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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

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

General rule: separate treatment of service etc

3.G.2

(1) The general rule is that, in accordance with regulations 3.D.17 and 3.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 pensionable earnings in respect of the earlier service and the later service are determined separately.

(2) This regulation is subject to the provisions mentioned in regulations 3.D.17(4) and 3.E.25(5).

Exception to general rule in 3.G.2

3.G.3

(1) The general rule in regulation 3.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,

(d) the member’s pensionable earnings in respect of the later period may be determined by reference to the earlier period as well as the later period (as a result of regulation 3.A.4 (5)).

Special rules about re-employment of ill-health pensioners

Effect of re-employment on tier 2 ill-health pensions

3.G.4

(1) This regulation applies if a member who is entitled to a tier 2 pension under regulation 3.D.7 in respect earlier service—

(a) did not opt to exchange that pension for a lump sum in accordance with regulation 3.D.11, and

(b) has re-entered employment (the “further employment”).

(2) Subject to paragraphs (3) and (4), the member ceases to be entitled to the tier 2 ill-health pension under regulation 3.D.7, and becomes entitled to a tier 1 ill-health pension under that regulation.

(3) In a case where the further employment is—

(a) not NHS employment, and

(b) an excluded employment,

paragraph (2) does not apply.

(4) In a case where the further employment is—

(a) NHS employment, and

(b) an excluded employment,

paragraph (2) does not apply during the initial period.

(5) As regards a further employment in NHS employment—

(a) paragraph (2) applies from the first tier 1 ill-health pension payment date which falls after the first anniversary of the member’s re-entry into NHS employment, whether or not that day is part of a continuous period of further NHS employment beginning with entry into that employment, and

(b) the member may not rejoin this Section of the Scheme in respect of that employment or any other NHS employment until after the first anniversary of the member’s re-entry into NHS employment, whether or not that or any other NHS employment is an excluded employment.

(6) For the purposes of this regulation—

(a) an employment is an excluded employment at any time in a scheme year, in relation to a member, if the member’s earnings from the employment and any other employments are such that the lower earnings limit for that year is not exceeded,

(b) for the purposes of paragraph (2) an employment that has been an excluded employment in a scheme year is not treated as ceasing to be such an employment until the first day following the end of the pension pay period for the tier 2 ill-health pension in which the limit described in sub-paragraph (a) is first exceeded, and

(c) “the initial period” means the period of 12 months beginning with the day on which the member first enters an employment which results in this regulation applying.

(7) A member who, before attaining the age of 65, has ceased to be entitled to a tier 2 ill-health pension under paragraph (2), and who—

(a) is in further NHS employment and ceases to be employed at all during the initial period, or

(b) is in further employment that is not NHS employment and ceases to be employed in that further employment within a period of one year beginning with the day on which that further employment ceased to be an excluded employment,

may apply to the Secretary of State under this paragraph to become entitled to a tier 2 ill-health pension.

(8) An application under paragraph (7)—

(a) where paragraph (7)(a) applies, must—

(i) state that the member has ceased to be employed at all,

(ii) be made within the initial period, and

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 3.D.7(3)(a) (early retirement on ill-health (active members));

(b) where paragraph (7)(b) applies, must—

(i) state that the member has ceased to be employed at all,

(ii) be made within a period of one year beginning with the day on which that employment ceased to be an excluded employment, and

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 3.D.7(3)(a).

(9) If on an application under paragraph (7) the Secretary of State is satisfied that the member meets the condition in 3.D.7(3)(a), from the day following that on which the member’s last employment ceased—

(a) the member ceases to be entitled to the tier 1 ill-health pension under regulation 3.D.7, and

(b) becomes entitled to a tier 2 ill-health pension under that regulation in respect of the earlier service.

(10) A member who falls within paragraph (1) must—

(a) notify the Secretary of State if the member is in NHS employment at the end of the initial period,

(b) notify the Secretary of State if the member’s aggregate earnings for the purpose of national insurance from employments held in a tax year are such that the lower earnings limit is exceeded, and

(c) provide the Secretary of State or any other person specified by the Secretary of State with such further information as the Secretary of State specifies concerning any further employment.

(11) This regulation is subject to regulation 3.G.5 (re-employed tier 1 ill-health pensioners).

Re-employed tier 1 ill-health pensioners

3.G.5

(1) This regulation applies to re-employed members who are entitled to a tier 1 ill-health pension under regulation 3.D.7 in respect of the earlier service.

(2) For the purposes of determining whether a member can count 45 years of pensionable service for any purpose, the earlier service and the later service are aggregated.

(3) If the re-employed member became entitled to a tier 1 ill-health pension for the earlier service, and on the termination of the later service the member becomes entitled to—

(a) a tier 1 ill-health pension, or

(b) a tier 2 ill-health pension,

under regulation 3.D.7 in respect of the later service, the re-employed member is entitled to the benefits set out in paragraph (4).

(4) The benefits mentioned in paragraph (3) are—

(a) the member’s original tier 1 ill-health pension in respect of his earlier service, and

(b) a tier 1 or, as the case may be, tier 2 ill-health pension in respect of the later service.

This is subject to paragraph (5).

(5) If the re-employed member—

(a) ceases to be entitled to a tier 1 ill-health pension in respect of the earlier service,

(b) becomes entitled to a tier 2 ill-health pension in respect of that earlier service in accordance with regulation 3.D.8(3), and

(c) on the termination of the later service, the member becomes entitled to a tier 1 or, as the case may be, tier 2 ill-health pension in respect of that later service,

the re-employed member is entitled to the benefits set out in paragraph (6).

(6) The benefits mentioned in paragraph (5) are—

(a) a tier 2 ill-health pension paid in accordance with regulation 3.D.7 in respect of the member’s earlier service, and

(b) a tier 1 ill-health pension in respect of the member’s later service.

CHAPTER 3.H — ABATEMENT

Application of Chapter 3.H

3.H.1

(1) This Chapter applies to practitioners.

(2) This Chapter applies if—

(a) a person who is a pensioner member of this Section of the Scheme is employed in NHS employment, or

(b) the person’s pension is a pension under—

(i) regulation 3.D.7(early retirement on ill-health: active members),

(ii) regulation 3.D.9(early retirement on ill-health: deferred members), and

(3) 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 1967[^f00127],

(b) employment to which regulations made under section 10 of the Superannuation Act 1972[^f00128] and having effect in Scotland apply,

(c) employment to which regulations made under Article 12 of the Superannuation (Northern Ireland) Order 1972[^f00129] apply,

(d) employment commencing on or before 31st March 2012 to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald)[^f00130] applies, and

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

(4) In this Chapter, subject to paragraph (5)–

(a) a person to whom this Chapter applies is referred to as an “employed pensioner”,

(b) the pension to which the employed pensioner is entitled is referred to as the “old service pension”,

(d) the employment in which the employed pensioner is employed is referred to as the “new employment”.

(5) This Chapter applies whether or not the person is an active member of this Section of the Scheme in the new employment.

This is subject to paragraph (5A).

(5A) This Chapter does not apply to a person who is a pensioner member of this Section of the Scheme if—

(a) that person is employed by an Independent Provider—

(i) on the day that Provider’s approval as an employing authority takes effect in accordance with Chapter 3.M (“the effective date”); and

(ii) on the day immediately before the effective date; and

(b) any of paragraphs (5B), (5B) or (5C) apply to that person.

(5B) This paragraph applies to a person who is not eligible to be an active member of this Section of the Scheme on the effective date and remains ineligible to be such a member.

(5C) This paragraph applies to a person who exercises an option not to rejoin this Section of the Scheme which takes effect from the effective date and has not been cancelled.

(5D) This paragraph applies to a person who—

(a) is not eligible to rejoin this Section of the Scheme on the effective date,

(b) becomes eligible to do so on the day immediately after the first anniversary of the member entering NHS employment in accordance with paragraph (5)(b) of regulation 3.G.4 (“the day of eligibility”),

(c) exercises an option not to rejoin this Section of the Scheme that takes effect from the day of eligibility and which has not been cancelled.

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

Information

3.H.2

(1) A person who becomes an employed pensioner must—

(a) inform the person’s employer in the new employment, and any other person that the Secretary of State may specify, that the old service pension is payable, and

(b) where requested, provide any information about their relevant income in the new employment to the Secretary of State or to any other person that the Secretary of State may specify.

(2) A person who ceases to be an employed pensioner in one new employment and becomes an employed pensioner in another new employment must—

(a) inform the person’s employer in the other new employment, and any other person that the Secretary of State may specify, that the old service pension is payable, and

(b) where requested, provide any information about their relevant income in the new employment to the Secretary of State or to any other person that the Secretary of State may specify.

(3) For the meaning of “relevant income” see regulation 3.H.4.

Reduction of pension

3.H.3

(1) If the condition in paragraph (2) is met, the amount of the old service pension for any financial year is reduced.

(2) The condition is that the employed pensioner’s relevant income for the financial year exceeds the employed pensioner’s previous pay.

(3) The amount of the reduction under paragraph (1) is equal to that excess but cannot exceed the enhancement amount.

(4) For the meaning of “relevant income” and “enhancement amount” see regulation 3.H.4.

(5) For the meaning of “previous earnings” see regulation 3.H.5.

(6) For the purpose of calculating the reduction to be made under paragraph (1) in respect of any part of a financial year, the amount of the member’s previous pay will be reduced proportionately.

(8) If the member has a guaranteed minimum under section 14 of the 1993 Act in relation to the old service pension, nothing in this regulation requires the reduction of the old service pension below the amount of the member’s guaranteed minimum in relation to it.

Meaning of “relevant income”

3.H.4

(1) The employed pensioner’s relevant income for a financial year is the aggregate of—

(a) the amount of pensionable earnings received by the employed pensioner during that year from the new employment (assuming, in any case where the employed pensioner is not an active member of this Section of the Scheme in the new employment, that the employed pensioner is such a member), and

(b) the enhancement amount in relation to the old service pension.

(2) The enhancement amount, in relation to an old service pension, is the difference between—

(a) the amount of that pension for that year, and

(b) the amount that that pension would have been had it been payable under regulation 3.D.4 (early payment of pensions with actuarial reduction).

(3) If the old service pension is payable under 3.D.7 or 3.D.9 (ill-health pensions) to an employed pensioner who had not reached the age of 55 at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)—

(a) the fact that entitlement to a pension under regulation 3.D.4 depends on reaching that age is ignored, but

(b) the employed person’s actual age at the relevant time is taken into account in determining the reduction to be made under regulation 3.D.4(2).

(4) If the old service pension is a tier 2 ill-health pension, for the purposes of paragraph (2)(b), only the employed pensioner’s actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 3.D.4.

(5) If the employed pensioner exercised the option under regulation 3.D.10 (general option to exchange part of pension for lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

(5A) The resulting reduction in the pension is taken into account for the purposes of this regulation if the employed pensioner—

(a) exercised the option under regulation 3.D.14 (election to allocate pension) in relation to the old service pension, or

(b) is a 2008 Section Optant who was entitled to a lump sum under regulation 3.K.11 in relation to the old service pension.

(6) References in this regulation to the amount of a pension for any financial year are to its amount for that year after any increases payable under the Pensions (Increase) Act 1971[^f00131] in respect of that pension, including the increases that would have been payable in respect of any amount not paid because of a reduction ignored under paragraph (5).

Meaning of “previous earnings”: general

3.H.5

(1) For the purposes of this Chapter an employed pensioner’s previous earnings is the average of the annual amounts of the member’s earnings in respect of practitioner service (or service which is treated as practitioner service) uprated to the date of entitlement to the pension in accordance with regulation 3.D.1(4)(b) and adjusted in each financial year for inflation.

(2) The reference in paragraph (1) to adjusting that amount in each financial year for inflation is to increasing it by the same amount as that by which an annual pension equal to that amount would have been increased under the Pensions (Increase) Act 1971 at 6th April in that financial year if—

(a) that pension was eligible to be so increased, and

(b) the beginning date for that pension were the same as the beginning date for the old service pension.

(3) 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).

Employed pensioners with more than one pension

3.H.6

(1) This regulation provides for the application of this Chapter where a person is entitled to more than one old service pension falling within regulation 3.H.1(2)(c) in any financial year.

(2) In regulation 3.H.3—

(a) for paragraphs (1) to (3) substitute—

(1) If the condition in paragraph (2) is met, the amount of the old service pensions for any financial year is reduced. (2) The condition is that the employed pensioner’s relevant income for the financial year exceeds the employed pensioner’s previous earnings for all the old employments. (3) The amount of the reduction under paragraph (1) in the case of each of the pensions is equal to the same proportion of that excess as the amount of the pension for the financial year before the reduction bears to the sum of the pensions for that year before the reduction

(3) In regulation 3.H.4(1)(b) for“the old service pension” substitute “all the old service pensions”.

(4) Regulation 3.H.7 applies as if references to the old service pension were references to all those pensions.

Provisional reductions and later adjustments

3.H.7

(1) If it appears to the Secretary of State that the condition in regulation 3.H.3(2) will be met in any financial year in respect of the old service pension for that year, the Secretary of State may reduce the amount of that pension paid at any time in the financial year.

(2) Where the old service pension for a financial year is being reduced under this Chapter, the Secretary of State must review the amount of the reduction—

(a) at the end of the financial year, and

(b) at any time during the financial year if it appears to the Secretary of State that—

(i) the amount of the reduction made for the year is or may become incorrect, or

(ii) no reduction should be made.

(3) If at any time during the financial year it so appears, the Secretary of State must make such adjustments, whether by altering the amount of the reduction or by repaying to the employed pensioner any amount that should not have been deducted from the pension, as appear to the Secretary of State to be required.

(4) If at the end of the financial year it is apparent that—

(a) the reduction in the old service pension for the year was excessive, or

(b) no such reduction should have been made,

the Secretary of State must repay the amount due to the employed pensioner.

(5) If at the end of the financial year it is apparent that the old service pension paid for the year exceeded the amount due because the reduction in the old service pension required under regulation 3.H.3 was not made, the employed pensioner must repay the excess to Secretary of State.

(6) Paragraph (5) does not affect the Secretary of State’s right to recover a payment or overpayment in any case where the Secretary of State considers it appropriate to do so.

CHAPTER 3.J — MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

Scheme administrator

Appointment of Scheme administrator

3.J.1

For the purposes of this Part and of Part 4 of the 2004 Act, the Scheme administrator is the NHS Business Services Authority (Awdurdod Gwasanaethau Busnes y GIG)[^f00132].

Claims

Claims for benefits

3.J.2

(1) A person claiming to be entitled to benefits under this Part (“the claimant”) shall make a claim in writing to the Secretary of State.

(2) Pursuant to such a claim, the claimant and, where appropriate, the member’s employing authority (including any previous employing authority of the member) shall provide such—

(a) evidence of entitlement,

(b) information required in order to deal with the claim, and

(c) authority or permission as may be necessary for the release by third parties of information in their possession relating to the claimant or member,

as the Secretary of State may from time to time require for the purposes of this Part.

(3) A claim referred to in paragraph (1) may be made by a person or persons other than the claimant where the Secretary of State so provides.

(4) Any claim for benefit required in writing under this Part, and any evidence, information, authority or permission given in connection with that claim, may be made or given by means of an electronic communication where such method of communication is approved by the Secretary of State from time to time.

(5) In this regulation, “electronic communication” has the same meaning as in section 15(1) of the Electronic Communications Act 2000.

Power to extend time limits

3.J.3

The Secretary of State may extend any time limit mentioned in this Part as it applies in any particular case.

Beneficiaries who are incapable of looking after their affairs

3.J.4

(1) In the case of a beneficiary who, in the opinion of the Secretary of State, is by reason of illness, mental disorder, minority or otherwise unable to look after the beneficiary’s affairs, the Secretary of State may—

(a) use any amount due to the beneficiary under the Scheme for the beneficiary’s benefit, or

(b) pay it to some other person to do so.

(2) Payment of an amount to a person other than the beneficiary under paragraph (1) discharges the Secretary of State from any obligation under the Scheme in respect of the amount.

Commutation of small pensions

3.J.5

(1) The Secretary of State may pay any person entitled to a pension under this Section of the Scheme a lump sum representing the capital value of the pension and of any benefits that might have become payable under this Section of the Scheme on the person’s death apart from the payment if the conditions specified in paragraph (2) are met.

(2) The conditions are that the payment complies with the following requirements (so far as apply)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the preservation requirements,

(c) regulation 2 of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997[^f00133],

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) the lump sum rule (see, in particular, paragraph 7 of Schedule 29 to the 2004 Act: trivial commutation lump sums for the purposes of Part 4 of that Act), ...

(f) the lump sum death benefit rule (see, in particular, paragraph 20 of that Schedule: trivial commutation lump sum death benefit for the purposes of that Part) ; and

(g) regulation 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 (payments by larger pension schemes).

(3) The lump sum must be calculated by the Secretary of State in accordance with advice from the Scheme actuary.

(4) The payment of a lump sum under this regulation discharges all liabilities of the Secretary of State in respect of the pension in question and of any other such benefits as mentioned in paragraph (1).

Reduction in and forfeiture of benefits

Reduction in benefits in cases where loss caused by member’s crime, negligence or fraud

3.J.6

(1) If, as a result of a member’s criminal, negligent or fraudulent act or omission, a loss to public funds occurs that arises out of or is connected with the member’s employment relationship with the member’s employer, the Secretary of State—

(a) may reduce any pension or other benefit payable to, or in respect of, the member under these Regulations by an amount less than or equal to the loss, or

(b) in a case where the loss equals or exceeds the value of the pension or other benefit, reduce them to nil or by any amount less than that value.

(2) Paragraph (1) does not apply so far as the pension or other benefit—

(a) is a guaranteed minimum pension, or

(b) arise out of a transfer payment.

(3) If the Secretary of State proposes to exercise the power under paragraph (1), the Secretary of State must give the member a certificate specifying the amount of the loss to public funds and of the reduction in benefits.

(4) If the amount of the loss is disputed, no reduction may be made under paragraph (1) until the member’s obligation to make good the loss has become enforceable—

(a) under the order of a competent court, or

(b) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement by the parties) by the Sheriff.

(5) If the loss is suffered by an employing authority, the amount of any reduction under paragraph (1) must be paid to that authority.

Forfeiture of rights to benefits

3.J.7

(1) The Secretary of State may direct that all or part of any rights to benefits or other amounts payable to or in respect of a member under these Regulations be forfeited if—

(a) the member is convicted of any of the offences specified in paragraph (2), and

(b) the offence was committed before the benefit or other amount becomes payable.

(2) The offences are—

(a) an offence in connection with employment that qualifies the member to belong to this Section of the Scheme, in respect of which the Secretary of State has issued a forfeiture certificate,

(b) one or more offences under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the member has been sentenced on the same occasion to—

(i) a term of imprisonment of at least 10 years, or

(ii) two or more consecutive terms amounting in the aggregate to at least 10 years.

(3) In paragraph (2)(a) “forfeiture certificate” means a certificate that the Secretary of State is satisfied that the offence—

(a) has been gravely injurious to the State, or

(b) is liable to lead to serious loss of confidence in the public service.

(4) The Secretary of State may direct that all or part of any rights to benefits or other amounts payable in respect of a member under these Regulations be forfeited where the benefits or amounts are payable to a person to whom paragraph (5) applies who has been convicted of the murder or manslaughter of that member or of any other offence of which unlawful killing of that member is an element.

(5) This paragraph applies to a person who is—

(a) the member’s widow, widower, surviving scheme partner or surviving civil partner,

(b) a dependant of the member,

(c) a person not falling within sub-paragraph (a) or (b) who is specified in a notice given under regulation 3.E.21(3) or (10) (payment of lump sum or pension on death), or

(d) a person to whom such benefits or amounts are payable under the member’s will or on the member’s intestacy.

(6) A guaranteed minimum pension may be forfeited only if paragraph (1) applies in the case of an offence within paragraph (2)(b) or to which paragraph (4) applies.

(7) This regulation is without prejudice to section 2 of the Forfeiture Act 1870[^f00135] (under which forfeiture is required in cases of treason, subject to whole or partial restoration under section 70(2) of the Criminal Justice Act 1948)[^f00136].

(8) If, on or after 1st April 2019, a member is—

(a) charged with an offence; or

(b) convicted of an offence,

which, in the opinion of the Secretary of State, may lead to all or part of the member’s benefits being forfeited under paragraph (1), the Secretary of State may make a suspension decision in accordance with paragraphs (10) to (15) of this regulation.

(9) If, on or after 1st April 2019, any of the persons referred to in sub-paragraphs (a) to (d) of paragraph (5) are charged with, or convicted of an offence which, in the opinion of the Secretary of State, may lead to all or part of any rights to benefits or other amounts payable in respect of a member being forfeited under paragraph (4), the Secretary of State may make a suspension decision in accordance with paragraphs (10), (11), and (16) to (19) of this regulation.

(10) A suspension decision is a decision of the Secretary of State suspending the right to, and the payment of, all or part of any benefit or other amounts payable—

(a) which the member is in receipt of, or becomes entitled to,

(b) in respect of a member,

under these Regulations.

(11) If the Secretary of State makes a suspension decision under paragraph (8) or (9), that decision will continue to apply—

(a) until the date of any direction made by the Secretary of State under this regulation; or

(b) where the Secretary of State determines not to direct forfeiture under this regulation, the date of that decision.

(12) Paragraph (13) applies if—

(a) the Secretary of State makes a suspension decision under paragraph (8) in respect of a member otherwise entitled to the payment of a pension under Chapter 3.D (members’ retirement benefits) of these Regulations; and

(b) the Secretary of State subsequently determines not to issue a direction under paragraph (1).

(13) The Secretary of State will pay to the member described in paragraph (12) an amount equal to the total amount of the benefit payments suspended together with the interest due under regulation 3.J.9 (interest on late payment of benefits and refunds of contributions).

(14) Paragraph (15) applies if—

(a) the Secretary of State makes a suspension decision under paragraph (8) in respect of a member otherwise entitled to the payment of a pension under Chapter 3.D (members’ retirement benefits) of these Regulations; and

(b) the Secretary of State subsequently directs forfeiture of an amount less than the total amount suspended.

(15) The Secretary of State will pay to the member described in paragraph (14) an amount equal to the difference between the total amount of the benefit payments suspended and the amount forfeited together with the interest due under regulation 3.J.9 (interest on late payment of benefits and refunds of contributions).

(16) Paragraph (17) applies if—

(a) the Secretary of State makes a suspension decision under paragraph (9); and

(b) the Secretary of State subsequently determines not to issue a direction under paragraph (4) in respect of the benefits to which that decision relates.

(17) The Secretary of State will pay to the person to whom paragraph (9) applies an amount equal to the total amount of the benefit payments suspended together with the interest due under regulation 3.J.9 (interest on late payment of benefits and refunds of contributions).

(18) Paragraph (19) applies if—

(a) the Secretary of State makes a suspension decision under paragraph (9); and

(b) the Secretary of State subsequently directs forfeiture of an amount less than the total amount suspended.

(19) The Secretary of State will pay to the person described in paragraph (9) an amount equal to the difference between the total amount of the benefit payments suspended and the amount forfeited together with the interest due under regulation 3.J.9 (interest on late payment of benefits and refunds of contributions).

Provisions about tax

Deduction of tax

3.J.8

(1) The Secretary of State may deduct from any payment under this Section of the Scheme any tax which is required to be paid in respect of it.

(2) Without prejudice to the generality of paragraph (1), if a person becoming entitled to a benefit under this Part—

(a) is a benefit crystallisation event , occurring on or before 6th April 2024, under section 216 of the 2004 Act, and

(b) a lifetime allowance charge under section 214 of that Act arises when that event occurs,

the tax charged must be paid by the Scheme administrator.

(2A) If a person becomes entitled to a lump sum under this Part which is a relevant benefit crystallisation event, occurring on or after 6th April 2024, then for the purposes of section 637Q or section 637S of the Income Tax (Earnings and Pensions) Act 2003, the Scheme administrator shall determine—

(a) whether any tax is payable in respect of the lump sum in accordance with section 204 of the 2004 Act, and if so,

(b) the amount of tax payable, and

(3) Paragraph (4) applies if—

(a) a member has given the Scheme administrator a statement in accordance with regulation 3.E.22 (tax treatment under the 2004 Act of lump sums payable on pensioners’ death) that a lump sum payable under that regulation is to be treated as a pension protection lump sum death benefit in accordance with paragraph 14 of Schedule 29 to the 2004 Act, and

(b) has not withdrawn that statement.

(4) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Scheme administrator may deduct the tax payable under section 206 of that Act (special lump sum death benefits charge) from the lump sum.

(5) Paragraph (6) applies if—

(a) a lump sum death benefit is payable on the death of a pensioner member in accordance with paragraph (2) of regulation 3.E.17 (amount of lump sum: single capacity members and recent leavers (disregarding regulation 3.D.5 employments)); and

(b) that lump sum is payable in respect of a member who had reached the age of 75 at the date of the member’s death.

(6) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Scheme administrator may deduct the tax payable under section 206 of the 2004 Act (special lump sum death benefits charge).

(7) Paragraph (8) applies if—

(a) an active, non-contributing or pension credit member opts to exchange a relevant pension for a lump sum in accordance with paragraph (3)(a) of regulation 3.D.11 (option for members in serious ill-health to exchange whole pension for lump sum); and

(b) that lump sum payment is made to a member who has reached the age of 75.

(8) Without prejudice to the generality of paragraph (1), when the lump sum is paid, the Scheme administrator may deduct the tax payable under section 205A of the 2004 Act (serious ill-health lump sum charge).

(9) Without prejudice to the generality of paragraph (1), a person who—

(a) is liable to an annual allowance charge in accordance with section 237A of the 2004 Act, and

(b) meets the conditions specified in paragraph (1) of section 237B of that Act,

may give notice in writing to the Scheme administrator specifying that the Scheme administrator and that person are to be jointly and severally liable for the payment of the annual allowance charge due in respect of that person in accordance with section 237B of the 2004 Act.

(10) Unless the Scheme administrator’s liability for an annual allowance charge referred to in paragraph (9) is discharged in accordance with section 237D of the 2004 Act—

(a) that annual allowance charge will be paid by the Scheme administrator on behalf of the member, and

(b) that person’s present or future benefits in respect of which that charge arises shall be adjusted in accordance with section 237E of the 2004 Act and shall be calculated by reference to advice provided by the Scheme actuary for that purpose.

Interest on delayed payments

Interest on late payment of benefits and refunds of contributions

3.J.9

(1) This regulation applies if the whole or part of an amount to which this regulation applies is not paid by the end of the period of one month beginning with the due date.

(2) This regulation applies to any amount payable by way of a pension, lump sum, refund of contributions under this Section of the Scheme (other than any amount due under regulation 3.C.5 or 3.C.6) or interim or substitute award.

(3) The Secretary of State must pay interest on the amount of a pension, lump sum, refund of contributions or an interim or substitute award which is unpaid (“the unpaid amount”) to the person to whom it should have been paid unless the Secretary of State is satisfied that the unpaid amount was not paid on the due date because of some act or omission on the part of the member or other person to whom it should have been paid.

(4) The interest on the unpaid amount is calculated at the base rate on a day to day basis from the due date for the amount to the date of its payment and compounded with three-monthly rests.

(5) For the purposes of this regulation, except where paragraph (6) applies, “due date”, in relation to an unpaid amount (other than an unpaid amount in respect of an interim or substitute award), means—

(a) in the case of an amount in respect of a pension or lump sum payable to a member under Chapter 3.D or a lump sum under regulation 3.K.11, the day immediately following that of the member’s retirement from pensionable employment,

(b) in the case of an amount in respect of a pension payable on a member’s death , other than a pension payable under regulation 3.E.20A (pension payable when member dies on or after reaching age 75), the day after the date of death,

(c) in the case of an amount in respect of a lump sum under Chapter 3.E that is payable to the member’s personal representatives, the earlier of—

(i) the date on which probate or letters of administration were produced to the Secretary of State, and

(ii) the date on which the Secretary of State was satisfied that the lump sum may be paid as provided in regulation 3.E.21(9) (amount of lump sum: dual capacity members),

(d) in the case of an amount in respect of any other lump sum under that Chapter, the day after the date of the member’s death, and

(e) in the case of an amount in respect of a refund of contributions, the day after that on which the Secretary of State received from Her Majesty’s Commissioners of Revenue and Customs the information required for the purposes of calculating the amount to be subtracted under regulation 3.C.16(3) or (4) (repayment of contributions),

(f) in the case of an amount in respect of a pension under regulation 3.E.20A that is payable to—

(i) the member’s personal representatives, the date on which probate or letters of administration were produced to the Secretary of State,

(ii) any person or body to whom the pension has been assigned by the member’s personal representatives, the date on which the notice under regulation 3.E.21(10) was received by the Secretary of State, and

(iii) any person or body other than those referred to in (i) and (ii), the day immediately following the day of the member’s death.

(6) The due date for an unpaid amount—

(a) referred to in paragraph (5) in respect of which the Secretary of State was not in possession of all the information necessary for the calculation of the amount of the pension, lump sum or refund of contributions referred to in that paragraph on the date which would, in accordance with paragraph (5) be the due date;

(b) in respect of an interim or substitute award,

shall be the first day on which the Secretary of State was in possession of all the information necessary to calculate that pension, lump sum, refund of contributions or interim or substitute award.

(7) In this regulation, “interim or substitute award” means—

(a) any amount paid by way of an interim payment calculated by reference to an expected benefit under this Section of the Scheme pending final calculation of the full value of that benefit, ...

(b) any amount paid that increases the amount of an earlier payment due to a backdated or later increase in pensionable pay ; and

(c) any amount paid that increases the amount of an earlier payment due to the payment of a tier 2 ill-health pension under regulation 3.D.7 paid to a member in substitution for a tier 1 ill-health pension under that regulation following a determination by the Secretary of State under regulation 3.D.8.

Determinations

Determination of questions

3.J.10

(1) Except as otherwise provided by this Part, any question arising under this Section of the Scheme is to be determined by the Secretary of State.

(2) Any such disagreement as is referred to in section 50 of the 1995 Act (resolution of disputes) must be resolved by the Secretary of State in accordance with any arrangements applicable under that section.

Determinations by medical practitioners

3.J.11

(1) The Secretary of State may make arrangements for functions under this Part in relation to decisions within paragraph (2) that are exercisable by the Secretary of State to be discharged by—

(a) a registered medical practitioner (whether practising alone or as apart of a group) whom the Secretary of State has approved to act on the Secretary of State’s behalf, or

(b) a corporate or unincorporated body which—

(i) employs registered medical practitioners (whether under a contract of service or a contract for services), and

(ii) is so approved.

(2) This paragraph applies to any decision as to a person’s health or degree of physical or mental infirmity ... that is required for the purposes of this Part and, in particular, any such decision required for the purposes of—

(za) regulation 3.D.2(8) (pension credit members);

(a) regulation 3.D.7(2)(a) or (3)(a)(early retirement on ill-health (active members)),

(b) regulation 3.D.8(1)(a) or (b) or (3) (re-assessment of ill-health pension),

(cc) regulation 3.D.11(1) (option for members in serious ill-health to exchange whole pension for lump sum),

(d) regulation 3.D.15(6)(b) (procedure for allocation election under regulation 3.D.14),

(e) regulation 3.E.9(1)(b)(ii) (meaning of “dependent child”),

(f) regulation 3.J.4(1) (beneficiaries who are incapable of looking after their affairs).

(g) determining whether an individual satisfies the severe ill health condition for the purposes of subsection (3)(a) of section 229 of the 2004 Act (total pension input amount).

(3) In relation to decisions within paragraph (2), the Secretary of State may require any person entitled, or claiming to be entitled, to a benefit under this Part to submit to a medical examination by a registered medical practitioner selected by the Secretary of State, and in that event, the Secretary of State shall also offer the person an opportunity of submitting a report from the person’s own medical adviser as a result of an examination by that medical adviser, and the Secretary of State shall take that report into consideration together with the report of the medical practitioner selected by the Secretary of State.

General prohibition on unauthorised payments

3.J.12

Nothing in these Regulations requires or authorises the making of any payment, which, if made, would be an unauthorised payment for the purposes of Part 4 of the 2004 Act (see section 160(5) of that Act).

Prohibition on assignment or charging of benefits

3.J.13

(1) Any assignment of, or charge on, or any agreement to assign or charge, any right to a benefit under this Section of the Scheme is void.

(2) On the bankruptcy of any person entitled to a benefit under this Section of the Scheme, no part of the benefit may be paid to the person’s trustee in bankruptcy or other person acting on behalf of the creditors, except in accordance with an order under section 310 of the Insolvency Act 1986[^f00137] (income payments orders).

Record keeping and contribution estimates

Employing authority and certain member record keeping and contribution estimates

3.J.14

(1) As regards a type 1 medical practitioner, in respect of each scheme year, the member shall provide each relevant host ... Board with a certificate of their pensionable earnings based on—

(a) the accounts drawn up in accordance with generally accepted accounting practice by the practice of which the member is a member; and

(b) the return that member has made to Her Majesty’s Revenue and Customs in respect of their earnings for that year,

no later than 1 month after the date on which that return was required to be submitted to Her Majesty’s Revenue and Customs.

(2) As regards a type 2 medical practitioner or a locum practitioner, in respect of each scheme year, the member shall provide each relevant host ... Board with a certificate of their pensionable earnings based on—

(a) the payments they receive from employing authorities for practitioner services, and

(b) the return that member has made to Her Majesty’s Revenue and Customs in respect of their earnings for that year,

no later than 1 month after the date on which that return was required to be submitted to Her Majesty’s Revenue and Customs.

(3) Within 1 month of the end of each financial year, a host ... Board must give to each—

(a) GDS or PDS contractor with which that host ... Board is a party to a GDS contract or a PDS agreement, a notice which sets out, in accordance with the host ... Board’s records, the amount of the pensionable earnings ceiling and the amount of the pensionable earnings the contractor has paid to every type 1 dental practitioner who has performed services under that contract or agreement during that financial year (“an annual reconciliation notice”); and

(b) type 1 dental practitioner referred to in (a), a notice which sets out the amount of pensionable earnings each practitioner has been paid for that financial year as indicated in the host ... Board’s records (“a performer’s notice”).

(4) Within 3 months of the end of each financial year the GDS or PDS contractor must return the annual reconciliation notice to the host ... Board stating—

(a) that the amounts referred to in paragraph (3)(a) are correct or, where either, or both, of those amounts are incorrectly shown in the notice, the correct figure or figures;

(b) in the case of a type 1 dental practitioner whose earnings, during the period covered by the annual reconciliation notice, are not pensionable because they fall within paragraph (3)(b) of regulation 3.A.7, the earnings that would otherwise have been pensionable if that paragraph did not apply;

(c) the amount of any monthly seniority payments, maternity leave payments, paternity leave payments, adoption leave payments, parental leave payments , shared parental leave payments , parental bereavement leave payments or sickness leave payments paid under the contract or agreement during the financial year;

(d) the amount of pensionable earnings the contractor has paid to each type 1 dental practitioner under the contract or agreement during the financial year;

(e) whether each type 1 dental practitioner who performed services under the contract or agreement referred to in paragraph (3)(a) was given the opportunity to verify the pensionable earnings declared for them in the annual reconciliation notice; and

(f) the name and dentist’s reference number of any type 1 dental practitioner who—

(i) failed to verify; or

(ii) disagrees with,

the amounts declared for them in the annual reconciliation notice, and, where paragraph (ii) applies, the reason for the disagreement.

(5) Within 3 months of the end of each financial year, each type 1 dental practitioner who performed services under the contract or agreement referred to in paragraph (3)(a) must return the performers’ notice to the host ... Board, stating—

(a) that they were (or were not, as the case may be) in pensionable employment for the period covered by the performer’s notice;

(b) that they were (or were not, as the case may be) directly employed by the contractor referred to in paragraph (3)(a) during the period covered by the performer’s notice;

(c) in the case of a practitioner, who was in pensionable employment during the period covered by the notice, the pensionable earnings they received under the contract or agreement during that period;

(d) in the case of a practitioner whose earnings, during the period covered by the performer’s notice, fell within paragraph (3)(b) of regulation 3.A.7, the earnings that would otherwise have been pensionable if that paragraph did not apply;

(e) the amount of any monthly seniority payments, maternity leave payments, paternity leave payments, adoption leave payments, parental leave payments , shared parental leave payments , parental bereavement leave payments or sickness leave payments received by the practitioner under the contract or agreement during the financial year; and

(f) whether the practitioner and contractor have together verified that any amounts the practitioner has declared in respect of sub-paragraphs (c), (d) or (e) are the same as the equivalent amounts declared in the annual reconciliation notice referred to in paragraph (4).

(6) Within 3 months of the end of each financial year, a type 2 dental practitioner must provide the host ... Board with whom their employer has entered into a GDS contract or a PDS agreement, with a notice of their pensionable earnings based on—

(a) the payments they have received from their employer for practitioner services provided under that GDS contract or PDS agreement during that financial year; and

(b) the pensionable earnings they have received, as a type 2 dental practitioner, from all other type 2 dental practitioner sources during that financial year.

(7) An employing authority may, in exceptional circumstances, and with the agreement of the Secretary of State, arrange or agree a different time limit for the issue and return of the certificates, notices or statements referred to in paragraphs (1) to (6) and may, if a material particular has changed, accept a replacement.

(8) Subject to paragraph (9), an annual reconciliation notice will be invalid if—

(a) it contains information that the employing authority’s records show is inaccurate or misleading in a material particular;

(b) subject to paragraph (7), it is not received within the specified time limit;

(c) the total of the amounts specified in it in respect of each type 1 dental practitioner that performed services under the contract or agreement referred to in paragraph (3)(a) is greater than the aggregate of the pensionable earnings ceiling referred to in paragraph (3)(a) and the amount referred to in paragraph (4)(c);

(d) it is incomplete in any material particular; or

(e) one or more of the practitioners referred to in it did not, for whatever reason, verify the earnings figure the contractor has declared for them.

(9) Where an employing authority has received an annual reconciliation notice which is valid for some or all of the practitioners listed in that notice, the amounts notified to it for the financial year to which the notice relates will, subject to paragraphs (16), (17) and (18), be the pensionable earnings for those practitioners.

(10) Where an employing authority has received an annual reconciliation notice which is invalid for some or all of the practitioners listed in that notice, the pensionable earnings for those practitioners will be—

(a) zero, where the employing authority’s records show that value or the authority is unable to estimate the value of the practitioner’s pensionable earnings; or

(b) the figure that the employing authority estimates will represent that practitioner’s share of the aggregate of the pensionable earnings ceiling referred to in paragraph (3)(a) and the amount referred to in paragraph (4)(c) (“the maximum amount”), less the difference between—

(i) that maximum amount; and

(ii) the total of the monthly amounts in respect of which estimated contributions to this Section of the Scheme under regulation 3.C.2 (members’ contribution rate) were paid on account during the financial year to which the earnings relate,

but if the total mentioned in paragraph (ii) is greater than the maximum amount, then no amount is to be deducted pursuant to this paragraph.

(11) In respect of each scheme year, a GMS or PMS practice, an APMS contractor or a GDS or PDS practice shall provide the host Board and the Secretary of State with a statement of estimated pensionable earnings and contributions due under regulations 3.C.1, 3.C.3 and 3.C.6 in respect of any—

(a) non-GP provider that is a GMS or PMS practice or an APMS contractor who assists in the provision of NHS services provided by that GMS or PMS practice or APMS contractor;

(b) type 1 medical practitioner who performs medical services as, or on behalf of, the practice or contractor;

(d) type 1 dental practitioner who performs services under a GDS contract or a PDS agreement, or

(e) type 2 dental practitioner employed to perform services under a GDS contract or a PDS agreement.

(12) In respect of each scheme year, each employing authority and GDS or PDS contractor shall, in respect of any of the persons referred to in paragraph (11)(a) to (e), provide the Secretary of State with an end-of-year statement of—

(a) pensionable earnings;

(b) contributions to this Section of the Scheme made under regulation 3.C.2 (members’ contribution rate);

(c) contributions to this Section of the Scheme made under regulation 3.C.3 (contributions by employing authorities: general); and

(d) any pensionable earnings deemed in accordance with regulation 3.A.8 (pensionable earnings-breaks in service).

(13) The host Board and the Secretary of State shall be provided with—

(a) the statement referred to in paragraph (11) at least 1 month before the beginning of that scheme year;

(b) the statement referred to in paragraph (12) no later than 3 months after the end of that scheme year.

(13A) If a GMS or PMS practice, an APMS contractor or a GDS or PDS practice does not provide the statement referred to in paragraph (11) in accordance with paragraph 13(a), the member contributions in respect of the members of that practice or contractor referred to in paragraph 11(a) to (e), will be payable at the maximum contribution percentage rate specified in column 2 of table 2 in paragraph (22) of regulation 3.C.2 based on estimated pensionable pay as determined by the host Board.

(14) All employing authorities must, for each scheme year—

(a) if the Secretary of State so requests, provide the Secretary of State with a statement of estimated total contributions due to this Section of the Scheme under regulation 3.C.1 (contributions by members) and 3.C.3 (contributions by employing authorities: general); and

(b) maintain, in a manner approved by Secretary of State from time to time, the records of contributions to this Section of the Scheme made under regulations 3.C.1 and 3.C.3.

(15) The statement referred to in paragraph (14)(a) must be provided to the Secretary of State no later than 1 month before the beginning of each scheme year and, except where the Secretary of State waives such requirement, an employing authority must provide the Secretary of State with a statement of contributions to this Section of the Scheme recorded in accordance with paragraph (14)(b) no later than 2 months after the end of each scheme year.

(16) A member’s pensionable earnings for a scheme year shall be zero and no contributions paid in respect of that scheme year are to be refunded where, in respect of that scheme year, a member has failed to comply with the requirements of—

(a) whichever of paragraphs (1), (2), (4), (5), or (6) applies to that member, or

(b) paragraph (7) of regulation 3.B.5.

This is subject to paragraphs (17) and (18).

(17) If, in respect of a scheme year, the employing authority of a practitioner or non-GP provider member is in possession of a figure representing all or part of that member’s pensionable earnings for that year, the Secretary of State may treat that figure as the amount of that member’s pensionable earnings for that year where—

(a) that member has failed to comply with the requirements of whichever of paragraphs (1), (2), (4), (5) or (6) applies to them, and

(b) a benefit in respect of that member’s service as a practitioner or non-GP provider is payable to, or in respect of them, under these Regulations.

(18) If, in respect of a scheme year, a practitioner or non-GP provider—

(a) dies without complying with the requirements of whichever of paragraphs (1), (2), (4), (5) or (6) applies to them; or

(b) is, in the opinion of the Secretary of State, unable to look after their own affairs by reason of illness or lack of capacity within the meaning of the Mental Capacity Act 2005,

the Secretary of State may require that practitioner’s or non-GP provider’s personal representatives or person (or persons) duly authorised to act on the member’s behalf to provide the relevant certificate, notice or statement within the period specified in paragraph (19).

(19) The period is—

(a) that referred to in whichever of paragraphs (1), (2), (4), (5) or (6) was or is applicable to them; or

(b) such other period as the Secretary of State permits.

(20) An employing authority must, in respect of a person, keep a record of all—

(a) contributions paid under regulations 3.C.1, 3.C.6 or 3C.8;

(b) contributions due under regulations 3.C.1, 3.C.6 or 3C.8, but unpaid;

(d) contributions due under regulation 3.C.3 or 3.C.9, but unpaid;

(e) pensionable earnings;

(f) absences from work referred to in regulation 3.A.4;

(g) commencement and termination of pensionable employment;

(h) reasons for termination of pensionable employment.

(20A) That record is to be in a manner approved by the Secretary of State.

(20B) Except where the Secretary of State waives such requirement, an employing authority must provide a statement in respect of the matters referred to in paragraph (20) in respect of all scheme members to the Secretary of State no later than 13 months of the end of each scheme year.

(20C) Where an employing authority has provided the information in accordance with paragraph (20B) and there is then a change to any of the information provided, that employing authority must, within 1 month of the change, provide the Secretary of State with the revised information.

(21) The certificates, notices and statements referred to in this regulation—

(a) shall be in such form as the Secretary of State shall from time to time require;

(b) may be provided to the Secretary of State in such manner as the Secretary of State may from time to time permit.

PART 4 — BENEFITS IN CASES OF MIXED SERVICE

CHAPTER 4.A — INTRODUCTION

Application of Part 4

4.A.1

(1) This Part applies where a member has pensionable service under both Part 2 and Part 3 of these Regulations.

(2) Where this Part applies, Part 2 and Part 3 are subject to the modifications provided in this Part.

(3) As regards a person to whom the general rule in regulation 2.G.2 (general rule: separate treatment of service etc.) or regulation 3.G.2 (general rule: separate treatment of service etc.) applies, this Part shall apply separately to benefits in respect of the earlier service and the later service (as defined in regulation 2.G.1 or 3.G.1, as appropriate).

Preliminary

Interpretation: general

4.A.2

In this Part—

“the base amount” means the aggregate of the benefits that would be payable separately under Part 2 and Part 3 but for the operation of this Part;

“calculation method A” means the calculation method provided for in regulation 4.B.8;

“calculation method B” means the calculation method provided for in regulation 4.B.9;

“calculation method C” means the calculation method provided for in regulation 4.B.10;

“calculation method D” means the calculation method provided for in regulation 4.B.11;

“increment period” has the meaning given in regulation 4.B.11(2);

“officer” has the same meaning as in Part 2;

“practitioner” has the same meaning as in Part 3;

“uprated earnings” has the same meaning as in Part 3.

CHAPTER 4.B — COMPARISON OF ENTITLEMENTS

Application of Chapter 4.B

4.B.1

(1) This Chapter identifies the calculation method under which the benefits payable in respect of discrete periods of pensionable service as an officer are to be compared against the benefits that would have been payable had that service been service as a practitioner.

(2) The discrete periods of pensionable service as an officer that are subject to comparison are any periods of—

(a) up to 10 years of pensionable service as an officer before first becoming a ... practitioner,

(b) more than 10 years of pensionable service as an officer before first becoming a ... practitioner,

(d) more than 1 year of employment as an officer after ceasing to be a practitioner,

(e) less than 1 year of pensionable service as an officer concurrently with pensionable service as a practitioner, and

(f) more than 1 year of pensionable service as an officer concurrently with pensionable service as a practitioner.

Officer service before practitioner service

Cases with up to 10 years of officer service

4.B.2

(1) Where a member has not more than 10 years of pensionable service before first becoming a ... practitioner, the reference amount shall be the best of—

(a) the amount determined by calculation method A,

(b) the amount determined by calculation method B, and

(i) the benefit is payable on retirement or death of the member, and

(ii) the condition is met,

the base amount.

(2) The condition mentioned in paragraph (1)(c)(ii) is that—

(a) the amount of pension payable under Part 2 would be greater than the amount of pension payable under Part 3, where—

(i) any enhancement for the purposes of regulation 2.D.8 or 3.D.7 (enhancement of ill-health pensions), as appropriate, are ignored,

(ii) any additional pension is disregarded, and

(iii) any increase under the Pensions (Increase) Act 1971[^f00138] is applied, and

(b) the amount determined by calculation method B is less than the base amount.

Cases with more than 10 years of officer service

4.B.3

Where a member has more than 10 years of pensionable service before first becoming a ... practitioner, the reference amount shall be the better of—

(a) the amount determined by calculation method A, and

(b) the base amount.

Officer service after practitioner service

Cases with less than 1 year of officer service

4.B.4

Where a member has been employed as an officer for less than 1 year after last ceasing to be a practitioner, the reference amount shall be the amount determined by calculation method A.

Cases with 1 year or more of officer service

4.B.5

Where a member has been employed as an officer for 1 year or more after last ceasing to be a practitioner, the reference amount shall be the better of—

(a) the amount determined by calculation method C, and

(b) the base amount.

Concurrent officer and practitioner service

Cases with less than 1 year of concurrent officer service

4.B.6

Where a member has less than 1 year of pensionable service as an officer concurrently with pensionable service as a practitioner, the reference amount shall be the amount determined by calculation method A.

Cases with 1 year or more of concurrent officer service

4.B.7

Where a member has 1 year or more of pensionable service as an officer concurrently with pensionable service as a practitioner, the reference amount shall be the better of—

(a) the amount determined by calculation method A, and

(b) the base amount.

Calculation methods

Calculation method A

4.B.8

(1) Calculation method A is the aggregate of—

(a) the amount that would be payable under Part 3 of these Regulations if—

(i) the member’s discrete period of pensionable service as an officer were treated as pensionable service as a practitioner, and

(ii) the amount of pensionable pay received in respect of that officer service were treated as pensionable earnings as a practitioner for the respective period,

(b) the amount payable under Part 2 of these Regulations (if any) if the member’s pensionable service as an officer were reduced by the discrete period of pensionable service as an officer in sub-paragraph (a), and

(2) Where paragraph (1) applies—

(a) the member is entitled to count part of the period of officer service referred to in that paragraph as a result of a transfer-in under regulation 3.F.10, and

(b) the transfer-in is other than a transfer-in referred to in regulation 3.F.11(6),

for the purposes of any calculation under regulation 4.B.2(1)(a) or 4.B.3(a), the amount of the pensionable pay deemed to be received in respect of that part period of officer service will be calculated in accordance with regulation 3.F.11(2).

Calculation method B

4.B.9

Calculation method B is the aggregate of—

(a) the amount payable under Part 3 of these Regulations if the member’s uprated earnings is increased by the formula—

$$UE×LPSo+LPSpLPSp$where—UE is the amount of the member’s uprated earnings,LPSo is the length of the member’s discrete period of pensionable service as an officer, expressed in days, andLPSp is the length of the member’s pensionable service as a practitioner, expressed in days, and$

(b) the amount payable under Part 2 of these Regulations (if any) if the member’s pensionable service as an officer were reduced by the discrete period of pensionable service as an officer in sub-paragraph (a).

Calculation method C

4.B.10

Calculation method C is the aggregate of—

(a) the amount that would be payable under Part 3 of these Regulations if the member’s pensionable earnings as a practitioner were uprated to the date of—

(i) cessation of the employment as an officer, or

(ii) retirement,

whichever is the earlier, and

(b) the amount payable under Part 2 of these Regulations.

CHAPTER 4.C — MODIFICATION OF BENEFITS

Members’ retirement benefits

Top-up where reference amount greater than base amount

4.C.1

(1) Where the reference amount calculated in any of regulations 4.B.2 to 4.B.7A is greater than the base amount, a top-up amount is payable.

(2) The top-up amount is equal to the aggregate of the amounts by which the reference amount is greater than the base amount in each of regulations 8.B.2 to 4.B.7A (where applicable).

(3) The top-up amount provided for under this regulation shall be treated as forming part of the member’s pension for the purposes of increases payable under the Pensions (Increase) Act 1971[^f00139], and shall be increased in similar manner to pensions payable under Parts 2 and 3.

Death benefits

Death benefits where member entitled to top-up

4.C.2

(1) This regulation applies in relation to any benefit payable under Chapter 2.E of Part 2 and Chapter 3.E of Part 3 of these Regulations where the deceased member is (or would have been) entitled to a top-up amount under regulation 4.C.1.

(2) In calculating the amount of the benefit payable under Chapter 2.E of Part 2 of these Regulations, where that benefit is expressed to be a percentage or fraction of a pension that was in payment at the date of death of a member, or a percentage or fraction of a pension to which a deceased member would have become entitled in a particular circumstance, that pension shall be treated as being the pension payable to the member had no benefit been payable in respect of any discrete period of pensionable service as an officer that gives rise to a top-up payment under regulation 4.C.1.

(3) In calculating the amount of the benefit payable under Chapter 3.E of Part 3 of these Regulations, where that benefit is expressed to be a percentage or fraction of a pension that was in payment at the date of death of a member, or a percentage or fraction of a pension to which a deceased member would have become entitled in a particular circumstance, that pension shall be treated as being the sum of—

(a) the pension payable under Part 3 of these Regulations, and

(b) the top-up amount payable under regulation 4.C.1, inclusive of any increase payable under the Pensions (Increase) Act 1971 pursuant to paragraph (3) of that regulation.

CHAPTER 4.D — GENERAL MODIFICATIONS

45 year service limit

Pensionable service limit

4.D.1

(1) Subject to paragraph (3), in determining whether or not a member has reached 45 years of pensionable service for the purposes of regulation 2.A.2, the amount of pensionable service accrued under Part 3 of these Regulations shall be included in the aggregate calculated under paragraph (1) of that regulation.

(2) Subject to paragraph (3), in determining whether or not a member has reached 45 years of pensionable service for the purposes of regulation 3.A.3, the amount of pensionable service accrued under Part 2 of these Regulations shall be included in the aggregate calculated under paragraph (1) of that regulation.

(3) Where a person is concurrently in officer service and practitioner service in any year, that year shall count as a single year for the purpose of calculating 45 years pensionable service.

(4) Where the aggregate of pensionable service under Part 2 and Part 3 is in excess of 45 years—

(a) benefits under each of Part 2 and Part 3 shall be calculated by reference to such number of years as the Secretary of State determines;

(b) the aggregate of pensionable service under Part 2 and Part 3 determined in paragraph (a) shall be 45 years; and

(c) the Secretary of State shall select the years by reference to which the benefits under each Part are to be calculated, selecting the years which produce the most favourable result to the member.

(5) Where a member is also a member of the 1995 Section, any reference in this Part to “45 years” shall be taken to be a reference to a shorter period determined by the formula—

$SP=45years−LPS$

where—

SP is the shorter period, measured in years and days, and

LPS is the length of pensionable service (within the meaning of the 1995 Regulations), measured in years and days, giving rise to membership of the 1995 Section and, in the case of a member of that Section who has become entitled to a pension (including a preserved pension) under that Section, including any period that was taken into account for the purpose of determining whether the member was entitled to that pension, or for the purpose of calculating the amount of that pension.

Claims and notices

Applications, claims and notices

4.D.2

An application or claim made or a notice given for the purposes of a regulation listed in column 1 of the following table shall be treated as an application or claim made or notice given for the purposes of the corresponding regulation in column 2 (and vice versa) without more.

Column 1Regulation in Part 2	Column 2Regulation in Part 3
2.D.1	3.D.1
2.D.8	3.D.7
2.D.10	3.D.9
2.D.14	3.D.10
2.D.15	3.D.11
2.D.18	3.D.14
2.E.2	3.E.2
2.E.21	3.E.21
2.F.2	3.F.2
2.F.3	3.F.3

Abatement

Reduction of pension

4.D.3

(1) The pension payable under Part 3 shall be reduced in accordance with Chapter 3.H but with the following modifications—

(a) relevant income shall include the enhancement amount determined under regulation 2.H.4(2); and

(b) where a practitioner becomes entitled to a receive a pension under Part 3 and in the 12 months preceding the date on which the member becomes so entitled also held concurrent pensionable employment as an officer, the member’s previous earnings in respect of the member’s practitioner service shall be increased by the amount of the member’s previous pay in respect of the member’s officer service.

(2) Where the reduction applied under the modified Part 3 is not the full amount of the excess determined under that modified Part, such part of the excess as has not given rise to a reduction in the old service pension in Part 3 shall be the excess for the purposes of regulation 2.H.3(3).

Signed

Signed by authority of the Secretary of State for Health.

Ann Keen — Parliamentary Under Secretary of State — Department of Health — 11th March 2008

We consent

Alan Campbell — Frank Roy — Two of the Lords Commissioners of Her Majesty’s Treasury — 11th March 2008

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations establish a new pension scheme for people employed in the National Health Service on or after 1st April 2008 or in such employment immediately before that date, but not in the pension scheme contained in the National Health Service Pension Scheme Regulations 1995 (S.I. 1995/300) and wishing to join the new scheme.

The Regulations are divided into four Parts, each with Chapters dealing with different aspects of the Scheme.

Part 1 contains introductory material, and sets out the circumstances in which Parts 2 to 4 apply. It also sets out the provisions relating to Scheme reports and accounts and cost sharing.

Part 2 sets out the provisions applying to people working in the National Health Service as Officers.

Chapter 2.A contains definitional matters. Regulation 2.A.1 contains general definitions. The remainder of Chapter 2.A contains definitions that are relevant for entitlement to and calculation of benefits under the Scheme. Regulations 2.A.2 to 2.A.7 deal with the meaning of “pensionable service” and “qualifying service” and how service is calculated. Regulations 2.A.8 to 2.A.14 deal with “pensionable pay” and “reckonable pay”

Chapter 2.B sets out the conditions that must be met for a person to be eligible to belong to the Scheme, and also deals with leaving and rejoining it. Most people will become members of the Scheme automatically on entering their employment unless they wish not to belong to it.

Chapter 2.C deals with contributions to the Scheme. Regulations 2.C.1 to 2.C.4 are about the members’ compulsory contributions. Regulations 2.C.5 to 2.C.7 relate to employers’ contributions and the circumstances in which they can be required to give guarantees, indemnities etc. to cover their contributions. Regulations 2.C.8 to 2.C.17 are about the members’ rights to purchase additional pension by paying extra contributions either by instalments over a period of up to 20 years or by lump sum. Regulation 2.C.11 enables such pension to be bought for a member by the member’s employer.

Chapter 2.D deals with the pensions to which members become entitled on retirement. Regulations 2.D.1 to 2.D.13 set out different entitlements for those who retire on reaching 65, those who leave earlier, those who retire later with an actuarial increase, those who want earlier payment with actuarial reduction, those who wish partially to retire with only part of their pension in payment, those who retire early with ill-health or on the termination of their employment on the grounds of efficiency or redundancy, and pension credit members. They also enable members whose pay is reduced to have higher paid earlier service treated separately. Regulations 2.D.14 and 2.D.15 enable members to exchange pension for lump sums. Regulations 2.D.16 and 2.D.17 deal with the effect of pension sharing on divorce or nullity. Regulations 2.D.18 to 2.D.20 enable members to allocate part of their pension to others.

Chapter 2.E sets out the benefits that are payable on the death of a member. It provides for pensions to be payable to surviving spouses, civil partners and other adult dependants and eligible children. It also provides for lump sums to be paid to nominees, adults to whom a pension is payable or personal representatives.

Chapter 2.F deals with members’ rights under the Scheme to have a transfer payment paid by the Scheme into another scheme, and the right of a member to have a transfer payment from another scheme accepted by the Scheme so that the member is entitled to count further pensionable service in the Scheme. (The rights to transfers out supplement the members’ rights under the Pension Schemes Act 1993 (c. 48). There are special arrangements for those going to or from other public sector schemes, those who transfer in or out with a number of other similar employees, and transfers with EU and other overseas transfers.

Chapter 2.G deals with members who have more than one period of service that counts for the Scheme because they are re-employed. As a general rule the rights relating to such separate periods of service are dealt with separately, but this does not apply if aggregation of the periods would give rise to more favourable benefits. There are also special rules provide for ill-health pensioners and those transferred out of the Scheme on a transfer of an undertaking.

Chapter 2.H deals with the abatement of pensions in certain circumstances where pensioners are re-employed in the National Health Service.

Chapter 2.J contains miscellaneous and supplementary provisions, for example, relating to claims for and payment of benefits, the commutation of small pensions, the forfeiture of benefits in certain circumstances, the deduction of tax and the provision of information relevant for tax purposes and the payment of interest where the payment of benefits or refunds of contributions are late.

Part 3 sets out the provisions applying to people working in the National Health Service as Practitioners, or Out-of-Hours Providers.

Chapter 3.A contains definitional matters. Regulation 3.A.1 contains general definitions. The remainder of Chapter 3.A contains definitions that are relevant for entitlement to and calculation of benefits under the Scheme. Regulations 3.A.3 to 3.A.6 deal with the meaning of “pensionable service” and “qualifying service” and how service is calculated. Regulations 3.A.7 to 3.A.15 deal with “pensionable earnings” and 3.A.16 deals with out-of-hours providers.

Chapter 3.B sets out the conditions that must be met for a person to be eligible to belong to the Scheme, and also deals with leaving and rejoining it. Most people will become members of the Scheme automatically on entering their employment unless they wish not to belong to it.

Chapter 3.C deals with contributions to the Scheme. Regulations 3.C.1 and 3.C.2 are about the members’ compulsory contributions. Regulations 3.C.3 to 3.C.5 relate to employers’ contributions and the circumstances in which they can be required to give guarantees, indemnities etc. to cover their contributions. Regulations 3.C.6 to 3.C.15 are about the members’ rights to purchase additional pension by paying extra contributions either by instalments over a period of up to 20 years or by lump sum. Regulation 3.C.9 enables such pension to be bought for a member by the member’s employer.

Chapter 3.D deals with the pensions to which members become entitled on retirement. Regulations 3.D.1 to 3.D.9 set out different entitlements for those who retire on reaching 65, those who leave earlier, those who retire later with an actuarial increase, those who want earlier payment with actuarial reduction, those who wish partially to retire with only part of their pension in payment, those who retire early with ill-health or on the termination of their employment on the grounds of efficiency or redundancy, and pension credit members. They also enable members whose pay is reduced to have higher paid earlier service treated separately. Regulations 3.D.10 and 3.D.11 enable members to exchange pension for lump sums. Regulations 3.D.12 and 3.D.13 deal with the effect of pension sharing on divorce or nullity. Regulations 3.D.14 to 3.D.16 enable members to allocate part of their pension to others. 3.D.17 deals with dual capacity membership and 3.D.18 deals with guaranteed minimum pensions

Chapter 3.E sets out the benefits that are payable on the death of a member. It provides for pensions to be payable to surviving spouses, civil partners and other adult dependants and eligible children. It also provides for lump sums to be paid to nominees, adults to whom a pension is payable or personal representatives.

Chapter 3.F deals with members’ rights under the Scheme to have a transfer payment paid by the Scheme into another scheme, and the right of a member to have a transfer payment from another scheme accepted by the Scheme so that the member is entitled to count further pensionable service in the Scheme. (The rights to transfer out supplement the members’ rights under the Pension Schemes Act 1993 (c. 48).) There are special arrangements for those going to or from other public sector schemes, those who transfer in or out with a number of other similar employees, and transfers within EU and other overseas transfers.

Chapter 3.G deals with members who have more than one period of service that counts for the Scheme because they are re-employed. As a general rule the rights relating to such separate periods of service are dealt with separately, but this does not apply if aggregation of the periods would give rise to more favourable benefits. There are also special rules providing for ill-health pensioners and those transferred out of the Scheme on a transfer of an undertaking.

Chapter 3.H deals with the abatement of pensions in certain circumstances where pensioners are re-employed in the National Health Service.

Chapter 3.J contains miscellaneous and supplementary provisions, for example, relating to claims for and payment of benefits, the commutation of small pensions, the forfeiture of benefits in certain circumstances, the deduction of tax and the provision of information relevant for tax purposes and the payment of interest where the payment of benefits or refunds of contributions are late.

Part 4 sets out the provisions applying to people who have worked in the National Health Service as both Officers and Practitioners.

Chapter 4.A deals with the application of Part 4 and contains definitional matters.

Chapter 4.B compares benefit entitlement under Part 2 and 3 of these Regulations.

Chapter 4.C provides for the modification of members’ retirement benefits and death benefits under Parts 2 and 3 of these Regulations.

Chapter 4.D provides for modifications in respect of the calculation of the 45 years pensionable service limit; for certain applications, claims or notices made under Part 2 to act as such for Part 3 (and vice versa); and for the modification of the rules on abatement.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or the voluntary sector.

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