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The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008

Type Ni-Statutory-Rule

Publication 2008-06-17

Last updated 2025-06-18

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(1G) For the purposes of paragraphs (1C)(b) and (1E)(b), any break in service where the member was in pensionable service in an existing scheme (within the meaning of Schedule 5 to the 2014 Act) is to be disregarded.

(1H) Paragraph (1I) applies to a person who in the opinion of the Department—

(a) was previously an active member of a corresponding 2008 scheme;

(b) the regulations governing that corresponding scheme include provisions pursuant to subsection (5) of section 18 of the 2014 Act that provide for exceptions to subsection (1) of that section, and

(c) pursuant to those provisions, the member would have been eligible to re-join that corresponding scheme if the member had returned to HSC employment for the purposes of that scheme on the day the member commenced HSC employment within the meaning of these Regulations.

(1I) The Department may permit a person referred to in paragraph (1H) to join this Section of the Scheme and, for the purposes of paragraphs (1C) to (1G), the member’s previous pensionable employment under the corresponding scheme referred to in paragraph (1H) will be treated as is it were previous pensionable employment under this Section of the Scheme.

(1J) Paragraph (1K) applies to a person who, in the opinion of the Department—

(a) was previously an active member in respect of service in an existing scheme (within the meaning of Schedule 5 to the 2014 Act),

(b) is not receiving a pension in respect of that service on the relevant day,

(c) the regulations of that existing scheme include provisions pursuant to subsection (5) of section 18 of the 2014 Act that provide for exceptions to subsection (1) of that section,

(d) pursuant to those provisions, the person would have been eligible to be an active member of the existing scheme if the member had returned to employment for the purposes of that scheme on the relevant day, and

(e) the member would, if the member’s previous service in the existing scheme had been previous service under this Section of the Scheme, have been eligible for active membership of this Section of the Scheme on the relevant day pursuant to paragraphs (1A) to (1G).

(1K) The Department may permit a person referred to in paragraph (1J) to join this Section of the Scheme and, for the purposes of paragraphs (1C) to (1G), the member’s previous service as an active member under the existing scheme referred to in paragraph (1J) will be treated as if it were previous service as an active member of this Section of the Scheme.

(1L) For the purposes of paragraphs (1J) and (1K) “the relevant day” is the day the member commences HSC employment for the purposes of these Regulations.

(1M) A person referred to in paragraph (1C), (1E), (1I) or (1K) may elect, using a form provided by the Department, not to make contributions or accrue further service under this Section of Scheme in accordance with whichever of those paragraphs apply, but instead (where eligible) to become an active member of the 2015 Scheme.

(1N) An election—

(a) is irrevocable,

(b) must be given to the Department before the date specified by the Department in the election form,

(1O) The date referred to in sub-paragraph (1N)(b) must be a date that is at least three months later than the date on which the Department provided the member with an election form.

(1P) An election shall be effective from the first day of the member’s pensionable employment in the 2008 Section falling on, or after, 1st April 2015, and from that date—

(a) that member is to be treated as if that member had been an active member of the 2015 Scheme; and

(b) contributions made in respect of the member in the 2008 Section shall be treated as if they had been contributions made in respect of that member in the 2015 Scheme.

(1Q) The Department may allow a member to exercise an election after the date specified under sub-paragraph (1N)(b) where the Department considers that the member has not had a reasonable opportunity to consider whether to exercise an election before that date.

(2) A person is not eligible to be an active member of this Section of the Scheme in respect of service in an employment if the person is an active member of a superannuation scheme established under Article 3 or 11 of the Superannuation (Northern Ireland) Order 1972 in respect of service in that employment.

(3) A person who holds an honorary appointment and does not at the same time hold any other employment which entitles him to be a member of this Section of the Scheme is not eligible to be an active member of this Section of the Scheme.

(4) A person is not eligible to be an active member of this Section of the Scheme in any further employment if the person—

(a) becomes entitled to a tier 2 pension under regulation 182, and

(b) opts to exchange that pension for a lump sum in accordance with regulation 186.

(5) A person who is entitled to the immediate payment of a pension under this Section of the Scheme under a regulation that requires the person not to be in HSC employment may only be an active member in accordance with—

(a) regulation 180,

(b) regulation 239 (effect of re-employment on tier 2 ill-health pensions),or

(6) A person is not eligible to be an active member of this Section of the Scheme in any future employment if the person—

(a) ceases to be entitled to a tier 1 ill-health pension under regulation 182; and

(b) becomes entitled to a tier 2 ill-health pension under that regulation on the date the Department makes a determination under regulation 183(3).

This is subject to paragraph (7).

(7) A person to whom paragraph (6) applies is eligible to be an active member of this Section of the Scheme in any further employment after the first anniversary of that person’s first day of such employment following the date of the Department’s determination under regulation 183.

(8) A person is not eligible to be an active member of this Section of the Scheme if that person is a person, other than a registered dentist, who is employed as a dental pilot scheme employee otherwise than by a HSC Trust, and who either—

(a) was, immediately prior to the commencement of such employment, a HSC dental employee who was not eligible to join the scheme; or

(b) has not previously been in employment as a HSC dental employee.

(9) A person is not eligible to be an active member of this Section of the Scheme if that person is a provider of personal dental services under a pilot scheme to whom these Regulations did not apply immediately prior to the commencement of the pilot scheme, other than a registered dentist.

Concurrent employments

155

A practitioner may participate in this Section of the Scheme in respect of employment as a practitioner even if he also participates in Part 2 in respect of concurrent whole-time or part-time employment as an officer within the meaning of that Part.

Joining and leaving the Scheme

Joining the Scheme

156

(1) Subject to paragraph (3), a person in HSC employment who is eligible to be an active member of this Section of the Scheme becomes such a member, unless absent from work for any reason, on either—

(a) the commencement of the person’s employment; or

(b) in circumstances where the person has previously opted out of this Section of the Scheme under regulation 157(1), on that person’s—

(i) automatic enrolment date; or

(ii) automatic re-enrolment date, except where the notice referred to in regulation 157(1) was given within the 12 months immediately preceding that date.

(2) A person who is eligible to be such a member by virtue of falling within regulation 153(3)(b) may opt to become such a member by giving notice in writing to the employing authority.

(3) A person who has previously exercised an option to opt out of this Section of the Scheme in accordance with regulation 157(1) in respect of an employment in which that person was an active member, and who remains eligible to be such a member in respect of that employment, may opt to join or re-join this Section of the Scheme by giving notice in writing to the employing authority in such form as the Department requires.

(4) A notice under paragraph (3) takes effect—

(a) from the beginning of the first pay period to begin after the notice is received by the employing authority, or

(b) if the notice specifies a date that is the first day of a later pay period, from that date.

(5) A notice under paragraph (3) may not be given by a person who is absent from work for any reason.

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

Opting out of the Scheme

157

(1) A person who is an active member of this Section of the Scheme in any HSC employment may opt at any time to cease to be such a member by giving notice in writing to the person's employing authority.

(2) A person who opts out under paragraph (1) ceases to be an active member of this Section of the Scheme on the date the notice takes effect and, if applicable, any contributions made by or on behalf of the person for a period of membership after the date on which the notice was effective must be refunded.

(3) The notice takes effect—

(a) from the beginning of the first pay period to begin after the notice is received by the employing authority, or

(b) if the notice specifies a later date, from the beginning of the first pay period after that in which the specified date falls.

(4) A person to whom paragraph (1)(a) of regulation 156 applies in respect of an employment who gives notice in writing under paragraph (1) of this regulation within one month of the date of commencing that HSC employment, is treated as not having become an active member by virtue of that regulation.

(5) A notice under paragraph (1) shall cease to have effect on the day immediately preceding, as the case may be, the person’s—

(a) automatic enrolment date, or

(b) automatic re-enrolment date: this does not apply where the notice was given within 12 months immediately preceding that date.

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

(7) A practitioner who opts not to contribute to this Section of the Scheme in respect of one or more employments as a practitioner under this Part must do so in respect of all his employments as a practitioner but may, nevertheless, participate in this Section of the scheme in respect of concurrent employment as an officer under Part 2 or as a locum practitioner : this is subject to paragraph (10) of regulation 260.

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

Restriction on further participation in this Section of the Scheme

158

(1) A person who ceases to meet conditions A, B and C in regulation 153 in an employment or is prevented by regulation 154 from continuing to be an active member in an employment must cease to be an active member of this Section of the Scheme in that employment.

(2) Accordingly—

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

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

Membership: locum practitioners

159

(1) Regulation 156 does not apply to a locum practitioner.

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

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

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

CHAPTER 3 — CONTRIBUTIONS

Basic contributions by members

Contributions by members

160

(1) Each active member must make contributions to this Section of the Scheme (“member contributions”) in respect of the member's pensionable earnings in accordance with regulation 161.

(2) Contributions under paragraph (1) will be paid at the rate specified in regulation 161 and in accordance with this Chapter.

(3) A member who is absent from service in circumstances within regulation 140(1) to (3A) may make contributions to this Section of the Scheme in respect of the member's pensionable earnings in accordance with those provisions and regulation 161.

Members' contribution rate

161

(1) Contributions under regulation 160(1) must be paid at the member’s contribution rate for the scheme year in question.

(2) A member’s contribution rate is the percentage specified in column 2 of the relevant table in paragraph (17) in respect of the corresponding pensionable earnings band specified in column 1 of that table into which the member’s pensionable earnings falls.

(3) The pensionable earnings bands and contribution percentage rates shall be determined in accordance with the relevant table in respect of each scheme year.

(5) If, in respect of a scheme year, a practitioner (other than a dentist performer) has—

(a) certified their pensionable earnings in accordance with regulation 260 and forwarded a record of those earnings to the host Board; or

(b) was not required to certify their earnings in accordance with that regulation but the host Board has the figure that represents the practitioner’s pensionable earnings for that scheme year,

contributions payable for that scheme year, shall be those specified in column 2 of the relevant table in paragraph (17) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to the aggregate of—

(i) the certified or final pensionable earnings from all practitioner sources, and

(ii) any additional pensionable earnings the practitioner (other than a dentist performer) is treated as having received during a break in service in accordance with regulation 144.

(6) If paragraph (5) does not apply to a practitioner (other than a dentist performer) in respect of a scheme year, contributions are payable for that scheme year at the rate in column 2 of the relevant table in paragraph (17) on the basis of whichever of the following the host Board considers the most appropriate in the circumstances —

(a) the amount of the practitioner’s (other than a dentist performer) earnings that has been agreed between the host Board on the one hand and the practitioner on the other hand; or

(b) the amount of the practitioner’s (other than a dentist performer) earnings that corresponds to the practitioner’s most recent certified or final pensionable earnings referred to in paragraph (5); or

(c) the amount of the practitioner’s (other than a dentist performer) earnings that corresponds to the host Board’s estimate of the practitioner’s pensionable earnings from all practitioner sources for that year.

This is subject to paragraph (7).

(7) If paragraph (6) applies to a practitioner (other than a dentist performer) in respect of a scheme year and paragraph (5)(a) or (b) is subsequently satisfied in respect of that scheme year, that practitioner (other than a dentist performer) shall pay contributions at the rate determined in accordance with paragraph (5).

(8) If, for any scheme year, a dentist performer has—

(a) certified their pensionable earnings in accordance with regulation 260 and forwarded a record of those earnings to the host Board; or

(b) was not required to certify their earnings in accordance with that regulation but the host Board has the figure that represents the dentist performer’s pensionable earnings for that scheme year,

(i) certified or final pensionable earnings from all dentist performer sources, up-rated according to the formula—

$$(PE/NDPS)×365$where—PE is the certified or final amount of dentist performer’s pensionable earnings from all dentist performer sources for that year; NDPS is the number of days of dentist performer’s service in the scheme year to the end of the scheme year, and$

(ii) any additional pensionable earnings the dentist performer is treated as having received during a break in service in accordance with regulation 144.

(9) If paragraph (8) does not apply to a dentist performer in respect of a scheme year, that dentist performer shall pay contributions at the rate in column 2 of the relevant table in paragraph (17) on the basis of whichever of the following the host Board considers the most appropriate in the circumstances —

(a) the amount of the dentist performer’s earnings that has been agreed between the host Board on the one hand and the dentist performer on the other hand; or

(b) the amount of the dentist performer’s earnings that corresponds to the dentist performer’s most recent certified or final superannuable earnings referred to in paragraph (8); or

(c) the amount of the dentist performer’s earnings that corresponds to the host Board’s estimate of the dentist performer’s pensionable earnings from all dentist performer sources for that year up-rated according to the formula referred to in paragraph (8) .

This is subject to paragraph (10).

(10) If paragraph (9) applies to a dentist performer in respect of a scheme year and paragraph (8)(a) or (b) is subsequently satisfied in respect of that scheme year, that dentist performer shall pay contributions at the rate determined in accordance with paragraph (8).

(11) A host Board may adjust a practitioner’s contribution rate for any scheme year determined in accordance with paragraph (6) or (9)—

(a) by agreement between the host Board on the one hand and the practitioner on the other hand; or

(b) without such agreement, if the host Board is satisfied that pensionable earnings will exceed the amount used to determine the contribution rate in accordance with those paragraphs.

(12) If a member is in practitioner service and concurrently in HSC employment in respect of which the member is liable to pay contributions in accordance with regulation 27, contributions payable in respect of the member’s practitioner service shall be determined under this Part and contributions payable in respect of the member’s HSC employment shall be determined under Part 2.

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

(14) In determining the contributions payable in accordance with this regulation and regulation 162 , a host Board must take account of pensionable earnings as a practitioner or, as the case may be, a dentist performer, from all practitioner or, as the case may be, dentist performer sources, including any such pensionable earnings determined by another host Board.

(15) An employing authority that is not a host Board shall, in respect of any pensionable earnings it pays to a practitioner, take advice from the relevant host Board in determining the contributions payable in accordance with this regulation and regulation 162 .

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

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

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

(b) in respect of each scheme year from 2015-2016, Table 2.

Column 1Pensionable Earnings Band	Column 2Contribution Percentage Rate
Up to £15,431	5%
£15,432 to £21,477	5.6%
£21,478 to £26,823	7.1%
£26,824 to £49,472	9.3%
£49,473 to £70,630	12.5%
£70,631 to £111,376	13.5%
£111,377 to any higher amount	14.5%
Column 1Pensionable Earnings Band	Column 2Contribution Percentage Rate
---	---
Up to £15,431	5%
£15,432 to £21,477	5.6%
£21,478 to £26,823	7.1%
£26,824 to £47,845	9.3%
£47,846 to £70,630	12.5%
£70,631 to £111,376	13.5%
£111,377 to any higher amount	14.5%

Contributions by employing authorities: general

162

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

(2) In specifying such a rate, the Department must—

(a) obtain the consent of the Department of Finance and Personnel; and

(b) take account of the advice of this Section of the Scheme actuary and the cost of providing for any increase in pensions under the Scheme as a result of orders made under the provisions of the Pensions (Increase) Act (Northern Ireland) 1971 and Article 69 of the Social Security Pensions (Northern Ireland) Order 1975.

(3) Any contributions payable under this regulation must be paid to the Department.

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

(5) The employer’s standard rate is 22.5% .

Guarantees, indemnities and bonds

163

(1) This regulation applies if—

(a) an employing authority fails to pay contributions or who has previously failed to pay contributions in accordance with regulation 162, and

(b) the authority is—

(i) a GMS practice;

(ii) an APMS contractor; or

(iii) an OOH provider.

(2) The Department may require the authority to have in force a guarantee, indemnity or bond which provides for payment to the Department, should that authority fail to meet them, of all future liabilities of the authority (or such liabilities as are specified by the Department) under—

(a) these Regulations, or

(b) the Health and Personal Social Services (Superannuation) (Additional Voluntary Contributions) Regulations (Northern Ireland) 1999 .

(3) The guarantee, indemnity or bond must be in such form, in respect of such an amount and provided by such a person as the Department approves for the purpose.

Payment of Contributions

164

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

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

(b) where the notice required by regulation 139(3) has been properly received, until the member ceases practitioner service.

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

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

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

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

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

(5) Subject to paragraph (6), if a principal medical practitioner is—

(a) an employing authority which is a GMS practice or an APMS contractor; or

(b) a shareholder or partner in such an employing authority,

that employing authority must pay C3 contributions to the host Health and Social Services Board.

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

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

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

(b) is the host Board, that Health and Social Services Board must pay C3 contributions to the Department in respect of any pensionable earnings it pays to him.

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

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

(b) in the case of an assistant medical practitioner, if it is not also the host Board, pay those contributions to that Health and Social Services Board.

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

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

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

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

(11) If a locum practitioner is liable to pay contributions under paragraph (10) in respect of pensionable locum work he does for an employing authority which is not—

(a) the host Board;

(b) a GMS practice;

that employing authority must pay C3 contributions to the host Board.

(12) In the case of an assistant dental practitioner who—

(a) is a vocational trainee—

(i) the GDS provider who employs him shall deduct C1 contributions from any pensionable earnings the provider pays to him and shall pay those contributions to the appropriate employing authority; and

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

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

(12A) In the case of a practitioner providing piloted services, a practitioner employed as a dental pilot scheme employee or to whom regulation 155A(1)(b) applies, the practitioner shall pay C1 contributions in respect of pensionable earnings that relate to piloted services to the employing authority that is a party to those piloted services, and that employing authority is liable to pay C3 contributions that are payable in respect of those pensionable earnings, but where the provider of the piloted service is a qualifying body, the qualifying body shall be liable to pay C3 contributions.

(13) If contributions are payable by a locum practitioner under paragraph (10) in respect of pensionable locum work carried out for an employing authority which is—

(a) a host Board;

(b) a GMS practice; or

the host Board shall pay C3 contributions in respect of such a practitioner.

(14) C1 contributions that are required to be paid to an employing authority by or in respect of a principal or assistant dental practitioner in accordance with this regulation shall be paid to that employing authority not later than the 7th day of the month following the month to which the earnings relate.

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

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

(b) which is liable to pay C3 contributions in respect of any principal or assistant dental practitioner;

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

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

(17) If, as regards a principal or assistant medical practitioner, an employing authority—

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

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

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

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

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

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

(ii) any contributions paid to it by the principal medical practitioner; and

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

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

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

(b) paid to it by another employing authority;

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

(19) Without prejudice to any other method of recovery, if in respect of C1 contributions—

(a) a principal dental practitioner, a principal medical practitioner, an assistant dental practitioner, an assistant medical practitioner or locum practitioner has failed to pay contributions; or

(b) an employing authority or qualifying body providing piloted services has failed to deduct such contributions,

in accordance with this paragraph, the Department 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 entitled to them if—

(i) the member agrees to such a deduction; and

(ii) the deduction is to the member's advantage.

(20) For the purposes of this regulation—

(a) “C1 contributions” means contributions payable under regulation 160 by a practitioner under this Section of the Scheme;

(b) “C3 contributions” means contributions payable under regulation 162 by an employing authority in respect of a practitioner.

(i) a body corporate which, in accordance with the provisions of Part IV of the Dentists Act 1984, is entitled to carry on the business of dentistry; or

(ii) a company which is limited by shares, all of which are legally and beneficially owned by persons falling within sub-paragraph (a), (b), (c) or (e) of paragraph (2) of Article 5 of the 1997 Order.

Additional contributions to purchase additional pensions

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

165

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 4 (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member's pension for three or six months under Chapter 5 (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 5 (death benefits) in respect of the member.

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

(3) If a member exercises an option under paragraph (1), any regular additional contributions must be deducted from the member's earnings and paid to the Department in the same manner as is specified in respect of C1 contributions (within the meaning of regulation 164) in relation to that member.

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

(a) less than the minimum amount, or

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

(5) In paragraph (4) “the minimum amount” means the amount that would, in accordance with tables prepared for the Department by the Scheme actuary for the scheme year in which the contributions are paid, be the amount of the contributions required to secure an increase in the member's pension of—

(a) £250, or

(b) such other amount as the Department may for the time being determine,

assuming that the contributions are made in accordance with the option for the remainder of the option period.

(6) The tables referred to in paragraph (5)—

(a) may specify different amounts for different descriptions of members, and

(b) may be amended during a scheme year,

but no such amendment affects the contributions payable during that year under any option, except an option under which contributions begin to be paid after the date on which the amendment takes effect.

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

(a) contributions made under regulation 167 (member's option to pay additional lump sum contributions to purchase additional pension), or

(b) contributions made under regulation 168 (payment of additional lump sum contributions by employing authority),

may not exceed £5000 or such other amount as the Department may for the time being determine (taking into account any increase in the member's pension as a result of the exercise of an option in accordance with regulations 34 to 43).

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

(a) is specified in the option,

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

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

(9) In the case of a 2008 Section Optant, this regulation is subject to regulation 260D.

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

166

(1) This paragraph applies if during the contribution option period a member who has exercised the option under regulation 165 is absent from work because of—

(a) illness or injury,

(b) maternity leave,

(d) paternity leave,

(e) parental leave or shared parental leave, ...

(ea) parental bereavement leave, or

(f) a leave of absence of the kind mentioned in regulation 140(3).

(2) If paragraph (1) applies—

(a) the contributions under the option continue to be payable unless the member ceases paying contributions under regulation 160, and

(b) if the member does so cease, the member may continue to make contributions in accordance with the option if the member resumes making contributions under regulation 160 before the end of the period of 12 months beginning with the day on which the member first ceased to pay those contributions.

(3) This paragraph applies if—

(a) a member exercises the option under regulation 165,

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

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

(4) If paragraph (3) applies, the member may continue to make contributions in accordance with the option after becoming an active member again unless a repayment of contributions has been made to the member under regulation 175.

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

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

167

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 4 (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member's pension for three or six months under Chapter 5 (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 5 (death benefits) in respect of the member.

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

(a) not less than the minimum amount, and

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

(3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the Department by the Scheme actuary, the amount of the single contribution required at the time that the option is exercised to secure an increase in the member's pension of—

(a) £250, or

(b) such other amount as the Department may for the time being determine.

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

(5) If a member exercises an option under paragraph (1)—

(a) the additional contribution is payable by the member to the employing authority—

(i) by deduction from the member's earnings or otherwise, and

(ii) before the end of the period of 1 month beginning with the day on which the member is notified by the Department that the option is accepted, and

(b) the employing authority must pay it to the Department not later than the 19th day of the month following the month in which the earnings were paid or, as the case may be, the employing authority received payment of the contribution.

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

(a) contributions made under regulation 165 (member's option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 168 (payment of additional lump sum contributions by employing authority),

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 260D.

Payment of additional lump sum contributions by employing authority

168

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 4 (members' retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member's pension for three or six months under Chapter 5 (death benefits)), or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 5 (death benefits) in respect of the member.

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

(a) not less than the minimum amount (as defined in regulation 167(3)), and

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

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

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

(a) contributions made under regulation 165 (member's option to pay additional periodical contributions to purchase additional pension), or

(b) contributions made under regulation 167 (member's option to pay lump sum contribution to purchase additional pension),

(5) A contribution under this regulation must be paid by the employing authority to the Department within one month of the date on which the authority gave the Department notice under regulation 169(2).

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 260D.

Exercise of options under regulations 165, 167 and 168

169

(1) A member exercising an option under regulation 165 or 167 must do so by giving notice in writing to the employing authority, giving such information as may be required and must, at the same time, provide the Department with a copy of that notice.

(2) An employing authority exercising an option under regulation 168 must do so by giving notice in writing to the Department, giving such information as may be required.

(3) An option under regulation 165, 167 or 168 may not be exercised during a period whilst the member is absent from work for any reason.

(4) For the purposes of this Part—

(a) a member is treated as exercising an option under regulation 165 or 167 on the date on which the employing authority receives the member's notice under paragraph (1), and

(b) an employing authority is treated as exercising an option under regulation 168 on the date on which the Department receives the authority's notice under paragraph (2).

(5) The Department may refuse to accept an option exercised under regulation 165, 167 or 168 and must do so if not satisfied that—

(a) the member is in good health, and

(b) in the case of an option exercised under regulation 165, there is no reason why the member's health should prevent the member from paying the contributions for the whole contribution period.

(6) If the Department refuses to accept such an option—

(a) the Department must give notice in writing of that fact—

(i) in the case of an option exercised under regulation 165 or 167, to the member, and

(ii) in the case of an option exercised under regulation 168, to the employing authority and the member, and

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

(7) These Regulations also apply as if an option under regulation 167 or 168 had not been exercised if—

(a) in the case of an option under regulation 167, the payment is not received by the employing authority—

(i) before the end of the period of 1 month beginning with the day on which the Department notifies the member of the acceptance of the option, or

(ii) if it is earlier, on or before the member's 65th birthday, and

(b) in the case of an option under regulation 169, the payment is not received by the Department—

(i) before the end of the period of 1 month beginning with the day on which the authority gave the Department notice under paragraph (2), or

(ii) if it is earlier, on or before the member's 65th birthday.

Cancellation of options under regulation 165

170

(1) A member may cancel an option under regulation 165(1) by giving the employing authority notice in writing.

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

(3) If it appears to the Department that the requirement in regulation 165(7) (overall maximum) will not be met if the member continues to make periodical contributions under an option exercised under regulation 165, the Department may cancel the option by giving the member notice in writing.

(4) If the Department cancels such an option in accordance with paragraph (3), , the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods.

(5) If, after the exercise of the option under regulation 165, the Department has reasonable grounds to believe that the member’s health will prevent the member from paying contributions for the whole contribution period, the Department may cancel the option by giving the member notice in writing.

(6) If the Department cancels such an option in accordance with paragraph (5)—

(a) the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice (“date of cancellation”) and all subsequent pay periods; and

(b) any periodical payments made prior to the date of cancellation shall be returned to the member.

Effect of payment of additional contributions under this Chapter

171

(1) This regulation applies if—

(a) an option is exercised by a member under regulation 165 and all the contributions to be made under the option are made,

(b) an option is exercised by a member under regulation 167 or by a member's employing authority under regulation 168 and the lump sum payment is made.

(2) Subject to paragraph (9), the member's pension is increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 174 (revaluation of increases bought under options).

(3) Paragraph (2) is without prejudice to any increase or reduction falling to be made in the total amount of the member's pension under Chapter 4 or Chapter 10 of this Part as a result of the member becoming entitled to payment of the pension before or after reaching the age of 65 (see regulations 178 to 180 and 260Q ).

(4) In the case of an option under regulation 165(1)(b), 167(1)(b) or 168(1)(b), any pension payable under Chapter 5 (death benefits) in respect of the member is increased by the appropriate amount.

(5) In paragraph (4), subject to regulations 172 and 173(3), “the appropriate amount” means—

(a) in the case of a pension under regulation 194 the amount of which is determined under regulation 196 (active members) or regulation 198 (deferred members), 37.5% of the amount of the increase mentioned in paragraph (2) that would have applied in the member's case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)),

(b) in the case of a pension under regulation 194 the amount of which is determined under regulation 197 (pensioner members), 37.5% of the amount of the increase in the member's pension under paragraph (2) as a result of the option,

(c) in the case of a pension under regulation 201 the amount of which is determined under regulation 203 (active members) or regulation 205 (deferred members), the appropriate fraction (within the meaning of regulation 203 or, as the case may be, regulation 205) of 75% of the amount of the increase mentioned in paragraph (2) that would have applied in the member's case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)), and

(d) in the case of a pension under regulation 201 the amount of which is determined under regulation 204 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75% of the amount of the increase in the member's pension as a result of the option.

(6) Except as provided in regulation 180 (partial retirement), no separate claim is required as respects any additional pension payable by virtue of this regulation.

(7) This regulation is subject to regulation 172.

(8) For the effect of the options under regulation 165 where this regulation does not apply, see regulation 173(effect of part payment of periodical contributions).

(9) Paragraph (10) applies only to an option under regulation 165(1)(a), 167(1)(a) or 168(1)(a), where a pension is to be paid for either three or six months at the same rate as the member's pension was being paid at the date of that member's death.

(10) Any increase to the member's pension shall be included only in a benefit payable to a surviving partner or a dependent child in respect of the member under these Regulations whilst it is being paid at the rate and for the duration of one of the periods referred to in paragraph (9).

(11) In the case of a 2008 Section Optant, this regulation is subject to regulation 260D.

Effect of death or early payment of pension after option exercised under regulation 165, 167 or 168

172

(1) If a member in respect of whom an option under regulation 165, 167 or 168 has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised—

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

(i) in the case of an option under regulation 165 or 167, to the member's personal representatives, and

(ii) in the case of an option under regulation 168, to the employing authority which made the contribution, and

(b) regulation 171 (4) does not apply.

(2) If a member in respect of whom an option under regulation 165 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation 171(4) applies as if all contributions due after the date of death had been made.

(3) If a member in respect of whom an option under regulation 165, 167 or 168 has been exercised becomes entitled to a pension under regulation 182 (early retirement on ill-health (active members)) as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised—

(a) regulation 171(2) and (4) does not apply, and

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

(i) in the case of an option under regulation 165 or 167, to the member, and

(ii) in the case of an option under regulation 168, to the employing authority which made the contribution.

(4) Subject to regulation 170(5) and (6), if a member in respect of whom an option under regulation 165 has been exercised becomes entitled to a pension under regulation 182 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 171(2) and (4) applies as if all contributions under the option had been made.

(5) If a member in respect of whom an option under regulation 165, 167 or 168 has been exercised—

(a) becomes entitled to a pension under regulation 179 (early payment of pension with actuarial reduction) or regulation 184 (early retirement on ill-health (deferred members)), or

(b) becomes entitled to a pension under regulation 180 before reaching the age of 65,

the increase in the member's pension under Chapter 4 (members' retirement benefits) which would otherwise be due under regulation 171(2) or (4) is reduced.

(6) The amount of the reduction is such amount as the Department determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.

(7) This regulation is subject to regulation 173.

Effect of part payment of periodical contributions

173

(1) This regulation applies if—

(a) the full number and amount of contributions due under an option under regulation 165 for the whole contribution option period are not made, and

(b) regulation 172(1) to (4) does not apply.

(2) The increase in the member's pension under Chapter 4 is the appropriate proportion of the increase that would have been made under regulation 171(2) if the full number and amount of contributions had been made (but taking account of regulation 172(5) if that applies).

(3) In the case of an option under regulation 165(1)(b), the increase in any benefit payable under Chapter 5 (death benefits) in respect of the member is the appropriate proportion of the increase that would have been made under regulation 171(4) if the full number and amount of contributions had been made (but taking account of regulation 172(5) if that applies).

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

(5) In making a determination under paragraph (4), the Scheme actuary must have regard to—

(a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation 165 for the whole contribution option period, and

(b) the preservation requirements.

(6) In the case of 2008 Section Optant, this regulation is subject to regulation 260D.

Revaluation of increases bought under options: members’ pensions

174

(1) Where an option under regulation 165, 167 or 168 has been exercised, the final amount of the increase in a member’s pension immediately before the beginning date for that pension shall be determined in accordance with this regulation.

(2) Where the increase in pension is in respect of an option that was exercised less than 2 months before the increase becomes payable, the final amount is calculated in accordance with paragraph (4).

(3) Where the increase in pension is in respect of an option that was exercised 2 or more months before the increase in pension becomes payable, the final amount is calculated in accordance with paragraph (5).

(4) The calculation referred to in paragraph (2) is as follows—

Step 1 – Calculate the basic amount of the increase in accordance with regulations 171 to 173, to find the Step 1 amount.

Step 2 – Add to the Step 1 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act (Northern Ireland) 1971 on a pension of the same amount as the Step 1 amount when it first falls into payment, to find the Step 2 amount.

Step 3 – Divide the Step 2 amount by the Step 1 amount, to find the Step 3 factor.

Step 4 – Divide the Step 1 amount by the Step 3 factor, to find the final amount referred to in paragraph (1).

(5) The calculation referred to in paragraph (3) is as follows—

Step 1 - Calculate the basic amount of the increase in accordance with regulations 171 to 173, to find the Step 1 amount.

Step 2 – Multiply the Step 1 amount by the retail prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.

Step 3 – Divide the Step 2 amount by the retail prices index for the month in which the option was exercised, to find the Step 3 amount.

Step 4 – Take the greater of the Step 1 amount and Step 3 amount, to find the Step 4 amount.

Step 5 – Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act (Northern Ireland) 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.

Step 6 – Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.

Step 7 – Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(6) In this regulation, “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act (Northern Ireland) 1971 (see section 8(2) of that Act).

Repayment of contributions

175

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

(a) paragraph (2) applies, or

(b) Chapter V of Part IV of the 1993 Act (early leavers: cash transfer sums and contribution refunds) applies and the payment is made in accordance with that Chapter.

(2) This paragraph applies if—

(a) a person who is not a pensioner member ceases to be an active member and does not continue to be, or become, an active member for the purposes of Part 2 within 12 months of ceasing practitioner service,

(b) the person does not fall within sub-paragraph (a), (b), (c) or (d) of regulation 176(2) (former members entitled to a pension),

(d) the person claims repayment of contributions under this regulation by applying in writing to the Department.

(3) If paragraph (1)(b) applies, the person is entitled to be paid the amount to which the person is entitled under Chapter V of Part IV of the 1993 Act, less—

(a) such part of any contributions equivalent premium paid in respect of the person as is permitted by or under section 57 of the 1993 Act, and

(b) an amount equal to the income tax payable under section 205 of the Finance Act 2004 (short service refund lump sum charge) as a result of the repayment.

(4) If paragraph (2) applies, the person is entitled to be paid an amount equal to the sum of the contributions made by the person under this Chapter, less the amounts mentioned in paragraph (3)(a) and (b).

(5) If a repayment is made under this regulation, the member's rights under this Section of the Scheme are extinguished unless the person or the person's spouse or civil partner is entitled to a guaranteed minimum pension under this Section of the Scheme and a contributions equivalent payment has not been paid.

(6) A person—

(a) who is entitled to a repayment of contributions under this regulation, and

(b) whose pensionable service did not cease because the person's employment was terminated at the person's request,

is entitled to interest on the amount of the repayment unless the person's pensionable service ceased because the person's employment was terminated by reason of misconduct or inefficiency.

(7) Subject to paragraphs (8) and (9), the interest is calculated on a compound basis at the rate of 2.5% per year, with yearly rests, for the period starting on 1st April after the contributions were paid and ending with the day the member leaves pensionable service.

(8) Paragraph (7) does not apply if paragraph (1)(b) applies and the person is entitled to a greater amount of interest under Chapter V of Part IV of the 1993 Act.

(9) So far as the contributions were paid under another scheme and were included in a transfer payment to this Section of the Scheme—

(a) interest for the period before the transfer payment was made is calculated in accordance with the scheme making the transfer payment (subject to any provision made in any statutory provision applicable to the transfer), and

(b) paragraph (7) does not apply as respects that period.

CHAPTER 4 — MEMBERS' RETIREMENT BENEFITS

Entitlement to pensions

Normal retirement pensions

176

(1) The general rule is, subject to paragraph (2) and the following provisions of this Part, that a member is entitled to a pension payable for life in respect of any period of pensionable service (“the relevant service”) if the member—

(a) has reached the age of 65, and

(b) either—

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

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

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

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

(b) a transfer value payment has been accepted by the Scheme during the relevant service under Chapter 6 (transfers), otherwise than from an occupational pension scheme,

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

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

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

(4) The—

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

(b) the member's uprated earnings are to be calculated by uprating the member's pensionable earnings by the amount of the annual increase due under the provisions of the Pensions (Increase) Act (Northern Ireland) 1971 and Article 69 of the Social Security Pensions (Northern Ireland) Order 1975, plus 1.5% annually.

(5) A claim referred to in paragraph (1)(b)(i) and made in accordance with regulation 249 takes effect from the date the claim is received by the Department.

(6) This regulation does not apply to pensions derived from pension credit rights.

(7) In the case of 2008 Section Optant, this regulation is subject to regulation 260K.

Pension credit members

177

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

(2) The pension becomes payable—

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

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

This is subject to paragraphs (5) and (8).

(3) The pension must be of such an amount that its value is equal to the member's pension credit, as calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to the 1999 Order.

(4) A claim under paragraph (1) must be made by notice in writing in such form as the Department requires and takes effect from the date specified in the claim as the date on which the pension is to become payable.

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

(a) reached the age of 55; and

(b) claimed the payment of the pension.

(6) The amount of the annual pension under paragraph (5)—

(a) is first calculated as mentioned in paragraph (3); and

(b) then that amount is reduced by such amount as the Department determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the pension before the member reaches 65.

(7) A claim under paragraph (5) must be made by notice in writing in such form as the Department requires and takes effect from the date specified in the claim as the date on which the pension is to become payable.

(8) A pension credit member who has not reached the age of 65 is entitled to immediate payment of a pension payable for life if, in the opinion of the Department, the pension credit member—

(a) meets the ill-health condition specified in paragraph 1 of Schedule 28 to the Finance Act 2004;

(b) had previously been engaged in regular employment but is now permanently incapable of engaging in such employment due to mental or physical infirmity; and

(9) The amount of the pension under paragraph (8) is calculated as specified in paragraph (3).

(10) For the purpose of paragraph (8), the Department may require whatever medical evidence that it considers necessary.

Late payment of pension with actuarial increase

178

(1) This regulation applies if a member becomes entitled to immediate payment of pension under regulation 176 after reaching the age of 65.

(2) So much of the amount of the pension to which the member would otherwise be entitled under that regulation (before any commutation under regulation 185) as is attributable—

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

(b) to any contributions paid under regulations 165, 167 or 168 before that age,

is increased.

(3) The amount of the increase must be calculated in accordance with guidance and tables provided by the Scheme actuary to the Department for the purposes of this regulation.

(4) In preparing that guidance and those tables the Scheme actuary must use such factors as the Scheme actuary considers appropriate, having regard, in particular, to the period after reaching the age of 65 before the member becomes entitled to immediate payment of the pension and the life expectancy of the member.

(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 260Q.

Early payment of pensions with actuarial reduction

179

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

(a) has reached the age of 55,

(b) meets the condition in regulation 176(2)(a) or (b),

(d) has claimed payment of the pension.

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

(a) is first calculated as mentioned in regulation 176(4) (and, if additional pension is payable, in accordance with regulation 171(2) or 173(2)), and

(b) then that amount is reduced by such amount as the Department determines, after consulting the Scheme actuary, to be appropriate by reason of the payment of the pension before the member reaches 65.

(3) A claim under paragraph (1) must be made by notice in writing in such form as the Department requires and takes effect—

(a) in the case of a deferred member, from the date specified in the claim as the date on which the pension is to become payable,

(b) in the case of an active member or a non-contributing member , from the day immediately following the day on which the member ceased to be employed in HSC employment.

(4) A member shall not be entitled to a pension under this regulation if the Department determines, having taken advice from the Scheme actuary, that the pension, as reduced under paragraph (1), would be sufficient to meet its liability to provide a guaranteed minimum pension.

(5) In the case of 2008 Section Optant, this regulation is subject to regulation 260K.

Partial retirement (members aged at least 55)

180

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

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

(b) the member would be entitled to a pension for life, by virtue of regulation 176(1)(b)(i) and not regulation 176(1)(b)(ii), if the member had—

(i) reached the age of 65,

(ii) ceased to be so employed, and

(iii) claimed payment of the pension;

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

(2) The option may only be exercised by notice in writing in such form as the Department requires and must be accompanied by—

(a) appropriate supporting evidence, and

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

(3) The option must specify—

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

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

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

(a) in the case of a member who has reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 176 if the member had ceased to be employed in all his employments on the option day (disregarding any additional pension, but subject to any increase under regulation 178),

(b) in the case of a member who has not reached the age of 65, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 179 if the member had ceased to be employed in all his employments on the option day (disregarding any additional pension), and

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

(i) in a case within sub-paragraph (a), to an increase of the same percentage as would be made in that pension under regulation 178 if the member had ceased to be employed on the option day, and

(ii) in a case within sub-paragraph (b), to a reduction of the same amount as would have been made in that pension under regulation 179 if the member had so ceased.

(5) The specified percentage must be such that—

(a) the pension to which the member becomes entitled as a result of the option (before the exercise of the option under regulation 185 and disregarding any additional pension)—

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

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

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

(6) The option under this regulation may only be exercised on no more than two occasions, and the Department shall take advice from the Scheme actuary regarding—

(a) any benefits to be paid after the exercise of the first option (but before the exercise of the second option),

(b) any benefits to be paid after the exercise of any second option, and

(7) For the purposes of—

(a) paragraph (1) and regulation 181, “pre-change level” means the level of the member's engagement in the employment referred to in paragraph (1)(a) during the period of 12 months ending with the option day,

(b) in this regulation—

(i) “pension” means the pension that a member would have been entitled to on the option day if the member had ceased to be employed in all of his employments and, in the case of practitioner services, the pensionable earnings taken into account when working out the pension will be drawn from the latest certificate referred to in regulation 260, or the latest scheme year’s final pensionable earnings referred to in regulation 161 and agreed with each relevant host Board ,

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

(iii) regulation 181, a member's “employment” means practitioner service together with any concurrent HSC employment and “terms of employment” shall be construed accordingly.

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

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

(b) if the member continues in pensionable service after the option day, is an active member or a non-contributing member as respects—

(i) the pensionable service after that day in which the member continues, and

(ii) so much of the pensionable service as respects which the member is an active member or a non-contributing member on the option day as does not fall within sub-paragraph (a) (“the unspecified service”), and

(c) if the member does not continue in pensionable service after the option day, is a deferred member as respects the unspecified service.

(9) In the case of 2008 Section Optant, this regulation is subject to regulation 260K.

Increase in pensionable earnings following exercise of option under regulation 180

181

(1) This regulation applies if, in a case where a member has exercised the option under regulation 180—

(a) during the period of 12 months beginning with the day after the option day the terms on which the member holds the employment or employments referred to in regulation 180(1) (a) change again, and

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

(c) following an increase referred to in sub-paragraph (b), the member's engagement in that employment or those employments is reduced to 90 per cent or less of the member's engagement during the period of 12 months ending with the option day.

(2) In the circumstances referred to in—

(a) paragraph (1)(b), the amount of the member's pension mentioned in sub-paragraphs (a) and (b) of regulation 180(4) shall be abated to zero from the first pension day immediately following the day on which the level of the member's engagement increased,

(b) paragraph (1)(c), subject to any adjustments in accordance with paragraph (3), the member shall again be entitled to receive payment of the full amount of the pension mentioned in sub-paragraphs (a) and (b) of that regulation as from the first pension day immediately following the day on which the level of the member's engagement reduced.

(3) Where paragraph (2)(b) applies, before restoring the payment of a pension the Department shall have regard to the advice of the Scheme actuary as to whether the amount of the pension should be adjusted in view of the length of time during which it was abated to zero in accordance with paragraph (2)(a).

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

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

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

(5) In this regulation “the option day” has the same meaning as in regulation 180(7) (b) (ii).

(6) Where—

(a) a member's pension is abated in accordance with paragraph (2)(a) in the circumstances described in paragraph (1)(b), and

(b) the member's level of engagement does not reduce in the manner described in paragraph (1)(c),

the pension will (in any event) be payable by the Department when the member retires, or partially retires again, from pensionable employment or attains the age of 75 and in doing so the Department shall—

(i) have regard to any pensions already paid, including any lump sum paid as a result of the member exercising an option under regulation 185,

(ii) take the advice of the Scheme actuary.

Early retirement on ill-health (active members and non-contributing members )

182

(1) A pension payable under this regulation shall be known as an ill-health pension and may be paid at two different tiers known as a tier 1 ill-health pension and a tier 2 ill-health pension.

(2) An active member or a non-contributing member who has not reached the age of 65 and who has ceased to be employed in HSC employment is entitled to immediate payment of a tier 1 ill-health pension that is payable for life if—

(a) in the opinion of the Department the member suffers from physical or mental infirmity as a result of which the member is permanently incapable of discharging the duties of the member's employment efficiently,

(b) the member's employment is terminated because of that physical or mental infirmity,

(d) the member has claimed the pension.

(3) An active member who has not reached the age of 65 is entitled to immediate payment of a tier 2 ill-health pension if—

(a) in addition to meeting the condition in paragraph (2) (a),in the opinion of the Department the member suffers from physical or mental infirmity as a result of which the member is permanently incapable of engaging in regular employment of like duration,

(b) the member's employment is terminated because of that physical or mental infirmity,

(d) the member has claimed the pension.

(4) The annual amount of a tier 1 ill-health pension (disregarding any additional pension) is calculated as specified in regulation 176(4).

(5) The annual amount of a tier 2 ill-health pension (disregarding any additional pension) is calculated as specified in regulation 176(4), but on the assumption that the member's pensionable service—

(a) is increased by the enhancement period where the member—

(i) has not had a break in pensionable service of 12 months or more; or

(ii) has returned to pensionable employment 12 months or more after having a break in such service and it would be more favourable to the member to treat the member’s pensionable service before and after the break, and all such other breaks (if any) as continuous;

(b) is not increased by the enhancement period in the circumstances referred to in (a) (ii) if—

(i) the member’s pensionable service before and after the break is treated separately under regulation 237, or

(ii) the member’s pensionable service in respect of an earlier service credit is treated separately under regulation 260G.

(6) In this regulation “the enhancement period” means, subject to paragraph (7), two-thirds of the member's assumed pensionable service.

(7) If a member is entitled to have the member’s pensionable service increased by the enhancement period—

(a) the member's pensionable service shall be increased by the enhancement period and the enhancement factor shall be the proportion by which the member's pensionable service is increased by that period,

(b) the length of the member's officer service (under Part 2), if any, and the member's practitioner service will each be increased by the enhancement factor, and

(c) the annual amount of a tier 2 ill-health pension (disregarding any additional pension) is calculated as specified in regulation 176(4), but on the assumption that the member's uprated earnings are increased by the enhancement factor.

(8) In this regulation “the member's assumed service” means the further pensionable service that the member could have counted, subject to paragraph (9), if the member had continued in service until reaching the age of 65.

(9) To the extent that any increase under paragraph (8) would cause a member's pensionable service to exceed the limit of 45 years provided for in regulation 139(3), the amount of any excess will be reduced accordingly.

(10) This regulation is subject to—

(a) regulation 239 (effect of re-employment on tier 2 ill-health pensions), and

(b) regulation 240 (re-employed tier 1 ill-health pensioners).

(11) A member does not qualify for a pension under this regulation if the member's HSC employment has been terminated by the member—

(a) being dismissed from such employment (unless the Department is satisfied that the member was dismissed because of the member's infirmity); or

(b) retiring or resigning from such employment at a time when the member was the subject of disciplinary proceedings or had been notified that such proceedings were being contemplated; or

(c) otherwise retiring or resigning from such employment unless at the time of doing so the member's employing authority notified the Department in writing that the member's physical or mental infirmity is the reason for the termination of that employment and the Department is satisfied that is the case.

(12) For the purposes of determining whether a member is permanently incapable of discharging the duties of the member's employment efficiently under paragraph (2)(a), the Department shall have regard to the factors in paragraph (14) (no one of which shall be decisive) and disregard the member's personal preference for or against engaging in that employment.

(13) For the purposes of determining whether a member is permanently incapable of engaging in regular employment of like duration under paragraph (3)(a), the Department shall have regard to the factors in paragraph (15) (no one of which shall be decisive) and disregard the factors in paragraph (16).

(14) The factors to be taken into account for paragraph (12) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity;

(b) the member's—

(i) mental capacity; and

(ii) physical capacity;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of his incapacity, irrespective of whether such rehabilitation is undergone; and

(d) any other matter which the Department considers appropriate.

(15) The factors to be taken into account for paragraph (13) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity; and

(b) such reasonable employment as the member would be capable of engaging in if due regard is given to the member's—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience, irrespective of whether or not such employment is actually available to the member;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of his incapacity (irrespective of whether such rehabilitation is undergone) having due regard to the member's—

(i) mental capacity; and

(ii) physical capacity;

(d) such type and period of training which it would be reasonable for the member to undergo in respect of his incapacity (irrespective of whether such training is undergone) having due regard to the member's—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience; and

(e) any other matter which the Department considers appropriate.

(16) The factors to be disregarded for paragraph (13) are—

(a) the member's personal preference for or against engaging in any particular employment; and

(b) the geographical location of the member.

(17) For the purpose of this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the incapacity, but does not include any treatment that the Department considers—that it would be reasonable for the member to refuse,would provide no benefit to restoring the member's capacity for—discharging the duties of the member's employment efficiently under paragraph (2)(a), orengaging in regular employment of like duration under paragraph (3)(a), before the member reaches age 65, orthat, through no fault on the part of the member, it is not possible for the member to receive before the member reaches age 65;

“permanently” means—the period until age 65; andin the case of a 2008 Section Optant who, before joining this Section of the Scheme, was assessed by a medical adviser as being—permanently incapable of efficiently discharging their duties for the purposes of regulation 13A(2)(b)(i) of the 1995 Regulations (Ill-health pension on early retirement), that Optant shall be deemed to be permanently incapable of discharging the duties of the Optant’s employment efficiently for the purposes of paragraph (2)(a),permanently incapable of regular employment of like duration for the purposes of regulation 13A(2)(b)(ii) of the 1995 Regulations, that Optant shall be deemed to be permanently incapable of engaging in regular employment of like duration for the purposes of paragraph (3)(a);

“regular employment of like duration” means such employment as the Department considers would involve a similar level of engagement to the member's current pensionable service as a practitioner.

(18) In the case of a 2008 Section Optant, this regulation is subject to regulations 260K, 260M to 260P and 260R.

(19) In the case of a Waiting Period Joiner, this regulation is subject to regulation 260Z.

Re-assessment of entitlement to an ill-health pension determined under regulation 182

183

(1) This regulation applies if—

(a) in the opinion of the Department a member meets the condition in regulation 182(2)(a), and

(b) at the time the member is awarded a pension under that regulation the Department gives the member notice in writing that the member's case may be considered once within a period of three years commencing with the date of that award to determine whether the member meets the condition in regulation 182(3)(a) at the date of such a consideration.

(2) A member to whom a notice under paragraph (1)(b) has been given may apply to the Department for a review of whether the member subsequently meets the condition in regulation 182(3)(a) if—

(a) the member makes the application in writing—

(i) within three years of the date of issue of the notice, or

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