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The National Health Service Pension Scheme Regulations 1995

Type Statutory-Instrument

Publication 1995-02-08

Last updated 2026-07-18

State In force

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Source legislation.gov.uk

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(a) the member’s preserved pension; and

(b) the amount that the preserved pension would have been if it had been based on 10 years’ pensionable service.

(3A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated as described in whichever of paragraphs (4) or (5) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount of that the preserved pension would have been if it had been based on the shorter of—

(a) 10 years’ pensionable service; and

(b) the pensionable service the member could have completed if the member stayed in pensionable employment until age 65.

(4) If the member dies leaving a dependent child and there is a surviving parent (or spouse or civil partner or scheme partner of a parent), the allowance will be equal to one–quarter of the pension described in paragraphs (2) to (3A) ... (whichever is applicable) if there is only one dependent child and one–half if there are two or more.

(5) If the member dies leaving a dependent child and there is no surviving parent (or spouse or civil partner or scheme partner of a parent), the allowance will be equal to one–third of the pension described in paragraphs (2) to (3A) ... (whichever is applicable) if there is only one dependent child and two–thirds if there are two or more.

(6) If the member dies leaving a dependent child and there is a surviving parent (or spouse or civil partner or scheme partner of a parent) but there is no entitlement to a widow's, widower’s , surviving civil partner’s or surviving scheme partner’s pension calculated under regulation G4 (member dies with preserved pension), the allowance will be paid at the rate described in paragraph (5).

Member dies within 12 months after leaving pensionable employment without pension or preserved pension.

H6

(1) The child allowance payable in a case where a member leaves pensionable employment, without becoming entitled to a pension under any of regulations E1 to E5 or a preserved pension under regulation L1, and dies within 12 months after leaving and before receiving a refund of contributions under regulation L2, will be as described in this regulation.

(2) The child allowance will be calculated as described in regulation H5 (member dies with preserved pension) as if, on leaving pensionable employment, the member had become entitled to a preserved pension calculated as described in regulation L1.

Dependent child not being maintained by surviving parent or spouse or civil partner or scheme partner of a parent

H7

(1) If a member dies leaving a dependent child and there is a surviving parent (or spouse or civil partner or scheme partner of a parent) but that dependent child is not being maintained by the surviving parent (or spouse or civil partner or scheme partner of a parent), the Secretary of State may increase the amount of the child allowance that would otherwise be payable under these Regulations.

(2) The allowance may, at the Secretary of State’s discretion, be increased up to an amount equal to the amount that would have been payable if there were no surviving parent (or spouse or civil partner or scheme partner of a parent).

PART J — Allocation to a spouse , civil partner or dependant

Allocation of pension

J1

(1) Subject to the following provisions of this regulation, a member may elect to allocate part of his pension under this Section of the scheme so as to provide, following his death, a pension for a spouse , civil partner or a dependant.

(2) Any pension provided for a spouse or civil partner under this regulation shall be payable in addition to any other widow's, widower’s or surviving civil partner's pension payable under these Regulations.

(3) Any pension provided under this regulation will be calculated in accordance with tables prepared by the Scheme Actuary.

(4) A member wishing to allocate part of his pension under this regulation may elect to do so—

(a) on making a claim for payment of his benefits under regulation T1 (claims for benefits), or at any time after making such a claim but before the date on which a pension payable to him under this Section of the scheme is put into payment other than a pension payable under regulation E5A (partial retirement pension); or

(b) if in pensionable employment—

(i) in the case of a member who is not a special class officer, at any time after completing 45 years pensionable service; or

(ii) in the case of a member who is a special class officer, at any time after reaching age 55 and completing 40 years pensionable service, or

(5) A member wishing to allocate part of his pension as described in this regulation shall do so by giving notice in writing to the employing authority on the form provided, giving such information as the Secretary of State may require.

(6) The Secretary of State shall not accept an election unless satisfied that the member is in good health.

(7) If a member allocates part of his pension as described in this regulation and then dies after the pension becomes payable, the amount of pension already paid to the member under this Section of the scheme will be treated, for the purpose of calculating the lump sum on death payable under regulation F2 (member dies after pension becomes payable), as including the amount of the additional pension that would have been paid to the member if the member had not allocated part of his pension.

Limits on allocation of pension

J2

(1) A member may not allocate more than one–third of his pension to provide a pension on his death for a spouse , a civil partner or a dependant and must keep a pension at least equal to his guaranteed minimum pension.

(2) A member may not allocate so much pension as to provide a bigger dependent’s pension , spouse’s pension or civil partner’s pension under regulation J1 than the pension he has kept for himself.

(3) The part of a member’s pension that is allocated must be an exact number of pounds and must be sufficient to provide a pension for the dependent , spouse or civil partner of at least £260 a year or, if greater, of the minimum amount that cannot be treated as trivial for the purposes of regulation T7 (commutation of trivial pensions).

(4) If a member elects to allocate part of his pension in the circumstances described in regulation J1(4)(b) or (c) and then dies before his pension under this Section of the scheme becomes payable the member will be treated, for the purposes of paragraphs (1) to (3) above, as entitled to the pension he would have received if he had retired immediately before his death.

Date on which allocation has effect

J3

(1) An election to allocate shall have effect, and may not be withdrawn or cancelled, once it has been accepted by the Secretary of State.

(2) The allocation will not take effect if—

(a) the member dies on or before the day on which the Secretary of State accepts the member’s election;

(b) the dependant , spouse or civil partner dies before the member is told that the Secretary of State has accepted the election; or

PART K — Contracting–out

Contracting-out conditions to be overriding

K1

(1) This Section of the Scheme will be administered in conformity with the contracting-out conditions and, with the exception of the circumstances specified in paragraph (2), regulations K2 to K7 override any inconsistent provisions of these regulations.

(2) The circumstances referred to in paragraph (1) are—

(a) if a trivial pension is commuted in accordance with regulation T7; or

(b) if a pension is commuted in accordance with regulations E2(10), E2A(10) or L1(5) (pensions on early retirement due to ill health and preserved pensions); or

(3) In this Part—

(a) “contracting-out conditions” means—

(i) the conditions specified in section 12E of the 1993 Act; and

(ii) the conditions or requirements that apply in respect of a member’s section 9(2B) rights;

(b) “guaranteed minimum” means the guaranteed minimum as defined in sections 13 to 17 of the 1993 Act;

(ca) “guaranteed minimum pension age” means age 65 in the case of a man or age 60 in the case of a woman;

(d) “protected rights” has the same meaning as in the 1993 Act.

Guaranteed minimum pensions

K2

(1) This regulation applies where the member has a guaranteed minimum, in relation to the pension provided for the member under this Section of the scheme, in accordance with section 13 of the 1993 Act.

(2) The weekly rate of the member’s pension from guaranteed minimum pension age will not be less than the member’s guaranteed minimum, except that—

(a) payment may, at the discretion of the Secretary of State, be postponed for up to 5 years if the member remains in NHS employment, or for any period if the member consents; and

(b) payment may be reduced under regulation S2 (reduction of pension on return to NHS employment) if the member returns to NHS employment,

in either of which cases the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement).

(3) If the member is a man and dies leaving a widow, the weekly rate of the widow’s pension will not be less than one–half of the member’s guaranteed minimum.

(4) If the member is a woman and dies leaving a widower, the weekly rate of the widower’s pension will not be less than one–half of the part of the member’s guaranteed minimum that is attributable to earnings for the tax years 1988-89 to 1996-97 inclusive.

(4A) If the member is in a civil partnership and dies leaving a surviving civil partner, the weekly rate of the surviving civil partner’s pension will not be less than one-half of the part of the member’s guaranteed minimum that is attributable to earnings for the tax years 1988-89 to 1996-97 inclusive.

(5) The part of any guaranteed minimum pension that is attributable to earnings for the tax years 1988-89 to 1996-97 inclusive and subsequent tax years will be increased each year by the percentage specified in any order made by the Secretary of State under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions).

(6) A member who on leaving pensionable employment—

(a) becomes entitled to a refund of contributions under regulation L2; or

(b) exercises a right to require a transfer or buy-out in accordance with regulation M2,

but, in either case, remains (as described in regulation L2(3)) entitled to a guaranteed minimum pension or section 9(2B) rights, shall be entitled to the benefits specified in paragraph (7).

(7) The benefits are—

(a) a pension payable from the date on which the member reaches guaranteed minimum pension age at a weekly rate equal to the member’s guaranteed minimum (if any); and

(b) a pension and lump sum from the date the member reaches normal benefit age in respect of the member’s section 9(2B) rights.

(8) On the death of a member to whom paragraph (6) applies, no benefit will be payable except for a widow’s, widower’s or surviving civil partner’s pension equal to the aggregate of—

(a) that described in paragraph (3) or, as the case may be, paragraph (4); and

(b) half the member’s pension in respect of section 9(2B) rights.

Late retirement

K3

If a member’s pension is postponed for more than 7 weeks after guaranteed minimum pension age, or is reduced or suspended after it becomes payable, the member’s guaranteed minimum pension, as increased under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions), will be increased by 1/7th per cent. for each complete 7 days of postponement.

Early leavers

K4

(1) This paragraph applies if a member who is under guaranteed minimum pension age either—

(a) leaves contracted-out employment under this Section of the scheme before 6th April 2016, or

(b) was in contracted-out employment under this Section of the scheme on 5th April 2016 but leaves pensionable employment on, or after, 6th April 2016.

This is subject to paragraph (2).

(1A) Where paragraph (1) applies the member’s guaranteed minimum pension at the date of leaving will be increased, when the member reaches guaranteed minimum pension age or dies (if earlier), by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches guaranteed minimum pension age or dies (if earlier).

(2) If a guaranteed minimum pension is to be transferred to another scheme, or bought out by a buy–out policy, under which early leavers’ guaranteed minimum pensions are increased by a method other than that described in paragraph (1), the Secretary of State may adopt that other method for the guaranteed minimum pension in question.

(3) If a member to whom paragraph (1) applies returns to pensionable employment under this Section of the scheme within 6 months after leaving, the two periods of employment will be treated as continuous, unless the first period is covered by—

(a) a state scheme premium under section 55 of the 1993 Act or article 3 of the 2016 Order,

(b) a transfer to another occupational pension scheme or to a personal pension scheme, or

Guaranteed minimum pensions transferred to this Section of the scheme

K5

(1) This paragraph applies where a guaranteed minimum pension has been transferred to this Section of the scheme and the member—

(a) subsequently leaves contracted-out employment under this Section of the scheme before 6 April 2016, or

(b) was in contracted-out employment under this Section of the scheme on 5th April 2016 but leaves pensionable employment on, or after, 6th April 2016.

(1A) Where paragraph (1) applies, the guaranteed minimum pension transferred to this Section of the scheme will be increased for each complete tax year after the date of leaving under this Section of the scheme in which the transferred guaranteed minimum pension accrued, until the member reaches guaranteed minimum pension age or dies (if earlier).

(2) If the transfer is from another occupational pension scheme, the guaranteed minimum pension will be increased by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches guaranteed minimum pension age or dies (if earlier).

(3) If the transfer is from a buy–out policy, the guaranteed minimum pension will be increased by the same method as was in use under the policy or, if the Secretary of State so determines, by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches guaranteed minimum pension age or dies (if earlier).

Protected rights transferred to this Section of the scheme

K6

(1) Where , prior to 6th April 2012, protected rights have been transferred to this Section of the scheme from another occupational pension scheme or a personal pension scheme, the protected rights will be used to provide guaranteed minimum pensions equal to those to which the member and the member’s spouse or civil partner would have been treated as entitled under the transferring scheme had the transfer not been made.

(2) Any guaranteed minimum pensions to which a member and his spouse or civil partner are entitled by virtue of paragraph (1) will be revalued as described in regulation K5(2).

State scheme premiums

K7

(1) The Secretary of State may discharge the liability to provide any guaranteed minimum pension by paying a state scheme premium under section 55 of the 1993 Act or article 3 of the 2016 Order.

(2) Where a member, or a member’s widow, widower or surviving civil partner, is entitled to a pension under this Section of the scheme in respect of a period for which a contributions equivalent premium has been paid under section 55 of the 1993 Act or article 3 of the 2016 Order, the pension will be reduced by the amount of the guaranteed minimum pension that would have been payable under this Section of the scheme to the member, widow, widower or surviving civil partner, as the case may be, if the contributions equivalent premium had not been paid.

PART L — Early leavers

Preserved pension

L1

(1) Subject to paragraphs (3) and (4), a member who leaves pensionable employment before age 60 without becoming entitled to a pension under any of regulations E1 to E5 shall be entitled to receive a pension and retirement lump sum under this regulation from age 60 if—

(a) the member leaves with at least 2 years’ qualifying service, or

(b) a transfer payment has been made to this Section of the scheme in respect of the member’s rights under a personal pension scheme.

(2) The pension under this regulation will be calculated–

(a) where it becomes payable by virtue of paragraph (3)(d) below, in accordance with paragraphs (2) to (4) of regulation E5, as if it were a pension under that regulation; and

(b) in any other case, as described in regulation E1 as if it were a pension under that regulation;

and the retirement lump sum will be calculated as described in regulation E6.

(3) The member shall be entitled to receive the pension and retirement lump sum before age 60 if—

(a) the member is in NHS employment and the Secretary of State is satisfied that the member is suffering from mental or physical infirmity that makes him permanently incapable of efficiently discharging the duties of that employment;

(b) the Secretary of State is satisfied that the member is suffering from mental or physical infirmity that makes him permanently incapable of engaging in regular employment of like duration; or

(d) the member—

(i) left pensionable employment after 30th March 2000,

(ii) has reached the normal minimum pension age or, where relevant, protected pension age, and

(iii) has applied to the Secretary of State for payment of the pension and retirement lump sum under this regulation.

(4) Except in a case to which paragraph (4A) applies—

(a) if the member is in NHS employment at the relevant time (whether with the same or another employing authority), the pension and lump sum on retirement will not become payable until the member leaves NHS employment or, if sooner—

(i) when the member attains the age of 70, if he attains that age on or before 31st March 2008; or

(ii) when the member attains the age of 75, if he attains the age of 70 on or after 1st April 2008;

(b) the relevant time—

(i) in the case of a member to whom sub-paragraph (d) of paragraph (3) applies, is when he makes the application referred to in head (iii) of that sub-paragraph; or

(ii) in any other case, when the member attains the age of 60.

(4A) Paragraph (4) may not apply where the NHS employment which the member is in when he reaches age 60 is employment into which he has been transferred as a result of a transfer of an undertaking to the employer.

(4B) Where a member receives a pension under paragraph (1) while being in the new employment to which paragraph (4A) applies—

(a) his benefits in respect of any pensionable service in that new employment shall be calculated without regard to any pensionable service in any earlier employment;

(b) for the purposes of regulation C2 (meaning of “pensionable service”) and regulation D1(3) and (4) (contributions by members), his service in the earlier employment and in the new employment shall be aggregated.

(5) Subject to paragraph (6), where on or after the coming into force of these Regulations a member becomes entitled to a pension under paragraph (3)(a) or (b), the Secretary of State may discharge her liability for that pension by the payment of a lump sum of an amount consistent with—

(a) the contracting-out requirements; and

(b) the preservation requirements.

(6) A lump sum payment under paragraph (5) may be made only if the Secretary of State is satisfied that it is appropriate in all the circumstances having regard to the life expectancy of the member and the member was in pensionable employment on or after the coming into force of these Regulations.

(7) For the purpose of paragraph (6), the Secretary of State may require whatever medical evidence that she considers necessary.

(8) The amount of the lump sum payable under paragraph (5) will be equal to 5 times the difference between the yearly rate of the member’s pension (calculated in accordance with this regulation) and the yearly rate of the member’s guaranteed minimum pension ... and shall be payable in addition to the lump sum on retirement payable under this regulation, which shall not be subject to any reduction such as is described in regulation E6(3).

(9) For the purposes of determining whether a member is permanently incapable of efficiently discharging the duties of the member’s employment under paragraph (3)(a), the Secretary of State shall have regard to the factors in paragraph (11) (no one of which shall be decisive) and disregard the member’s personal preferences for or against engaging in that employment.

(10) For the purposes of determining whether a member is permanently incapable of regular employment under paragraph (3)(b), the Secretary of State shall have regard to the factors in paragraph (12) (no one of which shall be decisive) and disregard the factors in paragraph (13).

(11) The factors to be taken into account for paragraph (9) 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 the member’s incapacity, irrespective of whether such rehabilitation is undergone; and

(d) any other matter which the Secretary of State considers appropriate.

(12) The factors to be taken into account for paragraph (10) 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 the member’s incapacity (irrespective of whether such rehabilitation is undergone) having 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 the member’s incapacity (irrespective of whether such traning is undergone) having 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 Secretary of State considers appropriate.

(13) The factors to be disregarded for paragraph (10) are—

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

(b) the geographical location of the member.

(14) 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 Secretary of State considers—that it would be reasonable for the member to refuse,would provide no benefit to restoring the member’s capacity for—efficiently discharging the duties of the member’s employment under paragraph (3)(a), orregular employment of like duration under paragraph (3)(b),before the member reaches normal benefit age; andthat, through no fault on the part of the member, it is not possible for the member to receive before the member reaches normal benefit age;

“NHS employment” does not include employment with an employing authority in respect of which—a member is eligible to join the 2008 Section; ora member, other than a member who is no longer required to pay contributions pursuant to regulation D1(3) or (4) (contributions by members), is eligible to join the 2015 Scheme and that member’s service in this Section does not qualify as, or has ceased to be, pensionable service to which paragraphs 1(2)(i) and (ii) or paragraphs 2(2)(i) and (2)(ii) of Schedule 7 (final salary link) to the 2013 Act applies;

“permanently” means the period until normal benefit age; and

“regular employment of like duration” means—in the case of a member who was a non-GP provider, such employment as the Secretary of State considers would involve a similar level of engagement to the member’s pensionable service as a non-GP provider immediately before that service ceased; andin all other cases, where prior to leaving employment that was pensionable the member was employed—on a whole-time basis, regular employment on a whole-time basis;on a part-time basis, regular employment on a part-time basis,regard being had to the number of hours, half-days and sessions the member worked in that employment.

Refund of contributions

L2

(1) A member who leaves pensionable employment without becoming entitled to a pension under regulations E1 to E5 or a preserved pension under regulation L1 shall be entitled to receive a lump sum refund of his contributions, less tax at—

(a) 20 per cent (or at such other rate as applies from time to time) in respect of so much of the lump sum as does not exceed £10,800 (or such other amount as applies from time to time); and

(b) 40 per cent (or at such other rate as applies from time to time) in respect of so much (if any) of it as exceeds that limit.

(2) A member who wishes to take a refund of contributions must apply in writing to the Secretary of State.

(2A) An application in writing referred to in paragraph (2) may be—

(a) made or given by means of an electronic communication that is approved by the Secretary of State for that purpose;

(b) given to the Secretary of State by a person other than the member.

(3) If the member’s employment was contracted-out by reference to this Section of the scheme, the member (and the member’s spouse or civil partner, if any) will remain entitled to a guaranteed minimum pension and section 9(2B) rights under this Section of the scheme, unless the Secretary of State discharges her liability in respect of that entitlement by paying a contributions equivalent premium under section 55 of the 1993 Act or article 3 of the 2016 Order.

(4) If a contributions equivalent premium is paid, the member’s refund of contributions will be reduced by the amount recoverable under section 61 of the Pensions Schemes Act 1993 (deduction of contributions equivalent premium from refund of contributions).

(5) If a contributions equivalent premium is not paid, the member’s refund of contributions will be reduced by the amount that the Secretary of State estimates would have been recoverable under section 61 of the Pensions Schemes Act 1993 if the premium had been paid.

(6) A member shall not be entitled to a refund of contributions for any period of service in respect of which the Secretary of State has received a transfer payment in respect of his rights under a personal pension scheme.

(7) Where a refund of contributions is made, the Secretary of State shall be discharged from any obligation to provide benefits under this Section of the scheme except to any extent provided for under paragraph (3).

Payment of interest with refund of contributions

L3

(1) Compound interest will be added to a refund of contributions under regulation L2, except where the employment was terminated by reason of misconduct or inefficiency or at the member’s request.

(2) Subject to paragraph (3), where compound interest is added to a refund of contributions, it will be calculated at the rate of 2.5 per cent. per year, for the period starting on the 1st April after the contributions were paid and ending on the day the member leaves pensionable employment.

(3) In the case of any contributions paid under another enactment or scheme and included in a transfer payment to this Section of the scheme, interest for the period before the transfer payment was accepted will be calculated as described in the enactment or scheme from which the transfer payment was received.

Early leavers returning to pensionable employment

L4

(1) This regulation applies to any member who leaves pensionable employment without becoming entitled to a pension under any of regulations E1 to E5 and later returns to pensionable employment before becoming entitled to receive a pension under this Section of the scheme.

(2) If the member leaves pensionable employment with a preserved pension under regulation L1 and then returns to pensionable employment within 12 months after leaving, the member will cease to be entitled to the preserved pension under regulation L1 and the member’s pensionable service before and after the break in pensionable employment will be treated as continuous.

(3) Subject to paragraph (5), if the member leaves pensionable employment with a preserved pension under regulation L1 and then returns to pensionable employment 12 months or more after leaving—

(a) the member’s pensionable service before and after the break in pensionable employment will be treated separately unless, when the member becomes entitled to receive a pension or the member dies (whichever occurs first), it would be more favourable to the member, or the member’s spouse or civil partner, to treat the member’s pensionable service before and after the break, and all such other breaks (if any), as continuous; and

(b) if the member becomes entitled to receive a pension under regulation E2 or E2A, the pensionable service upon which that pension is based will be increased as described in paragraphs (4) to (6) of that regulation if the member’s pensionable service before and after the break in pensionable employment is treated as continuous, but there will be no increase to any of the member’s pensionable service if the member’s pensionable service before and after the break is treated separately.

(4) Subject to paragraph (5), if the member leaves pensionable employment without becoming entitled to a preserved pension and then returns to pensionable employment within 12 months after leaving, the member’s pensionable service before and after the break in pensionable employment will be treated as continuous.

(5) Where paragraph (4) applies and the member has received a refund of contributions under regulation L2 in respect of pensionable service before the break in pensionable employment, the member’s pensionable service before and after the break will be treated as continuous only if, within 6 months after rejoining this Section of the scheme, the member pays to the Secretary of State an amount equal to the refund of contributions (including any interest added under regulation L3).

(6) If a member leaves pensionable employment with a preserved pension and, after returning, again leaves pensionable employment without becoming entitled to a pension under any of regulations E1 to E5, the member will be entitled to a preserved pension under regulation L1 in respect of the period after the break in pensionable employment whether or not he has 2 years’ qualifying service in respect of that period.

(7) A member whose pensionable service before and after a break in pensionable employment is treated as continuous and who, before the break, was paying for additional benefits by regular additional contributions under regulation Q6 (paying for additional service or unreduced retirement lump sum by regular additional contributions) must continue to pay for those additional benefits after the break.

(7A) Practice staff who were employed by a registered medical practitioner on both 31st August 1997 and 1st September 1997 and who—

(a) had previously been compulsorily transferred from employment with a body referred to in paragraph (a), (b), (c) or (d) of the definition of “employing authority” in regulation A2, to employment with a registered medical practitioner referred to in paragraph (e) of that definition;

(b) were at the time of the transfer paying for additional benefits by regular additional contributions under regulation Q6; and

may resume payment of those additional contributions at such percentage rate, of current pensionable pay as applied prior to that transfer above, provided that payment of those contributions is resumed with effect from 1st September 1997.

(8) If a member’s pensionable employment before and after a break in pensionable employment (the “pre-break period” and the “post-break period” respectively) is treated separately, the member’s benefits in respect of such employment in the pre-break period and the post-break period shall be calculated—

(a) separately; and

(b) by reference to—

(i) the member’s pensionable service comprising that pre-break or post-break period as the case may be; and

(ii) his final year’s pensionable pay in respect of that particular period,

as if that period had been his only period of pensionable employment.

PART M — TRANSFERS AND BUY-OUTS

Member’s right to transfer or buy-out

M1

(1) A member who leaves pensionable employment with a preserved pension has the right to require the Secretary of State to transfer or buy-out the member’s rights under this Section of the scheme as described in this regulation.

(2) Subject to the following provisions of this regulation, the member may require the Secretary of State to use the cash equivalent of the member’s rights under this Section of the scheme—

(a) to purchase one or more buy-out policies from one or more insurance companies chosen by the member that satisfies the requirements set out in regulation 12(2) of the Occupational Pension Schemes (Transfer Values) Regulations 1996;

(b) to acquire rights under a personal pension scheme or another occupational pension scheme;

(c) to acquire rights under an arrangement that is a qualifying recognised overseas pension scheme for the purposes of section 169(2) of the 2004 Act; or

(d) in any combination of the ways described in sub-paragraphs (a), (b) and (c).

(2A) Any use of the cash equivalent of a member’s rights under paragraph (2) must satisfy the requirements of Chapter 1 of Part 4ZA of the 1993 Act.

(3) The member must exercise the member’s right in relation to each and every portion of the cash equivalent unless paragraph (4) applies.

(4) The benefits attributable to—

(a) the member’s accrued rights to a guaranteed minimum pension; or

(b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997,

may be excluded from the cash equivalent transfer value payment if section 96(2) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights).

(5) A member who requires the cash equivalent to be used to acquire rights under another pension scheme in accordance with paragraph (2) may exercise the right—

(a) at any time before reaching age 60; or

(b) at a later time if the member exercises the right to require a transfer on the transfer of the member’s employment to a new employer as a result of a transfer of an undertaking to that employer.

(6) A member may require the Secretary of State to use the cash equivalent of the member’s rights under this Section of the scheme to purchase one or more buy-out policies or to acquire rights under a personal pension scheme only—

(a) if the member leaves pensionable employment on or after 1st January 1986; and

(b) if those rights are to be transferred to a personal pension scheme, in relation to any period of service of 2 years or more falling before 6th April 1988, only if a period of not less than one month has elapsed between the date the member left NHS employment and the date of commencement of any further NHS employment.

(7) If a member—

(a) leaves pensionable employment by opting-out; and

(b) on so doing becomes entitled to a preserved pension under regulation L; and

the member’s right to require a transfer or buy-out will be limited to the cash equivalent of the part of the member’s rights that is attributable to service after 5th April 1988 and the member will acquire a right to the cash equivalent of the member’s remaining rights only if the member actually leaves NHS employment before reaching age 60.

(8) A member who leaves pensionable employment before reaching age 60, without becoming entitled to a pension under any of regulations E1 to E5 or a preserved pension under regulation L1 will be treated, for the purposes of regulations M1 to M5, as if the member left pensionable employment with a preserved pension, except that—

(za) a member may require the cash equivalent to be used to acquire rights in one or more of the ways permitted under section 101AE of the 1993 Act;

(a) a member who requires the cash equivalent to be used to buy one or more buy-out policies must exercise the right to buy-out within 12 months after leaving pensionable employment; and

(b) a member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme, a personal pension scheme or a qualifying recognised overseas pension scheme must join that other scheme within 12 months after leaving pensionable employment and exercise the right to transfer within 12 months after joining that other scheme.

Exercising a right to a transfer or a buy out

M2

(1) A member who wishes to exercise the member’s right to a transfer or a buy out must apply in writing to the Secretary of State for a statement of the amount of the cash equivalent of the member’s accrued benefits under this Section of the Scheme at the guarantee date (a “statement of entitlement”).

(2) In these Regulations, “the guarantee date” means any date that—

(a) falls within the required period; and

(b) is chosen by the Secretary of State; and

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

(3) In counting the period of 10 days referred to in sub-paragraph (d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(4) In paragraph (2) “the required period” means—

(a) the period of 3 months beginning with the date of the member’s application for a statement of entitlement; or

(b) such longer period beginning with that date (but not exceeding six months) as may reasonably be required if, for reasons beyond the control of the Secretary of State, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided.

Amount of member’s cash equivalent

M3

(1) Subject to the following provisions of this regulation, the member’s guaranteed cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under this Section of the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971 ....

(1A) The Secretary of State shall—

(a) take advice from the Scheme Actuary before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent, and

(b) calculate and verify the amount of the guaranteed cash equivalent in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996.

(2) Except in the case of a transfer payment accepted under regulation N3A (transfers in respect of members to whom regulation B5 applies who elect to join or rejoin this Section of the scheme), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4) (member’s right to transfer accrued benefits to this Section of the scheme), plus the amount of the member’s contributions to this Section of the scheme.

(3) If a member’s cash equivalent is used to acquire rights under another occupational pension scheme, any part of the cash equivalent that relates to service before 29th January 1988 will be calculated as described in the previous Regulations as applicable immediately before that date, if this would be more favourable to the member.

(4) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is calculated—

(a) in accordance with those arrangements rather than paragraphs (2) and (3); and

(b) by reference to the guidance and tables provided by the Scheme Actuary for the purposes of this paragraph that are in use on the date used for the calculation.

(5) In any case where the Secretary of State has directed, under regulation T6, that part of a member’s benefits under these Regulations shall be forfeited, the cash equivalent payable in respect of that member shall be reduced by the capitalised value of the forfeited part of those benefits.

Applications for transfer value payments: General

M4

(1) A member who has applied for and received a statement of entitlement under regulation M2 may apply in writing to the Secretary of State for a transfer value payment to be made.

(2) On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of regulation M5(2)).

(3) In these Regulations such a payment is referred to as “the guaranteed cash equivalent transfer value payment”.

(4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied.

(5) The application must meet such other conditions as the Secretary of State may require.

(6) An application under this regulation may be withdrawn by notice in writing to the Secretary of State, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given.

Applications for transfer value payments: time limits

M5

(1) Subject to paragraph (5), an application under regulation M4 must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than—

(a) 6 months after that date; or

(b) if it is earlier, the date on which the member reaches 60.

(2) If the payment is made later than 6 months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—

(a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made; or

(b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of 1 per cent above the Bank of England base rate.

(3) In this regulation “Bank of England base rate” means—

(a) except where sub-paragraph (b) applies, the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, and

(b) if an order under section 19 of the Bank of England Act 1998 is in force, any equivalent rate determined by the Treasury under that section.

(4) Paragraph (5) applies if—

(a) disciplinary or court proceedings against the member are begun within 12 months after the member leaves the employment which qualified the member to belong to this Section of the Scheme; and

(b) it appears to the Secretary of State that the proceedings may lead to all or part of the member’s benefits being forfeited under regulation T6.

(5) The Secretary of State may defer doing what is needed to carry out what the member requires until the end of the period of 3 months beginning with the date on which those proceedings (including any proceedings on appeal) are concluded.

(6) In any case where a direction is given under regulation T6 for the forfeiture of a member’s benefits, this regulation applies as if the amount specified in the statement of entitlement were reduced by an amount equal to the value of the benefits forfeited, as determined by the Scheme Actuary.

(7) Subject to paragraph (8), if a transfer value payment is made in respect of a member’s rights under this Section of the Scheme, those rights are extinguished.

(8) If the member’s rights described in regulation M1(4) have been excluded from the transfer payment, the Secretary of State will continue to be liable to provide the benefits described in regulation K2(7) (guaranteed minimum pension).

Special terms for transfer out (bulk transfers etc)

M6

(1) If one or more members (the transferring members)—

(a) leave pensionable employment,

(b) join another occupational pension scheme, and

the Secretary of State may, after taking advice from the Scheme Actuary, make a single transfer payment to that scheme in respect of the transferring members.

(2) The Secretary of State must calculate the amount of any transfer payment paid under this regulation after taking advice from the Scheme Actuary.

Member’s right to transfer a preserved pension to the 2008 Section

M7

(1) If a member meets the conditions referred to in paragraph (3), and subject to the following provisions of this regulation, a member may require the Secretary of State to use the cash equivalent of the member’s rights under this Section of the scheme referred to in these Regulations to acquire rights in the 2008 scheme.

(2) A member’s right to require the Secretary of State to use the cash equivalent of the member’s rights in the way referred to in paragraph (1) may only be exercised once.

(3) The conditions referred to in paragraph (1) are that the member—

(a) is entitled to a deferred benefit under regulation L1,

(b) may not join this Section of the scheme in respect of any further NHS employment by virtue of regulation B2(1)(k) or B2(1)(m) or (n), and

(4) The Secretary of State shall provide a member to whom this regulation applies with a statement of the amount of the cash equivalent of the member’s benefits accrued in accordance with these Regulations at the guarantee date (“a statement of entitlement”).

(5) In this regulation “the guarantee date” means any date that—

(a) falls within the required period,

(b) is chosen by the Secretary of State,

(d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement.

(6) In counting the period of 10 days referred to in paragraph (5)(d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(7) In paragraph (5), “the required period” means—

(a) the period of three months beginning with the date that the Secretary of State receives notification from the member’s employing authority that the member has joined the 2008 Section; or

(b) such longer period beginning with that date (but not exceeding six months) as may be reasonably required if, for reasons beyond the control of the Secretary of State, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(8) Subject to paragraphs (9) to (11), the member’s guaranteed cash equivalent shall be equal to the capitalised value of all of the member’s rights to benefits accrued under these Regulations and any associated rights under Part I of the Pensions (Increase) Act 1971.

(9) The Secretary of State shall—

(a) take advice from the Scheme Actuary before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent, and

(b) calculate and verify the amount of the guaranteed cash equivalent in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996.

(10) Except in the case of a transfer payment accepted under regulation N3A (transfers in respect of members who were mis-sold pensions and who elect to join or re-join this Section of the scheme), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4) (which deals with the crediting of additional service upon transfer), plus the amount of the member’s contributions to this Section of the scheme.

(11) Any part of the cash equivalent that relates to service before 29th January 1988 will be calculated as described in the previous Regulations as applicable immediately before that date, if this would be more favourable to the member.

(12) A member who has received a statement of entitlement in accordance with paragraph (4) may apply to the Secretary of State for the cash equivalent of the member’s rights under this Section of the scheme to be used to acquire rights under the 2008 Section.

(13) An application under this regulation must be made in respect of each and every portion of the cash equivalent and shall be—

(a) made in writing on the form provided for this purpose by the Secretary of State;

(b) made before the end of the period of three months beginning with the guarantee date;

(14) On the making of such an application—

(a) a member becomes entitled to be credited with a period of pensionable service or an equivalent increase to the member’s pensionable earnings in the 2008 Section in respect of the cash equivalent value of the member’s benefits under this Section of the scheme calculated in accordance with whichever of regulations 2.F.17 or 3.F.17 of the 2008 Section apply to the member, and

(b) the member’s rights under this Section of the scheme are extinguished on the day that the member is credited with a period of pensionable service or pensionable earnings in accordance with regulations 2.F.17 or 3.F.17 (as the case may be) of the 2008 Section.

Member’s right to transfer a preserved pension to the 2015 Scheme

M8

(1) An active member of the 2015 Scheme, who meets both condition A and one of either condition B or condition C, may require the Secretary of State to use the cash equivalent of the member’s rights under this Section of the scheme to acquire rights in the 2015 Scheme: this is subject to the following provisions of this regulation.

(2) Condition A is that the member—

(a) is entitled to a deferred benefit under regulation L1,

(b) has not been a member of the 2008 Section, and

(3) Condition B is that the member has had a break in pensionable employment for any one period of more than five years beginning with the day immediately following the cessation of the pensionable employment in respect of which that person is entitled to the pension referred to in paragraph (2)(a), and ending on the day immediately before the person became an active member of the 2015 Scheme in accordance with paragraph (2)(c).

(4) Condition C is that the member—

(a) has had a break in active membership of the 2015 Scheme for any one period of more than five years which is the first break of such a period since that membership commenced, and

(b) has not previously had a break in pensionable employment before becoming an active member of the 2015 Scheme which would satisfy condition B.

(5) For the purposes of paragraphs (3) and (4) any break in pensionable employment where the member was in pensionable public service as defined in paragraph 3(2) of Schedule 7 to the 2013 Act is to be disregarded.

(5A) The Secretary of State must provide a member to whom this regulation applies with a notice in writing stating that the member has the right to request a statement of the amount of the cash equivalent of the member’s benefits accrued in accordance with these Regulations (“a statement of entitlement”).

(5B) The Secretary of State must provide the member with the notice referred to in paragraph (5A) within the period of three months beginning with the date that the Secretary of State receives notification from the member’s employing authority that the member has joined the 2015 Scheme.

(5C) In accordance with paragraph (5D), a member who has received a notice in accordance with paragraph (5A) may request the Secretary of State to provide a statement of entitlement.

(5D) For the purposes of paragraph (5C), a request for a statement of entitlement must—

(a) be made by the member in writing on the form provided by the Secretary of State for that purpose;

(b) be received by the Secretary of State before the end of the three month period beginning with the date of the notice under paragraph (5A).

(6) The Secretary of State must provide a member who has requested a statement of entitlement in accordance with paragraph (5D) with a statement of entitlement at the guarantee date.

(7) In this regulation “the guarantee date” means any date that falls within the required period and is—

(a) chosen by the Secretary of State,

(b) specified in the statement of entitlement, and

(8) In counting the period of 10 days referred to in paragraph (7)(c), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded.

(9) In paragraph (7), “the required period” means—

(a) the period of three months beginning with the date that the Secretary of State receives the member’s request for a statement of entitlement in accordance with paragraph (5D); or

(b) such longer period beginning with that date (but not exceeding six months) as may be reasonably required if, for reasons beyond the control of the Secretary of State, the requisite information cannot be obtained to calculate the amount of the cash equivalent.

(10) Subject to paragraphs (11) to (13), the member’s guaranteed cash equivalent shall be equal to the capitalised value of all of the member’s rights to benefits accrued under these Regulations and any associated rights under Part I of the Pensions (Increase) Act 1971.

(11) The Secretary of State shall—

(a) take advice from the Scheme Actuary before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent, and

(b) calculate and verify the amount of the guaranteed cash equivalent in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996.

(12) Except in the case of a transfer payment accepted under regulation N3A, a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4), plus the amount of the member’s contributions to this Section of the scheme.

(13) A member who has received a statement of entitlement in accordance with paragraph (6) may apply to the Secretary of State for the cash equivalent of the member’s rights under this Section of the scheme to be used to acquire rights under the 2015 Scheme.

(14) An application under this regulation must be made in respect of each and every portion of the cash equivalent and is—

(a) to be made in writing on the form provided for this purpose by the Secretary of State;

(b) to be made before the end of the period of three months beginning with the guarantee date;

(15) On the making of such an application—

(a) a member becomes entitled to be credited with an increase to the member’s pensionable earnings and a period of pensionable service in the 2015 Scheme in respect of the cash equivalent value of the member’s benefits under this Section of the scheme calculated in accordance with regulation 145 of the 2015 Scheme, and

(b) the member’s rights under this Section of the scheme are extinguished on the day that the member is credited with an increase to the member’s pensionable earnings and a period of pensionable service in accordance with regulation 145 of the 2015 Scheme.

(16) A member’s right to require the Secretary of State to use the cash equivalent of the member’s rights in the way referred to in paragraph (1) may only be exercised once.

PART N — Transfers from other pension arrangements

Member’s right to transfer accrued rights to benefits to this Section of the scheme

N1

(1) Within 12 months after joining this Section of the scheme, a member in pensionable employment may, in writing, request the Secretary of State to accept a transfer payment in respect of the member’s rights under another occupational pension scheme, a personal pension scheme, or a buy–out policy but not in respect of rights under a free-standing AVC scheme—

(a) established on, or after, the 6th April 2006 as a registered free-standing AVC scheme for the purposes of the 2004 Act; or

(b) which on 6th April 2006 became a registered free-standing AVC scheme for the purposes of that Act and which immediately before that date was approved by the Commissioners for Her Majesty’s Revenue and Customs by virtue of section 591(2)(h) of the Income and Corporation Taxes Act 1988 (free–standing AVC schemes).

(2) The Secretary of State shall not accept the transfer payment unless—

(a) the transferring scheme or insurance company provides all the information about the member’s rights that the Secretary of State reasonably requires; and

(b) the amount of the transfer payment that relates to rights accrued in the transferring scheme before 6th April 1997 is at least equal to the yearly rate of the guaranteed minimum pension for which the Secretary of State would be liable as a result of accepting the transfer payment, multiplied by the factor appropriate to the member’s age, as set out in the following table.

member’s age	appropriate factor
29 or under	8
30 — 39	9
40 — 49	10
50 or over	12

(3) Except in the case of a person to whom regulation B5 applies, the Secretary of State shall not accept the transfer payment if—

(a) except where paragraph (3A) applies the member joins this Section of the scheme, or requests the Secretary of State to accept the transfer payment, after reaching age 60, or

(b) the request is made following a notice given under regulation B4(5) (opted–out person rejoining this Section ofthe scheme) in circumstances where the member had a previous opportunity to request the Secretary of State to accept a transfer payment in respect of those same rights but did not take that opportunity.

(3A) This paragraph applies where the member’s employment is transferred to a new employer on the transfer of his employment to a new employer as a result of a transfer of an undertaking to that employer.

(4) If the Secretary of State accepts the transfer payment, the member will be credited with an additional period of pensionable service as described in whichever of regulations N2 (transfers made under the Public Sector Transfer Arrangements) , N3 (transfers that are not made under the Public Sector Transfer Arrangements) and N3A (transfers in respect of members to whom regulation B5 applies who elect to join or rejoin this Section of the scheme) is applicable..

(5) For the purposes of calculating a member’s final year’s pensionable pay, any period of pensionable service with which a member is credited in respect of a transfer payment will be treated as pensionable employment and the pensionable pay by reference to which that service is calculated will be treated as pensionable pay received in respect of that employment.

Transfers made under the Public Sector transfer Arrangements

N2

(1) Subject to paragraph (2), if the transfer is from another occupational pension scheme that participates in the Public Sector Transfer Arrangements, the additional period of pensionable service to be credited to the member in respect of the transfer payment will be equal to the period that, if used to calculate a cash equivalent under regulation M3 (amount of member’s cash equivalent), would produce an amount equal to the amount of the transfer payment.

(2) Paragraph (1) applies only if the transfer payment—

(a) represents all the member’s rights to benefits under the transferring scheme; and

(b) is calculated in a manner that is consistent with the actuarial methods and assumptions used by the Secretary of State to calculate cash equivalents under regulation M3 in the case of transfers under the Public Sector Transfer Arrangements.

(3) For the purpose of calculating the additional period of pensionable service under paragraph (1), regard shall be had to the member’s age and marital status, and to the yearly rate of pay and any other factor notified to the Secretary of State by the trustees or managers of the transferring scheme as having been taken into account for the purpose of calculating the amount of the transfer payment.

Transfers that are not made under the Public Sector Transfer Arrangements

N3

(1) Except where regulation N2 (transfers made under the Public Sector Transfer Arrangements) applies, the additional period of pensionable service to be credited to the member in respect of the transfer payment will be calculated in a manner that is consistent with the actuarial methods and assumptions used by the Secretary of State to calculate cash equivalents under regulation M3 (amount of member’s cash equivalent), in the case of transfers that are not made under the Public Sector Transfer Arrangements.

(2) When calculating the additional period of pensionable service under paragraph (1), due allowance shall be made for the expected increase in the pensionable pay of all members of the same age as the member in respect of whom the transfer payment is being accepted between the date on which that member joins this Section of the scheme (or the date on which the transfer payment is accepted, if that is more than 12 months later) and the date on which the member will reach age 60.

Transfers in respect of members to whom regulation B5 applies who elect to join or rejoin this Section of the scheme

N3A

(1) In the case of a member to whom regulation B5 applies, this regulation shall apply for the purpose of calculating the amount of the transfer payment by reference to which an additional period of pensionable service may be credited by the Secretary of State to that member.

(2) Subject to paragraphs (3) and (4), the transfer payment in respect of which an additional period of pensionable service may be credited by the Secretary of State to a member referred to in paragraph (1) shall be calculated in a manner that is consistent with the actuarial methods and assumptions used by the Secretary of State to calculate cash equivalents under regulation M3 (amount of member’s cash equivalent) in the case of transfers that are not made under the Public Sector Transfer Arrangements and shall be of an amount equal to the total amount of—

(i) an amount which would enable the member to be credited by this Section of the scheme with such additional period of pensionable service as the Secretary of State may approve in respect of the period during which he made contributions to a personal pension scheme (“the relevant scheme”);

(ii) the amount of the cash equivalent, if any, which the member transferred to the relevant scheme by exercising a right under regulation M2 (exercising a right to transfer or buy-out) (“the transferred rights”); and

(iii) an amount, to be determined from time to time by the Scheme Actuary, which represents the income which would have been received on the amount referred to in sub-paragraph (ii) had that amount been invested during the period commencing at the end of the month in which it was paid by this Section of the scheme to the relevant scheme and ending at the end of the month in which the transfer payment was paid to this Section of the scheme by the relevant scheme.

(3) The amount, if any, payable by virtue of paragraphs (2)(ii) and (iii) shall be at least equal to the amount of the cash equivalent transfer value which would be payable by this Section of the scheme in respect of the transferred-out service if this Section of the scheme were to pay a cash equivalent transfer value in respect of that service immediately after the time at which the transfer payment is paid to this Section of the scheme by the relevant scheme.

(4) In the case of a member to whom regulation B5 applies who has been credited with an additional period of pensionable service calculated as specified in regulation N3 (transfers that are not made under the Public Sector Transfer Arrangements), the Secretary of State may adjust the amount of the transfer payment referred to in paragraph (2) on account of the payment by reference to which that pensionable service was credited.

(5) In this regulation—

“personal pension scheme” has the same meaning as in regulation B5(4);

“transfer payment” means the payment payable to this Section of the scheme by the relevant scheme in respect of a member to whom regulation B5 applies who elects to join or rejoin this Section of the scheme; and

“transferred-out service” means the period of pensionable service which the member transferred out of this Section of the scheme by exercising a right under regulation M2 (exercising a right to transfer or buy-out).

Special terms for transfers in (bulk transfers etc.)

N4

(1) This regulation applies where one or more members of another occupational pension scheme (“the transferring members”)—

(a) cease to be in pensionable employment under that scheme,

(b) join this Section of the Scheme, and

(c) consent in writing to a transfer payment being accepted in respect of them and pensionable service being credited to them as mentioned in paragraphs (2) and (3).

(2) The Secretary of State may, after taking advice from the Scheme Actuary, accept a single transfer payment in respect of the transferring members.

(3) Where such a transfer payment is accepted, each of the transferring members must be credited with such additional period of pensionable service as the Secretary of State determines to be appropriate after taking advice from the Scheme Actuary.

Waiver of transfer payments

N5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART P — Members absent from work

Absence because of illness or injury or certain types of leave

P1

(1) This regulation applies to members who are absent from work because of illness or injury or who are on maternity leave , adoption leave , paternity leave , parental leave , parental bereavement leave or shared parental leave.

(2) A period of absence to which this regulation applies will count as pensionable service for so long as the member contributes to this Section of the scheme.

(3) If the earnings used to calculate a member’s pensionable pay are reduced during a period of absence to which this regulation applies—

(a) for the purpose of calculating the member’s contributions to this Section of the scheme (other than by way of payment for additional service or unreduced retirement lump sum), pensionable pay for the period of absence will be calculated on the basis of the member’s reduced earnings; and

(b) for all other purposes, the member’s pensionable pay for the period of absence will be calculated as if no reduction were being made.

(4) If the earnings used to calculate a member’s pensionable pay cease during a period of absence to which this regulation applies—

(a) subject to sub–paragraph (b), the member will be treated as having left pensionable employment except that no refund of contributions or other benefit will be payable until the member actually leaves pensionable employment;

(b) subject to paragraph (4A), in the case of a member on maternity leave, adoption leave , paternity leave , parental leave , parental bereavement leave or shared parental leave who paid contributions on the basis of reduced earnings in accordance with paragraph 3(a), contributions shall continue to be payable at that rate.

(4A) For the purposes of paragraph (4)(b), the rate of contributions payable shall be the rate that would have been payable on the basis of reduced earnings in accordance with paragraph (3)(a) had the member’s reduced earnings excluded any earnings for a day during which the member returned to work for the purposes of keeping in touch with the workplace.

(5) If a member fails to pay any contributions which are required to be paid to this Section of the scheme in respect of a period of absence to which this regulation applies, the member will be treated as having left pensionable employment except that no refund of contributions or other benefit shall be payable unless the member actually leaves pensionable employment.

(6) If a member to whom this regulation applies leaves pensionable employment or, by virtue of paragraph (4)(a) or (5), is treated as having left pensionable employment, without becoming entitled to a preserved pension, then if the member later returns to pensionable employment regulation L4(4) (early leavers returning to pensionable employment) will apply as if the reference to 12 months was a reference to 3 years.

(7) The benefits payable on the death of a member whose earnings ceased during a period of absence to which this regulation applies will be calculated as if the member had died in pensionable employment on the day before his earnings ceased.

(8) For the purposes of this regulation, “maternity leave” includes any day during which the member returns to work for the purposes of keeping in touch with the workplace.

Other leave of absence

P2

(1) If, on or after 1st April 2008, a member is on a leave of absence for reasons other than those referred to in regulation P1 the maximum period of such leave that will count as pensionable employment under this paragraph is—

(a) where the member, for a continuous period of six months commencing with the member’s first day of leave of absence, pays to this Section of the scheme contributions due from the member in accordance with regulation D1, six months;

(b) where the member, for a continuous period of less than six months commencing with the member’s first day of leave of absence, pays to this Section of the scheme contributions due from the member in accordance with regulation D1, the period in respect of which those contributions were paid.

(2) If, having paid contributions for the period referred to in paragraph (1)(a), a member remains on leave of absence for reasons other than those referred to in regulation P1 the maximum period of such leave that will count as pensionable employment under this paragraph is—

(a) where the member pays to this Section of the scheme both contributions due from the member in accordance with regulation D1 and contributions due from the member’s employer in accordance with regulation D2 for a continuous period of 18 months commencing immediately after the expiry of the period referred to in paragraph (1)(a), 18 months;

(b) where the member pays to this Section of the scheme both contributions due from the member in accordance with regulation D1 and contributions due from the member’s employer in accordance with regulation D2 for a continuous period of less than 18 months commencing immediately after the expiry of the period referred to in paragraph (1)(a), the period in respect of which those contributions were paid.

(3) If the earnings used to calculate the member’s pensionable pay are reduced or cease during a period of absence to which this regulation applies pensionable pay (and, consequently, the member’s contributions and benefits) for the period of absence will be calculated on the basis of the member’s earnings immediately before the absence started.

PART Q — Right to buy additional service and unreduced retirement lump sum

Right to buy additional service

Q1

(1) Subject to the provisions of this regulation and regulations Q3 (2) and (6) (electing to buy additional service), Q4 (paying by single payment) and Q6 (paying by regular additional contributions), a member in pensionable employment may increase his rights to benefits under this Section ofthe scheme, by buying additional service.

(1A) A member may only increase the member’s rights to benefit by buying additional service, other than that to which paragraph (9) of this regulation refers, if—

(a) the member has given notice of the member’s intention to exercise that right in writing or in such other form as the Secretary of State agrees to accept; and

(b) that notice is received by the member’s employing authority or the scheme administrator on or before 31st March 2008; and

(c) the Secretary of State accepts an election to pay for additional service under regulation Q3 and the member makes regular additional contributions in respect of that election from a birthday that falls between 1st April 2008 and 31st March 2009.

(2) A member buying additional service to which paragraph (9) of this regulation refers, may choose to pay for that additional service by—

(a) making a single payment in accordance with regulation Q4; or

(b) making regular additional contributions in accordance with regulation Q6; or

(2A) A member buying additional service other than that to which paragraph (9) of this regulation refers, must pay for that additional service by making regular additional contributions in accordance with regulation Q6.

(3) The member must exercise his right to buy additional service within the time limits described in regulation Q4 or, as the case may be, regulation Q6 and before becoming entitled to a pension under regulation E1 (normal retirement pension) or L1 (preserved pension).

(4) Any period of additional service that the member buys will count as pensionable service for all of the purposes of this Section of the scheme, except—

(a) for the purpose of calculating whether and, if so, by how much the member’s pensionable service should be (or, where the member dies in pensionable employment, would have been) increased as described in regulation E2 or E2A; and

(b) for the purpose of calculating the member’s qualifying service in accordance with regulation C3 (meaning of qualifying service);

(c) for the purpose of calculating any pension the member becomes entitled to under paragraph (5)(a), (b) or (c) of regulation E5A (partial retirement pension), unless the member specifies that any additional service is to be included in the calculation of that pension in accordance with paragraph (4)(b) of that regulation.

(5) For the purposes of regulation G7 (widower’s pension), if a woman exercised her right to buy additional service before 6th April 1988, the additional service bought as a result of the exercise of that right will be treated as service before 6th April 1988.

(5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5B) For the purpose of regulation G14 (surviving scheme partner’s pension), if a member who has a surviving scheme partner exercised the member’s right to buy additional service before 6 April 1988, the additional service bought as a result of the exercise of that right will be treated as service before 6th April 1988.

(6) Subject to paragraph (7) and regulation C2(3), the maximum period of additional service that the member may buy is the period set out in the following table opposite the number of years of pensionable service that the member could complete if he stayed in pensionable employment until age 60 or, in the case of a special class officer, age 55. A member who could not complete at least 9 years pensionable service prior to reaching age 60 or, in the case of a special class officer, age 55 may not buy any additional service.

Potential years of pensionable service	Maximum period of additional service that member may buy
9	1 year
10	2 years
11	3 years
12	4 years
13	5 years
14	7 years
15	9 years
16	11 years
17	13 years
18	15 years
19	17 years
20 or more	20 years

(6A) A member who

(i) joined this Section of the scheme on or after 17th March 1987;

(ii) has made an application prior to 1st September 1997 to buy additional service; and

(iii) does not commence making payments under regulation Q6 until on or after 1st September 1997,

may, until no later than 31st August 1998, elect that paragraph (6) shall cease to apply to him.

(6B) Paragraph (6) shall cease to apply to a member who

(i) joined the scheme on or after 17th March 1987;

(ii) makes an application on or after 1st September 1997 to buy additional service; and

(iii) commences payments under regulation Q6 on or after 1st September 1997.

(7) Subject to paragraph (10), the member’s right to buy additional service is subject to any limits imposed by the Inland Revenue.

(8) Where a special class officer buys a period of additional service, the amount of the benefits attributable to that period of additional service will be those that would be payable in the case of a member who is not a special class officer.

(9) Where a member, following a break in pensionable employment in respect of which he received a refund of contributions which has not been repaid, rejoins this Section of the scheme, he may buy all or any part of the previous pensionable service up to, and including, 5th April 2016 provided that the employment giving rise to that service was not contracted-out employment.

(10) Except in the case of a pension debit member who is a moderate earner, a member may not replace any rights debited as a consequence of a pension sharing order with any rights which he would not have been able to acquire (in addition to the debited rights) had the pension sharing order not been made.

(11) For the purposes of paragraph (10)—

“moderate earner” means a member whose pensionable pay during the tax year preceding the tax year in which his marriage or civil partnership is dissolved or annulled is not more than 25 per cent. of the permitted maximum for the tax year in which the dissolution or annulment occurred;

“pension debit member” means a person whose shareable rights under this Section of the scheme are subject to a debit under section 29(1)(a) of the 1999 Act;

“permitted maximum” means the same as in section 590C of the Income and Corporation Taxes Act 1988 (earnings cap); and

Right to buy an unreduced retirement lump sum

Q2

(1) Subject to the provisions of this regulation and regulations Q3(2) and (6) (electing to buy unreduced retirement lump sum), Q5 (paying by single payment), and Q6 (paying by regular additional contributions), a member in pensionable employment whose pensionable service started before 25th March 1972 and who is, or has been, married ..., may make payments to this Section of the scheme to off–set all or part of any reduction in the lump sum payable to the member under regulation E6 (lump sum on retirement).

(2) The member may choose to pay for an unreduced retirement lump sum by making a single payment in accordance with regulation Q5 or by making regular additional contributions in accordance with regulation Q6 or partly in one way and partly in the other.

(3) The member must exercise the right to buy an unreduced retirement lump sum within the time limits described in regulation Q5 or, as the case may be, regulation Q6 and before the lump sum becomes payable.

Electing to buy additional service or unreduced retirement lump sum

Q3

(1) A member electing to buy additional service or unreduced retirement lump sum shall do so by giving notice in writing to the employing authority on the form provided, giving such information as may be required.

(2) A member may not exercise a right to buy additional service or unreduced retirement lump sum during a period of absence from work or while his earnings are reduced or have ceased.

(3) For the purposes of these Regulations, the date on which a member elects to buy additional service or unreduced retirement lump sum means the date on which the employing authority receives the member’s completed form exercising that right.

(4) If a member who elects to pay for additional service or unreduced retirement lump sum by a single payment leaves pensionable employment within 3 months after starting that employment, the election will cease to have effect.

(5) For the purposes of paragraph (4), and notwithstanding regulation P1(5) (absence through illness or injury or maternity), a member whose earnings cease during a period of absence from work will not be treated as if he had left pensionable employment.

(6) The Secretary of State shall not accept an election from a member who wishes to pay for additional service or unreduced retirement lump sum by additional regular contributions unless satisfied that the member is in good health and that there is no reason why the member’s health should prevent him from paying the contributions for the whole period for which he has chosen to pay them.

Paying for additional service by single payment

Q4

(1) A member who wishes to buy additional service for all or part of the member’s previous pensionable service in accordance with regulation Q1(9) by a single payment must elect to do so within 12 months of re-joining this Section of the scheme following the break in pensionable employment described in that regulation.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The amount of a single payment for additional service will be one-half of the cost calculated in accordance with Table 1 of Schedule 1.

(4) For the purposes of Table 1 of Schedule 1, “remuneration" means, subject to paragraph (5), the yearly average of a member’s pensionable pay (ignoring any reduction or cessation of earnings as a result of absence or otherwise) in respect of the 3 months’ pensionable employment immediately preceding the date on which the member elects to buy the additional service or unreduced retirement lump sum.

(5) If the member has not been in pensionable employment for 3 months before electing to buy the additional service or unreduced retirement lump sum, “remunera–tion" means the yearly average of the member’s pensionable pay in respect of the first 3 months’ pensionable employment.

(6) The member must make any single payment for additional service within 3 months after electing to do so or, if later, within 6 months after starting pensionable employment.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paying for unreduced retirement lump sum by single payment

Q5

(1) A man who wishes to pay for an unreduced retirement lump sum by a single payment must elect to do so within 12 months after getting married, or, if he is not then a member, within 12 months of first rejoining this Section of the scheme after getting married.

(2) A woman who wishes to pay for an unreduced retirement lump sum by a single payment must elect to do so within 12 months after nominating her husband to receive a dependent widower’s pension under regulation G8 (dependent widower’s pension).

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2B) A member who has a scheme partner who wishes to pay for an unreduced lump sum by a single payment must elect to do so within 12 months after applying for the member’s scheme partner to receive a dependent surviving scheme partner’s pension under regulation G15.

(3) The amount of a single payment for an unreduced retirement lump sum will be calculated in accordance with Table 2 of Schedule 1.

(4) For the purposes of Table 2 of Schedule 1, “remuneration" means, subject to paragraph (5), the same as in regulation Q4(4) and (5) (meaning of remuneration for the purposes of Table 1 of Schedule 1).

(5) In the case of a member who elects to buy an unreduced retirement lump sum but who is no longer required to contribute under regulation D1 )contributions by members) because regulation D1(3) or (4) applies’ “remuneration" means the amount to which a pension equal to the member’s final year’s pensionable pay and beginning on the day on which regulation D1(3) or (4) started to apply would have been increased under Part I of the Pensions (Increase) Act 1971 at the date of the election to buy the unreduced retirement lump sum.

(6) The member must make any single payment for an unreduced retirement lump sum within 3 months after electing to do so or, if later, within 6 months after starting pensionable employment.

Paying for additional service or unreduced retirement lump sum by regular additional contributions

Q6

(1) A member who wishes to pay for additional service or an unreduced retirement lump sum by regular additional contributions must elect to do so before reaching age 63.

(2) Any such regular additional contributions shall be deducted from the members earnings, and paid to the Secretary of State, in like manner as under regulation D1(5) (contributions by members).

(3) Subject to paragraph (4), the member must pay the regular additional contributions from his next birthday following the date on which he elects to buy the additional service or unreduced retirement lump sum until either his 60th or 65th birthday, whichever the member chooses (“the chosen date").

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