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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

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) A practitioner who opts not to contribute to this Section of the scheme in respect of one or more employments as a practitioner under this Part must do so in respect of all his employments as a practitioner but may, nevertheless, participate in this Section of the scheme in respect of concurrent employment as an officer under Part 2 or as a locum practitioner : this is subject to paragraph (16) of regulation 3.J.14.

(8) This regulation does not apply to a person to whom sections 3, 5 or 8 of the 2008 Act and regulations 9 or 15 of the 2010 Regulations applies (that is, a person who is subject to automatic enrolment or automatic re-enrolment in this Section of the Scheme as a qualifying scheme who does not wish to participate in it): this paragraph does not affect the rights of such a person who subsequently becomes a member of this Section of the Scheme in circumstances where those provisions of the 2008 Act and 2010 Regulations do not apply.

Restriction on further participation in this Section of the Scheme

3.B.6

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

(2) Accordingly—

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

(b) any further service of the person is not pensionable service for the purposes of this Section of the Scheme.

Membership: locum practitioners

3.B.7

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

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

(3) On receiving such an application, such evidence and such contributions, the employing authority must submit the application to the Secretary of State.

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

Chapter 3.C — CONTRIBUTIONS

Basic contributions by members

Contributions by members

3.C.1

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

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

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

Members’ contribution rate

3.C.2

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

(2) A member’s contribution rate is the percentage specified in column 2 of the relevant table in paragraph (17) 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 practitioner member whose applicable pensionable earnings fall into a pensionable earnings band specified in column 1 of the relevant table in paragraph (22) must, in respect of a scheme year, 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), practitioner member’s applicable 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 3.J.14(11);

(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 3.J.14, or

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

(7) Where during the scheme year the host Board and the member agree that the estimated amount of that member’s earnings should be different to those last agreed under sub-paragraph (a) of paragraph (6) or last determined under sub-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 (22)

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 practitioner 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 paragraph (b) of that paragraph,

(b) an agreement referred to in sub-paragraph (a) of paragraph (6) 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 (22)

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 practitioner member (other than a dentist performer) must pay contributions determined in accordance with paragraph (12) where, in respect of a scheme year to which one or more of paragraph (6), (7) or (9) applied throughout that year, that member has—

(a) in accordance with regulation 3.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 (22)

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 sub-paragraphs (6), (7) or (9) prior to the certification of earnings in accordance with regulation 3.J.14.

(13) For the purposes of paragraph (12), a member’s final earnings are the member’s certified or final pensionable earnings from all practitioner sources together with any additional pensionable earnings the member is treated as having received during an absence from work in accordance with regulation 3.A.8.

(14) A dentist performer member must pay contributions determined in accordance with paragraph (15) where, in respect of a scheme year to which one or more of paragraph (6), (7) or (9) applied throughout that year, ...—

(a) that member has in accordance with regulation 3.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).

(15) The contributions are payable at the rate specified in column 2 of the relevant table in paragraph (22) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to that part of the relevant earnings which exceeds the amount of pensionable earnings on which contributions have already been paid pursuant to any or all of sub-paragraphs (6), (7) or (9).

(16) For the purposes of paragraph (15), the relevant earnings are the aggregate of—

(a) the certified or final pensionable earnings from all dentist performer sources, uprated according to the formula—

$(PE/NDPS)x365$

where—

PE is the certified or final amount of dentist performer’s pensionable earnings from all dentist performer sources for that year;

NDPS is the number of days of dentist performer service in the scheme year, and

(b) any additional pensionable earnings the member is treated as having received during an absence from work in accordance with regulation 3.A.8.

(17) If a member is in practitioner service and concurrently in NHS employment in respect of which the member is liable to pay contributions in accordance with regulation 2.C.1 of these Regulations, contributions payable in respect of the member’s practitioner service shall be determined under this Part of these Regulations and contributions payable in respect of the member’s NHS employment shall be determined under Part 2 of these Regulations.

(18) Where a practitioner (other than a dentist performer) is also in service as a dentist performer (or vice versa) the practitioner service as a practitioner (other than as a dentist performer) and the practitioner service as a dentist performer will each be treated separately under this regulation.

(19) In determining the contributions payable in accordance with this regulation and regulation 3.C.3, a host Board must take account of pensionable earnings as a practitioner from all practitioner sources, including any such pensionable earnings determined by another host Board.

(20) An employing authority that is not a host Board shall, in respect of any pensionable earnings it pays to a practitioner, take advice from the relevant host Board in determining the contributions payable in accordance with this regulation and regulation 3.C.3.

(21) If, apart from this paragraph, the earnings for a scheme year in respect of a member’s practitioner service would not be a whole number of pounds, those earnings must be rounded down to the nearest whole pound.

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

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

(b) 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: general

3.C.3

(1) Each employing authority must contribute to the scheme, in respect of the pensionable earnings of each person who is an active member of the scheme in an employment with the authority, at the rate determined by the Secretary of State and specified in paragraph (5) (“the employer’s standard rate”).

(2) In specifying such a 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) Any contributions payable under this regulation must be paid to the Secretary of State.

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

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

Guarantees, indemnities and bonds

3.C.4

(1) This regulation applies if—

(a) an employing authority fails to pay contributions or has previously failed to pay contributions in accordance with regulation 3.C.3, and

(b) the authority is—

(i) a GMS practice;

(ii) a PMS practice;

(iii) an APMS contractor; or

(iv) an OOH 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) these Regulations, or

(b) the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000⁸³.

(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.

Payment of Contributions

3.C.5

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

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

(b) where the notice required by regulation 3.A.3(3) has been properly received, until the member ceases practitioner service.

(2) Except if paragraph (3) applies, type 1 medical practitioners shall pay C1 contributions to the host ... Board.

(3) Type 1 dental practitioners shall pay C1 contributions in respect of pensionable earnings that relate to a particular GDS contract or PDS agreement to the employing authority that is a party to that GDS contract or PDS agreement, and that employing authority is liable to pay the C3 contributions that are payable in respect of those pensionable earnings.

(4) If a type 1 medical practitioner is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority shall—

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

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

(5) Subject to paragraph (6), if a type 1 medical practitioner 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 must pay C3 contributions to the host ... Board.

(6) If a type 1 medical practitioner is a shareholder or partner in more than one employing authority referred to in paragraph (5), each employing authority must pay C3 contributions on any pensionable earnings it pays to the practitioner or, as the case may be, on the practitioner’s share of the partnership profits, to the host ... Board.

(7) If paragraph (4) applies (but paragraph (5) does not) and the employing authority referred to in that paragraph—

(a) is not the host ... Board, that authority must pay C3 contributions to the host ... Board;

(b) is the host ... Board, that ... Board must pay C3 contributions to the Secretary of State in respect of any pensionable earnings it pays to him or her.

(8) If a type 2 practitioner (other than a locum practitioner) is engaged under a contract of service or for services by an employing authority, that authority shall—

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

(b) in the case of a type 2 medical practitioner, if it is not also the host ... Board, pay those contributions to that ... Board.

(9) In the case of a type 2 medical practitioner, if paragraph (8) applies and the employing authority referred to in that paragraph—

(a) is not the host ... Board, that authority shall pay C3 contributions to the host ... Board;

(b) is the host ... Board, that ... Board shall pay C1 and C3 contributions to the Secretary of State in respect of any pensionable earnings it pays to him.

(10) A locum practitioner must pay C1 contributions to the host ... Board.

(11) If a locum practitioner is liable to pay contributions under paragraph (10) in respect of pensionable locum work for an employing authority, that employing authority must pay C3 contributions to the host Board.

(12) In the case of a type 2 dental practitioner who—

(a) is a foundation trainee—

(i) the GDS or PDS contractor who employs him shall deduct C1 contributions from any pensionable earnings the contractor pays to him or her and shall pay those contributions to the employing authority that is a party to the contractor’s GDS contract or PDS agreement; and

(ii) that employing authority is liable to pay the C3 contributions that are payable in respect of those pensionable earnings; or

(b) is not a foundation trainee, the employing authority with which he has a contract for services from which his pensionable earnings are derived is liable to pay the C3 contributions that are payable in respect of those pensionable earnings.

(13) If C3 contributions are payable for a locum practitioner under paragraph (11) in respect of pensionable locum work carried out for an employing authority, those contributions must be paid to—

(a) the host Board if the employing authority is not that host Board;

(b) the Secretary of State if the employing authority is the host Board.

(14) C1 contributions that are required to be paid to an employing authority by or in respect of a type 1 or type 2 dental practitioner in accordance with this regulation shall be paid to that employing authority not later than—

(a) the 7th day of the month following the month to which the earnings relate; or

(b) if the contributions are in respect of earnings derived from a PDS agreement and the monthly payment date in respect of that agreement is not the first working day of the month following the month to which the earnings relate, the 7th day after the date on which the earnings to which those contributions relate were paid.

(15) It shall be a function of an employing authority—

(a) to which C1 contributions are paid in respect of a type 1 or type 2 dental practitioner in accordance with this regulation;

(b) which is liable to pay C3 contributions in respect of any type 1 or type 2 dental practitioner;

(c) to forward or pay those contributions to the Secretary of State not later than the 12th day after the date on which, by virtue of paragraph (14), it is due to receive the C1 contributions or, in the case of C3 contributions, the related C1 contributions.

(16) Contributions which are required to be paid to the host ... Board in accordance with this regulation must be paid to that ... Board not later than the 7th day of the month following the month in which the earnings were paid.

(17) If, as regards a type 1 or type 2 medical practitioner, an employing authority—

(a) is not the host ... Board, it shall be a function of that employing authority to provide the host ... Board with a record of any—

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

(ii) contributions deducted by it in accordance with paragraph (4) or (8),

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

(b) is the host ... Board that has deducted contributions in accordance with paragraph (4) or (8) and is liable to pay C3 contributions in respect of any pensionable earnings it pays to a practitioner, it shall be a function of that ... Board to maintain a record of—

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

(ii) any contributions paid to it by type 1 medical practitioner;

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

(18) It shall be a function of the host ... Board to pay the contributions—

(a) paid to it by a type 1 medical practitioner, non-GP provider or locum practitioner;

(b) paid to it by another employing authority;

in accordance with the provisions of this regulation, to the Secretary of State not later than the 19th day of the month following the month in which the earnings were paid.

(18A) Arrears of contributions that are due in accordance with paragraphs (11) to (16) of regulation 3.C.2 must be paid to the relevant host Board at the same time as the member is due to provide that Board with a certificate of pensionable earnings under regulation 3.J.14.

(19) Paragraph (19A) applies where, despite the provisions of this regulation—

(a) a type 1 or type 2 practitioner, or a locum practitioner has failed to pay contributions; or

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

(19A) The Secretary of State may recover the amount of any unpaid contributions referred to in paragraph (19)—

(a) where an employing authority has ceased to exist and paragraph (a) of that sub-paragraph applies, by adding the amount of those unpaid contributions to the amount of contributions the practitioner in question is due to pay to the host Board: that practitioner is to record the amount of those unpaid contributions in a certificate referred to in regulation 3.J.14; or

(b) by deduction from any benefit payable to, or in respect of, the member where the Secretary of State has notified the member of an intention to do so.

(19B) Paragraph (19A) is without prejudice to any other method of recovery the Secretary of State may have.

(20) For the purposes of this regulation—

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

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

Additional contributions to purchase additional pensions

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

3.C.6

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 3.E (death benefits)), or

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

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

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

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

(a) less than the minimum amount, or

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

(5) In paragraph (4) “the minimum amount” means the amount that would, in accordance with tables prepared for the 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 3.C.8 (member’s option to pay additional lump sum contributions to purchase additional pension), or

(b) contributions made under regulation 3.C.9 (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 2.C.8 to 2.C.17).

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

(a) is specified in the option,

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

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

(9) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.4.

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

3.C.7

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

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

(b) is on maternity leave,

(d) is on paternity leave,

(e) is on parental leave , shared parental leave or parental bereavement leave, or

(f) is on a leave of absence of the kind mentioned in regulation3.A.4(3).

(2) If paragraph (1) applies—

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

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

(3) This paragraph applies if—

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

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

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

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

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

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

3.C.8

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 3.E (death benefits)), or

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

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

(a) not less than the minimum amount, and

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

(3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the 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 3.C.6 (member’s option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 3.C.9 (payment of additional lump sum contributions by employing authority),

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.4.

Payment of additional lump sum contributions by employing authority

3.C.9

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 3.E (death benefits)), or

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

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

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

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

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

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

(a) contributions made under regulation 3.C.6 (member’s option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 3.C.8 (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 3.C.10(2).

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.4.

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

3.C.10

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

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

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

(4) For the purposes of this Part—

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

(b) an employing authority is treated as exercising an option under regulation 3.C.9 on the date on which the 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 3.C.6, 3.C.8 or 3.C.9 and must do so if not satisfied that—

(a) the member is in good health, and

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

(6) If the 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 3.C.6 or 3.C.8, to the member, and

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

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

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

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

(i) before the end of the period of 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 3.C.9, 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 3.C.6

3.C.11

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

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

(3) If it appears to the Secretary of State that the requirement in regulation 3.C.6(7) (overall maximum) will not be met if the member continues to makes periodical contributions under an option exercised under regulation 3.C.6, 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 3.C.6, 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

3.C.12

(1) This regulation applies if—

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

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

(2) Subject to paragraph (9), the member’s pension is increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 3.C.15 (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 3.D or Chapter 3.K as a result of the member becoming entitled to payment of the pension before or after reaching the age of 65 (see regulations 3.D.3 to 3.D.5 and 3.K.17).

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

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

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

(c) in the case of a pension under regulation 3.E.8 the amount of which is determined under regulation 3.E.10 (active members) or 2.E.12 (deferred members), the appropriate fraction (within the meaning of regulation 3.E.10 or, as the case may be, 3.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 3.E.8 the amount of which is determined under regulation 3.E.11 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75% of the amount of the increase in the member’s pension as a result of the option.

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

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

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

(9) Paragraph (10) applies only to an option under regulations 3.C.6(1)(a), 3.C.8(1)(a) or 3.C.9(1)(a), where a pension is to be paid for either 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 3.K.4.

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

3.C.13

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

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

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

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

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

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

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

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

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

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

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

(4) Subject to regulation 3.C.11(5) and (6), if a member in respect of whom an option under regulation 3.C.6 has been exercised becomes entitled to a pension under regulation 3.D.7 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 3.C.12(2) and (4) applies as if all contributions under the option had been made.

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

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

(b) becomes entitled to a pension under regulation 3.D.5 (partial retirement (members aged at least 55)) before reaching the age of 65,

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

(6) The amount of the reduction is such amount as the 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 3.C.14.

Effect of part payment of periodical contributions

3.C.14

(1) This regulation applies if—

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

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

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

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

(4) For the purposes of paragraphs (2) and (3), the appropriate proportion is calculated in accordance with such method as the Scheme actuary may determine and specify in guidance given to the 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 3.C.6 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 3.K.4.

Revaluation of increases bought under options: members’ pensions

3.C.15

(1) Where an option under regulation 3.C.6, 3.C.8 or 3.C.9 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 3.C.12 to 3.C.14, 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 3.C.12 to 3.C.14, 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 3.C.12 to 3.C.14, 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

3.C.16

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

(a) paragraph (2) applies, or

(b) Chapter 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 2 within 12 months of ceasing practitioner service,

(b) the person does not fall within sub-paragraph (a), (b), (c) or (d) of regulation 3.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 of 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 3.D — MEMBERS’ RETIREMENT BENEFITS

Entitlement to pensions

Normal retirement pensions

3.D.1

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

(a) has reached the age of 65, and

(b) either—

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

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

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

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

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

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

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

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

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

(4) The-

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

(b) the member’s uprated earnings are to be calculated by uprating the member’s pensionable earnings by the amount of the annual increase due under the provisions of the Pensions (Increase) Act 1971⁸⁴ and section 59 of the Social Security Pensions Act 1975⁸⁵, plus 1.5% annually.

(5) A claim referred to in paragraph (1)(b)(i) and made in accordance with regulation 3.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 1967⁸⁶, 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 3.K.11.

Pension credit members

3.D.2

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

(2) The pension becomes payable—

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

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

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

3.D.3

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

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

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

(b) to any contributions paid under regulations 3.C.6, 3.C.8 or 3.C.9 before that age,

is increased.

(3) The amount of the increase must be calculated in accordance with guidance and tables provided by the Scheme actuary to the 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 3.K.17.

Early payment of pensions with actuarial reduction

3.D.4

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

(a) has reached the age of 55,

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

(d) has claimed payment of the pension.

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

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

(b) 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 sufficient 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 3.K.11.

Partial retirement (members aged at least 55)

3.D.5

(1) An active member or a non-contributing member may exercise an option under this regulation if—

(a) the member has reached the age of 55 and continues to be employed in the employment in which the member is an active member of the 2015 Scheme, or where the member has more than one such employment, in at least one of those employments;

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

(i) reached the age of 65,

(ii) ceased to be so employed, and

(iii) claimed payment of the pension,

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

(2) 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) appropriate supporting evidence, and

(b) a statement in writing approved by the host ... Board that the conditions in paragraph (1)(c) and (d) are met.

(3) The option must specify—

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

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

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

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

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

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

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

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

(5) The specified percentage must be such that—

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

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

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

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

(6) 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

(7) For the purposes of—

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

(b) in this regulation—

(i) “pension” means the pension that a member would have been entitled to on the option day if the member had ceased to be employed in all of his employments and, in the case of Practitioner services, the pensionable earnings taken into account when working out the pension will be drawn from the latest certificate referred to in regulation 3.J.14, or the latest scheme year’s final pensionable earnings referred to in regulation 3.C.2, of these Regulations and agreed with each relevant host ... Board,

(ii) “the option day” means the day before the reduction referred to in paragraph (1)(d) by virtue of which the option is exercisable takes effect, and

(iii) regulation 3.D.6, a member’s “employment” means practitioner service together with any concurrent NHS employment and “terms of employment” shall be construed accordingly.

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

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

(b) if the member continues in pensionable service 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 or a non-contributing 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.

(9) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.11.

Increase in pensionable earnings following exercise of option under regulation 3.D.5

3.D.6

(1) This regulation applies if, in a case where a member has exercised the option under regulation 3.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 3.D.5(1)(a) change again, and

(b) as a result the level of the member’s engagement in that employment or those employments is increased to more than 90 per cent of the member’s pre-change level, or

(c) following an increase referred to in (b), the member’s engagement in that employment or those employments is reduced to 90 per cent or less of the member’s engagement 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 3.D.5(4) shall be abated to zero from the first pension day immediately following the day on which the level of the member’s engagement increased,

(b) paragraph (1)(c), subject to any adjustments in accordance with paragraph (3), 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.

(3) Where paragraph (2)(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 paragraph (2)(a).

(4) For the purposes of this regulation, if during the period of 12 months beginning with the day after the option day the member enters further employment or employments in which the member is an active member of the 2015 Scheme—

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

(b) the member’s level of engagement in the further employment or employments is treated as an increase in the level of the member’s engagement in the option employment or employments.

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