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The National Health Service Superannuation Scheme (2008 Section) (Scotland) Regulations 2013

Type Scottish-Statutory-Instrument

Publication 2013-05-28

Last updated 2025-10-31

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(a) the member, where the member is a principal practitioner or a non-GP provider; or

(b) in all other cases, the relevant Health Board or someone appointed to act on their behalf.

(12) The notice referred to in paragraph (11) must be provided to the Scottish Ministers in such form and manner as the Scottish Ministers may stipulate from time to time.

Calculating pensionable earnings of medical practitioners in partnership

3.A.9

(1) In the case of principal practitioners practising in partnership (with or without a non-GP provider who is a partner in a partnership), the pensionable earnings of each principal practitioner and non-GP provider who is a partner in a partnership is calculated by aggregating the pensionable earnings of each (including for this purpose, any amount that would constitute pensionable earnings in the case of any of them who are not included in this Section of the scheme) and, subject to paragraph (2), dividing the total equally by reference to the number of such partners.

(2) If the principal practitioners and any non-GP providers who are partners in a partnership do not share equally in the partnership profits, they may elect that each partner’s pensionable earnings correspond to each partner’s share of the partnership profits.

(3) If a registered medical practitioner[^f00562] practising in partnership also has earnings in respect of NHS employment otherwise than as a practitioner (under Part 2), the partners may elect that the pensionable earnings of that practitioner, as determined in accordance with paragraph (1) or (2), must be reduced by the amount of those earnings and the pensionable earnings of each of them (including that practitioner) be then increased in proportion to their respective shares of the partnership profits.

(4) The calculations described in paragraphs (2) and (3) are to be made by the Health Board or someone appointed on its behalf to whom the partners are required to give notice of their election in accordance with regulation 3.A.10(1) (elections relating to calculation of pensionable earnings in medical partnerships).

Elections relating to calculation of pensionable earnings in medical partnerships

3.A.10

(1) Principal practitioners who are partners in partnership must exercise the election described in paragraph 3.A.9(2) and (3) (calculation of pensionable earnings of medical practitioners in partnership) by giving notice in writing to the practitioner’s contracting Health Board or someone appointed on its behalf in accordance with this regulation.

(2) The notice must be signed by all the principal practitioners and any non-GP providers in the partnership and must state as a fraction each practitioner’s and non-GP provider’s share in the partnership profits.

(3) In the case of medical practitioners, the notice must state the name of every Health Board on whose list the name of any practitioner in the partnership is included.

(4) A notice given under this regulation—

(a) takes effect—

(i) from the date agreed between the practitioners and the Health Board concerned or someone appointed on its behalf; or

(ii) if no agreement is reached, a date decided by the Scottish Ministers;

(b) continues in effect until cancelled, or amended by a subsequent notice in writing signed by all the practitioners in partnership; and

Meaning of pensionable earnings in relation to other practitioners

3.A.11

(1) In the case of an assistant practitioner, pensionable earnings means—

(a) all salary, wages, fees and other regular payments paid to the practitioner by an employing authority in respect of the performance of essential services, additional services, enhanced services, dispensing services, OOH services, commissioned services, certification services, collaborative services, general dental services or pharmaceutical services;

(b) allowances and other sums (but excluding payments made to cover expenses) paid by an employing authority in respect of board and advisory work; and

(c) practice-based work carried out in educating or training, or organising the education or training of, GP registrars or practitioners,

but does not include bonuses or payments made to cover expenses or for overtime.

(2) In the case of a locum practitioner, pensionable earnings means all fees and other payments made to the locum practitioner in respect of the provision of locum services (but excluding payments made to cover expenses or for overtime), less such expenses as are deductible in accordance with guidance laid down by the Scottish Ministers.

(3) In this regulation, references to the provision of locum services, in relation to a practitioner, are to primary medical services, commissioned services, collaborative services or pharmaceutical services performed by a practitioner engaged by an employing authority under a contract for services to deputise for a registered medical practitioner or to temporarily assist in the provision of such services.

(4) The pensionable earnings of an assistant practitioner or a locum practitioner, include the amount of any pensionable earnings the practitioner is entitled to count under Chapter 3.K (2008 Section Optants).

Exclusions and deductions from pensionable earnings: all practitioners

3.A.12

Any sum that is withheld or otherwise recovered from a practitioner under the National Health Service (Service Committees and Tribunal) (Scotland) Regulations 1992[^f00563] is to be excluded or deducted from the practitioner’s pensionable earnings in such manner and to such extent as the Scottish Ministers may approve.

Limit on pensionable earnings: dental practitioners carrying on deceased person's business

3.A.13

In the case of a dental practitioner employed by persons carrying on a deceased practitioner’s dentistry business, pensionable earnings cannot exceed the total of the amount paid to the dental practitioner by those persons, plus any amounts paid to the practitioner by a Health Board that those persons allow the practitioner to retain.

Out of hours providers

3.A.14

(1) In this Part, an “OOH provider” means—

(a) a company limited by guarantee (which is not otherwise an employing authority)—

(i) in which all the members of the company are registered medical practitioners[^f00564], HBPMS contractors, GMS practices or section 17C agreement providers and the majority of those members are—

(aa) HBPMS contractors, GMS practices or section 17C agreement providers whose HBPMS contracts, GMS contracts or section 17C agreements require them to provide OOH services; or

(bb) registered medical practitioners who are partners or shareholders in an HBPMS contractor, a GMS practice or section 17C agreement provider which is a partnership or a company limited by shares and which is required to provide OOH services under its HBPMS contract, GMS contract or section 17C agreement;

(ii) which has a contract with a Health Board, an HBPMS contractor, a GMS practice or a section 17C agreement provider for the provision of OOH services;

(iii) in respect of which a Health Board appointed by the Scottish Ministers to act on their behalf—

(aa) is satisfied that the provision of OOH services by the company is wholly or mainly a mutual trading activity;

(bb) is satisfied that the company has met all the conditions for being an OOH provider in this regulation; and

(cc) has, pursuant to a written application made by the company to it for that purpose, approved the company as an employing authority; or

(b) some other body corporate (which is not otherwise an employing authority) which—

(i) operates in the interests of those who are the recipients of the primary medical services it provides or the general public;

(ii) operates on a not for profit basis;

(iii) is not an associated company in relation to another person;

(iv) has memorandum or articles or rules which—

(aa) prohibit the payment of dividends to its members;

(bb) require its profits (if any) or other income to be applied in promoting its objects; and

(cc) require all assets which would otherwise be available to its members generally to be transferred on its winding up either to another body which operates on a not for profit basis and whose purpose is to provide health or social care for the benefit of the community or to another body the objects of which are the promotion of charity and anything incidental or conducive thereto;

(v) has at least one member who is—

(aa) an HBPMS contractor, a GMS practice or a section 17C agreement provider;

(bb) a partner in a partnership which is an HBPMS contractor, a GMS practice or a section 17C agreement provider; or

(cc) a shareholder in a company limited by shares that is an HBPMS contractor, a GMS practice or a section 17C agreement provider;

(vi) has a contract with a Health Board, an HBPMS contractor, a GMS practice or a section 17C agreement provider, for the provision of OOH services; and

(vii) is approved as an employing authority by a Health Board appointed by the Scottish Ministers to act on their behalf—

(aa) pursuant to a written application made by the body to it for that purpose; and

(bb) that Board being satisfied that the body has met all the conditions for being an OOH provider in this regulation.

(2) For the purposes of paragraph (1)(b)(iii), a body corporate is to be treated as another person’s “associated company” if that person has control of it, except where that person is an employing authority, and for these purposes a person is to be taken to have control of a body corporate if they exercise, or are able to exercise, or are entitled to acquire direct or indirect control over its affairs.

(3) A company limited by guarantee or other body corporate which provides or is to provide OOH services and which wishes to be approved as an employing authority must make a written application to a Health Board appointed by the Scottish Ministers to act on their behalf (“the appointed Board”).

(4) An application referred to in paragraph (3) may specify a date from which approval by the appointed Board (if given) is to have effect (the “nominated date”).

(5) Where a company limited by guarantee or other body corporate makes an application and—

(a) the appointed Board is satisfied that the company or other body corporate meets the conditions for approval or will do so at any nominated date which is later than the date on which approval is actually given (the “approval date”); and

(b) it approves that application,

that approval takes effect on the later of the nominated date (if any) and the approval date.

(6) NHS employment is to be treated as commencing on the later of the nominated date (if any) and the approval date.

(7) For the purposes of this regulation—

(a) the conditions for approval are those referred to in paragraph (1)(a) or (b) as the case may be; and

(b) the nominated date cannot be earlier than 1st April 2004.

(8) The appointed Board may give an OOH provider a notice in writing terminating its participation in this Section of the scheme where that provider—

(a) does not have in force a guarantee, indemnity or bond as required by the Scottish Ministers in accordance with regulation 3.C.4(2) (guarantees, indemnities and bonds); or

(b) has ceased to satisfy the conditions for approval;

(c) has notified or has an obligation to notify the Board that any one of the following events has occurred in respect of the OOH provider—

(i) a proposal for a voluntary arrangement has been made or approved under Part 1 (company voluntary arrangements) of the Insolvency Act 1986[^f00565] (“the 1986 Act”);

(ii) an administration application has been made, or a notice of intention to appoint an administrator has been filed with the court, or an administrator has been appointed under Schedule B1 (administration) to the 1986 Act[^f00566];

(iii) a receiver, manager or administrative receiver has been appointed under Part 3 (receivership) of the 1986 Act;

(iv) a winding up petition has been presented, a winding up order has been made or a resolution for voluntary winding up has been passed under Part 4 (winding up of companies registered under the Companies Acts) or Part 5 (winding up of unregistered companies) of the 1986 Act or an instrument of dissolution has been drawn up in accordance with section 58 (instrument of dissolution) of the Industrial and Provident Societies Act 1965[^f00567]; or

(v) notice has been received by the OOH provider that it may be struck off the register of companies, or an application to strike it off has been made, under Part 31 (dissolution and restoration to the register) of the Companies Act 2006[^f00568].

(9) An OOH provider—

(a) must give the appointed Board notice in writing upon the occurrence of any of the events referred to in paragraph (8)(c) and must give such notice on the same day as that event; and

(b) that wishes to cease to participate in this Section of the scheme must give the appointed Board and its employees not less than three months’ notice in writing (to commence with the date of the notice) of that fact.

(10) An OOH provider ceases to participate in this Section of the scheme on—

(a) such date as the appointed Board may specify in notice under paragraph (8); or

(b) the day upon which the period referred to in paragraph (9)(b) expires where a notice under that paragraph has been given.

CHAPTER 3.B — MEMBERSHIP

Eligibility

Eligibility: general

3.B.1

(1) A person is eligible to be an active member of this Section of the scheme if conditions A to C are met and the person is not prevented by regulation 3.B.3 (restrictions on eligibility: general), 3.B.4 (concurrent employment) or 3.B.7 (restriction on further participation).

(2) Condition A is that the person is in practitioner service.

(3) Condition B is that the person—

(a) enters practitioner service on or after 1st April 2008; or

(b) entered that service before that date and on that date was not an active member of the 1995 Section in that employment or any other NHS employment,

and meets any one of the other Section conditions in paragraph (5).

(4) Condition C is that the person has not reached age 75.

(5) The other Section conditions are that—

(a) the person has not previously been an active member of the 1995 Section;

(b) the person ceased to be an active member of the 1995 Section at least 12 months before entering the employment mentioned in paragraph (3)(a) or (b) without becoming a pensioner member or a deferred member of that Section;

(c) the person ceased to be an active member of the 1995 Section less than 12 months before entering the employment mentioned in paragraph (3)(a) or (b) without becoming a pensioner member or a deferred member of that Section and has received a repayment of contributions in respect of that membership;

(d) the person ceased to be an active member of the 1995 Section on or after 1st April 2008 on leaving NHS employment and before the person re-entered such employment—

(i) a transfer payment was made in respect of the person under Part M (transfer-out arrangements and buy-outs) of the 2011 Regulations; or

(ii) the person made an application under regulation M2 (exercising a right to a transfer or a buy-out) of the 2011 Regulations from which the person may not withdraw;

(e) the person—

(i) ceased to be an active member of the 1995 Section on leaving NHS employment;

(ii) became a deferred member of that Section on leaving that employment and has not since become a pensioner member of that Section between the date of leaving that employment and joining this Section of the scheme; and

(iii) re-entered NHS employment on or after 1st October 2008 and 5 or more years since last leaving NHS employment;

(f) the person—

(i) ceased to be an active member of the 1995 Section before 1st April 2008 on leaving NHS employment;

(ii) became a deferred member of that Section on leaving that employment;

(iii) re-entered NHS employment on or after 1st October 2008 and 5 or more years since last leaving NHS employment; and

(iv) before the person re-entered such employment—

(aa) a transfer payment was made in respect of the person under Part M (transfer-out arrangements and buy-outs) of the 2011 Regulations; or

(bb) the person made an application under regulation M2 (exercising a right to a transfer or a buy-out) of those Regulations from which the person may not withdraw;

(g) the person is a deferred member of the 1995 Section who has given notice for the purposes of regulation B4(1) or (2) (opting out) of the 2011 Regulations and—

(i) as a result of that notice has been treated as ceasing to be an active member of that Section; and

(ii) pursuant to that notice remains opted-out of that Section for 5 years or more;

(h) the person is a deferred member of the 1995 Section who has given notice for the purposes of regulation B4(1) or (2) (opting out) of the 2011 Regulations and following that notice, has ceased to be an active member of that Section for any one period of 5 or more years comprising the aggregate of—

(i) any period during which the person is not in NHS employment; and

(ii) any period during which the person is treated as never having been an active member of that Section in accordance with regulation B4(3) of the 2011 Regulations in respect of one or more later periods of NHS employment entered into after having given the notice for the purposes of paragraph (1) or (2) of that regulation;

(i) the person—

(i) has given notice for the purposes of regulation B4 (opting out) of the 2011 Regulations and as a result of that notice all of that person’s NHS employments ceased to be pensionable employment for the purposes of those Regulations;

(ii) is not entitled to a pension (including a deferred pension) under those Regulations; and

(iii) has been treated as ceasing to be in pensionable employment under the 2011 Regulations for a period of 12 months or more; or

(j) the person—

(i) has given notice for the purposes of regulation B4 (opting out) of the 2011 Regulations and as a result of that notice all of that person’s NHS employments ceased to be pensionable employment for the purposes of those Regulations;

(ii) is not entitled to a pension (including a deferred pension) under those Regulations; and

(iii) has, in respect of the NHS employments referred to in head (i), either received a repayment of contributions or exercised the right to a transfer payment under Part M of those Regulations,

but sub-paragraphs (d) to (f) do not apply if the Scottish Ministers have permitted such a person to rejoin the 1995 Section in the circumstances described in regulation B2(3) (age limits and restrictions on membership) of the 2011 Regulations.

(6) This regulation applies to any person who has previously been an active member of a corresponding health service scheme as though in paragraph (3) any reference to—

(a) “the 1995 Section” includes a reference to that corresponding health service scheme; and

(b) “NHS employment” includes a reference to—

(i) employment with an employer in respect of whom a direction has been made under section 7 (extension of superannuation provisions of National Health Service Acts) of the Superannuation (Miscellaneous Provisions) Act 1967[^f00569];

(ii) employment to which regulations made under section 10 of the Superannuation Act 1972[^f00570] and having effect in England and Wales apply;

(iii) employment to which regulations made under article 12 of the Superannuation (Northern Ireland) Order 1972[^f00571] apply;

(iv) employment to which a scheme made under section 2 of the Superannuation Act 1984[^f00572] (an Act of Tynwald) applies; and

(v) employment with an employer with whom an agreement has been made under section 235 (superannuation of officers of certain hospitals) of the 2006 Act.

Eligibility: transitional

3.B.2

(1) A person is eligible to be an active member of this Section of the scheme if—

(a) the person is not prevented from being so by regulation 3.B.3 (restrictions on eligibility: general), 3.B.4 (concurrent employment) or 3.B.7 (restriction on further participation); and

(b) either—

(i) the Scottish Ministers have accepted that person’s option to join this Section of the scheme under Chapter 3.K (2008 Section Optants); or

(ii) that person meets all of the requirements in paragraph (2).

(2) Subject to the following paragraphs of this regulation, the requirements are that the person—

(a) is under age 75;

(b) was an active member of the 1995 Section on or after 1st April 2008;

(d) has either—

(i) returned to NHS employment since becoming a pensioner member referred to in sub-paragraph (c); or

(ii) commenced NHS employment for the first time; and

(e) is not eligible to be an active member of the 1995 Section in respect of the employment referred to in sub-paragraph (d).

(3) A person referred to in paragraph (2) is eligible to be an active member of this Section of the scheme from the day immediately following the end of Waiting Period A, if that person is entitled to a pension under one of the following regulations of the 2011 Regulations—

(a) E1 (normal retirement pensions);

(b) E3(3)(a) (lower tier ill health pension on early retirement (post 1st April 2008));

(d) E11 (early retirement pension (with actuarial reduction)).

(4) A person referred to in paragraph (2) is eligible to be an active member of this Section of the scheme from the day immediately following the longer of Waiting Period A and Waiting Period B if that person is entitled to a pension under one of the following regulations of the 2011 Regulations—

(a) E2 (early retirement pension on ill health grounds (pre 1st April 2008)); or

(b) E6 (early retirement pension (redundancy etc.)).

(5) If a person referred to in paragraph (2) is entitled to a pension under regulation E3(3)(b) (upper tier ill health pension on early retirement (post 1st April 2008)) of the 2011 Regulations, that person is eligible to be an active member of this Section of the scheme from the day immediately following whichever of the following occurs last—

(a) the anniversary of that person entering NHS employment; or

(b) the end of Waiting Period A.

(6) A person to whom paragraph (1)(b)(i) or (3)(b) applies who is entitled to a lower tier ill health pension under regulation E3(3)(a) of the 2011 Regulations, ceases to be eligible to be an active member of this Section of the scheme from the date the Scottish Ministers make a determination that the person is entitled to an upper tier ill health pension in place of that lower tier ill health pension under regulation E4(3) (re-assessment of ill health condition determined under regulation E3) of those Regulations.

(7) In this regulation—

“Waiting Period A” means a period of two calendar years beginning on the day the person becomes entitled to the pension under the 2011 Regulations; and

“Waiting Period B” means a period beginning on the day the person becomes entitled to the pension under the 2011 Regulations equal to the calendar length of— any increase in the person’s pensionable service in the 1995 Section which has been applied in accordance with regulation E2(3) (early retirement pension on ill health grounds (pre 1st April 2008)) of the 2011 Regulations; or any additional service with which the person has been credited in accordance with regulation 5 of the National Health Service (Compensation for Premature Retirement) (Scotland) Regulations 2003[^f00573].

(8) This regulation applies to any person who has previously been an active member of a corresponding 1995 scheme as though any reference to—

(a) the “1995 Section” includes a reference to that corresponding 1995 scheme;

(b) the “2011 Regulations” includes a reference to any regulations, orders, rules or other instruments governing that corresponding 1995 scheme;

(c) regulations “E1”, “E2”, “E3”, “E4(3)”, “E6”, “E7”, “E7(3)(a)”, “E7(3)(b)” or “E11” includes the equivalent of those regulations in a health service scheme the provisions of which correspond to the 2011 Regulations; and

(d) “regulation 5 of the National Health Service (Compensation for Premature Retirement) (Scotland) Regulations 2003” includes the equivalent of that regulation as it applies to a member of a corresponding 1995 scheme.

Restrictions on eligibility: general

3.B.3

(1) 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 NHS employment may only be an active member in accordance with—

(a) regulation 3.D.5 (partial retirement: members aged at least 55); or

(b) Chapter 3.G (re-employment and rejoining the scheme).

(2) A person is not eligible to be an active member of this Section of the scheme if the person—

(a) became a pensioner member of the 1995 Section or a corresponding 1995 scheme on or before 1st April 2008 except if regulation 3.B.2(1)(b)(i) (eligibility: transitional) applies to that person;

(b) became a pensioner member of the 1995 Section or a corresponding 1995 scheme on or after that date except if regulation 3.B.2(1)(b)(i) or (ii) (eligibility: transitional) applies to that person; or

(i) to whom regulation 3.B.1(5)(d), (e), (f) or (g) (eligibility: general) applies; and

(ii) in respect of whom permission of the Scottish Ministers to rejoin the 1995 Section has not been granted pursuant to regulation B2(3) (age limits and restrictions of membership) of the 2011 Regulations.

(3) 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 section 1 (superannuation schemes as respects civil servants, etc.) or section 9 (superannuation of teachers) of the Superannuation Act 1972[^f00574] in respect of service in that employment.

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

(5) A person is not eligible to be an active member of this Section of the scheme if the person—

(a) becomes entitled to an upper tier ill health pension under regulation 3.D.7 (early retirement on ill health: active members and non-contributing members); and

(b) opts to exchange that pension for a lump sum in accordance with regulation 3.D.11 (option for members in serious ill health to exchange whole pension for lump sum).

(6) 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 NHS employment may only be an active member in accordance with—

(a) regulation 3.D.5 (partial retirement: members aged at least 55); or

(b) Chapter 3.G (re-employment and rejoining the scheme).

(7) Subject to paragraph (7), 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 lower tier ill health pension under regulation 3.D.7; and

(b) becomes entitled to an upper tier ill health pension under that regulation on the date the Scottish Ministers make a determination under regulation 3.D.8(3) (re-assessment of entitlement to an ill health pension).

(8) 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 Scottish Ministers’ determination under regulation 3.D.8.

Concurrent employments

3.B.4

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

Joining and leaving the scheme

Joining this Section of the scheme

3.B.5

(1) Subject to paragraph (3), a person in NHS 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) where the person has previously opted out of this Section of the scheme under regulation 3.B.6(1) and is a person to whom section 3 (automatic enrolment) or section 5 (automatic re-enrolment) of the 2008 Act applies, on that person’s—

(i) automatic enrolment date; or

(ii) automatic re-enrolment date, except where the notice referred to in regulation 3.B.6(1) was given within the period of 12 months immediately preceding that date.

(2) A person who is eligible to be such a member by virtue of falling within regulation 3.B.1(3)(b) (eligibility: general) 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 3.B.6(1) in respect of an employment in which that person was an active member, and who remains eligible to be an active member in respect of that employment, may opt to join or rejoin this Section of the scheme by giving notice in writing to the employing authority in such form as the Scottish Ministers require.

(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.

Opting out of this Section of the scheme

3.B.6

(1) A person who is an active member of this Section of the scheme in any NHS employment may opt at any time to cease to be an active 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 regulation 3.B.5(1)(a) applies in respect of an employment who gives notice in writing under paragraph (1) within one month of the date of commencing that NHS employment, is to be treated as not having become an active member by virtue of that regulation.

(5) A notice under paragraph (1) ceases 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, except where the notice was given within the period of 12 months immediately preceding that date.

(6) A practitioner who opts not to contribute to this Section of the scheme in respect of the person’s employment as a practitioner 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.

(7) This regulation does not apply to a person to whom section 3, 5 or 8 of the 2008 Act[^f00575] and regulation 9 or 15 of the 2010 Regulations[^f00576] apply (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) but this paragraph does not affect the rights of such a person who subsequently becomes a member of this Section of the scheme in circumstances where those provisions of the 2008 Act and 2010 Regulations do not apply.

Restriction on further participation in this Section of the scheme

3.B.7

(1) A person who ceases to meet conditions A, B and C in regulation 3.B.1 (eligibility: general) in an employment or is prevented by regulation 3.B.3 (restrictions on eligibility: general) from continuing to be an active member in an employment ceases to be an active member of this Section of the scheme in that employment.

(2) Accordingly—

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

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

Membership: locum practitioners

3.B.8

(1) Regulation 3.B.5 (joining this Section of the scheme) 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 the person’s service as a locum practitioner and the contributions payable in respect of it as are required by the authority.

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

(4) No application may be made under paragraph (2) in respect of a period of engagement as a locum practitioner ending earlier than 10 weeks before the date of the application.

CHAPTER 3.C — CONTRIBUTIONS

Basic contributions by members

Contributions by members

3.C.1

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

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

(3) A member who is absent from service in circumstances within regulation 3.A.4(1) to (4) (pensionable service: breaks in service) may make contributions to this Section of the scheme in respect of the member’s pensionable earnings in accordance with that regulation and regulation 3.C.2 (members’ contribution rate).

Members' contribution rate

3.C.2

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

(2) A member’s contribution rate is the percentage specified in column 2 of the relevant table in paragraph (13) in respect of the corresponding pensionable earnings band specified in column 1 of that table into which the member’s pensionable earnings fall.

(3) The Scottish Ministers must, with the consent of the Treasury, determine the pensionable earnings bands and contribution percentage rates specified in the relevant table in respect of each scheme year.

(4) Before determining those pensionable earnings bands or contribution percentage rates, the Scottish Ministers must consider the advice of the scheme actuary.

(5) If, in respect of a scheme year, a practitioner has—

(a) certified the practitioner’s pensionable earnings in accordance with regulation 3.J.14 (employing authority and certain member record keeping and contribution estimates) and forwarded a record of those earnings to the contracting Health Board or someone appointed to act on its behalf; or

(b) was not required to certify the practitioner’s earnings in accordance with that regulation but the contracting Health Board (or, in the case of a dentist or an ophthalmic medical practitioner, the Health Board with whom they have an arrangement to provide general dental services or ophthalmic services) or someone appointed to act on its behalf or employing authority has the figure that represents the practitioner’s pensionable earnings for that scheme year,

contributions payable for that scheme year, must be those specified in column 2 of the relevant table in paragraph (13) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to aggregate of—

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

(ii) any additional pensionable earnings the practitioner is treated as having received during a break in service in accordance with regulation 3.A.8 (pensionable earnings: breaks in service).

(6) Subject to paragraph (7), if paragraph (5) does not apply to a practitioner 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 (13), on the basis of whichever of the following the host Health Board or someone appointed to act on its behalf considers the most appropriate in the circumstances—

(a) the amount of the practitioner’s earnings that have been agreed between the contracting Health Board or someone appointed on its behalf or employer, or employing authority on the one hand and the practitioner on the other hand;

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

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

(8) A contracting Health Board (or, in the case of a dentist or an ophthalmic medical practitioner, the Health Board with whom they have an arrangement to provide general dental services or ophthalmic services) or someone appointed on its behalf or employing authority may adjust a practitioner’s contribution rate for any scheme year determined in accordance with paragraph (6) or (9)—

(a) by agreement between the contracting Health Board or someone appointed on its behalf or employing authority, on the one hand and the practitioner on the other hand; or

(b) without such agreement, if the contracting Health Board or someone appointed to act on its behalf or employing authority, is satisfied that pensionable earnings will exceed the amount used to determine the contribution rate in accordance with those paragraphs.

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

(10) In determining the contributions payable in accordance with paragraph (2), a contracting Health Board (or, in the case of a dentist or an ophthalmic medical practitioner, the Health Board with whom they have an arrangement to provide general dental services or ophthalmic services) or someone appointed to act on its behalf or the employing authority must take account of all pensionable earnings as a practitioner.

(11) The contracting Health Board or someone appointed to act on its behalf must apply the correct member contribution rate in terms of paragraph (5) or (6) whichever is appropriate once in receipt of certified earnings for the scheme year from the member.

(12) 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.

(13) In this regulation, “the relevant table” means—

(a) in respect of the 2012-2013 scheme year, table 1; and

(b) in respect of the 2013-2014 scheme year, table 2.

Column 1 Pensionable earnings band	Column 2 Contribution percentage rate
Up to £21,175	5.0%
£21,176 to £26,557	6.5%
£26,558 to £48,982	8.0%
£48,983 to £69,931	8.9%
£69,932 to £110,273	9.9%
£110,274 to any higher amount	10.9%
Column 1 Pensionable earnings band	Column 2 Contribution percentage rate
---	---
Up to £15,431	5.0%
£15,432 to £21,387	5.3%
£21,388 to £26,823	6.8%
£26,824 to £49,472	9.0%
£49,473 to £70,630	11.3%
£70,631 to £111,376	12.3%
£111,377 to any higher amount	13.3%

Contributions by employing authorities

Contributions by employing authorities: general

3.C.3

(1) The employing authority of a member who is an active member of this Section of the scheme under this Part must contribute to the scheme, in respect of the pensionable earnings of that member, at the rate specified in paragraph (4) (“the employer’s standard rate”).

(2) In specifying the employer’s standard rate, the Scottish Ministers must—

(a) obtain the consent of the Treasury; and

(b) take account of the advice of the scheme actuary and the cost of providing for any increase in pensions under the scheme as a result of orders made under the provisions of the Pensions (Increase) Act 1971[^f00577] and section 59 (increase of official pensions) of the Social Security Pensions Act 1975[^f00578].

(3) 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.

(4) The employer’s standard rate is 13.5%.

(5) Any contributions payable under this regulation must be paid to the Scottish Ministers.

Guarantees, indemnities and bonds

3.C.4

(1) This regulation applies if—

(a) an employing authority fails to pay contributions in accordance with regulation 3.C.3 (contributions by employing authorities: general); and

(b) the employing authority is—

(i) a GMS practice;

(ii) an HBPMS practice;

(iii) a section 17C agreement provider; or

(iv) an OOH provider.

(2) The Scottish Ministers may require the employing authority to have in force a guarantee, indemnity or bond which provides for payment to the Scottish Ministers, should that authority fail to meet them, of all future liabilities of the authority under—

(a) this Part; or

(b) the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998[^f00579].

(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 Scottish Ministers approve for the purpose.

Payment of contributions

3.C.5

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

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

(b) where the notice required by regulation 3.A.3(3) (meaning of “pensionable service”) has been received, until the member ceases practitioner service.

(2) Except where paragraph (3) applies, principal practitioners must pay C1 contributions to the contracting Health Board or someone appointed to act on its behalf, and dental practitioners must pay such contributions to the Common Services Agency for the Scottish Health Service (constituted by section 10 of the 1978 Act).

(3) Where a principal practitioner is engaged under a contract of employment or a contract for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority must—

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

(b) where it is not also the contracting Health Board, pay those contributions to that Health Board or to someone appointed to act on its behalf.

(4) Subject to paragraph (5), where a principal practitioner is—

(a) an employing authority which is a GMS practice, a section 17C agreement provider or an HBPMS contractor; or

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

that employing authority must pay C3 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(5) Where the principal practitioner is a shareholder or partner in more than one employing authority referred to in paragraph (4), 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 contracting Health Board, or someone appointed to act on its behalf.

(6) If paragraph (3) applies (but paragraph (4) does not) and the employing authority referred to in that paragraph is—

(a) not the contracting Health Board, that authority must pay C3 contributions to that Board; or

(b) is the contracting Health Board, that Board must pay C3 contributions to the Scottish Ministers in respect of any pensionable earnings it pays to the practitioner.

(7) Where an assistant practitioner (other than a locum practitioner) is engaged under a contract of employment or a contract for services by an employing authority, that authority must—

(a) deduct C1 contributions from any pensionable earnings it pays to the assistant practitioner; and

(b) where it is not also the contracting Board, pay those contributions to that Board, or someone appointed to act on its behalf.

(8) In the cases of an assistant practitioner, if paragraph (7) applies, and the employing authority referred to in that paragraph—

(a) is not the contracting Health Board, that authority must pay C3 contributions to the contracting Health Board or to someone appointed to act on its behalf; or

(b) is the contracting Health Board that Board must pay C1 and C3 contributions to the Scottish Ministers in respect of any pensionable earnings it pays to such a practitioner.

(9) Locum practitioners must pay C1 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(10) If a locum practitioner is liable to pay contributions under paragraph (9) in respect of pensionable locum work done for an employing authority which is not—

(a) the contracting Health Board;

(b) a GMS practice;

(d) an HBPMS contractor,

that employing authority must pay C1 contributions to the contracting Health Board, or someone appointed to act on its behalf.

(11) If contributions are payable by a locum practitioner under paragraph (9) in respect of pensionable locum work carried out for an employing authority which is—

(a) a contracting Health Board;

(b) a GMS practice;

(d) an HBPMS contractor,

the contracting Health Board must pay C3 contributions in respect of such a practitioner.

(12) C1 Contributions that are required to be paid to the contracting Health Board in accordance with this regulation must be paid to that Board or someone appointed on its behalf not later than the 7th day of the month following the month in which the earnings were paid.

(13) Where an employing authority—

(a) is not the contracting Health Board, it must be a function of that employing authority to provide the contracting Board or someone appointed to act on its behalf, with a record of any—

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

(ii) contributions deducted by it in accordance with paragraph (3) or (7),

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

(b) is the contracting Health Board, or someone appointed on its behalf, that has deducted contributions in accordance with paragraph (3) or (7) and is liable to pay C3 contributions in respect of any pensionable earnings it pays to a practitioner, it must be a function of that Board to maintain a record of—

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

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

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

(14) It must be a function of the contracting Health Board, or someone appointed to act on its behalf, to pay the contributions—

(a) paid to it by a principal practitioner or locum practitioner;

(b) paid to it by another employing authority; and

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

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

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

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

in accordance with this paragraph, the Scottish Ministers 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 the circumstances in paragraph (16) are met.

(16) The conditions described in paragraph (15) are that—

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

(b) the deduction is to the member’s advantage.

(17) In this regulation—

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

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

Additional contributions to purchase additional pensions

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

3.C.6

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 6 months under Chapter 3.E (death benefits)); or

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

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

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

(4) The annual amount of the periodical contributions payable at the beginning of the contribution option period must be—

(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.

(5) In paragraph (4) “the minimum amount” means the amount that would, in accordance with tables prepared for the Scottish Ministers 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 Scottish Ministers may for the time being determine,

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

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

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

(b) may be amended during a scheme year,

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

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

(a) contributions made under regulation 3.C.8 (member’s option to pay lump sum contribution to purchase additional pension); or

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

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine (taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 2.C.8 to 2.C.17 (additional contributions).

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

(a) is specified in the option;

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

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

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

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

3.C.7

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

(a) absent from work because of illness or injury;

(b) on maternity leave;

(d) on paternity leave;

(e) on parental leave; or

(f) on a leave of absence of the kind mentioned in regulation 3.A.4(3) (pensionable service: breaks in service).

(2) If paragraph (1) applies—

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

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

(3) This paragraph applies if—

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

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

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

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

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

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

3.C.8

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 6 months under Chapter 3.E (death benefits)); or

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

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

(a) not less than the minimum amount; and

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

(3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the Scottish Ministers 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 Scottish Ministers 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 one month beginning with the day on which the member is notified by the Scottish Ministers that the option is accepted; and

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

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

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

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

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 2.C.8 to 2.C.17 (additional contributions).

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

Payment of additional lump sum contributions by employing authority

3.C.9

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

(a) to increase by a specified amount the benefits payable to the member under Chapter 3.D (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 6 months under Chapter 3.E (death benefits)); or

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

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

(a) not less than the minimum amount (as defined in regulation 3.C.8(3) (option to pay lump sum contribution); and

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

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

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

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

(b) contributions made under regulation 3.C.8 (member’s option to pay lump sum contribution to purchase additional pension),

(5) A contribution under this regulation must be paid by the employing authority to the Scottish Ministers within one month of the date on which the authority gave the Scottish Ministers notice under regulation 3.C.10(2) (exercise of options under regulations 3.C.6, 3.C.8 and 3.C.9).

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

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

3.C.10

(1) A member exercising an option under regulation 3.C.6 (option to pay additional periodical contributions) or 3.C.8 (option to pay lump sum contribution) must—

(a) do so by giving notice in writing to the employing authority, giving such information as may be required; and

(b) at the same time, provide the Scottish Ministers with a copy of that notice.

(2) An employing authority exercising an option under regulation 3.C.9 (payment of additional lump sum contributions by employing authority)must do so by giving notice in writing to the Scottish Ministers, giving such information as may be required.

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

(4) For the purposes of this Part—

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

(b) an employing authority is to be treated as exercising an option under regulation 3.C.9 on the date on which the Scottish Ministers receive the authority’s notice under paragraph (2).

(5) The Scottish Ministers may refuse to accept an option exercised under regulation 3.C.6, 3.C.8 or 3.C.9 and must do so if not satisfied that—

(a) the member is in good health; and

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

(6) If the Scottish Ministers refuse to accept such an option—

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

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

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

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

(7) This Part also applies as if an option under regulation 3.C.8 or 3.C.9 had not been exercised if—

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

(i) before the end of the period of one month beginning with the day on which the Scottish Ministers notify the member of the acceptance of the option; or

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

(b) in the case of an option under regulation 3.C.9, the payment is not received by the Scottish Ministers—

(i) before the end of the period of one month beginning with the day on which the employing authority gave the Scottish Ministers notice under paragraph (2); or

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

Cancellation of options under regulation 3.C.6

3.C.11

(1) A member may cancel an option under regulation 3.C.6(1) (option to pay additional periodical contributions) 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 Scottish Ministers that the requirement in regulation 3.C.6(7) will not be met if the member continues to make periodical contributions under an option exercised under regulation 3.C.6, the Scottish Ministers may cancel the option by giving the member notice in writing.

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

(5) If, after the exercise of the option under regulation 3.C.8, the Scottish Ministers have reasonable grounds to believe that the member’s health will prevent the member from paying contributions for the whole contribution period, the Scottish Ministers may cancel the option by giving the member notice in writing.

(6) If the Scottish Ministers cancel such an option in accordance with paragraph (5), 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 and any periodical payments made before the date of cancellation must be returned to the member.

Effect of payment of additional contributions

3.C.12

(1) This regulation applies if—

(a) an option is exercised by a member under regulation 3.C.6 (option to pay additional periodical contributions) and all the contributions to be made under the option are made; or

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

(2) Subject to paragraph (9) the member’s pension is to be increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 3.C.15 (revaluation of increases bought under options).

(3) Paragraph (2) is without prejudice to any increase or reduction falling to be made in the total amount of the member’s pension under Chapter 3.D (members’ retirement benefits) or Chapter 3.K (2008 Section Optants) as a result of the member becoming entitled to payment of the pension before or after reaching age 65[^f00580].

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

(5) In paragraph (4), subject to regulations 3.C.13 (effect of death or early payment of pension) and 3.C.14(3) (effect of part payment of periodical contributions), “the appropriate amount” means—

(a) in the case of a pension under regulation 3.E.1 (surviving dependent adult’s pension) the amount of which is determined under regulation 3.E.3 (active members and non-contributing members) or 3.E.5 (deferred members), 37.5% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3));

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

(c) in the case of a pension under regulation 3.E.8 (surviving dependent child’s pension) the amount of which is determined under regulation 3.E.10 (active members and non-contributing members) or 3.E.12 (deferred members), the appropriate fraction (within the meaning of regulation 3.E.10 or, as the case may be, regulation 3.E.12) of 75% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)); and

(d) in the case of a pension under regulation 3.E.8 (surviving dependent child’s pension) the amount of which is determined under regulation 3.E.11 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75% of the amount of the increase in the member’s pension as a result of the option.

(6) Except as provided in regulation 3.D.5 (partial retirement: members aged at least 55), no separate claim is required as respects any additional pension payable by virtue of this regulation.

(7) This regulation is subject to regulation 3.C.13 (effect of death or early payment of pension).

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

(9) Paragraph (10) applies only to an option under regulation 3.C.6(1)(a), 3.C.8(1)(a) or 3.C.9(1)(a), where a pension is to be paid for either three or 6 months at the same rate as the member’s pension was being paid at the date of that member’s death.

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

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

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

3.C.13

(1) If a member in respect of whom an option under regulation 3.C.6 (option to pay additional periodical contributions), 3.C.8 (option to pay lump sum contribution) or 3.C.9 (lump sum contributions by employing authority) has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised—

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

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

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

(b) regulation 3.C.12(4) (effect of payment of additional contributions) does not apply.

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

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

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

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

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

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

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

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

(a) becomes entitled to a pension under regulation 3.D.4 (early payment of pension with actuarial reduction) or 3.D.9 (early retirement on ill health: deferred members); or

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

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

(6) The amount of the reduction is such amount as the Scottish Ministers determine, after consulting the scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.

(7) This regulation is subject to regulation 3.C.14 (effect of part payment of periodical contributions).

Effect of part payment of periodical contributions

3.C.14

(1) This regulation applies if—

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

(b) regulation 3.C.13(1) to (4) (effect of death or early payment of pension) does not apply.

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

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

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

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

(a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation 3.C.6 for the whole contribution option period; and

(b) the preservation requirements.

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

Revaluation of increases bought under options: members' pensions

3.C.15

(1) Where an option under regulation 3.C.6 (option to pay additional periodical contributions), 3.C.8 (option to pay lump sum contribution) or 3.C.9 (lump sum contributions by employing authority) has been exercised, the final amount of the increase in a member’s pension immediately before the beginning date for that pension must be determined in accordance with this regulation.

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

(3) Where the increase in pension is in respect of an option that was exercised two or more months before the increase in pension becomes payable, the final amount is to be calculated in accordance with whichever of paragraph (5) or (6) applies.

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

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 3.C.12 to 3.C.14, to find the Step 1 amount.
Step 2 —	Add to the Step 1 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971[^f00581] on a pension of the same amount as the Step 1 amount when it first falls into payment, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the Step 1 amount, to find the Step 3 factor.
Step 4 —	Divide the Step 1 amount by the Step 3 factor to find the final amount referred to in paragraph (1).

(5) If the member exercised the option on or before 31st March 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 3.C.12 to 3.C.14, to find the Step 1 amount.
Step 2 —	Multiply the Step 1 amount by the retail prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the retail prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 —	Take the greater of the Step 1 amount and the Step 3 amount, to find the Step 4 amount.
Step 5 —	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.
Step 6 —	Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.
Step 7 —	Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(6) If the member exercised the option on or after 1st April 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 3.C.12 to 3.C.14, to find the Step 1 amount.
Step 2 —	Multiply the Step 1 amount by the prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 —	Take the greater of the Step 1 amount and the Step 3 amount, to find the Step 4 amount.
Step 5 —	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971[^f00582] 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).

(7) In this regulation—

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

“the prices index” means, as regards any month, the change in the general level of prices for that month used to determine increases to official pensions for the purposes of the Pensions (Increase) Act 1971.

Repayment of contributions

3.C.16

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

(a) paragraph (2) applies; or

(b) Chapter 5 (early leavers: cash transfer sums and contribution refunds) of Part 4 of the 1993 Act 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 for the purposes of this Part 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 regulation 3.D.1(2)(a) to (d) (normal retirement pensions);

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

(3) If paragraph (1)(b) applies, the person is entitled to be paid the amount to which the person is entitled under Chapter 5 of Part 4 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 61 (deduction of contributions equivalent premium) of the 1993 Act; and

(b) an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act 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 5 (early leavers: cash transfer sums and contribution refunds) of Part 4 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 this Section of the scheme making the transfer payment (subject to any provision made in any enactment applicable to the transfer); and

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

CHAPTER 3.D — MEMBERS' RETIREMENT BENEFITS

Entitlement to pensions

Normal retirement pensions

3.D.1

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

(a) has reached age 65; and

(b) either—

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

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

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

(a) the member is entitled to count at least two years of qualifying service in respect of the relevant service;

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

(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) is 1.87% of the member’s uprated earnings; and

(b) 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 1971[^f00583] and section 59 (increase of official pensions) of the Social Security Pensions Act 1975[^f00584], plus 1.5% annually.

(5) A claim referred to in paragraph (1)(b)(i) and made in accordance with regulation 3.J.2 (claims for benefits) takes effect from the date the claim is received by the Scottish Ministers.

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

(7) In this Chapter “NHS employment” includes employment with an employer in respect of whom a direction has been made under section 7 (extension of superannuation provisions of National Health Service Acts) of the Superannuation (Miscellaneous Provisions) Act 1967[^f00585].

(8) In the case of a 2008 Section Optant this regulation is subject to regulation 3.K.10.

Pension credit members

3.D.2

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

(2) Subject to paragraph (5), the pension becomes payable—

(a) when the pension credit member reaches age 65; or

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

(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) (appropriate rights) of Schedule 5 to the 1999 Act.

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