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The National Health Service Pension Scheme Regulations 2008

Type Statutory-Instrument

Publication 2008-03-11

Last updated 2026-03-28

State In force

Department King's Printer of Acts of Parliament

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(a) in the case of a deceased Optant who was, at the date of the Optant’s death, an active member that pension will include the greater of—

(i) any increase due to such enhancement period that would have applied for the purposes of regulation 3.D.7(5) if the deceased Optant had become entitled to a tier 2 ill-health pension at that date, and

(ii) the deceased Optant’s later 2008 Section service as an active member plus the difference between—

(aa) the aggregate of the deceased Optant’s earlier 1995 Section service and the later 2008 Section service as an active member, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb);

(b) in the case of a deceased Optant referred to in paragraph (1)(a)(ii), the pensionable service that the deceased Optant was entitled to count under this Section of the Scheme on the date of that Optant’s death.

(4) In the case of a deceased Optant referred to in paragraph (1)(a)(iii), “the basic death pension” for the purposes of paragraph (3) of regulation 3.E.11 shall have the meaning given in paragraph (5) of this regulation.

(5) The “basic death pension” means the greater of—

(a) twice the appropriate proportion of the deceased Optant’s annual pension (disregarding any additional pension), and

(b) twice the appropriate proportion of the annual pension to which the deceased Optant would have been entitled calculated as the aggregate of the deceased Optant’s later 2008 Section service plus the difference between—

(i) the aggregate of the deceased Optant’s earlier 1995 Section service and the later 2008 Section service, and

(ii) 10 years pensionable service,

where the amount of service in (i) is less than that specified in (ii).

(6) In the case of a deceased Optant referred to in paragraph (1)(a)(iv), “the basic death pension” for the purposes of paragraph (3) of regulation 3.E.12 shall have the meaning given in paragraph (7) of this regulation.

(7) The “basic death pension” means—

(a) if the deceased Optant died within 12 months after ceasing to be an active member or a non-contributing member, the amount that would be the basic death pension for the purposes of regulation 3.E.10 if the deceased Optant had died on the day of so ceasing (disregarding any additional pension), and

(b) if the deceased Optant died more than 12 months after ceasing to be an active member or a non-contributing member, the greater of—

(i) twice the appropriate proportion of the pension to which the deceased Optant would have been entitled if the deceased had become entitled to a pension under regulation 3.D.1 on the date of death (disregarding any additional pension), and

(ii) twice the appropriate proportion of the annual pension to which the deceased Optant would have been entitled in respect of the aggregate of the deceased Optant’s later 2008 Section service that has been deferred plus the difference between—

(aa) the aggregate of the deceased Optant’s earlier 1995 Section service and the later 2008 Section service that has been deferred, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb).

Non-concurrent Officer and Practitioner Service

Cases with non-concurrent officer service between periods of practitioner service

4.B.7A

(1) Where a member who, before commencing the member’s final period of practitioner service, has service as an officer (whether that service as an officer consists of a separate period of such service or two or more such periods), and—

(a) that officer service is preceded by an earlier period of practitioner service, and

(b) some or all of the member’s officer service is not concurrent with the practitioner service,

the reference amount in respect of such part of that officer service that is not concurrent with practitioner service shall be the better of—

(i) the amount determined by calculation method D, and

(ii) the base amount.

Calculation method D

4.B.11

(1) Calculation method D is the aggregate of the amounts payable under paragraphs (2), (3) and (4) of this regulation.

(2) The amounts payable under this paragraph are the additional amount that would be payable under Part 2 for the member’s period, or periods, of non-concurrent officer service (described in regulation 4.B.7A of this Part) in respect of the member’s pension and any retirement lump sum payable—

(a) as a result of the member exercising the option under regulation 3.D.10, and

(b) in the case of a 2008 Section Optant, the lump sum paid to that Optant under regulation 3.K.11,

if those amounts were each subject to a 1.5%increase for each whole year or part of a year withinthe increment period.

This is subject to paragraph (5).

(3) The amounts payable under this paragraph are the amounts that would be payable under Part 2 for the member’s period, or periods, of non-concurrent officer service (described in regulation 4.B.7A of this Part), were it not for the additional amounts calculated under paragraph (2).

(4) The amounts payable under this paragraph are the amounts payable under Chapter 3.D.

(5) For the purposes of paragraph (2)—

(a) the increase referred to in that paragraph shall—

(i) be applied in like manner and at the same intervals as an increase applied to a pension under the Pensions (Increase) Act 1971, and

(ii) be effective immediately before the pension and lump sumbecome payable with the member’s benefits from practitioner service under Chapter 3.D, and

(b) the increment period referred to in paragraph (2) shall—

(i) begin with the day immediately following the day on which the officer service referred to in paragraph (2) ceased for the last time, and

(ii) end with the day immediately before the pension and retirement lump sum become payable with the member’s benefits from practitioner service under Chapter 3.D.

CHAPTER2.L — Waiting Period Joiners

Application of Chapter 2.L

2.L.1

(1) This Chapter makes provision in relation to pensioner members of the 1995 Section who are eligible to be members of this Section of the Scheme in accordance with paragraph (1)(b)(ii) of regulation 2.B.1A (eligibility: transitional).

(2) A member of this Section of the Scheme to whom this Chapter applies is referred to as a “Waiting Period Joiner”.

Nominations and notices accepted by the Secretary of State under the 1995 Regulations and Chapter 2.E of these Regulations

2.L.2

(1) This regulation applies if—

(a) on the day a Waiting Period Joiner becomes an active member of this Section of the Scheme—

(i) the Secretary of State has accepted any of the nominations or notices specified in paragraph (2) in respect of the benefits to be paid on the death of that Joiner, and

(ii) that Joiner has not revoked that nomination or notice, or

(b) at any time after a Waiting Period Joiner becomes an active member of this Section of the Scheme, that Joiner gives a notice, nomination or declaration for the purposes of a regulation listed in the table in paragraph (4).

(2) The nominations and notices referred to in paragraph (1)(a) are—

(a) a nomination made in accordance with regulation F5 of the 1995 Regulations (payment of lump sum) in favour of one or more persons in respect of any lump sum that becomes payable under regulations F1 to F4 of those Regulations (which deal with lump sum payments on the death of a member in different circumstances);

(b) a notice provided for the purposes of paragraph (3)(a) of regulation F5 of the 1995 Regulations that the person’s surviving partner (within the meaning of that regulation) is not to receive the payment of any lump sum that becomes payable under regulations F1 to F4 of those Regulations;

(3) For the purpose of this Section of the Scheme a nomination or notice referred to in paragraph (1)(a) shall be treated—

(a) in the case of the nomination referred to in paragraph (2)(a), as if that nomination has been accepted by the Secretary of State as a notice for the purposes of regulation 2.E.21,

(b) in the case of a notice referred to in paragraph (2)(b), as if that notice had been accepted by the Secretary of State as a notice for the purposes of regulation 2.E.21 specifying that the Waiting Period Joiner’s personal representatives are to receive any lump sum or pension on the death of that Joiner, and

(c) in the case of a notice referred to in paragraph (2)(c), as if that notice had been accepted by the Secretary of State as a declaration for the purposes of regulation 2.E.2.

(4) A notice, nomination or declaration referred to in paragraph (1)(b) that is given by a Waiting Period Joiner for the purposes of a regulation listed in column 1 of the following table shall, without more, be treated as a notice, nomination or declaration given for the purposes of the corresponding regulation in column 2.

Column 11995 Regulations	Column 22008 Regulations
F5	2.E.21
G14	2.E.2

Waiting Period Joiners who are in receipt of a tier 1 ill-health pension under Regulation E2A of the 1995 Regulations

2.L.3

(1) This regulation applies to a Waiting Period Joiner who—

(a) is entitled to a tier 1 ill-health pension under regulation E2A of the 1995 Regulations (ill-health pension on early retirement) in respect of service in the 1995 Section (“the earlier 1995 Section service”), and

(b) becomes entitled to a tier 1 ill-health pension or, as the case may be, a tier 2 ill-health pension under regulation 2.D.8 in respect of service in this Section of the Scheme (“the later 2008 Section service”).

(2) For the purposes of determining whether a Waiting Period Joiner can count 45 years of pensionable service for any purpose, the earlier 1995 Section service and the later 2008 Section service are aggregated.

(3) A Waiting Period Joiner is entitled to the benefits set out in paragraph (4) if, on the termination of the later 2008 Section service, that Joiner becomes entitled to a tier 1 or a tier 2 ill-health pension under regulation 2.D.8 in respect of that later service.

(4) Those benefits are—

(a) a tier 1 ill-health pension under regulation E2A of the 1995 Regulations in respect of the member’s earlier 1995 Section service, and

(b) a tier 1 or, as the case may be, a tier 2 ill-health pension in respect of the member’s later 2008 Section service.

This is subject to paragraph (5).

(5) A Waiting Period Joiner is entitled to the benefits set out in paragraph (6) where that Joiner—

(a) ceases to be entitled to a tier 1 ill-health pension in respect of the earlier 1995 Section service,

(b) becomes entitled to a tier 2 ill-health pension in respect of that earlier 1995 Section service in accordance with regulation E2B of the 1995 Regulations (re-assessment of ill health condition determined under regulation E2A), and

(c) becomes entitled to a tier 1 or, as the case may be, a tier 2 ill-health pension in respect of the later 2008 Section service on the termination of that later service.

(6) Those benefits are—

(a) a tier 2 ill-health pension paid in accordance with regulation E2B of the 1995 Regulations in respect of the earlier 1995 Section service, and

(b) a tier 1 ill-health pension in respect of the later 2008 Section service.

Lump sum payable on the death of a Waiting Period Joiner

2.L.4

(1) This regulation applies to a Waiting Period Joiner who, on the date of that Joiner’s death, is an active or a non-contributing member in respect of service in this Section of the Scheme (“the later 2008 Section service”).

(2) The lump sum payable on the death of a Joiner referred to in paragraph (1) shall be calculated in accordance with whichever of paragraphs (3) to (6) applies to that Joiner and shall be paid in place of the lump sum that, apart from this regulation, would otherwise be payable in respect of that Joiner’s later 2008 Section service under regulation 2.E.17.

(3) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member who had not reached age 65 and who had not exercised the option under regulation 2.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension payable under regulation 2.D.8(5) to which that deceased Joiner would have been entitled at that date, multiplied by five.

(4) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member who had reached age 65 and who had not exercised the option under regulation 2.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension payable under regulation 2.D.1 to which that deceased Joiner would have been entitled at that date, multiplied by five.

(5) Where, at the date of a Waiting Period Joiner’s death, that Joiner was a non-contributing member who had not exercised the option under regulation 2.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension to which that Joiner would have been entitled under regulation 2.D.1 on the last day of that Joiner’s pensionable service, multiplied by five.

(6) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member or a non-contributing member who had exercised the option under regulation 2.D.5, the lump sum referred to in paragraph (2) shall be determined by the Secretary of State after taking advice from the Scheme actuary.

Children’s pensions payable on the death of a Waiting Period Joiner

2.L.5

(1) This regulation applies in respect of a Waiting Period Joiner’s service in this Section of the Scheme, where at the date of that Joiner’s death that Joiner was an active, non-contributing, pensioner or deferred member who was entitled to a pension under the 1995 Regulations in respect of service in the 1995 Section (“the earlier 1995 Section service”).

(2) In the case of a deceased Waiting Period Joiner who, at the date of that Joiner’s death was an active or non-contributing member, “relevant service” for the purposes of paragraph (4) of regulation 2.E.10 shall have the meaning given in paragraph (3) of this regulation.

(3) “Relevant service” means—

(a) in the case of a deceased Waiting Period Joiner who was, at the date of that Joiner’s death, an active member the greater of—

(i) the pensionable service that Joiner was entitled to count at that date, increased by the enhancement period (if any) that would have applied for the purposes of regulation 2.D.8(5) if that Joiner had become entitled to a tier 2 ill-health pension at that date, and

(ii) that Joiner’s later 2008 Section service as an active member plus the difference between—

(aa) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service as an active member, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb);

(b) in the case of a deceased Waiting Period Joiner who, at the date of that Joiner’s death was a non-contributing member, the pensionable service that Joiner was entitled to count under this Section of the Scheme on the date of that Joiner’s death.

(4) In the case of a deceased Waiting Period Joiner who, at the date of that Joiner’s death was a pensioner member, “the basic death pension” for the purposes of paragraph (3) of regulation 2.E.11 shall have the meaning given in paragraph (5) of this regulation.

(5) The “basic death pension” means the greater of—

(a) 75% of the deceased Waiting Period Joiner’s annual pension (disregarding any additional pension), and

(b) 75% of the annual pension to which that Joiner would have been entitled in respect of the aggregate of that Joiner’s later 2008 Section service plus the difference between—

(i) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service, and

(ii) 10 years pensionable service,

where the amount of service in (i) is less than that specified in (ii).

(6) In the case of a deceased Waiting Period Joiner who, at the date of that Joiner’s death was a deferred member, “the basic death pension” for the purposes of paragraph (3) of regulation 2.E.12 shall have the meaning given in paragraph (7) of this regulation.

(7) The “basic death pension” means—

(a) if the deceased Waiting Period Joiner died within 12 months after ceasing to be an active member or a non-contributing member, the amount that would be the basic death pension for the purposes of regulation 2.E.10 if that Joiner had died on the day of so ceasing (disregarding any additional pension), and

(b) if the deceased Waiting Period Joiner died more than 12 months after ceasing to be an active member or a non-contributing member, the greater of—

(i) 75% of the pension to which that Joiner would have been entitled if that Joiner had become entitled to a pension under regulation 2.D.1 on the date of death (disregarding any additional pension), and

(ii) 75% of the annual pension to which that Joiner would have been entitled in respect of the aggregate of that Joiner’s later 2008 Section service that has been deferred plus the difference between—

(aa) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service that has been deferred, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb).

CHAPTER3.L — Waiting Period Joiners

Application of Chapter 3.L

3.L.1

(1) This Chapter makes provision in relation to pensioner members of the 1995 Section who are eligible to be members of this Section of the Scheme in accordance with paragraph (1)(b)(ii) of regulation 3.B.1A (eligibility: transitional).

(2) A member of this Section of the Scheme to whom this Chapter applies is referred to as a “Waiting Period Joiner”.

Nominations and notices accepted by the Secretary of State under the 1995 Regulations and Chapter 3.E of these Regulations

3.L.2

(1) This regulation applies if—

(a) on the day a Waiting Period Joiner becomes an active member of this Section of the Scheme—

(i) the Secretary of State has accepted any of the nominations or notices specified in paragraph (2) in respect of the benefits to be paid on the death of that Joiner, and

(ii) that Joiner has not revoked that nomination or notice, or

(b) at any time after a Waiting Period Joiner becomes an active member of this Section of the Scheme, that Joiner gives a notice, nomination or declaration for the purposes of a regulation listed in the table in paragraph (4).

(2) The nominations and notices referred to in paragraph (1)(a) are—

(a) a nomination made in accordance with regulation F5 of the 1995 Regulations (payment of lump sum) in favour of one or more persons in respect of any lump sum that becomes payable under regulations F1 to F4 of those Regulations (which deal with lump sum payments on the death of a member in different circumstances);

(b) a notice provided for the purposes of paragraph (3)(a) of regulation F5 of the 1995 Regulations that the person’s surviving partner (within the meaning of that regulation) is not to receive the payment of any lump sum that becomes payable under regulations F1 to F4 of those Regulations;

(3) For the purpose of this Section of the Scheme a nomination or notice referred to in paragraph (1)(a) shall be treated—

(a) in the case of the nomination referred to in paragraph (2)(a), as if that nomination has been accepted by the Secretary of State as a notice for the purposes of regulation 3.E.21,

(b) in the case of a notice referred to in paragraph (2)(b), as if that notice had been accepted by the Secretary of State as a notice for the purposes of regulation 3.E.21 specifying that the Waiting Period Joiner’s personal representatives are to receive any lump sum or pension on the death of that Joiner, and

(c) in the case of a notice referred to in paragraph (2)(c), as if that notice had been accepted by the Secretary of State as a declaration for the purposes of regulation 3.E.2.

(4) A notice, nomination or declaration referred to in paragraph (1)(b) that is given by a Waiting Period Joiner for the purposes of a regulation listed in column 1 of the following table shall, without more, be treated as a notice, nomination or declaration given for the purposes of the corresponding regulation in column 2.

Column 11995 Regulations	Column 22008 Regulations
F5	3.E.21
G14	3.E.2

Waiting Period Joiners who are in receipt of a tier 1 ill-health pension under Regulation E2A of the 1995 Regulations

3.L.3

(1) This regulation applies to a Waiting Period Joiner who—

(a) is entitled to a tier 1 ill-health pension under regulation E2A of the 1995 Regulations (ill-health pension on early retirement) in respect of service in the 1995 Section (“the earlier 1995 Section service”), and

(b) becomes entitled to a tier 1 ill-health pension or, as the case may be, a tier 2 ill-health pension under regulation 3.D.7 in respect of service in this Section of the Scheme (“the later 2008 Section service”).

(2) For the purposes of determining whether a Waiting Period Joiner can count 45 years of pensionable service for any purpose, the earlier 1995 Section service and the later 2008 Section service are aggregated.

(3) A Waiting Period Joiner is entitled to the benefits set out in paragraph (4) if, on the termination of the later 2008 Section service, that Joiner becomes entitled to a tier 1 or a tier 2 ill-health pension under regulation 3.D.7 in respect of that later service.

(4) Those benefits are—

(a) a tier 1 ill-health pension under regulation E2A of the 1995 Regulations in respect of the member’s earlier 1995 Section service, and

(b) a tier 1 or, as the case may be, a tier 2 ill-health pension in respect of the member’s later 2008 Section service.

This is subject to paragraph (5).

(5) A Waiting Period Joiner is entitled to the benefits set out in paragraph (6) where that Joiner—

(a) ceases to be entitled to a tier 1 ill-health pension in respect of the earlier 1995 Section service,

(b) becomes entitled to a tier 2 ill-health pension in respect of that earlier 1995 Section service in accordance with regulation E2B of the 1995 Regulations (re-assessment of ill health condition determined under regulation E2A), and

(c) becomes entitled to a tier 1 or, as the case may be, a tier 2 ill-health pension in respect of the later 2008 Section service on the termination of that later service.

(6) Those benefits are—

(a) a tier 2 ill-health pension paid in accordance with regulation E2B of the 1995 Regulations in respect of the earlier 1995 Section service, and

(b) a tier 1 ill-health pension in respect of the later 2008 Section service.

Lump sum payable on the death of a Waiting Period Joiner

3.L.4

(1) This regulation applies to a Waiting Period Joiner who, on the date of that Joiner’s death, is an active or a non-contributing member in respect of service in this Section of the Scheme (“the later 2008 Section service”).

(2) The lump sum payable on the death of a Joiner referred to in paragraph (1) shall be calculated in accordance with whichever of paragraphs (3) to (6) applies to that Joiner and shall be paid in place of the lump sum that, apart from this regulation, would otherwise be payable in respect of that Joiner’s later 2008 Section service under regulation 3.E.17.

(3) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member who had not reached age 65 and who had not exercised the option under regulation 3.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension payable under regulation 3.D.7(5) to which that deceased Joiner would have been entitled at that date, multiplied by five.

(4) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member who had reached age 65 and who had not exercised the option under regulation 3.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension payable under regulation 3.D.1 to which that deceased Joiner would have been entitled at that date, multiplied by five.

(5) Where, at the date of a Waiting Period Joiner’s death, that Joiner was a non-contributing member who had not exercised the option under regulation 3.D.5, the lump sum referred to in paragraph (2) is an amount equal to the annual rate of pension to which that Joiner would have been entitled under regulation 3.D.1 on the last day of that Joiner’s pensionable service, multiplied by five.

(6) Where, at the date of a Waiting Period Joiner’s death, that Joiner was an active member or a non-contributing member who had exercised the option under regulation 3.D.5, the lump sum referred to in paragraph (2) shall be determined by the Secretary of State after taking advice from the Scheme actuary.

Children’s pensions payable on the death of a Waiting Period Joiner

3.L.5

(1) This regulation applies in respect of a Waiting Period Joiner’s service in this Section of the Scheme, where at the date of that Joiner’s death that Joiner was an active, non-contributing, pensioner or deferred member who was entitled to a pension under the 1995 Regulations in respect of service in the 1995 Section (“the earlier 1995 Section service”).

(2) In the case of a deceased Waiting Period Joiner who, at the date of that Joiner’s death, was an active or non-contributing member, “the basic death pension” for the purposes of paragraph (3) of regulation 3.E.10 shall have the meaning given in paragraph (3) of this regulation.

(3) The“basic death pension” means twice the appropriate proportion of the deceased member’s pension under regulation 3.D.1 and—

(a) in the case of a deceased Waiting Period Joiner who was, at the date of that Joiner’s death, an active member that pension includes the greater of—

(i) any increase due to such enhancement period that would have applied for the purposes of regulation 3.D.7(5) if that Joiner had become entitled to a tier 2 ill-health pension at that date, and

(ii) that Joiner’s later 2008 Section service as an active member plus the difference between—

(aa) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service as an active member, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb);

(b) in the case of a deceased Waiting Period Joiner who was, at the date of that Joiner’s death a non-contributing member, the pensionable service that Joiner was entitled to count under this Section of the Scheme on the date of that Joiner’s death.

(4) In the case of a deceased Waiting Period Joiner who was a pensioner member at the date of that Joiner’s death, “the basic death pension” for the purposes of paragraph (3) of regulation 3.E.11 shall have the meaning given in paragraph (5) of this regulation.

(5) The “basic death pension” means the greater of—

(a) twice the appropriate proportion of the deceased Waiting Period Joiner’s annual pension (disregarding any additional pension), and

(b) twice the appropriate proportion of the annual pension (disregarding any additional pension), to which that Joiner would have been entitled calculated as the aggregate of that Joiner’s later 2008 Section service plus the difference between—

(i) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service, and

(ii) 10 years pensionable service,

where the amount of service in (i) is less than that specified in (ii).

(6) In the case of a deceased Waiting Period Joiner who was a deferred member at the date of that Joiner’s death, “the basic death pension” for the purposes of paragraph (3) of regulation 3.E.12 shall have the meaning given in paragraph (7) of this regulation.

(7) The “basic death pension” means—

(a) if the deceased Waiting Period Joiner died within 12 months of the day on which that Joiner ceased to be an active member or a non-contributing member (the cessation date), the amount that would be the basic death pension for the purposes of regulation 3.E.10 if that Joiner had died on the cessation date (disregarding any additional pension), and

(b) if the deceased Waiting Period Joiner died more than 12 months after ceasing to be an active member or a non-contributing member, the greater of—

(i) twice the appropriate proportion of the pension to which that Joiner would have been entitled if that Joiner had become entitled to a pension under regulation 3.D.1 on the date of death (disregarding any additional pension), and

(ii) twice the appropriate proportion of the annual pension to which that Joiner would have been entitled in respect of the aggregate of that Joiner’s later 2008 Section service that has been deferred plus the difference between—

(aa) the aggregate of that Joiner’s earlier 1995 Section service and the later 2008 Section service that has been deferred, and

(bb) 10 years pensionable service,

where the amount of service in (aa) is less than that specified in (bb).

Contribution rate for members other than non-GP providers

Determination of pensionable pay for the purposes of setting a contribution rate for members other than non-GP providers

Contribution rate and determination of pensionable earnings for non-GP providers

Provision of information: continuing entitlement to benefit

2.J.2.A

(1) The Secretary of State may specify a date by which a person who is in receipt of a benefit under this Section of the Scheme is to provide the Secretary of State with all or any of the following material—

(a) evidence of the person’s identity;

(b) the person’s contact details;

(2) Where a person fails to provide the material referred to in paragraph (1) in accordance with that paragraph the Secretary of State may withhold all, or any part of, any benefit payable to that person.

Provision of information: continuing entitlement to benefit

3.J.2A

(1) The Secretary of State may specify a date by which a person who is in receipt of a benefit under this Section of the Scheme is to provide the Secretary of State with all or any of the following material—

(a) evidence of the person’s identity;

(b) the person’s contact details;

(2) Where a person fails to provide the material referred to in paragraph (1) in accordance with that paragraph the Secretary of State may withhold all, or any part of, any benefit payable to that person .

Civil partnerships and marriage of same sex couples

2.A.1A

(1) In this Part, except as provided in paragraph (5), a reference to—

(a) civil partnership is to be read as including a reference to marriage of a same sex couple and a reference to civil partners and a person who is in a civil partnership is to be construed accordingly;

(b) a person who is living with another person as if they were in a civil partnership is to be read as including a reference to a person who is living with another person of the same sex as if they were married.

(2) Where paragraph (1) requires a reference to be read in a particular way, any related reference (such as a reference to a civil partnership that has ended, a reference to a person whose civil partnership has ended, or a reference to persons formerly living together as civil partners) is to be read accordingly.

(3) For the purposes of paragraphs (1) and (2) it does not matter how a reference is expressed.

(4) The application of the Marriage (Same Sex Couples) Act 2013 in relation to these Regulations is modified so that—

(a) section 11(1) and (2) has effect subject to paragraphs (1) to (3); and

(b) Schedule 3 does not apply to the interpretation of this Part.

(5) In this regulation, “civil partnership” and “civil partners” have the meanings given by section 1 of the Civil Partnership Act 2004.

Civil partnerships and marriage of same sex couples

3.A.1A

(1) In this Part, except as provided in paragraph (5), a reference to—

(a) civil partnership is to be read as including a reference to marriage of a same sex couple and a reference to civil partners and a person who is in a civil partnership is to be construed accordingly;

(b) a person who is living with another person as if they were in a civil partnership is to be read as including a reference to a person who is living with another person of the same sex as if they were married.

(2) Where paragraph (1) requires a reference to be read in a particular way, any related reference (such as a reference to a civil partnership that has ended, a reference to a person whose civil partnership has ended, or a reference to persons formerly living together as civil partners) is to be read accordingly.

(3) For the purposes of paragraphs (1) and (2) it does not matter how a reference is expressed.

(4) The application of the Marriage (Same Sex Couples) Act 2013 in relation to these Regulations is modified so that—

(a) section 11(1) and (2) has effect subject to paragraphs (1) to (3); and

(b) Schedule 3 does not apply to the interpretation of this Part.

(5) In this regulation, “civil partnership” and “civil partners” have the meanings given by section 1 of the Civil Partnership Act 2004.

Interpretation: further provisions

Meaning of “pensionable service”

Pensionable service: breaks in service

Restriction of reckonable pay where the Secretary of State considers the amount is inordinate

2.A.12A

(1) Where, having regard to the matters referred to in paragraph (2), the Secretary of State considers that the amount which would otherwise constitute the member’s interim reckonable pay for the purposes of regulation 2.A.10 is inordinate, the Secretary of State may, determine what the amount of a member’s interim reckonable pay is to be and the date from which any change in the amount of that pay as a result of that determination is to take effect.

(2) Those matters are—

(a) any variations in the level of the member’s pensionable pay during a period not exceeding ten years and ending with the earlier of the date the member ceases to be in pensionable employment or the date the member dies;

(b) the general level of pensionable pay pertaining in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a);

(c) promotion and re-grading prospects in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a);

(d) any other matters the Secretary of State considers relevant.

(3) Where the Secretary of State determines the amount of a member’s interim reckonable pay pursuant to paragraph (1)—

(a) the difference between the amount which would, but for the determination pursuant to paragraph (1), be the member’s interim reckonable pay and the amount so determined pursuant to that paragraph and adjusted for the purposes of regulation 2.A.11, must be ignored for the purposes of this regulation (“the ignored amount”);

(b) any contributions referable to the ignored amount and paid by the member pursuant to regulation 2.C.1 shall, net of any tax payable, be refunded to that member;

(c) any contributions referable to the ignored amount and paid by the employing authority pursuant to regulation 2.C.5 are to be refunded to that employing authority.

Meaning of “reckonable pay”: non-concurrent part-time employment

Meaning of “reckonable pay”: concurrent part-time employments

Out of hours providers

Interest and Administration Charges: late paid contributions

2.J.9A

(1) For the purposes of this regulation, where an employing authority fails to pay, by the dates therein specified, contributions and the scheme administration charge it is required to pay under any or all of regulations 2.C.1, 2.C.4, 2.C.5, 2.C.6, 2.C.6A, 2.C.8, 2.C.10, 2.C.11 or 2.M.6, there is a chargeable event.

(2) Where there is a chargeable event, the Secretary of State may determine what amount of contributions or, as the case may be, the scheme administration charge are unpaid having regard to—

(a) the amount of contributions or, as the case may be, the scheme administration charge historically paid at a chargeable event by that employing authority;

(b) any reasons or explanation provided by the employing authority for the change in the amount of contributions or, as the case may be, the scheme administration charge (if any) it has paid at such an event;

(3) Where there is a chargeable event, the employing authority is liable to pay standard rate interest on the amount of unpaid contributions constituting that event and the amount of unpaid scheme administration charge or both together with a supplementary charge in respect of each such event.

(4) Where the Secretary of State becomes aware of a chargeable event, the Secretary of State shall give the employing authority a written notice specifying—

(a) the date of the chargeable event;

(b) the amount of unpaid contributions or unpaid scheme administration charge, or both; determined under paragraph (2);

(d) the amount of supplementary charge payable in respect of it;

(e) that payment of the amounts referred to in paragraphs (c) and (d) is to be made within 1 month of the date of the notice and that failure to do so incurs further interest and supplementary charges.

(5) Any amount payable by way of interest or payable by way of an supplementary charge is to be paid as single lump sum unless the Secretary of State considers the case to be exceptional and considers it appropriate for all, or part, of such an amount to be paid over a period and by a number of instalments determined by the Secretary of State.

(6) Where the Secretary of State considers the case to be exceptional, nothing in the preceding paragraphs prevents the Secretary of State from waiving all or any part of the amount of interest, or all or any supplementary charges, payable.

(7) In the case of arrears in respect of the scheme year 2014-2015 and subsequent years, the standard rate of interest is the aggregate of the percentage (if any) by which the consumer prices index for the February before the scheme year in which the chargeable event arose is higher than it was for the previous February plus 3%, compounded at annual intervals.

(8) The supplementary charge in respect of arrears in respect of the scheme year 2014-2015 and subsequent years is £75.

(9) In any particular case the Secretary of State may direct that, for the purposes of this regulation, “employing authority” includes one or more of—

(a) the transferee under a transfer of staff order pursuant to—

(i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act;

(ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act;

(b) without limiting sub-paragraph (a), a successor, transmittee or assignee of all or part of an employing authority’s business or functions.

Chapter 2.M — Independent Providers

General

2.M.1

(1) In this Chapter—

“approval application” is to be construed in accordance with regulation 2.M.3;

“default notice” is to be construed in accordance with regulation 2.M.7;

“required level of cover” means a sum equal to 110% of 3/12ths of a reasonable estimate of the Independent Provider’s total annual contribution liability arising under regulations 2.C.1, 2.C.5, 2.C.6, 2.C.8, 2.C.10 or 2.C.11 in respect of the qualifying contract in respect of which it was granted employing authority status.

(2) An “Independent Provider” means a person that employs an individual under a contract of service and—

(a) is not otherwise an employing authority in respect of that individual;

(b) is a party to a qualifying contract;

(c) has been granted employing authority status for the purposes of this Section of the Scheme by the Secretary of State following a written application made by it to the Secretary of State for that purpose, and

(d) has, if so required by the Secretary of State, provided the Secretary of State with an IP guarantee.

(3) The “wholly or mainly condition”—

(a) requires that any employee of an Independent Provider performing services pursuant to a qualifying contract does so, if not for the whole of their time in that employment, then for more than 50% of that time;

(b) is to be assessed over—

(i) each scheme year, or

(ii) part of a scheme year where the services referred to in paragraph (a) commence or cease part way through such a year.

IP Guarantees

2.M.2

(1) The Secretary of State may, as a condition of granting an Independent Provider employing authority status pursuant to an approval application, require that Independent Provider to provide an IP guarantee.

(2) The Secretary of State may at any time require an Independent Provider that has been granted employing authority status to provide an IP guarantee.

(3) Without prejudice to the generality of paragraphs (1) and (2), the Secretary of State may, in particular, require an Independent Provider to provide an IP guarantee if—

(a) that Independent Provider has, after being approved as an employing authority pursuant to this Chapter, failed to meet any of its liabilities under these Regulations as an employing authority;

(b) that Independent Provider has, before being approved as an employing authority pursuant to this Chapter, previously failed to meet any of those liabilities in any other capacity as an employing authority;

(c) the Secretary of State has reasonable grounds to believe that the Independent Provider is unable, or is likely to become unable, to meet any of those liabilities.

(4) Where the Secretary of State requires an Independent Provider to provide an IP guarantee the Secretary of State must require that guarantee to—

(a) guarantee payment to the Secretary of State of the required level of cover: such a guarantee must take effect on the date on which approval under this Chapter takes effect;

(b) be in a form approved by the Secretary of State from time to time;

But the Secretary of State may exceptionally specify that a guarantee is to meet other requirements.

(5) Where an Independent Provider is required to provide an IP guarantee and has been granted employing authority status in respect of more than one qualifying contract, the required level of cover applies to each of those contracts and may be guaranteed by one or more IP guarantee.

(6) In order to ensure that the required level of cover continues to be guaranteed by its extant IP guarantees, those guarantees must be reviewed by the Independent Provider—

(a) no later than 1 month prior to the start of a scheme year;

(b) no later than 1 month after the date on which it was granted employing authority status;

(c) no later than 1 month before the date on which they are expressed to cease to have effect (where that is not the start of a scheme year);

(d) whenever it becomes a party to another qualifying contract;

(e) immediately whenever it reasonably believes that its estimated contribution liability pursuant to regulations 2.C.1, 2.C.5, 2.C.6, 2.C.8, 2.C.10 or 2.C.11 has increased, or may increase, by more than 10%;

(f) upon the Secretary of State notifying it in writing that the Secretary of State considers that the sum guaranteed by those guarantees does not, at least, equal the required level of cover.

(7) Where paragraph (6)(e) applies, and the Independent Provider determines that the amount of cover currently provided by its extant IP guarantee(or guarantees where it has more than one) does not equal the required level of cover in respect of all of its qualifying contracts, it must within 14 days of that determination either—

(a) increase the amount of cover provided by its guarantee or guarantees so that it is at least equal to the required level of cover and notify the Secretary of State in writing of it having done so; or

(b) take out one or more further IP guarantees for the amount by which the required level of cover has increased and notify the Secretary of State in writing of it having done so.

(8) Where paragraph (6)(f) applies, and the Independent Provider determines that the amount of cover currently provided by its IP guarantee or guarantees remains at least equal to the required level of cover in respect of all of its qualifying contracts, it shall—

(a) notify the Secretary of State in writing of that fact within 14 days of its determination, and

(b) provide the Secretary of State with such information in that regard as the Secretary of State may require from time to time.

Approval Applications

2.M.3

(1) An Independent Provider may only make an approval application as an employing authority in respect of a qualifying contract.

(2) An Independent Provider must apply for approval on either—

(a) a “closed approval” basis which, if granted, covers an employee—

(i) who is not otherwise covered by a direction made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967, and

(ii) who is performing services pursuant to such a contract and who satisfies the wholly or mainly condition, and

(iii) who was, within the twelve months preceding the date of entering into employment with the Independent Provider, in an employment in which that employee was entitled to participate in superannuation benefits provided under section 10 of the Superannuation Act 1972 whether or not that employee had actually been a member of this Section of the Scheme pursuant to that entitlement; or

(b) an “open approval” basis which, if granted, covers any employee performing services pursuant to such a contract who satisfies the wholly or mainly condition and regardless of whether that employee would fall within sub-paragraph (a).

(3) An approval application must—

(a) be in writing;

(b) be in a form that the Secretary of State may from time to time require;

(i) a declaration that an employee of an Independent Provider who is, at the date of that application, already engaged in performing services pursuant to a qualifying contract satisfies the wholly or mainly condition;

(ii) an undertaking that any person who on or after the date of approval is engaged to perform such services will do so in a way that complies with the wholly or mainly condition;

(d) contain a declaration that the Independent Provider is not already an employing authority in respect of any employee referred to in paragraph (c);

(e) provide such details as the Secretary of State may from time to time require of the qualifying contracts to which the Independent Provider is a party;

(f) confirm that employing authority status is sought on a closed approval basis or, as the case may be, on an open approval basis;

(g) where the Secretary of State has, prior to the approval of an application, notified the Independent Provider that an IP guarantee is required, contain such details of that guarantee as the Secretary of State may from time to time require;

(h) provide an estimate, for the Scheme year in respect of which approval (if given) is to take effect, of—

(i) the gross sums the Independent Provider anticipates receiving from the commissioning party in respect of the clinical services it is to provide under each qualifying contract it is a party to;

(ii) the number of employees who will be engaged in performing services pursuant to each such qualifying contract and who will satisfy the wholly or mainly condition;

(iii) the total pensionable pay of those employees referred to in paragraph (ii);

(iv) the total member contributions payable by those employees pursuant to regulation 2.C.1 (broken down to correspond to the estimated tiers tabulated in regulation 2.C.2), 2.C.8 and 2.C.10;

(v) the total employer contributions payable in respect of those employees pursuant to regulation 2.C.5 , 2.C.6 and 2.C.11;

(vi) the total number of employees who would satisfy the wholly or mainly condition and who are engaged in performing services pursuant to each such qualifying contract but who are otherwise not eligible to be members of this Section of the Scheme;

(vii) the total estimated pay of those employees referred to in paragraph (vi).

(4) An approval application may nominate a date (“the nominated date”) from which approval by the Secretary of State (if granted) is to have effect.

(5) Where paragraph (4) applies and—

(a) the Secretary of State is satisfied that the Independent Provider will satisfy the conditions in paragraph (3) at the nominated date,

(b) the Secretary of State accepts the nominated date for approval purposes, and

approval takes effect from the nominated date.

(5A) Where paragraph (4) applies and—

(a) the Secretary of State is satisfied that the Independent Provider did satisfy the conditions in paragraph (3) at the nominated date,

(b) the Secretary of State accepts the nominated date for approval purposes,

(d) the Secretary of State has received the contributions referred to in paragraphs (iv) and (v) of paragraph (3),

approval takes effect from the nominated date.

(6) Where an approval application—

(a) does not include a nominated date, or

(b) does include such a date, but which the Secretary of State does not accept for approval purposes,

approval takes effect from the date that it is granted by the Secretary of State.

(7) Where an Independent Provider has been granted employing authority status, any of its employees engaged in performing services pursuant to any qualifying contract in respect of which that approval was granted or extends under paragraph (8) or (9) and who satisfy the wholly or mainly condition, shall become ... officer members of this Section of the Scheme: this applies equally to any such employee who would, if otherwise a member of this Section of the Scheme, be subject to Part 3 of these Regulations.

(8) Where an Independent Provider has been granted employing authority status in respect of one or more qualifying contracts, that approval and the basis on which it was granted automatically extends to any other qualifying contract to which the Independent provider is, or subsequently becomes, a party: approval in respect of any other qualifying contract takes effect from the date that other qualifying contract was entered into.

(9) Where an Independent Provider is an associated Independent Provider (“AIP”) in relation to another Independent Provider (“IP1”) and IP1 has been granted employing authority status in respect of one or more qualifying contracts, that approval and the open or closed approval basis on which it was granted automatically extends to any qualifying contract to which—

(a) AIP is a party: that extension takes effect from the date on which IP1 was granted approval;

(b) AIP subsequently becomes a party: that extension takes effect from the date that contract is entered into.

For these purposes an Independent Provider is another provider’s AIP if that other Independent Provider exercises, or is able to exercise, or is entitled to acquire direct or indirect control over the AIP’s affairs.

(10) Where an Independent Provider, having been granted employing authority status, subsequently becomes a party to another qualifying contract or that approval extends under paragraph (8) or (9) to another qualifying contract and that contract would have the effect of increasing its estimated contribution liability under regulations 2.C.5, 2.C.6, 2.C.8, 2.C.10 and 2.C.11 by 10% or more on the date on which approval in respect of that contract takes effect, the Secretary of State may require that Independent Provider to take any of the steps referred to in paragraph (11).

(11) Those steps are to require the Independent Provider to—

(a) increase the sum already guaranteed by the Independent Provider’s IP guarantee(or guarantees where it has more than one);

(b) provide one or more further IP guarantees guaranteeing payment of a sum equal to the amount of the increase in the potential contribution liability;

(c) guarantee, by way of one or more IP guarantees, payment of a sum equal to the total potential contribution liability in respect of both the contract or contracts in respect of which the Independent Provider was originally granted employing authority status and the subsequent qualifying contract where it was not previously required to provide one.

Change from open approval to closed approval basis

2.M.4

(1) An Independent Provider granted employing authority status on an open approval basis may give the Secretary of State a modification notice stating that it wishes its status as an employing authority to cease to be on that basis but to continue instead on a closed approval basis.

(2) A modification notice given in respect of one or more qualifying contracts is effective in respect of all qualifying contracts.

(3) A modification notice must—

(a) be in writing;

(b) specify a date on which the modification is to take effect (“the operative modification date”): that date cannot fall within the period of 6 months commencing with the date of the modification notice (“the modification period”);

(c) be accompanied by the written consent of any affected person who has consented to the giving of that notice: for these purposes an “affected person” is any person who became an officer member of this Section of the Scheme pursuant to regulation 2.M.3(7).

(4) On the operative modification date—

(a) the basis of the Independent Provider’s approval changes from an open to a closed approval basis;

(b) any affected person who gave consent to the giving of the modification notice ceases to be a member of this Section of the Scheme;

(5) A person who is, but for a modification notice, otherwise entitled to participate in this Section of the Scheme during the modification period by virtue of the Independent Provider having been granted approval on an open approval basis, continues to be so entitled but only for the duration of that period.

(6) Nothing in paragraph (5) prevents a person referred to in that paragraph from becoming a member of this Section of the Scheme by virtue of their employment with some other employing authority.

(7) During the modification period, a person who was eligible to become an officer member of this Section of the Scheme in accordance with regulation 2.M.3(7) but who did not do so by virtue of opting out in accordance with regulation 2.B.5, may, in accordance with regulation 2.B.4, join or re-join this Section of the Scheme.

Change from closed approval to open approval basis

2.M.5

(1) An Independent Provider granted employing authority status on a closed approval basis when it first applied for approval may give the Secretary of State a modification notice stating that it wishes its status as an employing authority to cease to be on that basis but to continue instead on an open approval basis.

(2) An Independent Provider that has previously modified its participation in this Section of the Scheme may give the Secretary of State a further modification notice stating that it wishes its status as an employing authority to cease to be on a closed approval basis but to continue instead on an open approval basis.

(3) An application referred to in paragraphs (1) and (2) must specify—

(a) the date (“the modification date”) from which the change to open approval is sought: the modification date must not be less than 3 months from the date the application is received by the Secretary of State;

(b) that approval on an open approval basis is sought in respect of all employees of the Independent Provider engaged to perform services pursuant to a qualifying contract at the modification date provided always that such persons satisfy the wholly or mainly condition and regardless of whether they were so engaged at the date of any earlier approval.

(4) Where the Secretary of State is satisfied that the Independent Provider will, at the modification date, satisfy the matters set out in regulation 2.M.3, the change to open approval basis is to take effect from that date.

75% Pensionable Pay Threshold and Contribution Surcharge

2.M.6

(1) The maximum proportion of the gross sums payable to an Independent Provider in respect of a qualifying contract that may, in a scheme year, be paid to its employees who are members of this Section of the Scheme without it being liable for an employer contribution surcharge, is 75% (“the 75% threshold”).

(2) Where an Independent Provider has two or more qualifying contracts, the 75% threshold is to be determined by reference to the aggregate of the gross sums payable in respect of all of those contracts.

(3) Where the 75% threshold is exceeded, the Independent Provider must pay the Secretary of State an employer contribution surcharge on that part of the total pensionable pay of that Independent Provider’s employees in excess of the 75% threshold.

This is subject to paragraph (4).

(4) Where the Secretary of State is satisfied that the Independent Provider has provided a reasonable explanation or justification for the threshold being exceeded, the Secretary of State may require the Independent Provider to a pay an employer contribution surcharge on such part of that excess as the Secretary of State considers reasonable having regard to its declared NHS income, profits, losses and expenses for the scheme year in question.

(5) Where the employer contribution surcharge has been imposed on all or part of the excess in accordance with paragraphs (3) and (4) and the Secretary of State subsequently considers that all or part of it should no longer attract the surcharge, the Secretary of State must notify the Independent Provider of what part of the excess is to remain subject to an employer contribution surcharge.

(6) An Independent Provider must pay an employer contribution surcharge to the Secretary of State within 1 month, beginning with the date of that notice, of being notified by the Secretary of State that it is so payable (“a contribution surcharge notice”): the Secretary of State may, by that notice, exceptionally require a contribution surcharge to be paid within a different period.

(7) Where an Independent Provider fails to pay an employer contribution surcharge, it is liable to pay the supplementary charge and interest referred to in regulation 2.J.9A: interest is to continue to accrue on the late paid surcharge for so long as it remains unpaid and further supplementary charges may be levied in respect of it.

(8) The Secretary of State may exceptionally waive all or any part of a sum payable by way of interest or a supplementary charge.

(9) The rate of the employer contribution surcharge for the scheme year 2014-2015 and subsequent years, is 12%.

(10) Where the 75% threshold is exceeded, the whole of the pensionable pay an employee receives in respect of the performance of services pursuant to a qualifying contract is nevertheless (subject to regulation 2.A.12A) to count both for the purpose of ascertaining that employee’s entitlement to benefits under these Regulations and for the purpose of calculating them.

Default Notices

2.M.7

(1) Where, in respect of a qualifying contract, an Independent Provider does not pay the Secretary of State, on the due date, all of the contributions which it is liable to pay under regulations 2.C.1, 2.C.5, 2.C.6, 2.C.8, 2.C.10 or 2.C.11, the Secretary of State must issue a default notice to that Independent Provider.

(2) A default notice must notify the Independent Provider—

(a) of any charges accrued or accruing in accordance with regulation 2.J.9A;

(b) that continued non-payment of the contributions will result in the Secretary of State terminating the Independent Provider’s employing authority status on the day following the end of the second month following the month for which the contributions are due but not paid.

(3) The Secretary of State must provide the commissioning party to the qualifying contract referred to in paragraph (1) with a copy of any default notice issued to an Independent Provider.

(4) Where, one month after issue of a default notice, some or all of the contributions referred to in paragraph (1) remain unpaid, the Secretary of State must—

(a) notify the commissioning party to a qualifying contract referred to in sub-paragraph (1) of that non-payment specifying the period or periods for which contributions are outstanding and the amount or amounts outstanding, and

(b) request that commissioning party to consider withholding from any payments it is due to pay to the Independent Provider in pursuance of any qualifying contract, an amount equal to the amount of the unpaid contributions and to pay that amount to the Secretary of State.

(5) Where the Secretary of State receives an amount from the commissioning party pursuant to paragraph 4(b), the Secretary of State must—

(a) give that commissioning party a written receipt of such payment;

(b) notify the Independent Provider in writing that a sum equal to the amount of its unpaid contributions has been withheld pursuant to paragraph 4(b) and paid to the Secretary of State by the commissioning party pursuant to that paragraph.

Pension Returns

2.M.8

(1) An Independent Provider must, in writing and in such form as the Secretary of State may from time to time require, provide the Secretary of State with the information referred to in paragraph (3) in respect of the relevant period—

(a) within two months of the end of a scheme year; and

(b) within two months of the date of its termination, or withdrawal, of participation in this Section of the Scheme, where that does not occur at the end of a scheme year.

(2) For—

(a) paragraph (1)(a), the relevant period is the complete scheme year in respect of which the information is being provided;

(b) paragraph (1)(b), the relevant period is that beginning with the start of the scheme year in which withdrawal or termination took place and ending on the date of that withdrawal or termination.

(3) The information referred to in paragraph (1)—

(a) a complete list of all qualifying contracts to which the Independent Provider is or has been a party over the relevant period;

(ab) a complete list of such of the contracts referred to in sub-paragraph (a) which the Independent Provider has sub-contracted by way of NHS standard sub-contract to a third party: that list must identify the third party and also specify the total gross amounts expressed to be payable under such sub-contracts to that third party;

(b) the total gross amounts—

(i) estimated in accordance with regulation 2.M.3(3), to be payable over the relevant period under those contracts to the Independent Provider by the commissioning party;

(ii) actually received by the Independent Provider from the commissioning party in respect of those contracts over the relevant period;

(d) whether the Independent Provider has changed its approval status and, if so, when;

(e) where the Secretary of State has required the Independent Provider to have an IP guarantee, the amount guaranteed by it or by each guarantee where there is more than one;

(f) the number of employees who were engaged in performing services pursuant to a qualifying contract who satisfied the wholly or mainly condition;

(g) the total actual pensionable earnings of those employees;

(h) the total actual employee contributions payable by those employees pursuant to regulation 2.C.1 (broken down to correspond to the estimated tiers tabulated in regulation 2.C.2) and to regulations 2.C.8 and 2.C.10;

(i) the total actual employer contributions payable in respect of those employees pursuant to, as the case may be, regulations 2.C.5, 2.C.6 and 2.C.11;

(j) confirmation that those of its employees who were or became officer members of the scheme during the relevant period continued to satisfy the wholly or mainly condition throughout that period;

(k) the total actual number of employees who did satisfy the wholly or mainly condition and who were engaged in performing services pursuant to a qualifying contract but who were otherwise not eligible to be members of this Section of the Scheme;

(l) the total actual amount of pensionable earnings of employees satisfying the wholly or mainly condition compared to the total gross amounts payable to the Independent Provider by a commissioning party in respect of all of its qualifying contracts: that amount to be expressed as a percentage;

(m) where the percentage referred to in (l) exceeds the 75% threshold, an explanation for that. This is subject to regulation 2.M.6;

(n) whether the Independent Provider has ceased to be a party to a qualifying contract;

(o) whether the Independent Provider no longer employs any person who satisfies the wholly or mainly condition.

(4) Where any employee of an Independent Provider who became an officer member of this Section of the Scheme pursuant to regulation 2.M.3(7) ceases to satisfy the wholly or mainly condition or any other condition relating to membership of this Section of the Scheme, the Independent Provider must inform that employee that the employee’s membership of this Section of the Scheme has come to an end on that date of failure to comply with the relevant condition and notify the Secretary of State in writing of that fact.

Provision of information

2.M.9

(1) In order to assess whether the grant of employing authority status to an Independent Provider should continue, the Secretary of State may at any time require an Independent Provider to provide the Secretary of State with information—

(a) relating to those employed by it who have become officer members of this Section of the scheme pursuant to regulation 2.M.3(7);

(b) relating to all or any qualifying contracts in respect of which employing authority status was granted or extended;

(c) relating to the numbers of persons engaged in performing services pursuant to such contracts and the proportion of their time spent in doing so;

(d) which the Secretary of State considers relevant for that purpose.

(2) Information referred to in paragraph (1) must be provided within 14 days of the Secretary of State requesting it.

(3) The Secretary of State may, by notice in writing, require the Independent Provider to provide such information (which does not fall within sub-paragraph (1)) as the Secretary of State considers necessary to determine whether there has been compliance with any provision of these Regulations: the Independent Provider must provide that information within the period specified in that notice.

Termination of employing authority status by Secretary of State

2.M.10

(1) The Secretary of State must terminate an Independent Provider’s status as an employing authority where that Independent Provider is no longer a party to any qualifying contract.

(2) The Secretary of State may terminate an Independent Provider’s status as an employing authority in any of the following circumstances—

(a) where the Independent Provider subsequently acquires the status of an employing authority specified in any of the paragraphs, other than paragraph (q), of the definition of “employing authority” in regulation 2.A.1: in such a case the Independent Provider ceases to be an employing authority as an Independent Provider but not by virtue of whichever of those paragraphs applies to it;

(b) where all of the employees of the Independent Provider who have acquired membership of this Section of the Scheme pursuant to regulation 2.M.3(7) cease to satisfy the wholly or mainly condition;

(c) the Independent Provider fails to review, in accordance with regulation 2.M.2(6) the amount of cover guaranteed by its IP guarantee or, having carried out such a review (whether pursuant to a default notice or otherwise), fails to increase the amount of cover provided by the IP guarantee where such an increase is required;

(d) where, following the issue of a default notice, the Independent Provider fails to pay to the Secretary of State the amount by the date specified in regulation 2.M.7(2);

(e) where, regulation 2.M.2(7) applies and the Independent Provider fails to take the action required by paragraph (a) and (b) within the specified period;

(f) where an Independent Provider fails to provide the information referred to in regulation 2.M.9(1) or (3);

(g) where the Secretary of State is not satisfied that the information provided by an Independent Provider pursuant to regulation 2.M.9(1) supports the continuation of the Independent Provider’s status as an employing authority;

(h) where an Independent Provider fails to notify the Secretary of State that the guarantor of any of its IP guarantees has withdrawn or revoked it;

(i) where an Independent Provider has in any three years in any five year period exceeded the 75% threshold or has a pattern of doing so.

(3) Where the Secretary of State determines that an Independent Provider’s status as an employing authority must or should be terminated in accordance with this regulation, the Secretary of State is to give that Independent Provider, as soon as reasonably practicable, written notice of that fact and the date from which termination takes effect.

(4) Where an Independent Provider’s employing authority status is so terminated, its employees who are, or who were eligible to be, members of this Section of the Scheme, cease to be such members or eligible to be such members on the date of that termination.

Withdrawal of participation in this Section of the Scheme

2.M.11

(1) An Independent Provider can withdraw from participation in this Section of the Scheme by giving the Secretary of State notice (“a withdrawal notice”) stating that it wishes its status as an employing authority under paragraph (q) of the definition of an employing authority in regulation 2.A.1, to cease.

(2) An Independent Provider may not give a withdrawal notice that affects any person who has become an officer member of this Section of the Scheme by virtue of regulation 2.M.3(7) unless that person gives the Independent Provider written consent to that happening.

(3) The date on which withdrawal from this Section of the Scheme takes effect (“the operative withdrawal date”), cannot fall within the period of 6 months commencing with the date of the withdrawal notice (“the withdrawal period”).

(4) A withdrawal notice must—

(a) be in writing; and

(b) be accompanied by evidence of the consent of the persons referred to in paragraph (2) to the giving of that notice: such a notice has no effect in respect of such a person who has not given such consent.

(5) A withdrawal notice is effective in respect of all qualifying contracts to which the Independent Provider is a party.

(6) Where paragraph (4)(b) is satisfied, a person who has given written consent pursuant to paragraph (2) ceases, on the operative withdrawal date, to be an officer member of this Section of the Scheme.

(7) A person who could, but for a withdrawal notice, have become entitled to participate in this Section of the Scheme by virtue of satisfying regulation 2.M.3(7) during the withdrawal period, continues to be so entitled during that period: at the end of that period such a person will not be entitled to be member of this Section of the Scheme pursuant to this Chapter.

This is subject to paragraph (8).

(8) Nothing in paragraphs (2) to (7) prevents a person referred to in that paragraph from becoming such a member by virtue of their employment with some other employing authority.

(9) During the withdrawal period, a person who was eligible to become an officer member of this Section of the Scheme in accordance with regulation 2.M.3(7) but who did not do so by virtue of opting out in accordance with regulation 2.B.5 may, in accordance with regulation 2.B.4, join or re-join this Section of the Scheme.

(10) An Independent Provider that has withdrawn from participation in this Section of the Scheme, may apply for approval as an employing authority pursuant to this Chapter.

This is subject to paragraph (11).

(11) An application referred to in paragraph (10) must specify that approval is sought in respect of all persons the Independent Provider engages to perform services pursuant to any qualifying contracts at the date on which approval is granted provided always that such persons satisfy the wholly or mainly condition regardless of whether they were so engaged at the date of any earlier approval or have been so engaged since the operative withdrawal date (or the latest of them if there is more than one).

(12) Where after approval as an employing authority pursuant to this Chapter—

(a) an Independent Provider satisfies one of the other paragraphs of the definition of employing authority in regulation 2.A.1 and by virtue of doing so would otherwise become an employing authority for the purposes of these Regulations, and

(b) that Independent Provider gives the Secretary of State a withdrawal notice, that notice does not affect its employees who would otherwise qualify as members of this Section of the scheme by virtue of paragraph (a) provided always that the Secretary has not terminated that Independent Provider’s status as an employing authority pursuant to regulation 2.M.10(1)

Interest and Administration Charges: Late paid contributions

3.J.9A

(1) For the purposes of this regulation, where an employing authority fails to pay, by the dates therein specified, contributions and the scheme administration charge it is required to pay under any or all of regulations 3.C.1, 3.C.3, 3.C.3A, 3.C.5, 3.C.6, 3.C.8, or 3.C.9, there is a chargeable event.

(2) Where there is a chargeable event, the Secretary of State may determine what amount of contributions or, as the case may be, the scheme administration charge are unpaid having regard to—

(a) the amount of contributions or, as the case may be, the scheme administration charge historically paid at a chargeable event by that employing authority;

(b) any reasons or explanation provided by the employing authority for the change in the amount of contributions or, as the case may be, the scheme administration charge if any it has paid at such an event;

(3) Where there is a chargeable event, the employing authority is liable to pay standard rate interest on the amount of unpaid contributions constituting that event and the amount of unpaid scheme administration charge or both together with a supplementary charge in respect of each such event.

(4) Where the Secretary of State becomes aware of a chargeable event, the Secretary of State shall give the employing authority a written notice specifying—

(a) the date of each chargeable event;

(b) the amount of unpaid contributions or unpaid scheme administration charge, or both; determined under paragraph (2) constituting each such chargeable event;

(d) the amount of supplementary charge payable in respect that event;

(e) that payment of the amounts referred to in paragraphs (c) and (d) is to be made within 1 month of the date of the notice and that failure to do so incurs further interest and supplementary charges.

(5) Any amount payable by way of interest or payable by way of an supplementary charge is to be paid as single lump sum unless the Secretary of State considers the case to be exceptional and considers it appropriate for all, or part, of such an amount to be paid over a period, and by a number of instalments, determined by the Secretary of State.

(6) Where the Secretary of State considers the case to be exceptional, nothing in the preceding paragraphs prevents the Secretary of State from waiving all or any part of the amount of interest, or all or any supplementary charges, payable.

(7) In the case of arrears in respect of the scheme year 2014-2015 and subsequent years, the standard rate of interest is the aggregate of the percentage (if any) by which the consumer prices index for the February before the scheme year in which the chargeable event arose is higher than it was for the previous February plus 3%, compounded at annual intervals.

(8) The supplementary charge in respect of arrears in respect of the scheme year 2014-2015 and subsequent years is £75.

(9) In any particular case the Secretary of State may direct that, for the purposes of this regulation, “employing authority” includes one or more of—

(a) the transferee under a transfer of staff order pursuant to—

(i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act;

(ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act;

(b) without limiting sub-paragraph (a), a successor, transmittee or assignee of all or part of an employing authority’s business or functions.

Members’ contributions: redundancy

2.C.4A

(1) This regulation applies if—

(a) a member’s employment is terminated by reason of redundancy,

(b) the member become entitled to payment of a pension under regulation 2.D.11 where regulation 2.D.11A applies,

(d) unless that member pays an additional contribution as mentioned in paragraph (2), the amount of the member’s pension would be reduced pursuant to paragraphs (5) to (10) of regulation 2.D.11A.

(2) The member may pay such additional contribution as the Secretary of State (having regard to the advice of the Scheme actuary) determines will be sufficient to meet the cost of the pension insofar as that cost is not met by the contribution paid by the member’s employing authority under regulation 2.C.6(2A).

(3) For the purposes of paragraph (2), the Secretary of State must provide the member’s employing authority with such information as will enable the employing authority to notify the member as to the effect that paying contributions of any particular amount would have on the amount of the pension payable to the member.

(4) The amount of the additional contribution payable pursuant to paragraph (2) must be—

(a) not less than £500 (or such other figure as the Secretary of State thinks appropriate);

(b) a whole number of pounds divisible by £10.

(5) For the purposes of paragraph (4)—

(a) if the insufficiency mentioned in paragraph (7)(b) of regulation 2.D.11A is less than £500, sub-paragraph (a) is ignored;

(b) if it is necessary to do so to comply with sub-paragraph (b), the figure must be rounded down to the nearest whole number of pounds divisible by £10.

(6) If the member decides to pay an additional contribution, the amount of the contribution must be paid to the member’s employing authority in sufficient time to enable the authority to remit the payment to the Secretary of State at the same time as the authority pays the contribution it is required to pay pursuant to regulation 2.C.6(2A).

Early retirement on termination of employment by employing authority: additional contribution option

2.D.11A

(1) This regulation applies to a member who satisfies the conditions in regulation 2.D.11 and has an additional contribution option.

(2) Where this regulation applies the payment of the member’s pension under regulation 2.D.11 does not start until the employing authority has—

(a) remitted to the Secretary of State the member’s contribution paid to it pursuant to regulation 2.C.4A(6); and at the same time,

(b) paid the contribution under regulation 2.C.6(2A).

(3) Sub-paragraph (a) of paragraph (2) does not apply if—

(a) the member has chosen not to pay a contribution as mentioned in regulation 2.C.4A, and

(b) the employing authority gives confirmation of that in writing to the Secretary of State.

(4) Paragraph (5) applies if—

(a) the member has received payment referred to in regulation 2.D.11(6)(a),

(b) the terms and conditions of the employment require the payment to be reduced to take account of any contribution the employing authority is required to make to the Secretary of State pursuant to regulation 2.C.6, and

(5) The amount of the payment (or all such payments) is deducted from the amount of the pension otherwise payable pursuant to regulation 2.D.11.

(6) Paragraph (7) applies both where the member has exercised an additional contribution option and where the member has not.

(7) Paragraph (8) applies if—

(a) the reason for the termination of the member’s employment is redundancy, and

(b) the contribution paid by the employing authority under regulation 2.C.6 is insufficient to meet the cost of the pension payable pursuant to regulation 2.D.11.

(8) The amount of the pension is reduced by the appropriate amount.

(9) The appropriate amount is the amount determined by the Secretary of State as being necessary to ensure that the cost does not exceed payment unless and to the extent that a contribution paid by the member under regulation 2.C.4A makes up the deficiency.

(10) The cost referred to in paragraph (9) is the amount which the Secretary of State determines is necessary to buy out the cost of the actuarial reduction that would apply if the pension and the lump sum (if any) were calculated pursuant to regulations 2.D.4 and 2.K.12.

(11) In determining the appropriate amount referred to in paragraph (8) and the amount referred to in paragraph (10), the Secretary of State must have regard to the advice of the Scheme actuary.

(12) The cost of the actuarial reduction referred to in paragraph (10) does not include the cost of early payment of an additional pension under regulation 2.C.8, 2.C.10 or 2.C.11.

Option to have periods of service treated separately where pay is reduced

Exceptions to requirement that NHS employment must have ceased

Right to transfer a deferred pension to the 2015 Scheme

2.F.18

(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 a deferred member of this Section of the Scheme, and

(b) became an active member of the 2015 Scheme before attaining the age of 65.

(3) Condition B is that the member has 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 service in respect of which that person is a deferred member of this Section of the Scheme and ending on the day immediately before the person became an active member of the 2015 Scheme in accordance with paragraph (2)(b).

(4) Condition C is that the member—

(a) has 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 active membership of this Section of the Scheme 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”).

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