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The National Health Service Pension Scheme Regulations 2015

Type Statutory-Instrument

Publication 2015-02-05

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

Reform history JSON API PDF

Made: 5th February 2015

Laid before Parliament: 12th February 2015

Coming into force: 1st April 2015

The Secretary of State for Health makes these Regulations in exercise of the powers conferred by sections 1(1) and (2)(e), 2 to 4, 5(1), (2) and (4), 7(1) and (4), 8(1)(a) and (2)(a), 11(1), 12(6) and (7) , 14, 18(5) to (7), 25, and paragraph (c) of the definition of “employer” in section 37 of, and paragraph 5(a) of Schedule 2 and Schedule 3 to, the Public Service Pensions Act 2013 .

In accordance with section 21 of that Act, the Secretary of State has consulted the representatives of such persons as appear to the Secretary of State likely to be affected by these Regulations.

In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.

PART 1 — Preliminary

Citation, extent and commencement

1

These Regulations—

(a) may be cited as the National Health Service Pension Scheme Regulations 2015;

(b) come into force on 1st April 2015; and

Establishment of the NHS Pension Scheme 2015

2

(1) A scheme is established for the payment of pensions and other benefits to or in respect of—

(a) health service workers mentioned in regulation 18(1); and

(b) such other persons mentioned in regulation 18(2).

(2) This scheme is to be known as the NHS Pension Scheme 2015.

PART 2 — Governance

CHAPTER 1 — Management

Scheme manager

3

(1) The Secretary of State is the scheme manager and is responsible for managing or administering—

(a) this scheme; and

(b) any statutory pension scheme that is connected with it.

(2) The Secretary of State may make arrangements for any or all of the functions and responsibilities as scheme manager under these Regulations to be performed on the Secretary of State's behalf by—

(a) the NHS Business Services Authority (Awdurdod Gwasanaethau Busnes y GIG) ; or

(b) one or more persons or bodies corporate or unincorporate (and where more than one, may include that Authority),

but any such arrangements do not affect the Secretary of State's liability for those functions and responsibilities.

Pension Board

4

There is to be a Pension Board constituted in accordance with Schedule 1 which has responsibility for assisting the scheme manager in relation to—

(a) securing compliance with these Regulations and other legislation relating to the governance and administration of—

(i) this scheme; and

(ii) any statutory pension scheme that is connected with it;

(b) securing compliance with any requirements imposed by the Pensions Regulator in relation to—

(i) this scheme; and

(ii) any statutory pension scheme that is connected with it.

Scheme Advisory Board

5

There is to be a Scheme Advisory Board constituted in accordance with Schedule 2 which has responsibility for providing advice where requested to the Secretary of State on the desirability of changes to—

(a) this scheme; and

(b) any statutory pension scheme that is connected with it.

CHAPTER 2 — Actuary and valuation

Appointment of scheme actuary

6

(1) The Secretary of State must appoint a person (the scheme actuary) for the purposes of carrying out—

(a) actuarial valuations of this scheme and connected schemes required by Treasury directions given under section 11 of the 2013 Act; and

(b) such other actuarial functions as may be required in relation to this scheme or a connected scheme.

(2) Before making an appointment under paragraph (1), the Secretary of State must be satisfied that the person to be appointed is appropriately qualified.

Actuarial valuations

7

(1) The scheme actuary must carry out an actuarial valuation of this scheme and connected schemes as at the effective date.

(2) The scheme actuary must provide a valuation report to the scheme manager not later than such date as may be agreed by the Secretary of State.

(3) The effective date is—

(a) in respect of the first valuation under paragraph (1), 31st March 2016;

(b) in respect of subsequent valuations, such dates as enable the scheme to comply with Treasury directions as to valuations.

Employer cost cap

8

(1) The employer cost cap for this scheme is 11.6% of the pensionable earnings of members of the scheme.

(2) “Employer cost cap” has the same meaning as in section 12 of the 2013 Act.

Cost of scheme exceeds margins

9

The scheme actuary must give notice to the Secretary of State if the actuarial valuation shows that the cost of this scheme would be outside the margins specified in Treasury regulations pursuant to section 12(5) of the 2013 Act.

Procedure for agreeing steps to achieve target cost

10

(1) This regulation applies if notice is given under regulation 9.

(2) The Secretary of State must make a request to the Scheme Advisory Board—

(a) to consider the matter; and

(b) give advice to the Secretary of State as to the means by which the target cost is to be achieved.

(3) The Secretary of State must consider the advice and seek to reach agreement with the Scheme Advisory Board as to the means by which the target cost is to be achieved.

(4) In acting under paragraphs (2) and (3), the Secretary of State must specify the date before which—

(a) the advice must be provided; and

(b) agreement must be reached.

No agreement reached

11

(1) This regulation applies if no agreement is reached as mentioned in regulation 10.

(2) If the costs of the scheme are outside the margins as mentioned in regulation 9, the Secretary of State must adjust the fraction specified in paragraph 13(3) of Schedule 9 so as to achieve the target cost.

Approval mechanism

12

An agreement under regulation 10 or an adjustment under regulation 11 must not be implemented unless—

(a) the scheme actuary certifies that the agreement or adjustment (as the case may be) will have the effect of enabling the scheme to meet the target cost; and

(b) the Treasury approves the agreement or adjustment.

Target cost

13

In regulations 10 to 12, “target cost” must be construed in accordance with section 12(5)(b) of the 2013 Act.

CHAPTER 3 — General

Administrative matters

14

Schedule 3 makes provision in relation to—

(a) scheme accounts and information;

(b) claims for, and payments of, benefits;

(d) assignment, offset and forfeiture;

(e) insolvency of persons entitled to benefits;

(f) determination of questions;

(g) taxation.

PART 3 — Scheme membership

CHAPTER 1 — Joining and leaving

Joining and leaving the scheme

15

(1) Each person who is eligible to join this scheme pursuant to regulation 18 is included in the scheme—

(a) automatically on commencing NHS employment;

(b) subject to regulation 16, where the person has previously opted out of this scheme, on the date determined under paragraph 2 of Schedule 4, where that paragraph applies;

(c) subject to regulation 16, where the person has previously opted out of this scheme and is a person to whom section 3 or 5 of the 2008 Act applies—

(i) on that person's automatic enrolment date; or

(ii) on that person's automatic re-enrolment date, except where the notice referred to in paragraph 1 of Schedule 4 was given within the 12 months immediately preceding that date.

(2) A person who is included in this scheme may opt out at any time in accordance with paragraph 1 of Schedule 4.

(3) In this Chapter—

(a) “the 2008 Act” means the Pensions Act 2008;

(b) “the 2010 Regulations” means the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 .

(4) Paragraph (1) does not apply to a locum practitioner.

(5) A locum practitioner who wishes to join this scheme must make an application to the scheme manager in such form as the scheme manager requires.

(6) The application must not relate to a period of engagement which ended more than 10 weeks before the date of the application.

(7) If the scheme manager accepts an application under paragraph (5) the locum practitioner's membership of this scheme takes effect on the date specified by the scheme manager.

Re-joining the scheme

16

(1) Subject to paragraph (2), a person who has opted out of this scheme in accordance with paragraph 1 of Schedule 4 may re-join this scheme pursuant to paragraph 2 of that Schedule.

(2) A person may not re-join this scheme during any period of absence from work for any reason.

Automatic enrolment legislation

17

(1) Regulations 15 and 16 do not apply to a person to whom sections 3, 5 or 8 of the 2008 Act and regulations 9 or 15 of the 2010 Regulations applies (that is, a person who is subject to automatic enrolment or re-enrolment in this scheme as a qualifying scheme who does not wish to participate in it).

(2) Paragraph (1) does not affect the rights of such a person who subsequently joins or re-joins this scheme in circumstances where those provisions of the 2008 Act and 2010 Regulations do not apply.

CHAPTER 2 — Membership

Membership

18

(1) Subject to regulation 19, a person is eligible to join this scheme if the person is a health service worker and is—

(a) employed by an NHS organisation listed in Part 1 of Schedule 5;

(b) an individual who is a medical contractor, or who is employed by a medical contractor or dental contractor, listed in Part 2 of that Schedule;

(d) an individual who is a medical practitioner or dental practitioner listed in Part 3 of that Schedule; or

(e) who is employed by a determination employer: see Part 4 of that Schedule.

(2) Subject to regulation 19, a person is eligible to join this scheme if the person is—

(a) an individual of a category or description listed in Schedule 6; and

(b) a person in respect of whom the Secretary of State has made a determination under section 25(5) of the 2013 Act.

(3) Where such a determination is made, these Regulations apply to the person subject to any modification made by the Secretary of State by direction under section 25(8) of the 2013 Act.

(4) The circumstances are that the person—

(a) performs services pursuant to an approved qualifying contract (see regulation 150(3)); and

(b) satisfies the wholly or mainly condition (see regulation 150(4)).

(5) In paragraph (1), the reference to a person being employed does not include a reference to a person engaged under a contract for services.

(6) Where, in relation to a single employment or engagement for provision of services, a person is eligible to join this scheme by virtue of more than one of the sub-paragraphs of paragraphs (1) or (2), the scheme manager must determine which one sub-paragraph is to be used as the basis for membership.

Restrictions on membership

19

(1) A person is not eligible to be a member of this scheme if the person—

(a) is under the age of 16 or over the age of 75;

(b) is eligible to be an active member of—

(i) a superannuation scheme established under section 1 or 9 of the Superannuation Act 1972 ; or

(ii) a public service pension scheme established under section 1(2)(a) or l(2)(d) of the 2013 Act,

in respect of service in such a scheme and is such a member;

(d) is a pensioner member of the 1995 Section or the 2008 Section except so far as otherwise provided pursuant to the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015;

(e) holds an honorary appointment and is not at the same time otherwise entitled to join this scheme;

(f) is employed by a dental contractor but is not a dental practitioner;

(g) is employed by—

(i) a GMS practice;

(ii) a PMS practice; or

(iii) an APMS contractor,

(iv) a primary care network management company

but does not assist the employer in the provision of services for the purposes of the GMS contract, PMS agreement or APMS contract or primary care network standard sub-contract (as the case may be);

(h) is a person—

(i) who—

(aa) becomes entitled to a Tier 2 IHP (see regulation 90); and

(bb) opts to exchange the Tier 2 IHP for a lump sum pursuant to regulation 109; or

(ii) to whom regulation 96(5)(b) applies.

(2) Schedules 7 and 8 make provision in relation to other persons who are not eligible to become members of this scheme except as permitted by the Secretary of State.

CHAPTER 3 — Pensionable service

Pensionable service

20

(1) Pensionable service is the aggregate of the following periods—

(a) a period of service in which a member (M) contributes to this scheme under regulation 30 or 31;

(b) a period of absence from service which counts as pensionable service under regulation 21; and

(2) M's pensionable service does not include—

(a) a period of service in respect of which an employing authority or the Secretary of State has paid contributions to another occupational pension scheme in respect of M;

(b) where M is a pensioner member or a deferred member, a period taken into account—

(i) in determining M's entitlement to the pension in payment or, as the case may be, the deferred pension; or

(ii) in calculating the amount of the pension;

(i) by the payment of a contributions equivalent premium under section 55(2) of the 1993 Act or article 3 of the 2016 Order;

(ii) under regulation 42 (effect of refund); or

(iii) by the payment of a transfer value payment on transfer out under Part 7 (transfers).

(3) Paragraph (4) applies if—

(a) the employment in which M is an active member ceases; and

(b) a payment is made in respect of untaken leave.

(4) If this paragraph applies—

(a) M's pensionable service is treated as continuing for a period equal to the period of leave in respect of which payment is made; and

(b) the payment is treated as M's pensionable earnings for the period.

(5) If M—

(a) is a pensioner member; and

(b) is entitled to a pension under regulation 85 (partial retirement),

paragraph (2)(b) applies only to so much of M's pensionable service as is mentioned in regulation 85(3)(a) (the specified percentage of the pensionable service in respect of which M is an active member on the election day).

(6) For the purposes of calculating the length of a period of pensionable service—

(a) a year is a period of 365 days;

(b) 29th February in any year is ignored;

Absence from work

21

(1) Paragraph (2) applies if a member (M) is absent from work because of—

(a) illness or injury;

(b) maternity leave;

(d) paternity leave; ...

(e) parental leave shared parental leave or parental bereavement leave; ...

(f) carer’s leave ; or

(g) neonatal care leave.

(2) The period of absence counts as pensionable service if M contributes to this scheme under regulation 30 or 31 in respect of the period of absence.

(3) Paragraph (4) applies if M—

(a) is on leave of absence;

(b) is not within paragraph (1); and

(4) The maximum period of leave that can be counted as pensionable service is—

(a) if M contributes for a continuous period of 6 months starting with the first day of M's leave of absence, 6 months;

(b) if M contributes for a continuous period of less than 6 months starting with that day, the period in respect of which M pays the contributions.

(5) Paragraph (6) applies if M—

(a) has paid contributions for the period mentioned in paragraph (4)(a);

(b) remains on leave of absence that is not within paragraph (1); and

(c) at the same intervals as contributions made by M before the absence, contributes both member contributions under regulation 30 or 31 and employing authority contributions under regulation 33.

(6) The maximum period of leave that can be counted as pensionable service is—

(a) if M contributes for a continuous period of 18 months starting immediately after the end of the period mentioned in paragraph (4)(a), 18 months; and

(b) if M contributes for a continuous period of less than 18 months starting immediately after the end of that period, the period in respect of which M pays the contributions.

Qualifying service

22

(1) The qualifying service of a member (M) is the aggregate of the following periods—

(a) M's pensionable service, except service mentioned in regulation 20(1)(c);

(b) a transfer in period;

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