any rights to an active member,

(b) give any rights to a pensioner member in respect of the pension to which the member has become entitled, or

Applications for statements of entitlement

2.F.2

(1) A member who requires a transfer value payment to be made must apply in writing to the Secretary of State for a statement of the amount of the cash equivalent of the member’s accrued benefits under this Section of the Scheme at the guarantee date (a “statement of entitlement”).

(2) In this Part, “the guarantee date” means any date that—

(a) falls within the required period,

(b) is chosen by the Secretary of State,

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

In counting the period of 10 days referred to in sub-paragraph (d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(3) In paragraph (2) “the required period” means—

(a) the period of 3 months beginning with the date of the member’s application for a statement of entitlement, or

(b) such longer period beginning with that date (but not exceeding six months) as may reasonably be required if, for reasons beyond the control of the Secretary of State, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(4) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

Applications for transfer value payments: general

2.F.3

(1) A member who has applied for and received a statement of entitlement under regulation 2.F.2 may apply in writing to the Secretary of State for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of regulation 2.F.4(2)).

(3) In this Part such a payment is referred to as “the guaranteed cash equivalent transfer value payment”.

(4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.

(5) The application must meet such other conditions as the Secretary of State may require.

(6) An application under this regulation may be withdrawn by notice in writing to the Secretary of State, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.

Applications for transfer value payments: time limits

2.F.4

(1) An application under regulation 2.F.3(1) must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than—

(a) 6 months after that date, or

(b) if it is earlier, the date on which the member reaches 65.

This is subject to paragraph (4).

(2) If the payment is made later than 6 months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—

(a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made, or

(b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of 1% above the base rate.

(3) Paragraph (4) applies if—

(a) disciplinary or court proceedings against the member are begun within 12 months after the member leaves the employment which qualified the member to belong to the Scheme, and

(b) 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 2.J.7 (forfeiture of rights to benefit).

(4) The Secretary of State may defer doing what is needed to carry out what the member requires until the end of the period of 3 months beginning with the date on which those proceedings (including any proceedings on appeal) are concluded.

(5) In any case where a direction is given under regulation 2.J.7 for the forfeiture of a member’s benefits, this regulation applies as if the amount specified in the statement of entitlement were reduced by an amount equal to the value of the benefits forfeited, as determined by the Scheme actuary.

(6) In respect of an applicant who falls within regulation 2.F.1(4)—

(a) in the case of an application that requires the guaranteed cash equivalent transfer value payment to be made to a registered occupational pension scheme or a registered personal pension scheme, an application under paragraph (1) may only be made if—

(i) the applicant became a member of that scheme not later than the end of the period of 12 months beginning with the day after the date on which the member ceased to be in the pensionable service in which the rights accrued (“the leaving date”), and

(ii) the application is made not later than—

(aa) the end of the period of 12 months beginning with the day on which the applicant became a member of that scheme, or

(bb) if the applicant became a member of that scheme on or before the leaving date, the end of the period of 12 months beginning with the day after the leaving date.

(b) in any other case, an application under paragraph (1) may only be made before the end of the period of 12 months beginning with the day after the leaving date.

Ways in which transfer value payments may be applied

2.F.5

(1) A deferred member may only require the Secretary of State to apply the guaranteed cash equivalent transfer value payment in one or more of the ways permitted under section 95 of the 1993 Act.

(2) In any other case, a member may only require the Secretary of State to apply the guaranteed equivalent transfer value payment in one or more of the ways permitted under section 101AE of the 1993 Act.

(3) The whole of the guaranteed cash equivalent transfer value payment must be applied, unless paragraph (4) applies.

(4) The benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension, or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6 April 1997,

may be excluded from the guaranteed cash equivalent transfer value payment if section 96(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5) A transfer payment may only be made to—

(a) a pension scheme that is registered under Chapter 2 of Part 4 of the 2004 Act, or

(b) an arrangement that is a qualifying recognised overseas pension scheme for the purposes that Part (see section 169(2) of that Act).

(6) Paragraph (1) applies whether or not the deferred member is entitled to a guaranteed cash equivalent transfer value payment under Chapter 1 of Part 4ZA of the 1993 Act.

Calculating amounts of transfer value payments

2.F.6

(1) The amount of the guaranteed cash equivalent transfer value payment is to be calculated and verified by the Secretary of State in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996.

This is subject to paragraphs (2), (3) and (5).

(2) Before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent, the Secretary of State shall take advice from the Scheme actuary.

(3) If the amount calculated in accordance with paragraph (1) is less than the member’s minimum transfer value (if any), the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.

This is subject to paragraph (5).

(4) In paragraph (3) “minimum transfer value” means—

(a) in the case of a person other than a 2008 Section Optant, the sum of—

(i) any transfer value payments that have been made to this Section of the Scheme in respect of the person as a result of which the person is entitled to count any pensionable service under this Section of the Scheme by reference to which the accrued rights subject to the transfer are calculated, and

(ii) any contributions paid by the person under Chapter 2.C as a result of which the person is entitled to count such service;

(b) in the case of a 2008 Section Optant, the sum of—

(i) any transfer value payments that have been made to this Section of the Scheme in respect of the person as a result of which the person is entitled to count any pensionable service under this Section of the Scheme by reference to which the accrued rights subject to the transfer are calculated,

(ii) any contributions paid by the person under Chapter 2.C as a result of which the person is entitled to count such service, and

(iii) the aggregate of any—

(aa) transfer value payments that have been made to the 1995 Section in respect of the Optant;

(bb) any contributions paid by the Optant under regulation D1 of the 1995 Regulations (contributions by members) in respect of pensionable employment in that Section on or before 31 March 2008, and

(cc) any payments made by the Optant under regulation Q1 of the 1995 Regulations (right to buy additional service) for the purchase of additional service,

which entitle the Optant to count, under Chapter 2.K, any pensionable service by reference to which the accrued rights subject to the transfer are calculated.

(5) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is calculated—

(a) in accordance with those arrangements rather than paragraphs (1) and (3), and

(b) by reference to the guidance and tables provided by the Scheme actuary for the purposes of this paragraph that are in use on the date used for the calculation.

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

Effect of transfers-out

2.F.7

(1) If a transfer value payment is made under this Chapter in respect of a person’s rights under this Section of the Scheme, those rights are extinguished.

Transfers in

Right to apply for acceptance of transfer value payment from another scheme

2.F.8

(1) Subject to the provisions of this Chapter, an active member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of him under any kind of scheme or arrangement to which paragraph (2) applies, other than a FSAVC, to be accepted by this Section of the Scheme.

(2) This paragraph applies to—

(a) a registered occupational pension scheme other than a corresponding health service scheme,

(b) a registered personal pension scheme,

(d) a corresponding 1995 scheme, and

(e) a corresponding 2008 scheme.

(2A) a member who makes an application for a transfer value to be accepted by the Secretary of State in respect of his rights under a corresponding 2008 scheme may not also make an application for a transfer value to be accepted in respect of his rights under a corresponding 1995 scheme.

(3) Paragraph (1) does not apply to rights that are directly attributable to a pension credit.

(4) In this regulation “FSAVC” means—

(a) a scheme which—

(i) immediately before 6th April 2006 was approved by the Commissioners for Her Majesty’s Revenue and Customs by virtue of section 591(2)(h) of the Income and Corporation Taxes Act 1988[^f00053] (free-standing AVC schemes), and

(ii) became a registered scheme for the purposes of the 2004 Act by virtue of Schedule 36 to that Act, or

(b) a scheme established on or after that date as a registered free-standing AVC scheme.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.13.

Procedure for applications under regulation 2.F.8

2.F.9

(1) An application under regulation 2.F.8—

(a) must be made in writing,

(b) must specify the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment,

(i) during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of this Section of the Scheme and before the applicant reaches the age of 65; or

(ii) where the applicant is not eligible to be an active member of this Section of the Scheme and the application is made in respect of a transfer from a corresponding 2008 Scheme, during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of the 2015 Scheme if either—

(aa) paragraph 2 of Schedule 7 to the 2013 Act, or

(bb) paragraph 2 of Schedule 7 to the Public Service Pensions Act (Northern Ireland) 2014,

applies to the period of service in respect of which that transfer value payment is made; or

(iii) where the applicant is not eligible to be an active member of this Section of the Scheme and the application is made in respect of a period of service in an existing scheme (within the meaning of Schedule 5 to the 2013 Act or Schedule 5 to the 2014 Act) or an existing public body scheme listed in Schedule 10 to those Acts, during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of the 2015 Scheme if—

(aa) paragraph 2 of Schedule 7 to the 2013 Act or paragraph 2 of Schedule 7 to the 2014 Act applies to the period of service in respect of which that transfer value payment is made, and

(bb) the transfer value payment is not made and accepted under the public sector transfer arrangements.

(d) if the Secretary of State so requires, may only be made if the member has first requested a statement—

(i) in the case of a transfer made under the public sector transfer arrangements, of the service that the member will be entitled to count as a result of the transfer if the payment is accepted by the Secretary of State, and

(ii) in a case where the transfer is not made under those arrangements (including a transfer of rights from a corresponding 1995 scheme), of the service that member will be entitled so to count if the payment is so accepted by the Secretary of State within such period as is specified in the statement, and

(e) must meet such other conditions as the Secretary of State may require.

(2) A statement given to the member in pursuance of such a request as is mentioned in paragraph (1)(d)—

(a) in the case mentioned in paragraph (1)(d)(i), must inform the member of the effect (if any) of regulation 2.A.12 (restriction on reckonable pay used for calculating benefits in respect of capped transferred-in service) in the member’s case, and

(b) in the case mentioned in paragraph (1)(d)(ii), must specify such amount as is calculated in accordance with guidance and tables provided by the Scheme actuary for the purpose.

(3) A statement given to the member of a corresponding 1995 scheme in pursuance of such a request as is mentioned in paragraph (1)(d) must inform the member of the amount of pensionable service that will count under this Scheme for the purposes of—

(a) calculating benefits payable to or in respect of the member, and

(b) determining whether or not the member has reached 45 years of pensionable service for the purposes of regulation 2.A.3.

Acceptance of transfer value payments

2.F.10

(1) If an application is duly made by a member under regulation 2.F.8, the Secretary of State may accept the transfer value payment if such conditions as the Secretary of State may require are met, unless paragraph (5) applies.

(2) If the Secretary of State accepts the payment—

(a) the member is entitled to count the appropriate period of pensionable service for the purposes of calculating benefits payable to or in respect of the member under this Section of the Scheme, but

(b) in the case of a member any of whose service falls to be treated as capped transferred-in service, with such period as so falls counting as such service.

(3) In paragraph (2)(a) “the appropriate period” means the period calculated in accordance with regulation 2.F.11.

(3A) If the Secretary of State accepts the payment from the member of a corresponding 1995 scheme, the relevant period of pensionable service shall count when determining whether or not the member has reached 45 years of pensionable service for the purposes of regulation 2.A.3.

(3B) In paragraph (3A) “the relevant period” means the period calculated in accordance with regulation 2.F.11.

(4) For the meaning of “capped transferred-in service”, see regulation 2.F.12.

(5) The Secretary of State may not accept a transfer value payment if—

(a) it would be applied in whole or in part in respect of the member’s ... entitlement to a guaranteed minimum pension, and

(b) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the Scheme actuary for the purposes of this paragraph.

(6) Paragraph (5) does not apply if the transfer would be paid under the public sector transfer arrangements.

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.13.

Calculation of transferred-in pensionable service

2.F.11

(1) Subject to this regulation, the period of service that the member is entitled to count under regulation 2.F.10 as the result of a transfer is to be calculated in accordance with any guidance, tables and other relevant factors provided by the Scheme actuary for that purpose.

(2) For the purposes of the calculation under paragraph (1) the member’s annual pensionable pay is to be taken to be the amount of that pay as at the day on which the member’s pensionable service begins (“the starting day”), unless paragraph (3) applies.

(3) If the transfer payment is received by the Secretary of State more than 12 months after the starting day, the member’s annual pensionable pay is to be taken to be the amount of that pay as at the day on which the transfer payment is received.

(4) But paragraph (3) does not apply if—

(a) a written statement estimating the pensionable service that the member would be entitled to count as result of the transfer was given to the member by the Secretary of State during the period of 3 months ending 12 months after the starting day, and

(b) the transfer payment is received by the Secretary of State less than 3 months after the date of the statement.

(5) If the transfer value payment is accepted under the public sector transfer arrangements, the period of pensionable service the member is entitled to count is calculated—

(a) in accordance with those arrangements, and

(b) by reference to the guidance and tables provided by the Scheme actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.

(6) If the transfer value payment is accepted from a corresponding 2008 scheme, the period of pensionable service the member is entitled to count is the period that the member would be entitled to count if—

(a) the member’s employment to which that scheme applied were NHS employment in respect of which the member was a member of this Section of the Scheme, and

(b) the member’s contributions to that scheme were contributions to this Section of the Scheme.

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.13.

Meaning of “capped transferred-in service”

2.F.12

(1) This regulation applies if—

(a) the Secretary of State accepts a transfer value payment in respect of a member under a transfer to which the public sector transfer arrangements apply, and

(b) the service in respect of which the transfer is made was or included capped service in employment to which the Scheme from which the transfer value payment is made (“the transferring scheme”) applied.

(2) For the purposes of this Part, the same proportion of the service that the member is entitled to count under regulation 2.F.10(2)(a) as the capped service bears to the whole of the service in respect of which the transfer is made is capped transferred-in service.

(3) For the purposes of paragraph (1)(b), the service in respect of which the transfer is made was capped service so far as—

(a) in the case of service before 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) of the Income and Corporation Taxes Act 1988[^f00057], or

(b) in the case of service on or after 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under that section was calculated for tax years ending before that date.

(4) For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the member’s remuneration in any tax year would have exceeded the amount of the limit.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.13.

Public sector transfer arrangements

2.F.13

(1) This Chapter applies to a transfer where—

(a) the member is an active member of the 2015 Scheme,

(b) the member makes an application under regulation 2.F.8 for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of the member under—

(i) an existing scheme listed in Schedule 5 to the 2013 Act,

(ii) an existing public body scheme listed in Schedule 10 to that Act,

(iii) another occupational pension scheme that participates in the Public Sector Transfer Club,

(c) the application under regulation 2.F.8 is made within one year beginning with the day the member became eligible to be an active member of the 2015 Scheme and before the member reaches the member’s normal pension age in the 2015 Scheme,

(d) the transfer value payment is made and accepted under the public sector transfer arrangements, and

(e) on the day the transfer is completed, paragraph 2 of Schedule 7 to the 2013 Act applies to the period of service in respect of which the transfer value payment is made.

(2) This Chapter also applies in the case of any other transfer to which the public sector transfer arrangements apply (not being a transfer referred to in paragraph (1)) as it applies in other cases, except to the extent that—

(a) any provision in this Chapter provides otherwise, or

(b) the arrangements themselves make different provision.

Bulk transfers out

2.F.14

(1) This regulation applies if—

(a) the employment of one or more active members (“the transferring employees”) is transferred without their consent to a new employer,

(b) on that transfer the transferring employees cease to be eligible to be active members of this Section of the Scheme,

(c) after that transfer the transferring employees become active members of another occupational pension scheme (“the new employer’s scheme”),

(d) the Secretary of State has agreed special terms for the making of transfer value payments in respect of the transferring employees to the new employer’s scheme, after consultation with the Scheme actuary, and

(e) the transferring employees have consented in writing to their rights being transferred in accordance with those terms.

(2) In the case of the transferring members or the transferred members the transfer value payment to be paid–

(a) is not calculated in accordance with regulation 2.F.6, but

(b) is to be such amount as the Secretary of State determines to be appropriate in accordance with the special terms after consulting the Scheme actuary.

(3) This Chapter has effect with such modifications as are necessary to give effect to those terms.

(4) If the transfer is directly or indirectly attributable to an enactment, this Chapter has effect with such modifications as the Secretary of State considers necessary in consequence of the transfer.

(5) Where a member to whom this regulation applies is also a member to whom Part 3 applies, a bulk transfer under this regulation also operates as a transfer of that member’s rights under Part 3.

Bulk transfers in

2.F.15

(1) This regulation applies if—

(a) the employment of one or more persons (“the transferred employees”) is transferred without their consent to a new employer,

(b) on that transfer the transferred employees cease to be active members of an occupational pension scheme (“the former employer’s scheme”),

(d) the Secretary of State has agreed special terms for the acceptance of transfer value payments in respect of the transferred employees from the former employer’s scheme, after consulting the Scheme actuary, and

(e) the transferred employees have consented in writing to their rights being transferred in accordance with those terms.

(2) This Section of the Scheme has effect with such modifications as are necessary to give effect to the terms mentioned in paragraph (1)(e).

(3) If the transfer is directly or indirectly attributable to an enactment, this Section of the Scheme has effect with such modifications as the Secretary of State considers necessary in consequence of the transfer.

EU and other overseas transfers

2.F.16

(1) This regulation applies in the case of a member whose transfer is subject to transfer arrangements concluded with any scheme for the provision of retirement benefits established outside the United Kingdom.

(2) The Scheme applies in relation to the member with such modifications as the Secretary of State considers necessary to comply with—

(a) the terms of those arrangements,

(b) any applicable provision contained in or made under any enactment, and

CHAPTER 2.G — RE-EMPLOYMENT AND REJOINING THIS SECTION OF THE SCHEME

Preliminary

Application of Chapter 2.G

2.G.1

(1) This Chapter applies to persons who—

(a) have been active members of this Section of the Scheme in respect of their service in an employment,

(b) have ceased to be employed in that employment and have become deferred members or pensioner members of this Section of the Scheme because of their rights in respect of that service,

(d) become active members of the Scheme in respect of their service in that employment.

This is subject to paragraphs (4) to (7).

(2) In these regulations a member to whom this Chapter applies is referred to as a “re-employed member”.

(3) In this Chapter, in relation to any re-employed member—

(a) the service referred to in paragraph (1)(a) is referred to as “the earlier service”, and

(b) the service referred to in paragraph (1)(d) is referred to as “the later service”.

(4) This Chapter also applies to members who—

(a) cease to be active members in respect of their service in an employment as the result of exercising the option under regulation 2.B.5, and

(b) later become active members in that or another employment,

as it applies to members who cease to be employed in the employment in which they are active members, and paragraph (3) must be read accordingly.

(5) This Chapter does not apply if the earlier service and the later service are treated as a single continuous period of pensionable service under regulation 2.A.4(5) (pensionable service: breaks in service).

(6) Regulation 2.G.4 applies whether or not the employment mentioned in paragraph (1)(c) is employment that qualifies the member to belong to this Section of the Scheme.

(7) Regulation 2.G.6 applies whether or not the deferred member becomes an active member in the NHS employment in which the deferred member is re-employed.

(8) If a re-employed member ceases to be an active member again, this Chapter applies again in respect of the later service as if it were the earlier service (and so on).

General rule: separate treatment of service etc except where unfavourable to member

General rule: separate treatment of service etc

2.G.2

(1) The general rule is that, in accordance with regulations 2.D.21 and 2.E.25—

(a) the re-employed member’s pensionable service in respect of the earlier service and the later service are treated separately, and

(b) the re-employed member’s reckonable pay in respect of the earlier service and the later service is determined separately.

(2) This regulation is subject to the provisions mentioned in regulations 2.D.21(4) and 2.E.25(5).

Exception to general rule in 2.G.2

2.G.3

(1) The general rule in regulation 2.G.2 does not apply if—

(a) at the time that the member first becomes entitled to a pension under this Section of the Scheme in respect of the earlier service or the later service, or

(b) if it is earlier, at the time of the member’s death,

in the opinion of the Secretary of State the benefits payable to or in respect of the member would be more valuable if that general rule were disregarded.

(2) Accordingly, in a case within paragraph (1)—

(a) the member’s pensionable service in respect of the earlier service and the later service are treated as one single continuous period,

(b) the member’s qualifying service in respect of the earlier service and the later service are each treated as one single continuous period,

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.