The National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015

Made: 5th February 2015

Laid before Parliament: 12th February 2015

Coming into force: 1st April 2015

In accordance with section 10(1)[^f00003] of the Superannuation Act 1972 and section 3(5) of the Public Service Pensions Act 2013, these Regulations are made with the consent of the Treasury.

PART 1 — Introductory

Citation, extent and commencement

1

These Regulations—

• (a) may be cited as the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015;

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

• (c) extend to England and Wales.

Interpretation

2

In these Regulations—

• “1995 officer transition member” means a person who is an officer transition member by virtue of having pensionable service in the 1995 Section;

• “1995 Regulations” means the National Health Service Pension Scheme Regulations 1995[^f00004];

• “1995 Section” means the section of the National Health Service Pension Scheme for England and Wales set out in the 1995 Regulations;

• “2008 officer transition member” means a person who is an officer transition member by virtue of having pensionable service in the 2008 Section;

• “2008 Regulations” means the National Health Service Pension Scheme Regulations 2008[^f00005];

• “2008 Section” means the section of the National Health Service Pension Scheme for England and Wales set out in the 2008 Regulations;

• “2013 Act” means the Public Service Pensions Act 2013;

• “2015 Regulations” means the National Health Service Pension Scheme Regulations 2015[^f00006];

• “lump sum and death benefit allowance” in relation to a person, has the meaning given in section 637R of the Income Tax (Earnings and Pensions) Act 2003 .

• “new scheme” means the scheme set out in the 2015 Regulations;

• “NHS employment”, in relation to the old scheme and the new scheme has the meaning given in the respective Regulations;

• “non-pensionable 1995 Section member” means a member of—the 1995 Section who, on 31st March 2022, is no longer required to pay contributions under regulation D1(3) or (4) (contributions by members: age and pensionable service limits) of the 1995 Regulations; andthe new scheme in respect of service on or after 1st October 2023;

• “non-pensionable 2008 Section member” means a member of—the 2008 Section who, on 31st March 2022, is a non-contributing member within the meaning of regulation 2.A.1 (interpretation of Part 2: officers) or 3.A.1 (interpretation of Part 3: general) of the 2008 Regulations; andthe new scheme in respect of service on or after 1st October 2023;

• “non-pensionable old scheme member” means—a non-pensionable 1995 Section member; ora non-pensionable 2008 Section member;

• “officer transition member” means a person other than a non-pensionable old scheme member who is both a member of—the old scheme by virtue of having pensionable service in that scheme to which paragraphs 1(2)(i) and (ii) or paragraphs 2(2)(i) and (ii) of Schedule 7 (final salary link) to the 2013 Act applies; andthe new scheme by virtue of having pensionable service in that scheme that would have been treated as officer service for the purposes of the old scheme had it been service in the old scheme;

• “old scheme” means the National Health Service Pension Scheme for England and Wales, as set out in the 1995 Regulations and the 2008 Regulations;

• “practitioner transition member” means a person other than a non-pensionable old scheme member—who is both a member of—the old scheme by virtue of having pensionable service to which schedule 2 to the 1995 Regulations or Part 3 of the 2008 Regulations applies; andthe new scheme by virtue of having pensionable service in that scheme that would have been treated as practitioner service for the purposes of the old scheme had it been service in the old scheme; andwhose pensionable service for the old scheme and pensionable service for the new scheme are continuous, where—paragraphs 3 and 4 of Schedule 7 to the 2013 Act (continuity of employment etc.) apply as they apply for the purposes of paragraphs 1(2) and 2(2) of that Schedule; andthe person’s pensionable service for the old scheme and pensionable service for the new scheme are not continuous if scheme regulations made pursuant to section 8A(4)(b) of the Pensions (Increase) Act 1971[^f00007] (references to “service” : relevant old scheme pension in payment) apply to the person;

• “transition member” means a person who is either an officer transition member or a practitioner transition member.

PART 2 — Transitional provisions

CHAPTER 1 — Eligibility

Eligibility of pensioners

3

Schedule 1 (eligibility of pensioners) has effect.

CHAPTER 2 — Notices and elections

Carry-forward of old scheme opt-out

4

Where, on the date a person becomes eligible to join the new scheme, that person has—

• (a) opted out of membership of the old scheme pursuant to regulation—

• (i) B4 of the 1995 Regulations; or

• (ii) 2.B.5 or 3.B.5 of the 2008 Regulations; or

• (b) provided their employer with a valid opt-out notice for the purposes of regulations 9 or 15 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010[^f00008] (“the 2010 Regulations”),

that person is to be treated as having also opted out under paragraph 1 of Schedule 4 to the 2015 Regulations or given notice for the purposes of the 2010 Regulations in relation to the new scheme.

Nominations, notices and declarations

5

• (1) Paragraph (2) applies where—

• (a) a nomination, notice or declaration of the type specified in column 1 of the table has been accepted in respect of benefits to be paid on the death of a person who is a member of the 1995 Section or the 2008 Section of the old scheme; and

• (b) on the day that the member becomes an active member of the new scheme, the member has not revoked that nomination, notice or declaration.

Column 1Nomination, notice or declaration in the 1995 Section or 2008 Section	Column 2Corresponding notice or declaration in the new scheme
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 the 1995 Regulations (which deal with lump sum payments on the death of a 1995 Section member in different circumstances).	A notice given in accordance with paragraph 9 (payment of lump sums on death) of Schedule 14 (lump sum on death) to the 2015 Regulations in favour of one or more persons in respect of any lump sums that become payable under regulation 112 of the 2015 Regulations.
A notice given in accordance with regulation 2.E.21 or 3.E.21 of the 2008 Regulations (payment of lump sums or pensions on death) in favour of one or more persons in respect of any lump sums or pensions that become payable under regulation 2.E.16 or 3.E.16 of the 2008 Regulations (which deal with lump sum or pension payments on the death of a 2008 Section member in different circumstances).	A notice given in accordance with paragraph 9 (payment of lump sums on death) of Schedule 14 (lump sum on death) to the 2015 Regulations in favour of one or more persons in respect of any lump sums that become payable under regulation 112 of the 2015 Regulations.
A notice given for the purpose of paragraph (3)(a) of regulation F5 of the 1995 Regulations that the member’s surviving partner (within the meaning of that regulation) is not to receive payment of any lump sum that becomes payable under regulations F1 to F4 of the 1995 Regulations.	A notice given in accordance with paragraph 9 (payment of lump sums on death) of Schedule 14 (lump sum on death) to the 2015 Regulations specifying that the member’s personal representatives are to receive any lump sum on the death of the member payable under regulation 112 of the 2015 Regulations.
...	...
...	...

• (2) Where this paragraph applies, for the purposes of the new scheme, the nomination, notice or declaration mentioned is to be treated as if it had been accepted by the scheme manager as the corresponding notice or declaration in column 2 of the table in paragraph (1).

• (3) The revocation of—

• (a) a nomination, notice or declaration of the type specified in column 1 of the table in paragraph (1) will also revoke the corresponding notice or declaration in column 2 of that table without more;

• (b) a notice or declaration of the type specified in column 2 of the table in paragraph (1) will also revoke the corresponding nomination, notice or declaration in column 1 of that table without more.

• (4) The—

• (a) making of a new nomination or declaration, or giving of a new notice, of the type specified in column 1 of the table in paragraph (1) is also to be treated by the scheme manager as the giving of the corresponding notice or making of the corresponding declaration in column 2 of that table without more;

• (b) giving of a new a notice or making of a new declaration of the type specified in column 2 of the table in paragraph (1) is also to be treated by the Secretary of State as the making of the corresponding nomination or declaration, or giving of the corresponding notice, of the type specified in column 1 of that table without more.

CHAPTER 3 — Membership status and breaks in service

Active member status preservation

6

Unless otherwise provided in these Regulations, a transition member who is an active member of the new scheme is to be treated, for the purposes of the old scheme, as though they continue to be an active member of the old scheme notwithstanding the operation of section 18(1) of the 2013 Act.

Qualifying service

7

• (1) In determining whether a transition member who is in pensionable service under the new scheme qualifies for retirement benefits (other than an ill-health pension) under the old scheme, the member’s pensionable service under the old scheme terminates when the member’s pensionable service under the new scheme terminates.

• (2) Unless a transition member becomes a deferred member of the new scheme, the member does not become—

• (a) a member with a preserved pension in the 1995 Section; or

• (b) a deferred member of the 2008 Section.

• (3) Where a transition member with more than two years of qualifying service opts out of membership of the new scheme pursuant to regulation 15 of the 2015 Regulations, the member becomes—

• (a) a member with a preserved pension under the 1995 Section; or

• (b) a deferred member of the 2008 Section,

in relation to service in that Section.

• (4) Where a transition member has re-entered pensionable service under the new scheme, that member ceases to be—

• (a) a member with a preserved pension in the 1995 Section; or

• (b) a deferred member of the 2008 Section.

• (5) In determining whether a member qualifies for benefits under the old scheme, the period of the member’s qualifying service under regulation 22 of the new scheme applies in place of the period calculated pursuant to regulation—

• (a) C3 of the 1995 Regulations; or

• (b) 2.A.5 or 3.A.5 of the 2008 Regulations.

Members on authorised unpaid leave

8

Where, on the date a person becomes eligible to join the new scheme, that person is on a leave of absence during which they are paying contributions pursuant to regulation P2 of the 1995 Regulations or 2.A.4(3) or 3.A.4(3) of the 2008 Regulations—

• (a) regulation 21 of the 2015 Regulations applies to that person; and

• (b) for the purposes of determining whether and for how long that person may continue to pay contributions under the 2015 Regulations, the contributions paid and the period of absence under the old scheme must be taken into account.

Casual staff and locums not working on eligibility date

9

Paragraph (2) applies where, on the date a person becomes eligible to join the new scheme, that person—

• (a) is—

• (i) employed on a casual basis and has ceased to pay contributions under regulation C3(4A) of the 1995 Regulations[^f00009] or 2.A.5(2) of the 2008 Regulations; or

• (ii) a locum practitioner and has ceased to pay contributions under paragraph 9A of Schedule 2 to the 1995 Regulations[^f00010] or regulation 3.A.5(2) of the 2008 Regulations; and

• (b) has ceased to pay those contributions because of a break which, on the date they become eligible to join the new scheme, is a break not exceeding a period of three months (“a relevant break”),

• (2) Regulation 22(5) and (6) of the 2015 Regulations applies as though the member’s relevant break had commenced whilst the member was an active member of the new scheme.

Disqualifying breaks in service

10

• (1) Paragraph (3) applies to a member with pensionable service in the old scheme who—

• (a) on 1st April 2015—

• (i) is on a break in NHS employment in the old scheme; or

• (ii) has opted out of the old scheme pursuant to regulation—

• (aa) B4 of the 1995 Regulations; or

• (bb) 2.B.5 or 3.B.5 of the 2008 Regulations;

• (b) was not—

• (i) entitled to a preserved pension under regulation L1 of the 1995 Regulations; or

• (ii) a deferred member of the 2008 Section in respect of that service,

when that service ceased; and

• (c) subsequently becomes an active member of the new scheme.

• (2) Paragraph (4) applies to a member with pensionable service in the old scheme who—

• (a) subsequently becomes an active member of the new scheme;

• (b) has a break in pensionable service in the new scheme commencing on or after 2nd April 2015; and

• (c) is not qualified for retirement benefits pursuant to regulation 72 of the 2015 Regulations on ceasing pensionable service in the new scheme.

• (3) Where a member’s break between pensionable service in the old scheme and pensionable service in the new scheme is less than one year—

• (a) the contributions in respect of old scheme service are not refundable to the member under regulation—

• (i) L2 of the 1995 Regulations; or

• (ii) 2.C.18 or 3.C.16 of the 2008 Regulations; and

• (b) if a refund under those regulations was paid in respect of the member’s old scheme service during the break, the member may repay that refund (including any interest on those contributions which was paid to the member) under regulation—

• (i) L4(5) of the 1995 Regulations; or

• (ii) 2.A.4(8) or 3.A.4(8) of the 2008 Regulations,

within six months of joining the new scheme.

• (4) Where a member’s break in pensionable service in the new scheme is five years or less—

• (a) the contributions in respect of old scheme service are not refundable to the member under regulation—

• (i) L2 of the 1995 Regulations; or

• (ii) 2.C.18 or 3.C.16 of the 2008 Regulations; and

• (b) if a refund under those regulations was paid in respect of the member’s old scheme service during the break, the member may repay that refund (including any interest on those contributions which was paid to the member) under regulation—

• (i) L4(5) of the 1995 Regulations; or

• (ii) 2.A.4(8) or 3.A.4(8) of the 2008 Regulations,

within six months of joining the new scheme.

CHAPTER 4 — Contributions and final pay

Contribution rate setting : Groups A to C

11

• (1) This regulation applies to a transition member who belongs to Group A, B or C in regulation 27(1) of the 2015 Regulations and who on 31st March 2022 was—

• (a) a member in pensionable employment in the 1995 Section; or

• (b) an active member of the 2008 Section.

• (2) Where this regulation applies, for the purposes of setting a contribution rate for the scheme year commencing on 1st April 2022—

• (a) paragraph 2 of Schedule 11 to the 2015 Regulations applies as though the member was in pensionable employment with the same employing authority on both—

• (i) the last day of the previous scheme year, and

• (ii) the first day of the current scheme year;

• (b) in determining which of the cases the member falls into pursuant to sub-paragraph (2) of that paragraph, the member is to be assessed as if during the scheme year 1st April 2021 to 31st March 2022—

• (i) that member’s pensionable employment (within the meaning of the 1995 Section) or active service (within the meaning of the 2008 Section) was actually pensionable employment under the 2015 Regulations; and

• (ii) the percentage rate of contributions paid by the member during that year in the relevant Section was actually the percentage rate of contributions paid during the previous scheme year under the 2015 Regulations.

Contribution rate setting : Group D

12

• (1) This regulation applies to a transition member who belongs to Group D in regulation 27(1) of the 2015 Regulations and who on 31st March 2022 was—

• (a) a member in pensionable employment in the 1995 Section; or

• (b) an active member of the 2008 Section.

• (2) Where this regulation applies, for the purposes of setting a contribution rate for the scheme year commencing on 1st April 2022, in regulations 38(4)(b) and 39(4)(b) of the 2015 Regulations, the member’s most recent certified or final pensionable earnings are to be the member’s certified earnings or final pensionable earnings derived from the member’s—

• (a) pensionable employment in the 1995 Section, in accordance with paragraph 23 to Schedule 2 of the 1995 Regulations; or

• (b) active service in the 2008 Section, in accordance with regulation 3.J.14 of the 2008 Regulations.

Taper protection for contribution tiering

13

• (1) This regulation applies to—

• (a) a member who—

• (i) is in pensionable employment in the 1995 Section on the day before they reach their eligibility cessation date (determined in accordance with regulation B3(8R) or (8S) of the 1995 Regulations[^f00011]); and