The National Health Service Pension Scheme (Amendment) Regulations 2014

Made: 4th March 2014

Laid before Parliament: 11th March 2014

Coming into force: 1st April 2014

In accordance with section 10(4) of that Act, the Secretary of State has consulted with representatives of persons likely to be affected by these Regulations, as appeared to the Secretary of State to be appropriate.

PART 1 — Introductory

Citation, commencement and effect

1

• (1) These Regulations may be cited as the National Health Service Pension Scheme (Amendment) Regulations 2014.

• (2) These Regulations shall come into force on 1st April 2014 and, save as provided for in paragraph (3), have effect from that date.

• (3) Regulations 22 and 40 shall have effect from 1st April 2008.

PART 2 — Amendment of the National Health Service Pension Scheme Regulations 1995

Interpretation of Part 2

2

In this Part, an alphanumerical reference to a regulation or a reference to a Schedule is a reference to a provision of the National Health Service Pension Scheme Regulations 1995[^f00002] bearing that designation.

Amendment of regulation A2

3

In regulation A2 (interpretation)—

• (a) after paragraph (n) of the definition of “employing authority”[^f00003], add—

(o) an Independent Provider;

• (b) for the definition of “host Board”, substitute—

“host Board”— (a) in respect of a non-GP provider who is a partner in a partnership that has entered into a PMS agreement for the provision of primary medical services, means the National Health Service Commissioning Board or each Local Health Board with whom that provider has entered into such an agreement; (b) in respect of a non-GP provider who is a partner in a partnership that has entered into a GMS contract for the provision of primary medical services, means the National Health Service Commissioning Board or each Local Health Board with which that partnership has entered into such an agreement; (c) in respect of a non-GP provider who is a partner in a partnership that is an APMS contractor which has entered into an APMS contract for the provision of primary medical services, means the National Health Service Commissioning Board or each Local Health Board with which that partnership has entered into such a contract; (d) in respect of a non-GP provider who is a shareholder in a company limited by shares that— (i) is a GMS practice or a PMS practice or an APMS contractor, and (ii) has entered into a GMS contract, PMS agreement or APMS contract for the provision of primary medical services, means the National Health Service Commissioning Board or each Local Health Board with which that company has entered into such a contract or agreement; (e) in respect of a non-GP provider who is an individual who is a GMS practice or a PMS practice or an APMS contractor, means the National Health Service Commissioning Board or each Local Health Board with which that practice or contractor has entered into a PMS agreement or an APMS contract as such a practice or contractor; (f) in respect of a type 1 medical practitioner, means the National Health Service Commissioning Board or each Local Health Board with whom the practitioner has contracted, or entered into an agreement, to provide GMS, PMS or APMS; (g) in respect of a type 2 medical practitioner— (i) in England, means National Health Service Commissioning Board in respect of GMS, PMS, APMS, OOHS and other primary medical services it has commissioned from a GMS practice, PMS practice, APMS contractor or OOH provider and which that practitioner performs for that practice, contractor or provider under a contract of service or for services; (ii) in Wales, means the relevant Local Health Board in respect of GMS, PMS, APMS, OOHS and other primary medical services it has commissioned from a GMS practice, PMS practice, APMS contractor or OOH provider and which that practitioner performs for that practice, contractor or provider under a contract of service or for services; (h) in respect of a locum practitioner means the National Health Service Commissioning Board or each Local Health Board on whose medical performers list the practitioner’s name appears; (i) in respect of a type 1 dental practitioner who holds a GDS contract or has entered into a PDS agreement, means the National Health Service Commissioning Board or each Local Health Board with whom that practitioner— (i) is contracted to provide services under a GDS contract, or (ii) has entered into an agreement to provide services under a PDS agreement; (j) in respect of a type 1 dental practitioner who performs GDS or PDS but is not a party to a GDS contract or PDS agreement— (i) in England, means the National Health Service Commissioning Board in respect of GDS, or PDS it has commissioned from a GDS contractor or PDS contractor and which that practitioner performs for that contractor under a contract of service or for services with that contractor; (ii) in Wales, means the relevant Local Health Board in respect of GDS, or PDS it has commissioned from a GDS or PDS contractor and which that practitioner performs for that contractor under a contract of service or for services; (k) in respect of a type 2 dental practitioner— (i) in England, means the National Health Service Commissioning Board in respect of GDS or PDS it has commissioned from a GDS contractor or PDS contractor, and which that practitioner performs for that contractor under a contract of service or for services; (ii) in respect of Wales, means the relevant Local Health Board in respect of GDS or PDS it has commissioned from a GDS contractor or PDS contractor, and which that practitioner performs for that contractor under a contract of service or for services with that contractor or as a foundation trainee;

• (c) at the appropriate place in the alphabetical order, insert—

• “APMS” are primary medical services provided under an APMS contract;
• “consumer prices index” meansthe all items consumer prices index published by the Statistics Board of the UK Statistics Authority for the month of February immediately preceding a relevant year;
• “GDS” are primary dental services provided under a GDS contract;
• “GMS” are primary medical services provided under a GMS contract;
• “Independent Provider” is to be construed in accordance with Schedule 2B;
• “NHS standard contract” means the standard commissioning contract from time to time drafted by the National Health Service Commissioning Board pursuant to its powers under regulation 17 of the National Health Service Commissioning Board and Clinical Commissioning Groups (Responsibilities and Standing Rules) 2012[^f00004];
• “PDS” are primary dental services provided under a PDS agreement;
• “PMS” are primary medical services provided under a PMS agreement;
• “primary dental services” are to be construed in accordance with section 99 of the 2006 Act;
• “primary medical services” are to be construed in accordance with section 83 of the 2006 Act;
• “qualifying contract” means a contract between a relevant commissioning party and an Independent Provider the primary purpose of which is the provision of clinical health care services for the NHS and which is— an NHS standard contract; an APMS contract, or a contract entered into by a local authority pursuant to its functions under the 2006 Act relating to the improvement and protection of public health and which the Secretary of State agrees to treat as a qualifying contract for these purposes;

Amendment of regulation B3

4

After paragraph (8) of regulation B3 (restrictions on further participation in this Section of the scheme), insert—

(8A) For the purposes of paragraphs (8B) to (8F), a retention arrangement is one under which— (a) a person is seconded from an employing authority (“the sending employing authority”) to another body which is not an employing authority (“the other body”), and (b) that person, pursuant to an intention of the sending employing authority, remains an employee of that authority in circumstances where that person’s performance of services pursuant to a qualifying contract for the other body counts as pensionable service only by reason of that retention arrangement. (8B) A person who, on 2nd April 2014, and pursuant to a retention arrangement which was entered into before that date, remains engaged by the other body to perform services pursuant to a qualifying contract, may not, from 1st April 2017 contribute to or accrue pensionable service under this Section of the scheme in respect of the performance of those services. This is subject to paragraph (8E). (8C) A person who, pursuant to the retention arrangement referred to in paragraph (8B) is, on 2nd April 2014 engaged by the other body to perform services pursuant to the qualifying contract referred to in that paragraph, may not, from that date contribute to or accrue pensionable service under this Section of the scheme in respect of the performance of any services under that contract. This is subject to paragraph (8E). (8D) A person who on, or after, 2nd April 2014 and pursuant to a retention arrangement (other than the one referred to in paragraph (8B)) is engaged by the other body to perform services pursuant to a qualifying contract, may not contribute to or accrue pensionable service under this Section of the scheme in respect of the performance of any services under that contract. This is subject to paragraph (8E). (8E) The Secretary of State may exceptionally allow a person referred to in paragraph (8B), (8C) or (8D) to contribute to or accrue pensionable service under this Section of the scheme if the Secretary of State considers that appropriate having regard to the nature of the person’s employment and the circumstances under which it takes place. (8F) Nothing in this regulation prevents the other body referred to in paragraph (8B), (8C) or (8D) from applying for approval as an employing authority pursuant to Schedule 2B.

Amendment of regulation C1

5

After paragraph (9) of regulation C1 (meaning of “pensionable pay” and “final year’s pensionable pay”), insert—

(10) Where, having regard to the matters referred to in paragraph (11), the Secretary of Secretary of State considers that the amount which would, but for the Secretary of State’s determination under this paragraph, constitute the member’s final year’s pensionable pay is inordinate, determine— (a) what the amount of that pensionable pay is to be, and (b) the date from which any change in the amount of that pay as a result of that determination is to take effect. (11) Those matters are— (a) any variations in the level of the member’s pensionable pay during a period not exceeding ten years and ending with the earlier of the date the member ceases to be in pensionable employment or the date the member dies; (b) the general level of pensionable pay pertaining in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a); (c) promotion and re-grading prospects in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a); (d) any other matters the Secretary of State considers relevant. (12) Where the Secretary of State determines the amount of a member’s final year’s pensionable pay pursuant to paragraph (10)— (a) the difference between the amount which would, but for that determination, be the member’s final year’s pensionable pay and the amount so determined shall be ignored for the purposes of this regulation (“the ignored amount”); (b) any contributions referable to the ignored amount and paid by the member pursuant to regulation D1 or Q6, paragraph 10 or 23 of Schedule 2 or Schedule 2B, must, net of any tax payable, be refunded to that member; (c) any contributions referable to the ignored amount and paid by the employing authority pursuant to regulation D2 or paragraph 10 or 23 of Schedule 2, or Schedule 2B, must be refunded to that employing authority; (d) the amount so determined is not to be regarded as an “excessive pay increase” for the purposes of regulation D3.

Amendment of regulation D1

6

• (1) Regulation D1 (contributions by members)[^f00005] is amended as follows.

• (2) In paragraph (1A), for “2013-2014” substitute “2014-2015”.

• (3) For the table in paragraph (1A), substitute—

• (4) In paragraph (1B), for “2013-2014” substitute “2014-2015”.

• (5) For the table in paragraph (1B), substitute—

• (6) For paragraph (6), substitute—

(6) Where an employing authority has failed to deduct contributions in accordance with paragraph (5), the Secretary of State may recover any sum that remains due in respect of those contributions by deduction from any payment by way of benefits to, or in respect of, the member provided the Secretary of State has notified the member of an intention to do so: this is without prejudice to any other method of recovery.

Amendment of regulation D2

7

• (1) Regulation D2 (contributions by employing authorities) is amended as follows.

• (2) After paragraph (7A), insert—

(7B) In the case of an employing authority which is an Independent Provider— (a) any additional contributions that are due to the Secretary of State under paragraph (3)(b), (c), (e) and (f) must be paid within one month of the date on which that Provider is notified of that fact; (b) where a Provider fails to make the payment in accordance with paragraph (a), any entitlement to benefits under regulation E3A ceases.

• (3) In paragraph (9)—

• (a) after “fails to pay or remit”, insert “, or has previously failed to pay or remit”;

• (b) after “these Regulations or”, insert “such liabilities as are specified by the Secretary of State under these Regulations or”.

New regulation D3

8

After regulation D2 (contributions by employing authorities), insert—

(D3) (1) This regulation applies where a member becomes entitled to a benefit in accordance with regulation E1, E2A, E3A, E3C, E5 or L1 and the Secretary of State determines that the member’s final year’s pensionable pay determined under regulation C1(6) exceeds the allowable amount. (2) For the purposes of this regulation— (a) Year 1 is the year in which the member ceases to be in pensionable employment or dies, whichever occurs first; (b) Year 2 is the year immediately preceding Year 1; (c) Year 3 the year immediately preceding Year 2. (3) The allowable amount in respect of Year 1 is the lower of— (a) the member’s pensionable pay for Year 1, and (b) the allowable amount for Year 2 increased by the lower of— (i) the aggregate of 4.5% and the percentage increase in the consumer prices index over the preceding twelve months, and (ii) the percentage increase in the member’s pensionable pay Year 1 compared with Year 2. (4) The allowable amount in respect of Year 2 is the lower of— (a) the member’s pensionable pay for Year 2, and (b) the allowable amount for Year 3 increased by the lower of— (i) the aggregate of 4.5% and the percentage increase in the consumer prices index over the preceding twelve months, and (ii) the percentage increase in the member’s pensionable pay Year 2 compared with Year 3. (5) The allowable amount for Year 3 is the lower of— (a) the member’s pensionable pay for Year 3, and (b) the member’s pensionable pay for the year immediately preceding Year 3 increased by the aggregate of 4.5% and the percentage increase in the consumer prices index over the preceding twelve months. (6) An excess employer contribution is determined as follows— - Step 1: find Amount A, which is the difference between the member’s final year’s pensionable pay and the allowable amount for that year - Step 2: calculate Amount B, which is the amount of the pension payable to the member as if the member’s final year’s pensionable pay consisted only of Amount A increased by an amount equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of that amount - Step 3: calculate Amount C, which is the amount of the lump sum payable to the member as if the member’s final year’s pensionable pay consisted only of Amount A increased by an amount equal to any increases that would be due under the Pensions (Increase) Act 1971 on a lump sum of that amount - Step 4: multiply Amount B by the applicable factor to find Amount D - Step 5: in the case of a member who is entitled to a benefit under regulation L1, multiply Amount C by the applicable factor to find Amount E - Step 6: add together— (a) Amount C and Amount E, in the case of a member entitled to a benefit under regulation L1; (b) Amount C and Amount D, in all other cases, to find the amount of the excess employer contribution. (7) Where the member’s final year’s pensionable pay exceeds the allowable amount by reason only of it including an amount in respect of a national award recommended by the Advisory Committee on Clinical Excellence Awards, the body responsible for the funding of that award must pay the excess employer contribution. (8) Paragraphs (9) and (10) apply where Amount A found under Step 1 of paragraph (6) includes both— (a) an increased pay award from the member’s employing authority, and (b) a national award recommended by the Advisory Committee on Clinical Excellence Awards. (9) Where— (a) the inclusion of both of the awards referred to in paragraph (8) in the member’s pensionable pay in Year 3, Year 2 or, as the case may be, Year 1 means that pay is the member’s final year’s pensionable pay in accordance with regulation C1(6), but (b) the exclusion of the award referred to in paragraph (8)(b) from the member’s pensionable pay in the year identified in sub-paragraph (a) would result in a different one of those years being so identified, the Secretary of State, after consulting the Scheme Actuary, is to determine the proportion of the excess employer contribution determined in accordance with paragraph (6) to be paid by the member’s employing authority and the body responsible for the funding of awards recommended by the Advisory Committee on Clinical Excellence Awards: the determination of the excess employer contribution is to take account of the award referred to in paragraph (8)(b). (10) Where the inclusion of both of the awards referred to in paragraph (8) in the member’s pensionable pay in Year 3, Year 2 or, as the case may be, Year 1 means that pay is the member’s final year’s pensionable pay in accordance with regulation C1(6), and the exclusion of the award referred to in paragraph (8)(b) would not result in a different one of those years being so identified, the amount of the excess employer contribution determined in accordance with paragraph (6) (and taking account of the amount referred to in paragraph (8)(b)) payable by the member’s employing authority and the body responsible for the funding of awards recommended by the Advisory Committee on Clinical Excellence Awards is to be determined in accordance with paragraph (11). (11) The amount of the excess employer contribution payable by the member’s employing authority and the body responsible for the funding of awards recommended by the Advisory Committee on Clinical Excellence Awards is to be determined as follows— Step 1: find Amount A in accordance with Step 1 of paragraph (6) Step 2: find Amount F, which is the difference between— (a) the member’s pensionable pay for the member’s last year of pensionable employment as if that, and the member’s pensionable pay in previous years, did not include the award referred to in paragraph (8)(b), and (b) the allowable amount for that year as if the member’s pensionable pay for previous years had not included the award referred to in paragraph (8)(b) Step 3: divide Amount F by Amount A and express the result as a percentage: that is the percentage of the excess employer contribution payable by the member’s employing authority Step 4: subtract the percentage found under Step 3 from 100% to find the percentage of the excess employer contribution payable by the body responsible for the funding of awards recommended by the Advisory Committee on Clinical Excellence Awards. (12) The amount of an excess employer contribution must be paid to the Secretary of State within 1 month of the Secretary of State notifying the payer of its liability for that amount: but the Secretary of State may exceptionally specify that it is to be paid within some other period. (13) Where a payer fails to pay all, or any part, of the excess employer contribution it is liable to pay, the Secretary of State is to give that payer a written notice (“a late payment notice”) specifying all of the following— (a) the amount of the excess employer contribution that is unpaid; (b) the amount of any interest due on the amount referred to in paragraph (a); (c) the amount of the administration charge arising from the late payment of the excess employer contribution; (d) that the amounts in (a) to (c) are to be received by the Secretary of State within 1 month of the date of the notice. (14) Where a payer fails to comply with a late payment notice, the Secretary of State may issue a further late payment notice amended to take account of that failure. (15) Where a member has pensionable employment with more than one employing authority during the years referred to in paragraph (2), this regulation applies to each such employment separately. (16) In the case of a member in part-time employment, this regulation is subject to regulation R5. (17) An increase in pensionable pay during Year 3, Year 2 or, as the case may be, Year 1 which arises solely as a result of the member taking up a new employment with a new employer shall be ignored for the purposes of this regulation: this is subject to the Secretary of State being satisfied that the employer in question is a new employer. (18) If the Secretary of State is not satisfied that the employer in question is a new employer, that employer is to be treated as an employing authority liable for an excess employer contribution in accordance with this regulation. (19) An increase in a member’s pensionable pay due to the acceptance of a transfer payment in the circumstances described in regulation C1(5) shall be ignored for the purposes of this regulation. (20) In any particular case the Secretary of State may direct that, for the purposes of this regulation, “employing authority” includes one or more of— (a) the transferee under a transfer of staff order pursuant to— (i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act; (ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act; (b) without limiting sub-paragraph (a), a successor, transmittee or assignee of an employing authority’s business or functions. (21) For the purposes of this regulation— (a) a “payer” is the person who is liable to pay all or part of an excess employer contribution to the Secretary of State in accordance with this regulation; (b) the pensionable pay to be taken into account by the Secretary of State for a year or part of a year referred to in paragraph (2) will be derived from the pensionable pay for that period recorded in scheme year pension records provided to the Secretary of State in accordance with paragraph (5) of regulation U3; (c) where the member is in pensionable employment for less than 12 months pensionable pay for that year means— (pensionable pay/number of days pensionable employment) x 365 (d) no account is to be taken of increases in pensionable pay prior to 1st April 2014 or more than1095 days prior to the member’s last day of pensionable employment, (e) the applicable factor is to be determined from time to time by the Secretary of State having considered the advice of the Scheme Actuary and having obtained the Treasury’s consent; (f) if the percentage increase in the consumer prices index referred to in paragraphs (3), (4) and (5) is less than zero, it will be regarded as a percentage increase of 0% for the purposes of this regulation; (g) a benefit referred to in paragraph (1) means— (i) in the case of regulation E2A, a benefit including the effects of any increase in pensionable service referred to in paragraph (4) of that regulation; (ii) in the case of regulation E5, a benefit including the effects of any reduction referred to in paragraph (2) of that regulation; (h) for the purposes of making any payment it is liable to pay under this regulation, the body responsible for the funding of awards recommended by the Advisory Committee on Clinical Excellence Awards shall have the same liabilities and duties as an employing authority under these Regulations in respect of that payment.

Amendment of regulation E3A

9

After sub-paragraph (c) of paragraph (2) of regulation E3A (early retirement pension (termination of employment by employing authority))[^f00006], insert—

(ca) where the member’s employing authority is an Independent Provider, that the Secretary of State has received the additional contributions referred to in regulation D2 in respect of that member;

Amendment of regulation R1

10

In paragraph (3) of regulation R1 (practitioners and specialist trainees in general practice)[^f00007],

• omit “the relevant” and after “Schedule 2” insert “and Schedule 2B”.

Amendment of regulation S2

11

After sub-paragraph (b) of paragraph (15) of regulation S2 (reduction of pension on return to NHS employment)[^f00008], add—

(c) a person in respect of whom a pension is payable under any of regulations E1 to E5 and L1 who was employed by an Independent Provider on both the day that Provider’s approval as an employing authority takes effect in accordance with Schedule 2B (“the effective date”) and the day immediately before the effective date, and who— (i) was ineligible to rejoin this Section of the scheme on the effective date and remains ineligible to do so; (ii) made an election not to rejoin this Section of the scheme with effect from the effective date and has not cancelled it; or (iii) was ineligible to rejoin this Section of the scheme on the effective date and became eligible to do so on the day immediately following the expiry of the protection period in regulation E2C(6)(b) (“the day of eligibility”), but who has made an election not to rejoin with effect from the day of eligibility and that election remains operative.

Amendment of regulation T2A

12

• (1) Regulation T2A (deduction of tax: further provisions) is amended as follows.

• (2) In paragraph (8A)[^f00009]—

• (a) after “to the 2011 Act” insert “or paragraph 1 of Schedule 22 to the Finance Act 2013”;

• (b) in paragraph (a), after “Regulations 2011” insert “or the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013[^f00010]”.

• (3) In paragraph (9), after “paragraph (8)” insert “or (8A)”.

• (4) In paragraph (10), after “paragraph (8)” insert “or (8A)”.

Amendment of regulation T8

13

Before sub-paragraph (a) of the definition of “due date” in paragraph (4) of regulation T8 (interest on late payment of benefits)[^f00011], insert—

(za) in the case of a pension payable under regulation E3A, where the member’s employing authority is an Independent Provider the later of— (i) the date on which the Secretary of State receives the additional contributions referred to in regulation D2, or (ii) the day immediately following that on which the member retires from pensionable employment.

New regulation T9

14

After regulation T8 (interest on late payment of benefits), add—

(T9) (1) For the purposes of this regulation there is a “chargeable event” where an employing authority fails to pay, by the dates therein specified, the full amount of contributions it is required to pay under any of the following provisions— (a) regulations D1, D2, D3, Q4, Q5, Q6, Q8, Q10, Q11; (b) paragraph 10 or 23 of Schedule 2, (c) Schedule 2B. (2) Where there is a chargeable event, the amount of contributions that should have been paid under a provision referred to in paragraph (1) is to be determined by the Secretary of State having regard to— (a) the amount of contributions historically paid pursuant to the provision in question by that employing authority; (b) any reasons or explanation provided by the employing authority for the change in the amount of contributions (if any) it has paid pursuant to that provision; (c) any other factors that the Secretary of State considers relevant. (3) Where there is a chargeable event, the employing authority is liable to pay standard rate interest on the amount of unpaid contributions determined under paragraph (2) and an administration charge in respect of each such event. (4) Where the Secretary of State becomes aware of a chargeable event, the Secretary of State shall give the employing authority a written notice specifying— (a) the date of that event; (b) the amount of unpaid contributions determined under paragraph (2) ; (c) the amount of standard rate interest payable in respect of that event; (d) the amount of administration charge payable in respect of it; (e) that payment of the amounts referred to in paragraphs (c) and (d) is to be made within 1 month of the date of the notice and that failure to do so incurs further interest and administration charges. (5) Any amount payable by way of interest or payable by way of an administration charge is to be paid as single lump sum unless the Secretary of State considers the case to be exceptional and considers it appropriate for that amount to be paid over a period, and by a number of instalments, determined by the Secretary of State. (6) Where the Secretary of State considers the case to be exceptional, nothing in the preceding paragraphs prevents the Secretary of State from waiving all or any part of the amount of interest, or all or any part of an administration charges, payable. (7) In respect of arrears in respect of the scheme year 2014-2015 and subsequent years, the standard rate of interest is the consumer prices index for the month of February immediately preceding the scheme year in which the chargeable event arose plus 3 per cent compounded at annual intervals. (8) In respect of arrears in respect of the scheme year 2014-2015 and subsequent years, the administration charge is £75. (9) In any particular case the Secretary of State may direct that, for the purposes of this regulation, “employing authority” includes one or more of— (a) the transferee under a transfer of staff order pursuant to— (i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act; (ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act; (b) without limiting sub-paragraph (a), a successor, transmittee or assignee of all or part of an employing authority’s business or functions.

Amendment of regulation U3

15

For regulation U3 (accounts and actuarial reports), substitute—

(U3) (1) The Secretary of State must keep accounts for the scheme in a form approved by the Treasury. (2) The accounts are to be open to examination by the Comptroller and Auditor General. (3) In respect of a member, an employing authority must keep a record of all— (a) contributions paid under regulations D1, Q6 and Q8; (b) contributions due under regulations D1, Q6 and Q8 but unpaid; (c) contributions paid under regulation D2(1); (d) contributions due under regulation D2(1) but unpaid; (e) hours, half-days or sessions constituting part-time pensionable employment for the purposes of regulation R5; (f) pensionable pay; (g) absences from work referred to in regulations P1 and P2; (h) commencement and termination of pensionable employment; (i) reason for termination of pensionable employment. (4) That record is to be in a manner approved by the Secretary of State. (5) Except where the Secretary of State waives such requirement, an employing authority must provide the Secretary of State with a composite statement in respect of all scheme members covering all the matters referred to in paragraph (3) within 2 months of the end of a scheme year: this is subject to Schedule 2. (6) Where an employing authority has provided the information in accordance with paragraph (5) and subsequently there is a change to any of that information, that employing authority must, within 1 month of the change, provide the Secretary of State with the revised information. (7) In respect of each scheme year an employing authority must, within 2 months of a request and in a manner prescribed by the Secretary of State, provide the Secretary of State with details of the total contributions paid for all scheme members under regulations D1, D2, Q6 and Q8. (8) Where an employing authority has provided the details requested in accordance with paragraph (7) and subsequently there is a change in those details, that employing authority must, within 1 month of the change, provide the Secretary of State with the revised details. (9) An employing authority must, 1 month before the beginning of each scheme year, and in a manner prescribed the Secretary of State, provide the Secretary of State with a statement of estimated total contributions due under regulations D1, D2, Q6 and Q8 for that scheme year.

Amendment of Schedule 2

16

• (1) Schedule 2 (medical and dental practitioners) is amended as follows.

• (2) In paragraph 1 (additional definitions used in this Schedule) in paragraph (e) of the definition of “locum practitioner”[^f00012], before “Local Health Board” insert “a”.

• (3) In sub-paragraph (2) of paragraph 2, after “locum practitioner”, insert “: this is subject to sub-paragraph (16) of paragraph 23”.

• (4) In paragraph 3 (meaning of “pensionable earnings”)—

• (a) for sub-paragraph (2)(a), substitute—

(a) payments made to such a person— (i) pursuant to a GMS contract, a PMS agreement or an APMS contract, an NHS standard contract or a contract entered into by a local authority pursuant to its functions under the 2006 Act relating to the improvement and protection of public health and which the Secretary of State agrees to treat as a qualifying contract for these purposes; (ii) in respect of the performance of certification services, commissioned services or collaborative services where the practitioner is a GMS practice, a PMS practice or an APMS contractor: this also applies to such payments received from such a practitioner; (iii) in respect of the provision of primary medical services under, in the case of England, section 83(2)(a) of the 2006 Act or, in the case of Wales, section 41(2)(a) of the 2006 (Wales) Act where such a person has been engaged by a Local Health Board to assist in the provision of such services; (iv) in respect of the provision of locum services; (v) in respect of the performance of primary medical services, commissioned services, collaborative services, NHS 111 services and certification services where those payments are made by an OOH provider or other employing authority providing OOH services; (vi) in respect of primary dental services, general ophthalmic services or pharmaceutical services; (vii) in respect of practice-based work carried out in educating or training, or organising the education or training of, medical students or practitioners; (viii) in respect of the provision of primary medical services where such a person has been engaged by a clinical commissioning group to assist in the provision of such services;

• (b) in sub-paragraph (2C) after paragraph (a), insert—

(aa) a dental trainers grant;

• (5) In paragraph 5 (elections relating to calculation of “pensionable earnings” in medical partnerships), omit sub-paragraph (5).

• (6) In paragraph 6 (meaning of “pensionable earnings” in relation to other practitioners)—

• (a) in sub-paragraphs (1)(a) and (2), omit “or for overtime”;

• (b) in sub-paragraph (1)(a), after “pharmaceutical services” insert “an NHS standard contract or a contract entered into by a local authority pursuant to its functions under the 2006 Act relating to the improvement and protection of public health and which the Secretary of State agrees to treat as a qualifying contract for these purposes”

• (c) for sub-paragraph (4), substitute—

(4) In this paragraph, references to the provision of locum services, in relation to a practitioner, are to board and advisory work performed for the National Health Service Commissioning Board or a Local Health Board, and— (a) primary medical services, (b) commissioned services, (c) collaborative services, (d) health-related functions exercised under section 75 of the 2006 Act, (e) pharmaceutical services, (f) NHS 111 services, (g) services pursuant to an NHS standard contract or a contract entered into by a local authority pursuant to its functions under the 2006 Act relating to the improvement and protection of public health and which the Secretary of State agrees to treat as a qualifying contract for these purposes, (h) performed by a practitioner engaged by an employing authority under a contract for services to deputise for a registered medical practitioner or to temporarily assist in the provision of such services.

• (7) in paragraph 10 (contributions to this section of the scheme)—

• (a) for sub-paragraph (1A)[^f00013] substitute—

(1A) For the purposes of this paragraph, the “relevant table” means— (a) in respect of the 2013-2014 scheme year, table 1; (b) in respect of the 2014-2015 scheme year, table 2.

• (b) for sub-paragraphs (2H) to (2N), substitute—

(2H) A practitioner and a non-GP provider member whose applicable pensionable earnings fall into a pensionable earnings band specified in column 1 of the relevant table in sub-paragraph (1A) 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. (2I) For the purposes of sub-paragraph (2H), a practitioner and a non-GP provider 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 paragraph 23(12); (b) in the absence of an agreement referred to in sub-paragraph (a), whichever of the following the host Board considers the most appropriate in the circumstances— (i) an estimate of the amount of that member’s earnings that corresponds to that member’s most recent certified pensionable earnings referred to in paragraph 23, or (ii) the amount of earnings that corresponds to the host Board’s estimate of that member’s pensionable earnings from, as the case may be, all practitioner, or non-GP provider sources for that year. (2J) 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 that last agreed under paragraph (a) of sub-paragraph (2I) or last determined under paragraph (b) of that sub- paragraph, that member must pay the monthly contributions determined in accordance with sub-paragraph (2K). (2K) 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 sub-paragraph (1A) - 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. (2L) A member must pay monthly contributions determined in accordance with sub-paragraph (2M), where— (a) during the scheme year the host Board is satisfied that the member’s pensionable earnings will exceed those last agreed under paragraph (a) of sub-paragraph (2I) or last determined under paragraph (b) of that sub-that paragraph, (b) an agreement referred to in paragraph (a) of sub-paragraph (2I) 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. (2M) Those monthly contributions are to be determined as follows— - Step 1: take the new estimated pensionable earnings determined in accordance with sub-paragraph (2L)(c) (Amount D) - Step 2: find the percentage rate of contributions payable on Amount D earnings applying the relevant table in sub-paragraph (1A) - 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. (2N) A practitioner (other than a dentist performer) and a non-GP provider member must pay contributions determined in accordance with sub-paragraph (2O) where, in respect of a scheme year to which one or more of sub-paragraph (2I), (2J) and (2L) applied throughout that year, that member has— (a) in accordance with paragraph 23 of this Schedule, 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 sub-paragraphs (2H), (2J) or (2L). (2O) 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 sub-paragraph (1A) - 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 (2H), (2J) or (2L) prior to the certification of earnings in accordance with paragraph 23 of this Schedule. (2P) For the purposes of sub-paragraph (2O), a member’s aggregate earnings are the aggregate of— (a) the certified or final pensionable earnings from all practitioner (but not dentist performer) or, as the case may be, non-GP provider sources, and (b) any additional pensionable earnings the member is treated as having received during an absence from work in accordance with regulation P1 or P2 as modified by paragraph 19 of this Schedule. (2Q) A dentist performer member must pay contributions determined in accordance with sub-paragraph (2R) where, in respect of a scheme year to which one or more of sub-paragraph (2I), (2J) and (2L) applied throughout that year, that dentist performer has— (a) in accordance with paragraph 23 of this Schedule, certified their pensionable earnings for that year and forwarded it to the host Board, or (b) was not required to certify their earnings in accordance with that paragraph but the host Board has the figure that represents that member’s pensionable earnings for that scheme year. (2R) The contributions are payable at the rate specified in column 2 of the relevant table in sub-paragraph (1A) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to that part of the relevant aggregate which exceeds the amount of pensionable earnings on which contributions have already been paid pursuant to any or all of sub-paragraphs (2H), (2J) or (2L). (2S) For the purposes of sub-paragraph (2R), the relevant aggregate is 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 from the date the dentist performer service commenced in the scheme year to the end of the scheme year, and (b) any additional pensionable earnings the dentist performer is treated as having received during an absence from work in accordance with regulation P1 or P2 as modified by paragraph 19 of this Schedule.

• (c) for sub-paragraph (7), substitute—

(7) Where— (a) the type 1 medical practitioner is a shareholder or partner in more than one employing authority referred to in sub-paragraph (6), each such employing authority shall pay D2(1) contributions on any pensionable earnings it pays to that practitioner or, as the case may be, on the practitioner’s share of the partnership profits, to the host Board; (b) the non-GP provider is a shareholder or partner in more than one employing authority referred to in sub-paragraph (6), that non-GP provider must nominate one of those employing authorities and that nominated authority must pay D2(1) contributions on any pensionable earnings it pays to that non-GP provider or, as the case may be, on the non-GP provider’s share of the partnership profits, to the host Board.

• (d) for sub-paragraph (14), substitute—

(14) Contributions which are required to be paid to the host Board— (a) other than pursuant to sub-paragraphs (2N) or (2Q) must be paid to that Board not later than the 7th day of the month following the month in which the earnings were paid; (b) pursuant to sub-paragraph (2N) or, as the case may be, sub-paragraph (2Q) at the same time as providing that Board with the certificate referred to in the relevant sub-paragraph.

• (e) in sub-paragraph (17), in—

• (i) paragraph (a), for “D1 contributions” substitute “contributions payable pursuant to regulations D1, Q4, Q5, Q6, Q8 and Q10”;

• (ii) paragraph (c) for “D1 contributions”, substitute “or pay to the Secretary of State contributions pursuant to regulations D1, Q4, Q5, Q6, Q8 and Q10”;

• (f) in sub-paragraph (17A), in paragraph (b) for “such a deduction must be to the member’s advantage and is subject to the member’s consent” substitute “such a deduction may only be made where the Secretary of State has notified the member of an intention to do so”;

• (g) after sub-paragraph (17B), insert—

(17C) Notwithstanding regulation R1 and regulation D2(1), contributions payable by an employing authority in respect of a GP Provider or non-GP Provider under these Regulations and any administration charge or interest under regulation T9 payable in respect of them, are not payable by the National Health Service Commissioning Board or a relevant Local Health Board but are— (a) payable by that GP Provider or non-GP Provider where that Provider is a sole Provider, or (b) payable by the practice where the provider is a GP Provider or non-GP Provider.

• (8) in paragraph 23 (accounts and actuarial reports)[^f00014]—

• (a) in sub-paragraphs (2)[^f00015] and (3), after “certificate” insert “that correctly records the totality”;

• (b) in sub-paragraph (12), for “Secretary of State with a statement of” substitute “host Board and the Secretary of State with a statement of estimated contributions due under regulations D1, D2, Q6 and Q8”;

• (c) for sub-paragraph (15), substitute—

(15) No later than 13 months after the end of each scheme year, each employing authority, GDS contractor and PDS contractor must forward to the Secretary of State a copy of the records referred to in regulation U3(3) and (4).

• (d) for sub-paragraph (16), substitute—

(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 practitioner or non-GP Provider has failed to comply with the requirements of— (a) whichever of sub-paragraphs (2), (3), (5), (6) or (7) applies to that member, or (b) sub-paragraph (2) of paragraph 2. This is subject to sub-paragraphs (17) and (18).

New Schedule 2B

17

After Schedule 2A (pension sharing on divorce or nullity of marriage or on dissolution or nullity of a civil partnership), insert—