The National Health Service Superannuation Scheme (Scotland) Regulations 1995

• Citation: S.I. 1995/365
• Sections: 132

A1 Citation and commencement

(1) These Regulations may be cited as the National Health Service Superannuation Scheme (Scotland) Regulations 1995.

(2) These Regulations shall come into force on 1st April 1995.

A2 Interpretation

(1) Paragraph (4) of this regulation contains a list of expressions and in these Regulations, unless the context otherwise requires, any expression for which there is an entry in the first column of that paragraph has the meaning given against it in the second column or is to be construed in accordance with directions given against it in that column.

(2) In these Regulations, unless the context otherwise requires—

(a) any reference to a regulation, Part or Schedule identified by a letter or number or both (an “indicator”) is to be construed as a reference to the regulation, Part or Schedule, as the case may be, identified by that indicator in these Regulations, and any reference in a regulation of or a Schedule to these Regulations to a numbered paragraph is to be construed as a reference to the paragraph bearing that number in that regulation or, as the case may be, that Schedule; and

(b) any reference to the scheme, except where the context otherwise requires, means the National Health Service Superannuation Scheme for Scotland, the rules of which are set out in these Regulations.

(3) Where these Regulations require anything to be done within a specified period after or from a specified day or event, the period begins immediately after the specified day or, as the case may be, the day on which the specified event occurs.

(4) The following two columns are those referred to in paragraph (1) of this regulation:—

(a) a Health Board, Special Health Board or the Common Services Agency for the Scottish Health Service established under section 2 and section 10 of the National Health Service (Scotland) Act 1978 ;

(b) a National Health Service Trust established under section 12A of the National Health Service (Scotland) Act 1978 ;

(c) any other body that is constituted under an Act relating to health services and which the Secretary of State agrees to treat as an employing authority for the purposes of the scheme;

Pensionable pay in respect of the member’s last year of pensionable employment, ending on the date the member ceases to be in such employment or dies whichever occurs first, except—

if the member was in pensionable employment for less than 12 months “final year’s pensionable pay” means—

if pensionable pay was greater in either or both of the two consecutive years immediately preceding the last year, “final year’s pensionable pay” means pensionable pay in respect of the year immediately preceding the last year or, if greater, pensionable pay in respect of the first of those two consecutive years;

An occupational pension scheme within the meaning of section 1 of the Pension Schemes Act 1993 which is—

approved by the Inland Revenue for the purposes of Chapter IV of Part XIV of the Taxes Act (retirement benefits scheme) or whose application for approval under that Chapter is under consideration;

a statutory scheme as defined in section 612(1) of the Taxes Act (interpretation); or

a scheme to which section 608 of the Taxes Act applies (superannuation funds approved before 6th April 1980);

B1 Membership of the scheme

(1) Subject to regulation B2 (age limits and restrictions on membership) the following persons are eligible to be included in the scheme:—

(a) whole-time officers and part-time medical or dental officers;

(b) medical and dental practitioners, assistant and associate general practitioners and trainee practitioners; and

(c) any other part-time officer.

(2) A person included in sub-paragraphs (a) and (b) of paragraph (1) above will be included in the scheme automatically, provided he has not made an election under regulation B4 not to be included in the scheme.

(3) A part-time officer included in sub-paragraph (c) of paragraph (1) may elect to be included in the scheme and shall do so by giving notice in writing to the Secretary of State.

(4) Where the election under paragraph (3) is made within the first pay period the election shall take effect from the commencement of employment; otherwise it will take effect from the first day of the pay period immediately after the notice is received or such later date (which must be the first day of a pay period) as may be specified in the notice.

(5) Where there is a reduction in hours from whole-time to part-time without a break in service and the election is made within the first pay period following the reduction in hours the election will take effect from the first day of part-time employment; otherwise an election shall take effect from the first day of the pay period following the election unless a later date (which must be the first day of a pay period) is specified in the notice.

(6) A part-time officer who has been included in the scheme in terms of this regulation who ceases to be employed by an employing authority shall automatically be re-included in the scheme if he has been re-employed by the same employing authority within 12 months (extended as appropriate by any period of maternity or other absence from work to which regulation P1 or P2 applies) provided he has not made an election under regulation B4 not to be included in the scheme.

B2 Age limits and restrictions on membership

The following persons are ineligible to join the scheme:—

(a) persons under age 16 or over age 70;

(b) special class officers over age 65;

(c) officers in “contributory service” under the Teachers' Superannuation (Scotland) Regulations 1992 in any hospital vested in the Secretary of State; and

(d) persons who hold honorary appointments except that this paragraph shall not apply if the person holding the honorary appointment at the same time holds other employment which entitles him to join the scheme.

B3 Restrictions on further participation in the scheme

(1) Members may not continue to contribute to or accrue further rights under the scheme—

(a) in the case of special class officers, on attaining age 65 or on completing 45 years pensionable service and reaching age 60 or over;

(b) in the case of all other persons, on attaining age 70 or on completing 45 years' pensionable service and reaching age 65 or over;

(c) after opting out of the scheme in accordance with regulation B4.

(2) Except where regulation E2(11) applies (further pensionable employment under the age of 50 after early retirement pension (ill-health) becomes payable) or regulation E3(3) (concurrent employment where early retirement pension (redundancy etc. ) becomes payable) applies, members to whom there became or becomes payable a pension under these Regulations or the 1980 Regulations, may not contribute to or accrue further rights under the scheme.

B4 Opting out of the scheme

(1) A person who does not wish to, or who no longer wishes to, participate in the scheme may opt out of the scheme at any time by giving notice in writing to the employing authority.

(2) Subject to paragraph (4) unless a later date is specified in the notice, the notice shall take effect from the first day of the pay period immediately following its receipt by the employing authority.

(3) Subject to paragraphs (4) and (5), a member who opts out of the scheme will be treated as having left pensionable employment on the day the notice takes effect.

(4) A member who opts out of the scheme before the end of the first pay period during which the employing authority included the member in the scheme will be treated as never having been included in the scheme.

(5) A notice under this regulation will apply to any subsequent employment with the same employing authority irrespective of the length of the break in service unless and until a further notice is given under paragraph (1) of regulation B5.

(6) A person shall not be treated as having retired from pensionable employment by reason only of having opted out of the scheme.

B5 Rejoining the scheme

(1) Subject to paragraph (2), a member who has opted out of the scheme in terms of regulation B4 may, if in NHS employment, rejoin the scheme by giving notice in writing to the employing authority. The member will be included in the scheme on the first day of the pay period immediately after the notice is received or such later date (which must be the first day of a pay period) as is specified in the notice.

(2) A member who has opted out of the scheme may not rejoin the scheme during a period of absence from work for any reason.

C1 Meaning of “pensionable pay”

(1) In these Regulations “pensionable pay” means, subject to the provisions of this regulation, all salary, wages, fees and other regular payments payable to a member, in respect of pensionable employment as an officer, but does not include bonuses or payments made to cover expenses or for overtime.

(2) Subject to paragraphs (3) and (4), any amount by which a member’s pensionable pay exceeds the permitted maximum will be ignored when calculating the amount of any contributions or benefits payable under these Regulations.

(3) Pensionable pay in excess of the permitted maximum will not be ignored in the case of a member who joined the scheme before 1st June 1989 except in relation to a period following a break in pensionable employment on or after that date.

(4) For the purposes of paragraph (3) no account shall be taken of a break in pensionable employment if—

(a) the member returns to pensionable employment within 12 months after leaving;

(b) the break is due to the member’s secondment or posting to another employer and, at the time of the secondment or posting, the member has a definite expectation of returning to pensionable employment when the period of secondment or posting ends;

(c) the break is due to the member being engaged in other employment which is approved for this purpose by the Secretary of State;

(d) the break is due to the member’s unpaid absence from work and the member returns to pensionable employment within one month after returning to work; or

(e) the break corresponds to the member’s absence from work wholly or partly because of pregnancy or confinement and the member returns to work after the break in exercise of her right under section 39(1)(a) of the Employment Protection (Consolidation) Act 1978 and returns to pensionable employment no later than one month after returning to work.

(5) This regulation applies to a member in respect of whom a transfer payment has been accepted from a health service scheme in the same way as if the period of employment that qualified the member for benefits under the health service scheme had been pensionable employment.

(6) In this regulation, “the permitted maximum” means the same as in section 590C of the Taxes Act (earnings cap) .

C2 Meaning of “pensionable service”

(1) In these Regulations, for the purpose of calculating the amount of any benefit payable to or in respect of a member, “pensionable service” means, subject to paragraphs (2) and (3)—

(a) any period of pensionable employment in respect of which the member contributes to the scheme under regulation D1 (contributions by members);

(b) any period of contributing service that was so reckonable under the 1980 Regulations;

(c) any period of contributing service that is reckonable under regulation 3 of the National Health Service (Superannuation) (War Service, etc.) (Scotland) Regulations 1977 (reckoning war service as contributing service under the principal regulations);

(d) any period of additional service which the member has purchased under regulation Q1 or under regulations 27 or 28 of the 1980 regulations; and

(e) any period of pensionable service credited to the member under regulation N1(4) (transfer from other pension arrangements) or as a result of transfer payment to the scheme under the 1980 Regulations or regulation R7(2) (transfer from other health service schemes).

(2) A member’s pensionable service does not include—

(a) any period of employment in respect of which the Secretary of State has paid contributions to another occupational pension scheme in respect of the member;

(b) in the case of a member who has become entitled to a pension (including a preserved pension) under the scheme, any period that was taken into account for the purpose of determining whether he was entitled to that pension, or for the purpose of calculating the amount of that pension;

(c) any period of employment in respect of a temporary additional session;

(d) any period of employment where contributions under regulation D1 have ceased;

(e) any period in respect of which the Secretary of State has discharged his liability to provide benefits under regulation E9 (refund of contributions), Part M (transfer-out arrangements and buy-outs) and regulation K7 (state scheme premiums).

(3) Pensionable service in respect of part-time employment will be calculated as described in regulation C4 (pensionable service in respect of part-time employment).

(4) The benefits described in these Regulations will be calculated by reference to a maximum of 45 years' pensionable service of which only 40 years may relate to the period before the member reaches age 60 (age 55 if the member is a special class officer). If the member’s service exceeds these limits, the amount of the excess will be ignored.

(5) Where the member has pensionable service in excess of the limits described in paragraph (3), the Secretary of State shall select those years, by reference to which the benefits are to be calculated, which produce the most favourable result to the member.

(6) If, when a member leaves pensionable employment or dies, a payment is made in respect of leave not taken—

(a) the member’s pensionable employment will be treated, subject to paragraph (4), as continuing for a period equal to the period of leave for which payment is made; and

(b) the payment will be treated as the member’s pensionable pay for that period.

(7) In order to calculate the length of a member’s pensionable service, all periods of pensionable service will be added and each resulting period of 365 days (without regard to pensionable service on 29th February in a leap year) will be treated as one year.

C3 Meaning of “qualifying service”

(1) Where a member’s entitlement to benefit is conditional on having a length of “qualifying service” specified in a regulation, “qualifying service” means the aggregate of the following:—

(a) pensionable service under these Regulations, except for any period of additional service referred to in regulation Q1 (right to buy additional service);

(b) where a transfer payment has been accepted under Part N (transfers-in from other pension arrangements) in respect of the member’s rights under another occupational pension scheme, a personal pension scheme, a buy-out policy or self-employed pension arrangement, the period of employment that qualified the member for those rights;

(c) any period reckonable as “service” under the 1980 Regulations; and

(d) any period of part-time pensionable service in accordance with regulation C4(10).

(2) If a member leaves and subsequently returns to pensionable employment paragraphs (3) and (4) will apply for the purpose of calculating the member’s qualifying service.

(3) If the break between leaving and rejoining does not exceed one month or is due to a trade dispute, the member’s pensionable service before and after the break will be treated as continuous (but excluding the break) for the purpose of calculating the member’s qualifying service after the break, even if the member’s pensionable service before and after the break is otherwise treated separately for the purpose of calculating the member’s benefits.

(4) If the member is entitled to a preserved pension under regulation E6 in respect of an earlier period of employment (whether or not the pension has become payable), and the periods of pensionable service before and after the break are not treated as continuous under regulation L1, the period of employment to which that pension relates will be treated as qualifying service.

(5) If a pension becomes payable to a member under regulation E3 and the member has elected under regulation R4(4) to take a benefit only in respect of the employment that has ended, the pensionable service in respect of which that benefit is calculated will be treated as qualifying service in relation to the employment in respect of which benefits continue to accrue.

C4 Pensionable service in respect of part-time employment

(1) Subject to paragraphs (6) and (10), a member’s pensionable service in part-time employment will not count at its full length but will be calculated as described in paragraphs (2) or (3), whichever is applicable, as its whole-time equivalent.

(2) If the member’s part-time employment is expressed as a specified number of half-days or sessions a week, the whole-time equivalent of the member’s pensionable service in respect of that employment will be calculated by the following fraction:—

(3) In any case where paragraph (2) does not apply, the whole-time equivalent of the member’s pensionable service in respect of part-time employment will be calculated by multiplying the full length of that pensionable service by the following fraction:—

(4) Subject to paragraph (5), for the purpose of calculating a member’s final year’s pensionable pay in respect of part-time employment, the member’s pensionable pay will be the amount that the Secretary of State determines would have been paid in respect of a single comparable whole-time employment.

(5) Paragraph (4) does not apply to the calculation of final year’s pensionable pay for the purposes of—

(a) regulations F1(2) and F2(2) (lump sum payable on death in pensionable employment or after becoming entitled to receive a pension); or

(b) sub-paragraph (b) of the definition of previous pay in regulation S2(11) (reduction of pension for members who return to pensionable employment after becoming entitled to a pension).

(6) If a member with pensionable service in part-time employment becomes entitled to an ill-health pension under regulation E2 (early retirement pension (ill-health))—

(a) the member’s pensionable service in part-time employment will count at its full length for the purpose of calculating whether, and (if so) to what extent, the pensionable service upon which the pension is based should be increased under regulation E2;

(b) the pension will be based on the whole-time equivalent of the member’s pensionable service in respect of part-time employment and the increase under regulation E2 will be limited to such amount as bears the same proportion to the amount that would have been paid had the pensionable service not been part-time as the whole time equivalent bears to comparable whole-time employment.

(7) If a member in part-time pensionable employment elects to buy additional service as described in regulation Q1 (right to buy additional service), the period of additional service will be calculated in accordance with Table 1 or Table 3 of Schedule 2 (whichever is applicable) and then reduced by multiplying the full length of that additional service by the following fraction:—

where—

“part-time pensionable employment” means the number of hours, half-days or sessions that the member was required to work under his contract of employment during the period by reference to which “remuneration” was calculated for the purposes of Table 1 of Schedule 2 or regular additional contributions were paid in accordance with regulation Q5 (paying by regular additional contributions); and

“comparable whole-time pensionable employment” means the number of hours, half-days or sessions that would have constituted comparable whole-time pensionable employment during that period.

(8) If a member in part-time pensionable employment elects to buy an unreduced retirement lump sum as described in regulation Q2 (right to buy an unreduced retirement lump sum), the period referred to in Table 2 or Table 4 of Schedule 2 (whichever is applicable) will be reduced as described in paragraph (7) above.

(9) Paragraphs (7) and (8) above also apply for the purposes of regulation Q7 (part payment for additional service or unreduced retirement lump sum).

(10) A member’s pensionable service in respect of part-time employment will count at its full length (and concurrent periods of employment will be treated as a single employment) for the purposes of regulations C3(1) (qualifying service), C2(4) (limit on service that counts for benefits) and R3(5) (extra service credited to long-serving mental health officers), R6(6) (members entitled to fees for domiciliary consultations) and T8 (reduction for benefits under the National Insurance Acts).

D1 Contributions by members

(1) Each member in pensionable employment must contribute to the scheme.

(2) Members whose employment is by way of manual labour must contribute 5 per cent of their pensionable pay. Other members must contribute 6 per cent of their pensionable pay.

(3) If the member is a special class officer, contributions must be paid until the member reaches age 65, or completes 45 years' pensionable service and reaches age 60.

(4) If the member is not a special class officer, contributions must be paid until the member reaches age 70, or completes 45 years' pensionable service and reaches age 65.

(5) The employing authority shall deduct each member’s contributions from the member’s earnings and shall recover any contributions not so deducted and pay them to the Secretary of State not later than the 21st day of the month following the month in which the earnings were paid.

D2 Contributions and other payments by employing authorities

(1) Each employing authority must contribute to the scheme, in respect of each member in pensionable employment with the authority, at such rate as the Secretary of State specifies from time to time.

(2) The Secretary of State shall consult the Government Actuary and obtain the Treasury’s consent before specifying the rate at which employing authorities must contribute to the scheme under paragraph (1).

(3) Where, on leaving NHS employment, a pension becomes payable to a member under regulation E3 (early retirement pension (redundancy etc )) or E4 (early retirement pension (employer’s consent)) the employing authority must make additional payments to the Secretary of State in respect of—

(a) the cost of providing the pension under regulations E3 or E4 for the period between the member’s leaving NHS employment and reaching age 60 or, in the case of a member who is a special class officer in respect of whom regulation R2 (nurses, physiotherapists, midwives and health visitors) or regulation R3 (mental health officers) applies, the age of 55;

(b) the cost of providing, under regulation R6 (members entitled to fees for domiciliary consultations), any benefit that supplements the pension referred to in sub-paragraph (a) above for the period referred to in that sub-paragraph;

(c) the cost of providing compensation under regulations 4(1) (payment of compensation), 6(1) (compensation payable to widow or dependents) or 7 (compensation where death gratuity becomes payable) of the National Health Service (Compensation for Premature Retirement) (Scotland) Regulations 1981 ;

(d) the cost of providing any increase under Part I of the Pensions (Increase) Act 1971 in the rate of the benefits referred to in sub-paragraphs (a) to (c) above but in the case of the benefits referred to in sub-paragraphs (a) and (b) above, only for the periods referred to in those sub-paragraphs; and

(e) the additional cost attributable to the early payment of the lump sum under regulation E7, such cost being determined by the Secretary of State on the advice of the Government Actuary,

and where, on such a pension becoming payable, a pension also becomes payable to the member in respect of pensionable service with one or more other employing authorities, the employing authority in relation to whom the redundancy arose or by whom the consent to early retirement pension was given shall be responsible for making additional payments in accordance with this paragraph in respect of all such pensionable service.

(4) Any contributions that are payable under paragraph (1) shall be paid to the Secretary of State on the same day as the member’s contributions under regulation D1(5).

(5) Any additional payments that are due to the Secretary of State under paragraph (3) shall be made—

(a) by way of additional payments which shall be paid before the end of the quarter following the quarter in which the benefits in question were provided; or

(b) if the Secretary of State agrees, by—

(i) a single payment of an amount determined by the Secretary of State, on the advice of the Government Actuary, made within one month of the date on which the pension under regulation E3 or E4 became payable; or

(ii) not more than 5 equal annual instalments each of an amount determined by the Secretary of State, on the advice of the Government Actuary, the first of which to be made within one month of the date on which the pension under regulation E3 or E4 became payable and the others to be paid by 31st October in each of the following 4 financial years.

(6) An employing authority making quarterly additional payments in accordance with paragraph (5)(a) may, if the Secretary of State agrees, discharge its liability under paragraph (3) by making—

(a) a single payment of an amount determined by the Secretary of State, on the advice of the Government Actuary, made within one month of the date on which the Secretary of State’s consent is notified to the employing authority, or

(b) not more than 5 equal annual instalments each of an amount determined by the Secretary of State, on the advice of the Government Actuary, the first of which to be made within one month of the date on which the Secretary of State’s consent is notified to the employing authority and the others to be paid by 31st October in each of the following 4 years.

(7) Where a pension is in payment under regulation 10(1)(a)(iii) of the 1980 Regulations, an employing authority may, if the Secretary of State agrees, make payment in accordance with paragraph (6)(a) or (b) in respect of payments under paragraph (3)(c) above.

E1 Normal retirement pension

(1) A member who retires from pensionable employment at any time on or after attaining age 60 shall be entitled to a pension under this regulation at a yearly rate of 1/80th of final year’s pensionable pay for each complete year of pensionable service, plus the relevant daily proportion of that rate for each additional day of such service.

(2) A member who stays in pensionable employment until age 70 shall be entitled to receive a pension under this regulation at that age even if he does not retire from such employment.

E2 Early retirement pension (ill health)

(1) A member who retires from pensionable employment because of physical or mental infirmity that makes him permanently incapable of efficiently discharging the duties of that employment shall be entitled to receive an immediate pension under this regulation if he has at least 2 years' qualifying service or qualifies for a pension under regulation E1 (normal retirement pension).

(2) Subject to paragraph (3), the pension under this regulation will be calculated as described in regulation E1 (normal retirement pension).

(3) If the member retires from pensionable employment before reaching age 65 and satisfies the requirements of any of paragraphs (4) to (6), the pensionable service upon which the pension is based, excluding any additional service purchased under regulation Q1 or additional service under regulation R3(5), will be increased as described in whichever of paragraphs (4) to (6) is applicable or, if both of paragraphs (5) and (6) apply, as described in whichever of those paragraphs is more favourable to the member.

(4) If the member has at least 5 years' qualifying service but not more than 10 years' pensionable service, the pension will be based on the shorter of—

(a) twice the member’s pensionable service; and

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

(5) If the member has more than 10 but not more than 20 years' pensionable service, the pension will be based on the shorter of—

(a) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65; and

(b) 20 years' pensionable service.

(6) If the member has more than 10 years' pensionable service and has not reached age 60, the pension will be based on the shortest of—

(a) the member’s actual pensionable service increased by a period of 6 years and 243 days;

(b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 60; and

(c) 40 years' pensionable service.

(7) Subject to paragraph (8), where a member becomes entitled to a pension under paragraph (1), the Secretary of State may discharge his liability for that pension by the payment of a lump sum.

(8) A lump sum payment under paragraph (7) may be made only if the Secretary of State is satisfied that it is appropriate in all the circumstances having regard to the life expectancy of the member.

(9) For the purpose of paragraph (8), the Secretary of State may require whatever medical evidence that he considers necessary.

(10) The amount of the lump sum payable under paragraph (7) will be equal to (a) 5 times the difference between the yearly rate of the member’s pension calculated in accordance with this regulation and the annual rate of the member’s guaranteed minimum pension or, if lower, (b) twice the member’s final year’s pensionable pay less the member’s lump sum on retirement payable under regulation E7 (which shall not be subject to any reduction under regulation E8); and the amount of the lump sum shall be payable in addition to the retirement lump sum payable under regulation E7 (which shall not be subject to any reduction under regulation E8).

(11) Where a member to whom a pension is payable under this regulation returns to NHS employment, that employment may be pensionable under the scheme provided that the member is under the age of 50 at the date on which he returns to NHS employment.

(12) Where further employment becomes pensionable by virtue of paragraph (11), the subsequent period of pensionable employment shall be treated separately from all other pensionable employment for the purposes of calculating the member’s benefits.

E3 Early retirement pension (redundancy etc.)

(1) A member whose pensionable employment is terminated shall be entitled to receive an immediate pension if:

(a) the member has at least 5 years' qualifying service and has reached age 50; and

(b) the Secretary of State is satisfied that the member’s employment is terminated by reason of redundancy or in the interests of the efficiency of the service in which he is employed.

(2) The pension under this regulation will be calculated as described in regulation E1 (normal retirement pension).

(3) A member to whom a pension is payable under this regulation may continue in pensionable employment in relation to other concurrent employment which was pensionable at the date on which the member left the employment in respect of which the pension under this regulation is payable.

E4 Early retirement pension (employer’s consent)

(1) A member with at least 2 years' qualifying service, who retires from pensionable employment at any time after reaching age 50 shall, if the relevant employing authority agrees to meet the cost described in regulation D2(3)(a) (plus any supplement or increase in that cost under regulation D2(3)(b), (d) or (e)), be entitled to an immediate pension under this regulation.

(2) The pension under this regulation will be calculated as described in regulation E1 (normal retirement pension).

E5 Early retirement pension (with actuarial reduction)

(1) A member with at least 2 years' qualifying service, who retires from pensionable employment at any time after reaching age 50 but before reaching age 60 shall, if a request is made in writing to the Secretary of State, be entitled to payment of an immediate pension.

(2) The pension under this regulation will be calculated as described in regulation E1 (normal retirement pension) but it will then be reduced by such amount as the Secretary of State, after consulting the Government Actuary, may determine.

(3) Where a pension is payable under paragraph (1), any additional amount payable under these Regulations shall also become payable and be reduced in like manner as described in paragraph (2).

(4) A member shall not be entitled to a pension under this regulation if the Secretary of State determines, having taken advice from the Government Actuary, that the pension, as reduced under paragraph (2), would be insufficient to meet the liability to provide a guaranteed minimum pension.

E6 Preserved pension

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

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

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

(2) The pension under this regulation will be calculated as described in regulation E1 (normal retirement pension) and the retirement lump sum will be calculated as described in regulation E7.

(3) The member will become entitled to receive the pension and retirement lump sum under this regulation before age 60 if—

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

(b) the member is not in NHS employment and the Secretary of State is satisfied that the member is suffering from mental or physical infirmity that makes the member permanently incapable of engaging in regular employment; or

(c) some other benefit becomes payable to the member under regulations E2 to E5 (pensions for members).

(4) If the member is in NHS employment (whether with the same or another employing authority) when he reaches age 60, the pension will not become payable until the member leaves all NHS employment or reaches age 70, whichever is the earlier.

(5) Subject to paragraph (6), where on or after the coming into force of these Regulations a member becomes entitled to a pension under paragraph (3)(a) or (b) of this regulation, the Secretary of State may discharge his liability for that pension by the payment of a lump sum.

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

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

(8) The amount of the lump sum payable under paragraph (5) will be equal to (a) 5 times the difference between yearly rate of the member’s pension calculated in accordance with this regulation and the annual rate of the member’s guaranteed minimum pension or, if lower, (b) twice the member’s final year’s pensionable pay less the member’s lump sum on retirement payable under this regulation (which shall not be subject to any reduction under regulation E8); and the amount of the lump sum shall be payable in addition to any retirement lump sum under regulation E7 (which shall not be subject to any reduction under regulation E8).

E7 Lump sum on retirement

(1) Each member shall, on becoming entitled to a pension under regulations E1 to E5, also become entitled to a retirement lump sum.

(2) Subject to regulation E8, the lump sum will be equal to 3 times the yearly rate of the pension.

E8 Deductions from lump sum

(1) In the case of a man whose pensionable service started before 25th March 1972 and who is or has been married, the lump sum will be reduced in accordance with whichever of paragraphs (2) to (4) is applicable except to the extent that the reduction has been off-set by payments made under regulation Q2 (right to buy an unreduced retirement lump sum).

(2) If the man is married, the reduction will be equal to 2 times the yearly rate of the part of the man’s pension that is based on pensionable service before 25th March 1972.

(3) If the man’s wife died, or the man was divorced from his wife, after 24th March 1972, the reduction will be equal to 2 times the yearly rate of the part of the man’s pension that is based on pensionable service before 25th March 1972.

(4) If the man’s wife died, or the man was divorced from his wife, before 25th March 1972, the reduction will be equal to 2 times the yearly rate of the part of the man’s pension that is based on pensionable service up to and including the date of the death or divorce.

(5) If a female member has nominated her husband under regulation G8 to receive a dependent widower’s pension on her death the lump sum will be reduced in accordance with regulation G8(5).

(6) If a female member has elected before 1st July 1989 to buy an increased widower’s pension under regulation G9, the lump sum will be reduced in accordance with regulation G9(2).

(7) In any case where regulation E5 applies (early retirement pension (with actuarial reduction)—

(a) the pension referred to in paragraph (2) of regulation E7 means the pension before any reduction is made under regulation E5(2); and

(b) the lump sum as calculated under paragraph (2) of regulation E7 will be reduced by such amount as the Secretary of State, after consulting the Government Actuary, shall determine.

E9 Early leavers' entitlement to refund of contributions

(1) A member who leaves pensionable employment without becoming entitled to an immediate pension or a preserved pension shall subject to regulation R4(9) be entitled to receive a refund of his contributions, less tax at 20 per cent, or such other rate as applies from time to time. A member who wishes to take a refund of contributions shall make application in writing to the Secretary of State.

(2) If the member’s employment was contracted-out by reference to the scheme, the member (and the member’s spouse, if any) will remain entitled to a guaranteed minimum pension under the scheme, unless the Secretary of State discharges his liability to provide a guaranteed minimum pension by paying a contributions equivalent premium under section 55(2) of the Pension Schemes Act 1993 .

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

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

(5) Where a member does not apply for a refund of contributions under paragraph (1) the Secretary of State may nonetheless make a refund of those contributions if the member does not return to pensionable employment within 12 months.

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

(7) Where a refund of contributions is made, the Secretary of State shall be discharged from any obligation to provide benefits under the scheme except to any extent provided for under paragraph (2).

E10 Payment of interest with refund of contributions

(1) Compound interest will be added to the refund of contributions under regulation E9 except where the employment was terminated by reason of misconduct or inefficiency or at the member’s own request.

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

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

F1 Lump sum when member dies in pensionable employment

(1) If a member dies in pensionable employment before reaching age 70, a lump sum shall be payable in accordance with regulation F5 (payment of lump sum).

(2) Subject to regulation S4 (benefits on death in pensionable employment after pension becomes payable), the lump sum on death will be equal to twice the member’s final year’s pensionable pay.

F2 Lump sum when member dies after pension becomes payable

(1) If a member dies after a pension under the scheme becomes payable, a lump sum shall be payable in accordance with regulation F5 (payment of lump sum).

(2) Subject to regulation S4 the lump sum will be equal to 5 times the yearly rate of the member’s pension (less the amount of pension already paid) provided that the maximum payment under this paragraph shall not exceed an amount equal to twice the member’s final year’s pensionable pay less an amount equal to the member’s retirement lump sum paid under regulation E7 (lump sum on retirement).

F3 Lump sum where member dies with preserved pension

(1) If a member leaves pensionable employment with a preserved pension under regulation E6 (preserved pension) and dies before becoming entitled to receive a pension under the scheme, a lump sum will be paid in accordance with regulation F5.

(2) The lump sum will be equal to 3 times the yearly rate of the member’s preserved pension calculated as if he had become entitled to it immediately before his death.

F4 Lump sum when member dies within 12 months after leaving pensionable employment without immediate or preserved pension

(1) This regulation applies if a member leaves pensionable employment without becoming entitled to a pension under any of regulations E1 to E6 and dies within 12 months after leaving.

(2) If the member dies before receiving a refund of contributions under regulation E9 (refund of contributions) or before a transfer payment is made under regulation M5 (early leaver without preserved pension), a lump sum shall be payable in accordance with regulation F5.

(3) The lump sum on death will be calculated as described in regulation F3 (member dies with preserved pension) as if, on leaving pensionable employment, the member had become entitled to a preserved pension calculated as described in regulation E6 and as if he had become entitled to receive that pension immediately before his death.

F5 Payment of lump sum

(1) If the member dies and leaves a surviving widow or widower, the lump sum on death shall be payable to the widow or widower, unless the member has given notice to the Secretary of State in accordance with paragraph (2) of this regulation that the widow or widower shall be excluded from entitlement under this regulation.

(2) Notice to the Secretary of State under paragraph (1) must be given in writing and any cancellation of the notice must be in writing.

(3) If the lump sum on death is not paid to the member’s widow or widower, or if there is no surviving widow or widower, the lump sum shall be payable to the member’s personal representatives.

(4) If the lump sum on death does not exceed the specified amount as defined in paragraph (5), the Secretary of State may pay it to any person or persons claiming to be the member’s personal representatives or to be entitled to a share of the lump sum, without requiring proof of the title of the person or persons concerned.

(5) In paragraph (4), the “specified amount” means £5,000 or any higher amount as may be specified in an order made under section 6(1) of the Administration of Estates (Small Payments) Act 1965 as the amount to be treated as substituted for references to £500 in section 1 of that Act.

G1 Widow’s pension

(1) Subject to the following provisions of this regulation, if a male member dies in the circumstances described in any of regulations G2 to G6 and leaves a surviving widow, the widow shall be entitled to receive a pension as described in whichever of regulations G2 to G6 applies.

(2) Subject to paragraphs (3) to (5)—

(a) no widow’s pension shall be payable in respect of any period during which the widow and a man to whom she is not married are living as husband and wife; and

(b) the widow shall cease to be entitled to the widow’s pension if she remarries.

(3) Nothing in paragraph (2) shall affect any entitlement to a widow’s guaranteed minimum pension under the scheme.

(4) The Secretary of State may pay a pension to a widow who has remarried, or who is living as husband and wife with a man to whom she is not married, if he is satisfied that the widow will otherwise suffer severe financial hardship.

(5) The Secretary of State may pay a pension to a widow who has remarried if the later marriage comes to an end and he is satisfied that the widow will otherwise suffer hardship.

(6) The amount of any pension payable under paragraph (4) or (5) may, at the Secretary of State’s discretion, be equal to, or less than, the original widow’s pension and the Secretary of State may (subject to any widow’s guaranteed minimum pension) vary the amount, or stop paying the pension, at any time.

(7) If a dependent child is born after the member’s death, any entitlement to a widow’s pension under regulation G2 (member dies in pensionable employment) or G3 (member dies after a pension becomes payable) will be recalculated (if necessary) as if the child had been born before the member died.

G2 Widow’s pension when member dies in pensionable employment

(1) The widow’s pension payable on a member’s death in pensionable employment before reaching age 70 will be as described in this regulation.

(2) The widow’s pension for the first three months after the member’s death (six months if the member leaves at least one dependent child who is dependent on the widow) will be equal to the rate of the member’s pensionable pay when he died if that amount is greater than the amount of widow’s pension and child allowance that would otherwise be payable under these Regulations.

(3) Except while the widow’s pension is payable at the rate mentioned in paragraph (2), if the member dies with at least 2 years' qualifying service, the widow’s pension will be equal to one-half of the pension that would have been payable to the member under the scheme if the member had retired through ill-health with a pension under regulation E2 (early retirement pension (ill-health)) on the day he died.

(4) Except while the widow’s pension is payable at the rate mentioned in paragraph (2), if the member dies with less than 2 years' qualifying service but after reaching age 60, the widow’s pension will be equal to one-half of the pension that would have been payable to the member under the scheme if the member had retired with a pension under regulation E1 (normal retirement pension) on the day he died.

(5) Except while the widow’s pension is payable at the rate mentioned in paragraph (2), if the member dies with less than 2 years' qualifying service and before reaching age 60, the widow will receive a pension equal to her guaranteed minimum pension under the scheme, unless the Secretary of State discharges his liability to provide this pension by paying a contributions equivalent premium under section 55(2) of the Pension Schemes Act 1993.

G3 Widow’s pension when member dies after pension becomes payable

(1) Except where regulation G6 applies (member marries after leaving pensionable employment) and regulation S4 (benefits on death in pensionable employment after pension becomes payable), the widow’s pension payable on a member’s death after a pension becomes payable under the scheme will be as described in this regulation.

(2) Subject to paragraph (3), the widow’s pension for the first three months after the member’s death (six months if the member leaves at least one dependent child who is dependent on the widow) will be equal to the member’s pension if that amount is greater than the amount of widow’s pension and child allowance that would otherwise be payable under these Regulations.

(3) For the purpose of paragraph (2), no account will be taken of any reduction to the member’s pension under regulation S2 (reduction of pension).

(4) Except while the widow’s pension is payable at the rate mentioned in paragraph (2), the widow’s pension will be equal to one half of the member’s pension calculated without regard to any reduction under regulation E5.

G4 Widow’s pension when member dies with preserved pension

(1) Except where regulation G6 applies (member marries after leaving pensionable employment), the widow’s pension payable on the death of a member with a preserved pension under regulation E6 (preserved pension) that had not yet become payable at the date of death will be as described in this regulation.

(2) If the member dies within 12 months after leaving pensionable employment, the widow’s pension will be equal to one-half of the pension that would have been payable to the member under the scheme if the member had retired through ill-health with a pension under regulation E2 (early retirement pension (ill-health)) on the day he left pensionable employment.

(3) If the member dies 12 months or more after leaving pensionable employment, the widow’s pension will be equal to one-half of the member’s preserved pension.

G5 Widow’s pension when member dies within 12 months after leaving pensionable employment without immediate or preserved pension

(1) This regulation applies if a member leaves pensionable employment without becoming entitled to a pension under E1 to E6 and dies within 12 months after leaving.

(2) If the member dies before receiving a refund of contributions under regulation E9 (refund of contributions) or before a transfer payment is made under regulation M5 (early leaver without preserved pension), the widow shall be entitled to a widow’s guaranteed minimum pension unless the Secretary of State discharges his liability to provide this pension by paying a contributions equivalent premium under section 55(2) of the Pension Schemes Act 1993.

G6 Widow’s pension when member marries after leaving pensionable employment

(1) This regulation applies where the member and his wife were not married to each other during any period of pensionable employment.

(2) Subject to paragraph (3), the widow’s pension will be equal to one-half of a pension calculated as described in regulation E1 (normal retirement pension) on the basis of the member’s pensionable service on or after 6th April 1978.

(3) If the member dies after the pension under the scheme became payable, the widow’s pension for the first three months after the member’s death (six months if the member dies leaving at least one dependent child dependent on the widow) will be equal to the amount of the pension that would have been payable under regulation G3 (member dies after pension becomes payable) if this regulation had not applied.

G7 Widower’s pension

(1) Subject to the following provisions of this regulation, if a female member dies in the circumstances described in any of regulations G2 to G6 and leaves a surviving widower, the widower shall be entitled to receive a pension as described in this regulation.

(2) Subject to paragraph (3), regulations G1 to G6 (pensions for widows) apply to the calculation and payment of pensions for widowers in like manner as they apply to pensions for widows.

(3) Subject to regulation G8 and G9, when calculating a widower’s pension, any part of a member’s benefit that is based on pensionable service before 6th April 1988 will, subject to paragraphs (4) and (5), be disregarded.

(4) Where regulation G2(3) or G4(2) applies to the calculation of the widower’s pension on a member’s death in pensionable employment or with a preserved pension—

(a) the whole of the member’s pensionable service will be taken into account when calculating whether and (if so) to what extent there would have been an increase, by virtue of regulation E2(3), in the pensionable service on which the member’s pension under regulation E2 (early retirement pension (ill-health)) would have been based; and

(b) the whole period (if any) by which the member’s pension would have been increased will be treated as pensionable service on or after 6th April 1988.

(5) Where regulation G3(2) applies to the calculation of the widower’s pension, so that the widower’s pension is equal to the member’s pension for a limited period, the widower’s pension for that limited period will be equal to the whole of the member’s pension (including any part of the member’s pension that is based on pensionable service before 6th April 1988).

(6) Any reference in these Regulations to regulations G1 to G6 means, in relation to benefits in respect of a female member, those regulations as applicable to the member’s widower (if any).

G8 Dependent widower’s pension

(1) A female member may, by giving notice in writing to the Secretary of State, nominate her husband to receive a dependent widower’s pension on her death in respect of any pensionable service before 6th April 1988 for which she did not elect to purchase an increased widower’s pension. The member must give such notice to the Secretary of State before leaving pensionable employment or, if earlier, reaching age 70.

(2) The Secretary of State shall accept the member’s nomination only if he is satisfied that the member’s husband is permanently incapable of earning a living because of physical or mental infirmity and is wholly or mainly dependent on the member.

(3) If the Secretary of State has accepted the member’s nomination and the member subsequently dies before her husband, the dependent widower shall be entitled to a dependent widower’s pension.

(4) The dependent widower’s pension will be calculated in the same way as a widow’s pension under regulations G1 to G6 (pensions for widows), and will be based on all of the member’s pensionable service; in which case no widower’s pension will be payable under regulation G7.

(5) If the Secretary of State accepts a member’s nomination for a dependent widower’s pension and the member’s pensionable service started before 25th March 1972 any lump sum payable to the member under regulation E7 (lump sum on retirement) will be reduced by an amount equal to 2 times the yearly rate of the part of the member’s pension that is based on pensionable service before 25th March 1972 except to the extent that the reduction has been off-set by payments made under regulation Q2 (right to buy an unreduced retirement lump sum).

G9 Increased widower’s pension

(1) If a female member elected, before 1st July 1989, to buy an increased widower’s pension, the widower’s pension described in regulation G7 will be based on pensionable service from 6th April 1988 plus the period of pensionable service before that date that the member elected to buy for this purpose under regulation 20(2) of the 1980 Regulations (widower’s pension).

(2) Subject to paragraph (3), any retirement lump sum payable to a member under regulation E7 in respect of any period of pensionable service that the member elected to buy as described in paragraph (1), will be reduced by 2/80ths of final year’s pensionable pay for each complete year of pensionable service before 25th March 1972, and by 1/80th of final year’s pensionable pay for each complete year of pensionable service after 24th March 1972 plus, in each case, the relevant daily proportion of that rate for each additional day.

(3) Where the member elected to buy an unreduced retiring allowance under regulation 29 of the 1980 Regulations, regulations Q2 (right to buy an unreduced retirement lump sum) and Q7 (part payment for additional service or unreduced retirement lump sum) will apply to the reduction in benefits described in paragraph (2) of this regulation as if the election had been made under regulation Q2.

H1 Dependent child

(1) This regulation applies to any child who satisfies the requirements of paragraph (2) and who is—

(a) a child or grandchild of the member;

(b) a stepchild of the member by a marriage entered into before the date on which the member leaves pensionable employment or reaches age 70 (whichever occurs first), or a child legally adopted by the member before that date;

(c) a brother or sister, or a child of a brother or sister, of the member or the member’s spouse (any half-brother or step-brother being treated as a brother, and any half-sister or step-sister being treated as a sister, for this purpose); or

(d) a child whom, immediately before the member left pensionable employment, reached age 70 or died (whichever occurs first), the member had intended to adopt, or a child who, at that time, had been dependent on the member for 2 years or (if less) half the child’s life.

(2) The requirements of this paragraph are satisfied by any child described in paragraph (1) who is—

(a) born before the member leaves pensionable employment, reaches age 70 or dies (whichever occurs first) and who is dependent on the member when the member dies and, if the member dies after leaving pensionable employment, was also dependent on the member when the member left pensionable employment; or

(b) born one year or less after the member leaves pensionable employment, reaches age 70 or dies (whichever occurs first), and who either is dependent on the member both immediately after being born and when the member dies, or would have become dependent on the member if the member had not died before the child was born.

(3) A child is a dependent child for so long as he is—

(a) under age 17; or

(b) age 17 or over and in full-time education; or

(c) age 17 or over and in full-time training for a trade, profession or vocation, for which he is not receiving remuneration in excess of the allowable maximum; or

(d) age 17 or over and taking a break in full-time education, or full-time training for a trade, profession or vocation, where the Secretary of State is satisfied that the child intends to return to some such education or training; or

(e) under age 19 and not engaged in remunerative full-time work and not entitled to income support in terms of section 124 of the Social Security Contributions and Benefits Act 1992 .

(4) A child who is age 17 or over and who has ceased to be a dependent child will be treated as a dependent child if he returns to full-time education, or to full-time training for a trade, profession or vocation for which he is not receiving remuneration in excess of the allowable maximum, before reaching age 21 and within 12 months after ceasing to be a dependent child.

(5) In this regulation, the “allowable maximum” means the amount to which a pension of £1702 a year beginning on 11th April 1994 would have been increased under Part I of the Pensions (Increase) Act 1971 at the date in question plus the yearly amount of any expenses necessarily incurred for the purposes of the education or training.

(6) A child who is incapable of earning a living because of permanent physical or mental infirmity from which he was suffering at the time the member died, or from which he started to suffer while qualifying as a dependent child as described in paragraph (3) will be treated as a dependent child for so long as he remains incapable of earning a living.

H2 Payment of dependent child’s allowance

(1) Subject to the following provisions of this regulation, if a member dies in the circumstances described in any of regulations H3 to H7 and leaves a dependent child, the dependent child shall be entitled to a child’s allowance as described in this regulation and regulations H3 to H7.

(2) If a dependent child is born after the member’s death, a child allowance shall be payable as if the child had been born before the member died.

(3) The child allowance will be paid to the child or, where the Secretary of State so decides, to some other person for the child’s benefit. If there is more than one dependent child, the Secretary of State will divide the allowance between them in such shares as he decides from time to time.

(4) Where a child is a dependent child by virtue of regulation H1(3)(d), the child allowance shall cease to be payable after 12 months if the child has not then returned to full-time education, or full-time training for a trade, profession or vocation, but will be reinstated if the child later returns to some such education or training and the Secretary of State is satisfied that the child intended to do so from the start of the break.

(5) No allowance shall be payable to, or for the benefit of, a child who is incapable of earning a living because of permanent physical or mental infirmity for any period exceeding one month during which the child is maintained out of money provided by Parliament in a hospital or other institution.

(6) Where a child is a dependent child in relation to 2 or more members, the child allowance shall be payable in respect of the death of not more than 2 of those members and if an allowance would be payable in respect of 2 or more members then the allowance shall be equal to the sum of the 2 highest allowances.

(7) The child allowance shall cease to be payable when there is no remaining dependent child.

H3 Child allowance when member dies in pensionable employment

(1) The child allowance payable in the case of a member who dies whilst in pensionable employment and under age 70 will be as described in this regulation.

(2) Subject to paragraph (3) and regulation T8(4), the allowance will be calculated, as described in whichever of paragraphs (4) to (7) apply, as a proportion of the pension that would have been payable to the member under the scheme if the member had retired through ill-health with a pension under regulation E2 (early retirement pension (ill-health)) on the day he died.

(3) If the member dies with less than 5 years' pensionable service, the allowance will be calculated as if the pension described in paragraph (2) were based on the shorter of—

(a) 10 years' pensionable service, and

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

(4) Subject to paragraphs (5) to (8) and regulation H7 if the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent), the allowance will be equal to one-quarter of the pension described in paragraph (2) if there is only one dependent child, and one-half if there are two or more.

(5) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G2(2), no allowance shall be payable in respect of any dependent child who is dependent on the widow or widower until the end of the first six months after the member’s death.

(6) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G2(2), but there is a dependent child who is not dependent on that widow or widower, the allowance is respect of that child for the first three months after the member’s death will be equal to the rate of the member’s pensionable pay when he died.

(7) If the member dies leaving a dependent child and there is no surviving parent (or spouse of a parent), the allowance will be equal to one-third of the pension described in paragraph (2) if there is only one dependent child and two-thirds if there are two or more; except that the allowance for the first six months after the member’s death will be equal to the rate of the member’s pensionable pay when he died.

(8) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow’s or widower’s pension under regulation G2 or regulation G2(5) applies the allowance will be paid at the rates described in paragraph (7).

H4 Child allowance when member dies after pension becomes payable

(1) The child allowance payable in the case of a member who dies after a pension under the scheme becomes payable will be as described in this regulation.

(2) Subject to paragraph (8) the allowance will be calculated, as described in whichever apply of paragraphs (3) to (5) or regulation H7, as a proportion of the amount of the member’s pension without regard to any actuarial reduction under regulation E5 or, if greater, the amount that the member’s pension would have been if it had been based on the shorter of—

(a) 10 years' pensionable service, and

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

(3) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent), the allowance will, subject to paragraphs (5), (6) and (7), be equal to one-quarter of the pension described in paragraph (2) if there is only one dependent child, and one-half if there are two or more.

(4) If the member dies leaving a dependent child and there is no surviving parent (or spouse of a parent), the allowance will be equal to one-third of the pension described in paragraph (2) if there is only one dependent child and two-thirds if there are two or more, except that the allowance for the six months after the member’s death will be equal to the member’s pension.

(5) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow’s or widower’s pension under regulation G3 (member dies after pension becomes payable) the allowance will be paid at the rates described in paragraph (4).

(6) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G3(2), no allowance shall be payable in respect of any dependent child who is dependent on the widow or widower until the end of the first six months after the member’s death.

(7) If a widow’s or widower’s pension is payable at the rate mentioned in regulation G3(2) but there is a dependent child who is not dependent on that widow or widower, the allowance in respect of that child for the first three months after the member’s death, will be equal to the rate of the member’s pension.

(8) Where the member was in receipt of a pension payable under regulation E5 (early retirement pension (with actuarial reduction)), the member’s pension referred to in paragraph (2) means the member’s pension calculated without regard to the reduction made under regulation E5(2).

H5 Child allowance when member dies with preserved pension

(1) The child allowance payable on the death of a member with a preserved pension under regulation E6 (preserved pension) that has not become payable will be as described in this regulation.

(2) If the member dies within 12 months after leaving pensionable employment, the allowance will be calculated, as described in whichever apply of paragraphs (4) to (6) or regulation H7, as a proportion of the amount of the pension described in regulation H3(2) and where applicable H3(3) as if the member had died on the day he left pensionable employment.

(3) If the member dies 12 months or more after leaving pensionable employment, the allowance will be calculated, as described in whichever apply of paragraphs (4) to (6) or regulation H7, as a proportion of the amount of the member’s preserved pension or, if greater, the amount that the preserved pension would have been if it had been based on the shorter of—

(a) 10 years' pensionable service, and

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

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

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

(6) If the member dies leaving a dependent child and there is a surviving parent (or spouse of a parent) but there is no entitlement to a widow or widower’s pension under regulation G4 (member dies with preserved pension) except where regulation G1(2) applies the allowance will be paid at the rate described in paragraph (5).

H6 Child allowance when member dies within 12 months after leaving pensionable employment without immediate or preserved pension

(1) This regulation applies if a member leaves pensionable employment without becoming entitled to a pension under any of regulations E1 to E6 and dies within 12 months after leaving.

(2) If the member dies before receiving a refund of contributions under regulation E9 the dependent child shall be entitled to a child’s allowance as described in this regulation.

(3) The child allowance will be calculated as described in regulation H5 (member dies with a preserved pension) as if, on leaving pensionable employment, the member had become entitled to a preserved pension calculated as described in regulation E6.

H7 Increase of child allowance when child not dependent on surviving parent or spouse of a parent

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

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

J1 Allocation of pension by member for benefit of dependent

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

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

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

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

(a) on, or within one month after the date on which a pension under the scheme becomes payable; or

(b) at any time after reaching age 60 (55 for special class officers) and completing 40 years' service; or

(c) at any time after reaching age 65 (60 for special class officers).

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

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

J2 Limits on allocation

(1) A member may not allocate more than one-third of his pension to provide a pension on his death for a surviving spouse or a dependent and must keep a pension at least equal to the member’s guaranteed minimum pension and, if applicable, the amount specified in paragraph 11 of Schedule 10 to the 1980 Regulations.

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

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

J3 Date on which allocation has effect

(1) An allocation becomes effective once the election to allocate is accepted by the Secretary of State.

(2) The allocation will not take effect if—

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

(b) the dependent or spouse dies before the member is told that the Secretary of State accepts the election; or

(c) the member withdraws his application before it is accepted by the Secretary of State.

(3) An allocation may not be withdrawn or cancelled, once the Secretary of State has accepted the member’s election to allocate.

J4 Death of member after allocation

(1) If a member elects to allocate part of his pension in the circumstances described in regulation J1(4)(b) or (c) and then dies before becoming entitled to receive a pension the member will be treated, for the purposes of regulation J2, as entitled to the pension he would have received if he had retired immediately before his death.

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

K1 Contracting-out requirements to be overriding

The scheme will be administered in conformity with the contracting-out requirements and regulations K2 to K7 will override any inconsistent provisions of these Regulations except regulation T7 (commutation of trivial pensions).

K2 Guaranteed minimum pensions

(1) This regulation applies where the member has a guaranteed minimum, in relation to the pension provided for the member under the scheme, in accordance with section 14 of the Pension Schemes Act 1993 (earner’s guaranteed minimum).

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

(a) payment may at the discretion of the Secretary of State be postponed for up to 5 years if the member remains in NHS employment, or for any period if the postponement continues or occurs more than 5 years after State pension age if the member consents; in which case the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement);

(b) payment may be reduced or suspended under regulation S1 to S3 (members who return to NHS employment after becoming entitled to receive a pension) if the member returns to NHS employment; in which case the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement); and

(c) payment may be reduced or suspended where the Secretary of State has made a direction under regulation T6 (loss of rights to benefit) or where he has discharged his liability by making a payment under regulation T7 or under Part M (transfers or buy-outs).

(3) If the member is a man and dies leaving a widow, the weekly rate of the widow’s pension will not be less than half the member’s guaranteed minimum for any period such as is mentioned in section 17(5) of the Pension Schemes Act 1993.

(4) If the member is a woman and dies leaving a widower, the weekly rate of the widower’s pension will not be less than half the part of the member’s guaranteed minimum that is attributable to earnings for the tax year 1988-89 and subsequent tax years for any period such as is mentioned in section 17(6) of the Pension Schemes Act 1993.

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

(6) If a member becomes entitled to a refund of contributions under regulation E9 on leaving pensionable employment or exercises a right to require a transfer or buy-out in accordance with regulation M1 but (in either case) remains entitled to a guaranteed minimum pension, no benefit will be payable on the member’s death, except for a widow’s or widower’s pension of the amount described in paragraph (3) or (4) as the case may be.

(7) Where paragraph (3) of regulation K7 applies, a guaranteed minimum pension of the amount described in paragraph (4) will be payable.