The National Health Service Pension Scheme (Amendment) Regulations 2008

• Citation: S.I. 2008/654
• Sections: 66

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the National Health Service Pension Scheme (Amendment) Regulations 2008.

(2) These Regulations shall come into force on 1st April 2008 and shall have effect from 1st April 2008, except for regulation 66(2) and (3) , which shall have effect from 1st April 2003.

(3) In these Regulations—

(a) an alpha-numerical reference to a regulation is a reference to a provision of the National Health Service Pension Scheme Regulations 1995 bearing that alpha-numeric;

(b) an alphabetical reference to a Part is a reference to a Part of those Regulations bearing that letter.

Section 2 Amendment of regulation A2

In regulation A2 (interpretation) insert the following definitions in the appropriate place in alphabetical order—

“scheme year” means a period of one year beginning with 1st April and ending with 31st March;

“section 9(2B) rights” has the same meaning as it has in the Occupational Pension Schemes (Contracting-out) Regulations 1996 ;

“tax year” means any year beginning on 6th April and ending on 5th April the following year;

Section 3 Amendment of regulation B2

For regulation B2 (restrictions on membership) substitute—

Restrictions on membership

(B2)

(1) A person may not join the scheme if—

(a) that person is—

(i) under the age of 16; or

(ii) over the age of 75; or

(iii) over the age of 70 on or before 31st March 2008;

(b) that person is a special class officer over the age of 65;

(c) that person is eligible to be an active member of a superannuation scheme established under section 1 or 9 of the Superannuation Act 1972 in respect of service in that scheme and is such a member;

(d) that person holds an honorary appointment and does not at the same time hold any other employment which entitles that person to join the scheme;

(e) that person is not a practitioner and is employed by a GDS or PDS contractor;

(f) that person, on or after 1st April 2008, enters NHS employment for the first time and has not previously been a member of the scheme;

(g) that person, on or after 1st April 2008, returns to NHS employment and was entitled to a refund of contributions under regulation L2 when that person last left employment, unless paragraph (4), but not paragraph (5), of regulation L4 (early leavers returning to pensionable employment) applies to that person;

(h) that person is a person who—

(i) leaves pensionable employment on, or after, 1st April 2008; and

(ii) before returning to NHS employment, exercises the member’s right to transfer out all of that person’s benefits in the scheme in accordance with regulation M1 or M2;

(i) that person is a person who has been a member of the National Health Service Pension Scheme governed by the National Health Service Pension Regulations 2008 .

(2) In paragraph (1)—

(a) “NHS Pension Scheme 2008” includes a corresponding health service scheme;

(b) “pensionable employment” includes employment that qualified the member for a benefit under a health service scheme.

(3) The Secretary of State may permit a person who would otherwise not be permitted to join the scheme in accordance with sub-paragraphs (1)(f) to (h) to do so if—

(a) that person’s employment is transferred to an employing authority by virtue of a transfer of undertakings or by virtue of arrangements equivalent to a transfer of undertakings (whether or not the transferring employer is in the public sector provided that person’s employment was originally transferred out of the public sector);

(b) the employment from which the member is transferred—

(i) qualified the member for benefits under an occupational pension scheme, and

(ii) the rules of that scheme (in the opinion of the Secretary of State) entitle the member to receive benefits on retirement upon, or prior to, attaining the age of 60 years.

(4) The reference in paragraph (3)(a) to arrangements equivalent to a transfer of undertakings is to arrangements—

(a) which the Secretary of State considers to be equivalent to the transfer of an undertaking, and

(b) under which the parties to the arrangements have agreed that the rights of the persons whose employments are being transferred should as far as practicable be treated in the same way as they would have been under a transfer of an undertaking.

(5) For the purposes of paragraph (3)(b)(ii) a person is not to be treated as being entitled under the rules of a pension scheme to receive benefits upon, or prior to, attaining the age of 60 years, where such entitlement arises by virtue of any scheme rule making special provision—

(a) as to early retirement on the grounds of ill health, redundancy or otherwise, or

(b) for benefits to be reduced for early payment.

(6) Before permitting a person referred to in paragraph (3) to join the scheme the Secretary of State shall take advice from the Scheme Actuary.

Section 4 Amendment of regulation B3

(1) Regulation B3 (restriction on further participation in the scheme) is amended as follows.

(2) In paragraph (1) for “regulations B1(1) and B(2)”, substitute “regulation B1(1)”.

(3) In paragraph (2) after “E2(11)”, insert “or E2A(11)”.

Section 5 Amendment of regulation C1

(1) Regulation C1 (meaning of pensionable pay and final year’s pensionable pay) is amended as follows.

(2) After paragraph (1) insert—

(1A) Paragraphs (2) to (4) and (5) to (7) apply in respect of pensionable employment before 1st April 2008.

(3) After paragraph (4) insert—

(4A) Paragraphs (4B) to (7) apply in respect of pensionable employment on, or after, 1st April 2008.

(4B) Subject to paragraph (4C), pensionable pay in excess of the permitted maximum will not be ignored.

(4C) Pensionable pay in excess of the permitted maximum will be ignored in respect of additional service being bought under regulation Q1 and an unreduced lump sum being brought under regulation Q2 if—

(a) the member elected to make such a purchase under regulation Q6(3) from a birthday falling before 1st April 2008; and

(b) the member’s pensionable pay was restricted under paragraph (2) of this regulation before that date; or

(c) the member’s pensionable pay would have been restricted under that paragraph if it had exceeded the permitted maximum.

(4) In paragraph (6) for “In these”, substitute “Subject to paragraph (6A), in these”.

(5) After paragraph (6) insert—

(6A) If the pensionable pay of a member credited with a period of pensionable service under regulation N2 (transfers made under the Public Sector Transfer Arrangements) or regulation N4 (special terms for transfers in (bulk transfers etc )) has exceeded the permitted maximum and either—

(a) paragraph 20 of Schedule 6 to the Finance Act 1989 applied to the member without the modification made by regulation 5 of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990 in respect of benefits derived from all or part of that service under another scheme; or

(b) any equivalent scheme provision applied to the member in respect of all or part of that service when that person was a member of the scheme from which the transfer was accepted,

that excess shall be ignored for the purposes of calculating the final year’s pensionable pay under paragraph (6) in respect of the corresponding period of pensionable service credited under regulation N2 or N4.

(6) For paragraph (7) substitute—

(7) In this regulation, “permitted maximum” means—

(a) in relation to any tax year before the tax year 2006-07, the figure specified for that tax year in an order made under section 590C of the Income and Corporation Taxes Act 1988; or

(b) subject to paragraphs (8) and (9), the figure for any later year is £108,600.

(8) If the retail prices index for the month of September preceding the tax year 2007-08 or any later tax year is higher than it was for the previous September, the figure for that year shall be an amount arrived at by—

(a) increasing the figure for the previous tax year by the same percentage as the percentage increase in the retail prices index; and

(b) if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.

(9) If the retail prices index for the month of September preceding the tax year 2007-08 or the month of September preceding any later tax year is not higher than it was for the previous September, the figure for that year shall be the same as for the previous tax year.

Section 6 Amendment of regulation C2

(1) Regulation C2 (meaning of pensionable service) is amended as follows.

(2) After paragraph (2)(d) insert—

(e) in the case of a member who is not a special class officer, any period of pensionable service in excess of 40 years that relates to a period before—

(i) the member’s 60th birthday; and

(ii) 1st April 2008.

(3) For paragraph (3) substitute—

(3) Subject to paragraph (2), the benefits described in these regulations will be calculated by reference to a maximum of—

(a) 45 years pensionable service in the case of a member who is not a special class officer;

(b) 45 years pensionable service (of which only 40 years may relate to the period before the member reaches age 55) in the case of a member who is a special class officer,

and if the member’s pensionable service exceeds these limits, the amount of the excess will be ignored.

Section 7 Amendment of regulation D1

(1) Regulation D1 (contributions by members) is amended as follows.

(2) For paragraphs (1) and (2) substitute—

(1) Each member in pensionable employment must contribute to the scheme in accordance with the following paragraphs of this regulation.

(1A) For the purposes of determining the relevant contribution rate for the 2008-2009 scheme year a member who meets one of the conditions referred to in paragraph (1B) must contribute 5 per cent of the member’s pensionable pay.

(1B) The conditions referred to in paragraph (1A) are—

(a) the member is in pensionable employment on both 31st March 2008 and 1st April 2008 with the same employer and that employment is by way of manual labour,

(b) the member returns to pensionable employment on or after 1st April 2008 and both that employment and the period of pensionable employment immediately preceding that employment is by way of manual labour.

(1C) For the purposes of determining the relevant contribution rate for the 2008-2009 scheme year paragraph (1D) applies to a member who does not meet any of the conditions referred to in paragraph (1B).

(1D) For the 2008-2009 scheme year, a member whose pensionable pay falls into a pay band specified in column 1 of the following table must contribute the percentage of the member’s pensionable pay specified in column 2 of that table in respect of that amount.

(2) The Secretary of State may make a determination substituting any or all of the pay bands or contribution percentage rates specified in paragraphs (1A) and (1D) with effect from a date specified in the determination.

(2A) Before making a determination under paragraph (2), the Secretary of State must consider—

(a) the advice of the Scheme Actuary, and

(b) in accordance with regulation U4 (cost sharing), advice from such employee and employer representatives as the Secretary of State considers appropriate.

(2B) For the purposes of this regulation—

(a) “primary employment” means a single pensionable employment for which an employing authority specifies the member’s working hours or working patterns;

(b) “zero hours contract” means pensionable employment in respect of a contract under which—

(i) an employing authority does not guarantee to provide work for the member;

(ii) there are no specified working hours or working patterns;

(iii) the member is paid only for work actually done under it.

(2C) For the purposes of determining the relevant contribution rate for the 2008-2009 scheme year paragraphs (2D) to (2J) apply to a member who is in pensionable employment with the same employing authority on both 31st March 2008 and 1st April 2008.

(2D) For the purposes of paragraphs (2E) to (2J)—

(a) a member shall be regarded as being in pensionable employment throughout the 2007-2008 scheme year regardless of any period in that year during which the member continues to be employed by the same employer but does not make contributions to the scheme;

(b) for the purposes of calculating the member’s pensionable pay, contributions for any period referred to in (a) shall be deemed to have been paid;

(c) the amount of pensionable earnings determined in accordance with those paragraphs shall be rounded down to the nearest whole pound;

(d) if a member holds two or more pensionable employments at the same time—

(i) the determinations referred to in paragraphs (2E) to (2J) shall apply to each such employment separately; and

(ii) each such employment shall be treated separately for the purpose of paying contributions.

(2E) If a member—

(a) was in pensionable employment with an employing authority on a whole-time basis throughout the 2007-2008 scheme year; and

(b) is employed by that authority on 1st April 2008,

the member shall pay contributions at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay received during that year.

(2F) If a member—

(a) was in pensionable employment with an employing authority on a part-time basis or under a zero hours contract throughout the 2007-2008 scheme year; and

(b) is employed by that authority on 1st April 2008,

the amount of the member’s pensionable pay shall be determined by reference to the amount the Secretary of State determines would have been paid in respect of a single comparable whole-time employment during that year.

(2G) If a member—

(a) was in pensionable employment with an employing authority on a combination of a whole-time and part-time basis throughout the 2007-2008 scheme year; and

(b) is employed by that authority on 1st April 2008,

the amount of the member’s pensionable pay shall be the aggregate of the member’s pensionable pay received during that year in respect of the member’s whole-time employment and the amount the Secretary of State determines would have been paid in respect of a single comparable whole-time employment for that period in respect of the member’s part-time employment.

(2H) If a member—

(a) commences pensionable employment with an employing authority on a whole-time basis during the 2007-2008 scheme year; and

(b) is employed by that authority on 1st April 2008,

the amount of the member’s pensionable pay shall be determined by the formula—

where

RPP is the pensionable pay received in respect of that employment during the 2007-2008 scheme year;

NDPE is the number of days of pensionable employment with that employer during the 2007-2008 scheme year.

(2I) If a member—

(a) commences pensionable employment with an employing authority on a part-time basis or under a zero hours contract during the 2007-2008 scheme year; and

(b) is employed by that authority on 1st April 2008,

the amount of the member’s pensionable pay shall be determined by the formula—

where

CWTE is the amount the Secretary of State determines would have been paid for that employment during the 2007-2008 scheme year in respect of a single comparable whole-time employment

NDPE is the number of days of pensionable employment with that employer during the 2007-2008 scheme year.

(2J) If a member—

(a) commences pensionable employment with an employing authority during the 2007-2008 scheme year and has since been employed on both a whole-time and part-time basis; and

(b) is employed by that authority on 1st April 2008,

the amount of the member’s pensionable pay shall be determined by the formula—

where—

RPP is the pensionable pay received for the whole-time employment with that employer during the 2007-2008 scheme year;

CWTE is the amount the Secretary of State determines would have been paid in respect of a single comparable whole-time employment in respect of the member’s part-time employment with that employer during the 2007-2008 scheme year;

NDPE is the number of days of pensionable employment with that employer during the 2007-2008 scheme year.

(2K) If a member commences employment under a zero hours contract during the 2008-2009 scheme year, the member shall pay contributions in respect of that employment at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (2Q).

(2L) Subject to paragraph (2R), if a member—

(a) commences primary employment at any time during the 2008-2009 scheme year; and

(b) does not have a previous primary pensionable employment during that scheme year in respect of which the member paid contributions under this regulation,

the member shall pay contributions at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (2Q).

(2M) If, at any time during the 2008-2009 scheme year, a member who is in a primary employment (“the earlier employment”) commences a further primary employment (“the later employment”) that is held concurrently with the earlier employment, the member shall pay contributions at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (2Q).

(2N) If a member—

(a) ceases to be in a primary employment (“the earlier employment”) that is not held concurrently with another primary employment at any time during the 2008-2009 scheme year,

(b) after so ceasing next commences a further primary employment (“the later employment”), and

(c) that further employment is not held concurrently with another primary employment,

the member shall continue to pay contributions in respect of the later employment at the same rate as that which applied to the earlier employment.

(2O) If a member—

(a) at any time during the 2008-2009 scheme year ceases to be in two or more primary employments that were at one time held concurrently with each other (“the earlier employments”);

(b) those earlier employments did not all cease on the same day; and

(c) that member next commences a further primary employment (“the later employment”),

the member shall continue to pay contributions in respect of the later employment at the same rate as that which applied to whichever of the earlier employments was the last to cease.

(2P) If a member—

(a) at any time during the 2008-2009 scheme year ceases to be in two or more primary employments that were at one time held concurrently with each other (“the earlier employments”);

(b) the last two or more of those earlier employments ceased on the same day;

(c) after the cessation of those earlier employments, next commences a further primary employment (“the later employment”), and

(d) that further primary employment is not held concurrently with another primary employment,

the member shall pay contributions at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (2Q).

(2Q) Where paragraph (2K), (2L), (2M) or (2P) apply the Secretary of State shall determine the member’s pensionable pay—

(a) by applying the formula—

where

EPP is the estimated pensionable pay that the member’s employing authority estimates will be payable to the member in respect of that employment during the 2007-2008 scheme year

NDPE is the number of days of pensionable employment from the date employment commences to the end of the 2008-2009 scheme year, and

(b) if the further employment is part-time employment, by determining how much would be paid in respect of a whole-time comparable employment,

with the amount determined under (a) being the member’s pensionable pay for the purposes of this regulation if the further employment is whole-time employment and the amount determined under (b) being the member’s pensionable pay for the purposes of this regulation if the further employment is part-time employment.

(2R) If a member—

(a) at any time during the 2008-2009 scheme year is in pensionable employment in respect of which he pays contributions in accordance with paragraph (10) of Schedule 2 (“the earlier employment”);

(b) ceases all such earlier pensionable employments;

(c) after so ceasing, next commences a primary employment which is the first primary employment held by the member during the 2008-2009 scheme year (“the later employment”),

the member shall continue to pay contributions in respect of the later employment at the same rate as that which applied to the earlier employment or, if there is more than one earlier employment, at the same rate as that which applied to whichever of those earlier employments was the last to cease.

(2S) Paragraph (2R) shall not apply if, during the 2008-2009 scheme year, the member—

(a) has pensionable employment both as a general medical practitioner and a dentist performer; and

(b) ceases both of those employments on the same day.

(2T) If none of paragraphs (2E) to (2R) apply—

(a) the Secretary of State must determine the amount of the member’s pensionable pay, and in doing so shall, in addition to the matters referred to in paragraph (2A), have regard to the pensionable pay attributable to pensionable employment comparable to the member’s employment, prevailing pay scales and prevailing rates of pensionable allowances, and

(b) the member shall pay contributions at the rate specified in column 2 of the table in paragraph (1D) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay determined in accordance with paragraph (a).

(3) In paragraph (4)—

(a) for “70”, substitute “75”;

(b) omit “and reaches age 65”.

Section 8 Amendment of regulation D2

(1) Regulation D2 (contributions by employing authorities) is amended as follows.

(2) In paragraph (3) —

(a) omit “or E4 (early retirement pension with employer’s consent)”;

(b) in sub-paragraph (a) after “E3”, insert “(including any amount of pension that is exchanged for a lump sum under regulation E7)”;

(c) in sub-paragraph (b) —

(i) after “pension”, insert “(including any amount of pension that is exchanged for a lump sum under regulation E7)”, and

(ii) omit paragraph (i).

(3) In paragraph (7)(a) and (b), omit “or E4”.

Section 9 Amendment of regulation E1

(1) Regulation E1 (normal retirement pension) is amended as follows.

(2) In paragraph (3) for “70”, substitute “75”.

(3) After paragraph (3) insert—

(4) Subject to paragraph (5), where a member who leaves pensionable employment on or after 1st April 2008 becomes entitled to a pension under this regulation, the Secretary of State may discharge the Secretary of State’s liability for that pension by the payment of a lump sum of an amount consistent—

(a) with the contracting-out and preservation requirements of the 1993 Act;

(b) with the lump sum rule.

(5) A lump sum payment under paragraph (4) 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.

(6) For the purposes of paragraph (5), the Secretary of State may require whatever medical evidence that the Secretary of State considers necessary.

(7) The amount of the lump sum payable under paragraph (4)—

(a) will be equal to 5 times the yearly rate of the member’s pension (calculated in accordance with this regulation); and

(b) shall be payable in addition to the lump sum on retirement payable under regulation E6 (which shall not be subject to any reduction under regulation E6(3)) and the lump sum in place of part of a pension payable under regulation E7.

(8) For the purposes of calculating the amount of the lump sum payable under paragraph (7), the member will be treated as if the member had made an election under regulation E7 to receive the maximum amount of a further lump sum payable under that regulation.

Section 10 Amendment of regulation E2

(1) Regulation E2 (early retirement pension (ill health)) is amended as follows.

(2) Before paragraph (1) insert—

(A1) This regulation applies to a member who—

(a) retires from pensionable employment on or after 1st April 2008—

(i) who submitted Form AW33E (or such other form as the Secretary of State accepted) together with supporting medical evidence if not included in the form, and

(ii) that form was received by the Secretary of State before 1st April 2008; or

(b) returns to employment which attracts a pension in accordance with paragraph (11).

(3) In paragraph (1) after “A member”, insert “to whom this regulation applies”.

(4) In paragraph (10)(b) after “reduction under regulation E6(3))”, insert “and the lump sum in place of part of pension payable under regulation E7”.

(5) After paragraph (11) insert—

(12) For the purposes of calculating the amount of lump sum payable under paragraph (10), the member will be treated as if the member had made an election under regulation E7 to receive the maximum amount of further lump sum payable under that regulation.

Section 11 Insertion of new regulations E2A, E2B and E2C

After regulation E2 insert—

Ill health pension on early retirement

(E2A)

(1) This regulation applies to a member who—

(a) retires from pensionable employment on or after 1st April 2008;

(b) did not submit Form AW33E (or such other form as the Secretary of State accepted) together with supporting medical evidence if not included in the form pursuant to regulation E2 which was received by the Secretary of State before 1st April 2008, and

(c) is not in receipt of a pension under regulation E2.

(2) A member to whom this regulation applies who retires from pensionable employment before normal benefit age shall be entitled to a pension under this regulation if—

(a) the member has at least 2 years qualifying service or qualifies for a pension under regulation E1; and

(b) the member’s employment is terminated because of physical or mental infirmity as a result of which the member is—

(i) permanently incapable of efficiently discharging the duties of that employment (the “tier 1 condition”); or

(ii) permanently incapable of regular employment of like duration (the “tier 2 condition”) in addition to meeting the tier 1 condition.

(3) Subject to paragraph (4), the pension to which a member is entitled—

(a) upon satisfaction of the tier 1 condition (“the tier 1 pension”), or

(b) upon satisfaction of the tier 2 condition in addition to meeting the tier 1 condition (“the tier 2 pension”),

will be calculated as described in regulation E1.

(4) Subject to paragraphs (5) and (6), if the member meets the tier 2 condition in addition to meeting the tier 1 condition, the pensionable service on which the pension is based will be increased by two-thirds of the pensionable service the member could have completed had he stayed in pensionable employment until normal benefit age.

(5) If the member’s employment is terminated on or before 31st March 2016, the minimum amount by which the member’s pensionable service will be increased under paragraph (4) will be the lesser of—

(a) 4 years pensionable service; and

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

(6) To the extent that any increase under paragraph (4) or (5) would cause a member’s pensionable service to exceed the limit provided for in regulation C2(3) (meaning of pensionable service), the amount of any excess will be reduced accordingly.

(7) Subject to paragraph (8), where a member becomes entitled to a pension by virtue of meeting the tier 2 condition, the Secretary of State may discharge her liability for that pension by the payment of a lump sum of an amount consistent—

(a) with the contracting-out and preservation requirements of the 1993 Act; and

(b) the lump sum rule.

(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 the Secretary of State considers necessary.

(10) The amount of the lump sum payable under paragraph (7)—

(a) will be equal to 5 times the yearly rate of the member’s pension (calculated in accordance with this regulation); and

(b) shall be payable in addition to the lump sum on retirement payable under regulation E6 (which shall not be subject to any reduction under regulation E6(3)) and the lump sum in place of part of the pension payable under regulation E7.

(11) The employment of a member to whom a pension is payable under this regulation may be pensionable under the scheme if he is under age 50—

(a) on the date the member returns to NHS employment if the member became entitled to receive a pension under a tier 1 condition on the day the member retired from pensionable employment; or

(b) on the day after the protection period in regulation E2C(6)(b) ends if—

(i) the member became entitled to receive a pension under a tier 2 condition on the day the member retired from pensionable employment, and

(ii) the Secretary of State did not discharge her liability for that pension by the payment of a lump sum in accordance with paragraph (7) of this regulation; or

(c) on the day after the protection period in regulation E2C(6)(b) ends—

(i) the member became entitled to receive a pension under a tier 2 condition in place of a pension under a tier 1 condition on the date of the Secretary of State’s determination under regulation E2B, and

(ii) the Secretary of State did not discharge her liability for that pension by the payment of a lump sum in accordance with paragraph (7) of this regulation.

(12) For the purposes of calculating the amount of the lump sum payable under paragraph (10), the member will be treated as if the member had made an election under regulation E7 to receive the maximum amount of a further lump sum payable under that regulation.

(13) For the purposes of determining whether a member is permanently incapable of efficiently discharging the duties of the member’s employment under paragraph (2)(b)(i), the Secretary of State shall have regard to the factors in paragraph (15) (no one of which shall be decisive) and disregard the member’s personal preferences for or against engaging in that employment.

(14) For the purposes of determining whether a member is permanently incapable of regular employment under paragraph (2)(b)(ii), the Secretary of State shall have regard to the factors in paragraph (16) (no one of which shall be decisive) and disregard the factors in paragraph (17).

(15) The factors to be taken into account for paragraph (13) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity;

(b) the member’s—

(i) mental capacity; and

(ii) physical capacity;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity, irrespective of whether such rehabilitation is undergone; and

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

(16) The factors to be taken into account for paragraph (14) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity; and

(b) such reasonable employment as the member would be capable of engaging in if due regard is given to the member’s—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience,

irrespective of whether or not such employment is actually available to the member;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such rehabilitation is undergone) having regard to the member’s—

(i) mental capacity, and

(ii) physical capacity:

(d) such type and period of training which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such training is undergone) having regard to the member’s—

(i) mental capacity,

(ii) physical capacity,

(iii) previous training, and

(iv) previous practical, professional and vocational experience, and

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

(17) The factors to be disregarded for paragraph (14) are—

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

(b) the geographical location of the member.

(18) For the purpose of this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the incapacity, but does not include any treatment that the Secretary of State considers—

that it would be reasonable for the member to refuse,

would provide no benefit to restoring the member’s capacity for—

efficiently discharging the duties of the member’s employment under paragraph (2)(b)(i), or

regular employment of like duration under paragraph (2)(b)(ii),

before the member reaches normal benefit age; and

that, through no fault on the part of the member, it is not possible for the member to receive before the member reaches normal benefit age;

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

“regular employment of like duration” means—

in the case of a non-GP provider, such employment as the Secretary of State considers would involve a similar level of engagement to the member’s current pensionable service as a non-GP provider; and

in all other cases, where prior to retiring from employment that is pensionable the member was employed—

on a whole-time basis, regular employment on a whole-time basis;

on a part-time basis, regular employment on a part-time basis,

regard being had to the number of hours, half-days and sessions the member worked in that employment..

Re-assessment of ill health condition determined under regulation E2A

(E2B)

(1) This regulation applies to a member in receipt of a tier 1 pension under regulation E2A.

(2) A member to whom this regulation applies may ask the Secretary of State to consider whether the member subsequently meets the tier 2 condition if—

(a) by notice in writing at the time of award of the pension, the Secretary of State informed the member that the member’s case may be considered once within a period of three years commencing with the date of that award to determine whether the member satisfies the tier 2 condition at the date of such a consideration;

(b) within that three year period the member provides further medical evidence to the Secretary of State relating to the satisfaction of the tier 2 condition at the date of the Secretary of State’s consideration; and

(c) that further medical evidence relates to the same physical or mental infirmity that qualified the member for the member’s tier 1 pension.

(3) If, after considering the further medical evidence provided by a member, the Secretary of State determines that the member satisfies the tier 2 condition—

(a) the Secretary of State shall pay from the date of that determination a tier 2 pension under regulation E2A(2) in place of the tier 1 pension being paid to that member; and

(b) that pension shall be calculated in accordance with paragraph (4) of regulation E2A and as if that paragraph included the words “from the date of the Secretary of State’s determination under regulation E2B” after “employment”.

(4) Only one consideration of a member’s case may be undertaken under this regulation.

Further employment after a benefit is paid under regulation E2A

(E2C)

(1) This regulation applies to a member who —

(a) is in receipt of a tier 2 pension under regulation E2A (“the original pension”); and

(b) enters into further employment.

(2) Such a member shall be paid a tier 1 pension (“a substitute pension”) in place of the original pension—

(a) from the next substitute pension payment date following the day on which the member’s annual earnings from further employment (whether in the NHS or otherwise) in any tax year exceed the lower earnings limit for national insurance contributions applicable to that year; or

(b) in the case of a member who enters into further NHS employment, from the next substitute pension payment date following the first day on which the member is so employed which falls after the anniversary of the member’s entry into the further NHS employment (whether or not that day is part of a continuous period of further NHS employment beginning with the member’s entry into that employment),

if sooner.

(3) A member who is in receipt of a substitute pension may ask the Secretary of State to consider reinstating the original pension if—

(a) the member is under normal benefit age;

(b) the member makes such a request in writing and provides supporting medical evidence to the Secretary of State before the end of the protection period; and

(c) the member’s further employment is terminated before the end of the protection period.

(4) If, after considering that evidence, the Secretary of State determines that the member again satisfies a tier 2 condition in respect of the member’s earlier employment, the Secretary of State shall recommence paying, from the day after the date that the further employment is terminated, the original pension in place of the substitute pension.

(5) A member to whom this regulation applies who is in receipt of a tier 2 pension must—

(a) notify the Secretary of State immediately and in writing if either of the following apply—

(i) the member’s annual earnings in any tax year exceed the lower earnings limit for national insurance contributions applicable to that year;

(ii) the member is engaged in further NHS employment after the end of the protection period in paragraph (6)(b);

(b) provide any other information in connection with the member’s earnings or further employment requested by the scheme administrator or any other person that the Secretary of State may specify.

(6) In this regulation “the protection period” means—

(a) a period of one year beginning with the day on which the member’s annual earnings from further employment that is not NHS employment first exceed the lower earnings limit for national insurance contributions applicable to that year; or

(b) a period of one year beginning with the first day the member enters into further NHS employment.

Section 12 Amendment of regulation E3

After paragraph (1)(a)(ii) of regulation E3 (early retirement pension (redundancy etc additional provisions)) insert—

(iia) returns to pensionable employment on or after that date that attracts a pension in accordance with regulation E2(11) or E2A(11);

Section 13 Omission of regulation E4

Regulation E4 (early retirement pension (employer’s consent)) is omitted.

Section 14 Insertion of new regulation E7

After regulation E6 (lump sum on retirement) insert—

General option to exchange part of pension for lump sum

(E7)

(1) This regulation applies to a member whose pensionable employment ceases on or after 1st April 2008.

(2) A member may opt to exchange part of a pension to which the member would otherwise be entitled for a lump sum, which must be an evenly divisible multiple of £12.

(3) If a member so opts, for every £1 by which the member’s annual pension is reduced, the member is to be paid a lump sum of £12.

(4) An option under paragraph (2) must relate to an annual amount of pension that is a whole number of pounds (and accordingly the lump sum will be exactly divisible by 12).

(5) In paragraph (4) “annual amount” in relation to a pension means the amount of the annual pension to which the member would be entitled under these regulations apart from the option, together with any increases payable under the Pensions (Increase) Act 1971, calculated as at the time the payment would be first due.

(6) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 of the 2004 Act .

(7) If the member has a guaranteed minimum under section 14 of the 1993 Act in relation to the whole or part of a pension, paragraph (2) only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the Scheme Actuary.

(8) The option under this regulation may only be exercised by giving notice in writing to the scheme administrator in the form required by the Secretary of State—

(a) at the time of claiming the pension; or

(b) before a later time specified in writing by the scheme administrator.

Section 15 Amendment of regulation F1

(1) Regulation F1 (member dies in pensionable employment) is amended as follows.

(2) In paragraph (1) for “70”, substitute “75”.

(3) In paragraph (1A)(c) after “pay contributions”, insert “from a date that falls before 1st April 2008”.

(4) After paragraph (1A) insert—

(1B) A lump sum on death shall be payable in accordance with regulation F5 where, on the day the member died, the member is—

(a) under the age of 75 if not a special class officer or under the age of 70 if a special class officer;

(b) in NHS employment;

(c) no longer required to pay contributions from a date that falls on or after 1 April 2008 pursuant to regulation D1(3) or (4) (contributions by members), and

(d) except where regulations E2(11), E2A(11) or R4(6) apply, not in receipt of a pension under any of regulations E1 to E5.

Section 16 Amendment of regulation F2

(1) Regulation F2 (member dies after pension becomes payable) is amended as follows.

(2) In paragraph (2) for the words “the member’s retirement lump sum” to the end, substitute—

the aggregate of—

(a) the member’s retirement lump sum paid under regulation E6 (lump sum on retirement), and

(b) any lump sum paid to the member under regulation E7 (general option to exchange part of pension for lump sum).

(3) After paragraph (5) insert—

(6) If a member who was in receipt of a substitute tier 1 pension under regulation E2C dies before the end of the protection period that applies to him under regulation E2C(6)(a) or E2C(6)(b), the member’s pension referred to in paragraph (2) means that member’s original tier 2 pension.

Section 17 Substitution of regulation F5

For regulation F5 (payment of lump sum) substitute—

Payment of lump sum

(F5)

(1) A lump sum under any of regulations F1 to F4 shall be paid in accordance with the following paragraphs.

(2) If a member dies without leaving a surviving partner and without having made a nomination in favour of another person, the lump sum shall be paid to the member’s personal representatives.

(3) If a member dies leaving a surviving partner and without having made a nomination in favour of another person, the lump sum shall be paid to that surviving partner unless—

(a) the member has given notice to the Secretary of State that the surviving partner is not to receive the payment and has not revoked that notice; or

(b) the surviving partner has been convicted of an offence specified in regulation T6(1A) and the Secretary of State has directed, as a consequence of that conviction, that the surviving partner’s right to payment in respect of the member’s death shall be forfeited; or

(c) payment to the surviving partner is not, in the opinion of the Secretary of State, reasonably practicable,

in which case the lump sum shall be paid to the member’s personal representatives.

(4) If a member dies having made a nomination in favour of one nominee (whether or not he also leaves a surviving partner), the lump sum shall be paid to that nominee unless—

(a) the member has given notice to the Secretary of State revoking that nomination; or

(b) the nominee has died before the payment could be made; or

(c) the nominee has been convicted of an offence specified in regulation T6(1A) and the Secretary of State has directed, as a consequence of that conviction, that the member’s right to payment in respect of the member’s death shall be forfeited; or

(d) payment to the nominee is not, in the opinion of the Secretary of State, reasonably practicable,

in which case the lump sum shall be paid to the member’s personal representatives.

(5) If a member dies having made a nomination in favour of two or more persons (whether or not he also leaves a surviving partner) and has not given notice to the Secretary of State revoking that notice, the lump sum shall be paid to those nominees, unless—

(a) one or more of those nominees has—

(i) died before the payment could be made; or

(ii) been convicted of an offence specified in regulation T6(1A) and the Secretary of State has directed, as a consequence of that conviction, that the member’s or the nominee or nominees’ right to payment in respect of the member’s death shall be forfeited; or

(b) the Secretary of State is of the opinion that payment to one or more of the nominees is not reasonably practicable,

in which case the percentage of the lump sum due to that nominee, or as the case may be, those nominees shall be paid to the member’s personal representatives.

(6) A nomination may only be made by a member—

(a) who is in pensionable employment in the scheme at the time of making the nomination; or

(b) whose pensionable employment in the scheme ceased on, or after, 1st April 2008.

(7) A nomination shall specify one or more persons who may be—

(a) an individual;

(b) a body corporate;

(c) an unincorporated body; or

(d) the member’s personal representatives,

but is not entitled to specify one or more persons referred to in sub-paragraph (a) together with a body referred to in either of sub-paragraphs (b) or (c).

(8) A nomination or notice referred to in this regulation is only valid—

(a) if addressed to the Secretary of State;

(b) upon receipt by the Secretary of State;

(c) if made (or revoked) in writing;

(d) if it nominates the whole of the lump sum to a nominee and, in the case of a nomination specifying more than one individual, if it also specifies the percentage of the lump sum to be paid to each such individual.

(9) A member who has any pensionable employment in the scheme on or after 1st April 2008 cannot give a notice referred to in paragraph (3)(a).

(10) If the lump sum on death does not exceed the specified amount, the Secretary of State may pay it to any person claiming to be the member’s personal representative or to be entitled to a share of it, without requiring proof of the title of the person concerned.

(11) In paragraph (10), the specified amount means £5,000 or any higher amount 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.

(12) In this regulation “surviving partner” means a—

(a) widow; or

(b) widower; or

(c) civil partner; or

(d) nominated partner,

who survives the member.

Section 18 Substitution of heading to Part G

For the heading to Part G substitute—

SURVIVING PARTNER PENSIONS

Section 19 Amendment of regulation G1

After paragraph (1) of regulation G1 (widow’s pension) insert—

(1A) Paragraphs (2) to (7) apply if a member’s pensionable employment ceases before 1st April 2008.

Section 20 Amendment of regulation G2

(1) Regulation G2 (member dies in pensionable employment) is amended as follows.

(2) After paragraph (3) insert—

(3A) Paragraphs (3B) to (5) apply if a member dies on or after 1st April 2008.

(3B) The widow’s pension for the first 6 months after the member’s death will be equal to the rate of the member’s pensionable pay when the member died if that amount is greater than the amount of widow’s pension that would otherwise be payable under these Regulations.

(3C) Except while the widow’s pension is payable at the rate mentioned in paragraph (3B), if the member dies with 2 years or more qualifying service, the widow’s pension will be equal to one-half of the pension to which the member would have been entitled if, on the date of death, the member had become entitled to a tier 2 pension under regulation E2A.

(3) In paragraphs (4) and (5) after “paragraph (2)”, insert “or (3B)”.

(4) In paragraph (6)(c) after “pay contributions”, insert “on or before 1st April 2008”.

(5) After paragraph (7) insert—

(8) The widow’s pension payable on a member’s death if, on the day the member died, the member is—

(a) under the age of 75 if not a special class officer or under the age of 70 if a special class officer;

(b) in NHS employment;

(c) no longer required to pay contributions on or after 2nd April 2008 pursuant to regulation D1(3) or (4) (contributions by members); and

(d) except where regulation R4(6) (members doing more than one job) applies, not in receipt of a pension under any of regulations E1 to E5,

will be as described in paragraph (3B) and (3C), but with the modifications set out in paragraph (9).

(9) The modifications referred to in paragraph (8) are—

(a) in paragraph (3B), for “member’s pensionable pay when he died” substitute “member’s final year’s pensionable pay”, and

(b) in paragraph (3C), for “on the date of death” substitute “on the member’s last day of pensionable employment”.

Section 21 Amendment of regulation G3

After paragraph (5) of regulation G3 (member dies after pension becomes payable) insert—

(6) If a member who was in receipt of a substitute tier 1 pension under regulation E2C dies before the end of the protection period that applies to him under regulation E2C(6)(a) or E2C(6)(b), the member’s pension referred to in paragraph (2) means that member’s original tier 2 pension.

(7) For the purposes of paragraphs (2) and (4), no account will be taken of any reduction to the member’s pension under regulation E7 (general option to exchange part of pension for lump sum).

Section 22 Amendment of regulation G4

For paragraph (2) of regulation G4 (member dies with preserved pension) substitute—

(2) If the member leaves pensionable employment before 1st April 2008 and dies within 12 months after leaving, 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 on the day the member left pensionable employment.

(2A) If the member leaves pensionable employment on or after 1st April 2008 and dies within 12 months after leaving, 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 tier 2 pension under regulation E2A on the day the member left pensionable employment.

Section 23 Amendment of regulation G7

For paragraph (4) of regulation G7 (widower’s pension) substitute—

(4) If regulation G2(3), G2(3C), G4(2) or G(4)(2A) 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) or E2A(4), in the pensionable service on which the member’s pension under regulation E2 or E2A (ill health retirement pensions) 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 after 5th April 1988.

Section 24 Amendment of regulation G8

In paragraph (6) of regulation G8 (dependent widower’s pension) after “regulation E2(10)”, insert “, regulation E2A(10)”.

Section 25 Amendment of regulation G9

(1) Regulation G9 (increased widower’s pension) is amended as follows.

(2) In paragraph (3) after “regulation E2(10)”, insert “, regulation E2A(10)”.

(3) After paragraph (4) insert—

(5) If a female member who has made an election under this regulation—

(a) is in pensionable employment on 1st April 2008, or returns to such employment after that date; and

(b) dies without leaving a widower but leaving a surviving civil partner or, as the case may be, a surviving nominated partner,

the widower’s pension described in paragraph (1) shall be paid to that surviving partner.

Section 26 Amendment of regulation G10

For paragraph (4) of regulation G10 (surviving civil partner’s pension) substitute—

(4) If regulation G2(3), G(2)(3C), G4(2) or G4(2A) applies to the calculation of the surviving civil partner’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) or E2A(4), in the pensionable service on which the member’s pension under regulation E2 or E2A (ill health retirement pensions) 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 after 5th April 1988.

Section 27 Amendment of regulation G11

In paragraph (6) of regulation G11 (dependent surviving civil partner’s pension) after “regulation E2(10)”, insert “, regulation E2A(10)”.

Section 28 Amendment of regulation G13

(1) Regulation G13 (increased surviving civil partner’s pension) is amended as follows.

(2) In paragraph (3) after “regulation E2(10)”, insert “, regulation E2A(10)”.

(3) After paragraph (5) insert—

(6) If a member who has made an election under this regulation—

(a) is in pensionable employment on 1st April 2008, or returns to such employment after that date; and

(b) dies without leaving a civil partner but leaving a surviving widower or, as the case may be, a surviving nominated partner,

the surviving civil partner’s pension described in paragraph (1) shall be paid to that surviving widower, or as the case may be, that surviving nominated partner.

Section 29 Insertion of new regulations G14-G17

After regulation G13 insert—

Surviving nominated partner’s pension

(G14)

(1) A member who has pensionable service on or after 1st April 2008 may, by giving notice in writing to the Secretary of State, nominate a person (“the nominated partner”) to receive a surviving nominated partner pension on the member’s death and such a nomination shall be effective from the date the Secretary of State accepts it.

(2) The Secretary of State must accept a member’s nomination if—

(a) the member and the nominated partner have jointly made and signed a declaration in the form required by the Secretary of State that remains effective at the member’s death; and

(b) the nominated partner satisfies the Secretary of State that for a continuous period of at least two years ending with the member’s death—

(i) the member and the nominated partner were living together as if they were husband and wife or civil partners; or

(ii) the member and the nominated partner were not prevented from marrying or entering into a civil partnership; or

(iii) the member and the nominated partner were financially interdependent or the nominated partner was financially dependent on the member; or

(iv) neither the member nor the nominated partner was living with a third person as if they were husband and wife or as if they were civil partners.

(3) A declaration under paragraph (2)(a) ceases to have effect if—

(a) it is revoked by the member or the nominated partner by a signed notice in writing given to the Secretary of State in the required form (if any); or

(b) the member makes a later declaration under paragraph (2)(a); or

(c) the member or the nominated partner marries or enters into a civil partnership.

(4) If the Secretary of State has accepted a member’s nomination and the member subsequently dies before the member’s nominated partner in the circumstances described in any of regulations G2 to G6, the nominated partner is entitled to a pension as described in paragraphs (6) to (10) of this regulation.

(5) Subject to paragraph (6), regulations G1 to G6 apply to the calculation and payment of pensions for nominated partners in the same manner as they apply to pensions for widows and paragraph (1) of regulation G6 shall be read as if, for the words “where the member and the member’s wife were not married to each other”, it said “where a nomination for a surviving partner pension was not effective” .

(6) When calculating a nominated partner’s pension, any part of the member’s benefit that is based on pensionable service before 6th April 1988 will, subject to paragraphs (7) and (8), be disregarded.

(7) If paragraphs (3) or (3C) of regulation G2 or paragraphs (2) or (2A) of regulation G4 apply to the calculation of the nominated partner’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) or E2A(4) in the pensionable service on which the member’s pension under regulation E2 or E2A 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 after 5th April 1988.

(8) If regulation G3(2) applies to the calculation of the nominated partner’s pension, so that the nominated partner’s pension is equal to the member’s pension for a limited period, the nominated partner’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).

(9) Any reference in these Regulations to regulations G1 to G6 means, in relation to benefits in respect of a member who has nominated a partner, those regulations as applicable to the member’s nominated partner (if any).

Dependent surviving nominated partner’s pension

(G15)

(1) A member may, by giving notice in writing to the Secretary of State before leaving pensionable employment, apply for the member’s nominated partner to receive a dependent surviving nominated partner’s pension on the member’s death.

(2) The Secretary of State must accept a member’s application only if the Secretary of State is satisfied that the member’s nominated partner is—

(a) permanently incapable of earning a living because of physical or mental infirmity; and

(b) wholly or mainly dependent on the member.

(3) If the Secretary of State has accepted a member’s application and the member subsequently dies before the member’s nominated partner, the dependent surviving nominated partner is entitled to a dependent surviving nominated partner’s pension.

(4) The dependent surviving nominated partner’s pension is to be calculated in the same way as a widow’s pension under regulations G1 to G6 but based only on the member’s pensionable service before 6th April 1988.

(5) If the Secretary of State has accepted a member’s application for a dependent surviving nominated partner’s pension and the member’s pensionable service started before 6th April 1988 any lump sum payable to the member will be reduced by an amount equal to 1.4 times the yearly rate of the part of the member’s pension that is based on pensionable service before 6th April 1988 (except to the extent that any reduction has been off-set under regulation Q2).

(6) If regulation E2(10), regulation E2A(10) or regulation L1(8) (ill health retirement pensions and preserved pension) applies to a member who has a nominated partner, any reference in those provisions to a lump sum payable on retirement means, in relation to a member to whom paragraph (5) of this regulation refers, a lump sum that is not reduced as described in that paragraph.

Purchase of surviving partner’s pension in respect of service before 6th April 1988

(G16)

(1) Subject to this regulation, an officer in respect of whom a pension has not already become payable under regulation E2 or E2A (ill health retirement pensions) may, in respect of the whole or any part of the member’s contributing service before 6th April 1988, elect to purchase an increase in the amount of any survivor’s pension that becomes payable under the scheme.

(2) The purchase of an increase under paragraph (1) may be made only in respect of complete years of service, unless the officer wishes to purchase an increase in respect of all of the member’s service before 6th April 1988, in which case the whole of the requisite period may be purchased whether or not it constitutes a multiple of complete years of service.

(3) An election under paragraph (1)—

(a) must not be made later than 30th June 2009;

(b) must be made by notice in writing, given to the Secretary of State;

(c) must specify the period in respect of which the election is made;

(d) must be accompanied by a declaration in writing signed by the officer that he is of sound health for the member’s age;

(e) is irrevocable.

(4) Each figure in tables 2 and 4 of Schedule 1 is multiplied by a factor of 0.7 in respect of the cost of providing the increase provided under paragraph (1).

(5) In this regulation “survivor’s pension” means a pension that becomes payable by virtue of —

(a) regulation G7; or

(b) regulation G10; or

(c) regulation G14.

Increased surviving partner’s pension

(G17)

(1) If a member elects on or before 30th June 2009 to buy an increased surviving partner’s pension under regulation G16(1), any survivor’s pension that becomes payable in respect of that member will be based on pensionable service after 5th April 1988 plus any period of pensionable service before that date that the member elected to buy for this purpose under regulation G16(1).

(2) Any survivor’s pension payable in respect of the member shall be paid to (as the case may be) the member’s surviving widower, civil partner or nominated partner regardless of whether that pension is payable by virtue of regulation G7, regulation G10 or regulation G14.

(3) Subject to paragraph (4), any retirement lump sum payable to a member under regulation E6, in respect of any period of pensionable service that the member elected to buy as described in paragraph (1), will be reduced by 1.4 times the yearly rate of the member’s pension plus the relevant daily proportion of that rate for each additional day (except to the extent that any lump sum reduction has been off-set under regulation Q2) (right to buy an unreduced retirement lump sum).

(4) If regulation E2(10), regulation E2A(10) or regulation L1(8) (ill health retirement pensions and preserved pension) applies to a member to whom this regulation refers, any reference in those regulations to a lump sum payable on retirement must be taken to mean a lump sum that is not reduced as described in paragraph (2) of this regulation.

(5) Subject to paragraph (6) if, by virtue of an election under regulation G16(1), the amount of the retirement lump sum would fall to be reduced by 1.4 times the yearly rate of a member’s pension plus the relevant daily proportion of that rate for each additional day, he may make an election to purchase an unreduced lump sum under regulation Q2 provided that the election is made no later than 30th June 2009.

(6) A member who has purchased additional service in accordance with regulation Q1 by way of a payment under regulation Q6 is not entitled to make an election under paragraph (4) in respect of the purchase of an unreduced lump sum.

Section 30 Amendment of regulation H1

(1) Regulation H1 (dependent child) is amended as follows.

(2) In paragraph (1)—

(a) in sub-paragraph (c) for “or civil partner”, substitute “, civil partner or nominated partner”;

(b) after sub-paragraph (d) insert—

(e) a child of a member’s nominated partner from a nominated partnership formed before the date on which the member leaves pensionable employment,

(3) After paragraph (2) insert—

(2A) A child is a dependent child of a person whose pensionable employment ceases on or after 1st April 2008 for so long as that child is—

(a) under age 23; or

(b) aged 23 or over and incapable of earning a living because of permanent physical or mental infirmity from which that child was suffering at the time the member died.

(4) In paragraph (3) for “A child is a dependent child”, substitute “Subject to paragraphs (6) and (7), a child is a dependent child of a person whose pensionable employment ceases on or before 31st March 2008”.

(5) In paragraph (5) omit the words from “(calculated” to “omitted)”.

Section 31 Amendment of regulation H3

(1) Regulation H3 (member dies in pensionable employment) is amended as follows.

(2) In paragraph (2) after “paragraph (3),” insert “if the member dies before 1st April 2008”.

(3) After paragraph (2) insert—

(2A) If the member died on or after 1st April 2008 the allowance will be calculated as described in whichever of paragraphs (4A) or (4D) apply—

(a) as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health and had qualified for a tier 2 pension under regulation E2A on the day the member died; or

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

(4) After paragraph (4) insert—

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

(4B) If a widow’s, widower’s, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B), the allowance payable in respect of any dependent child who is dependent on that widow, widower, surviving civil partner or surviving nominated partner will be payable from the day following the member’s death.

(4C) If a widow’s, widower’s, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B) but there is a dependent child who is not dependent on that widow, widower, surviving civil partner or surviving nominated partner, the allowance in respect of that child for the first three months after the member’s death will be equal to the rate of member’s pensionable pay when the member died.

(4D) If a member dies leaving a dependent child and there is no surviving parent (or spouse, civil partner or nominated partner of a parent), the allowance will be equal to one-third of the pension described in paragraph (2A) 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 the member died.

(4E) If the member dies leaving a dependent child and there is a surviving parent (or spouse, civil partner or nominated partner of a parent) but there is no entitlement to a widow’s, widower’s or surviving civil partner’s pension calculated under regulation G2 (member dies in pensionable employment), the allowance will be paid at the rates described in paragraph (4D).

(5) For paragraph (9) after “pay contributions”, insert “on or before 1st April 2008” and for “paragraphs (2) to (8)”, substitute “paragraph (2)”.

(6) After paragraph (10) insert—

(11) The child allowance payable on a member’s death if, on the day the member died, the member is—

(a) under the age of 75 if not a special class officer or under the age of 70 if a special class officer;

(b) in NHS employment;

(c) no longer required to pay contributions on or after 2 nd April 2008 pursuant to regulation D1(3) or (4) (contributions by members); and

(d) except where regulation R4(6) (members doing more than one job) applies, not in receipt of a pension under any of regulations E1 to E5,

will be as described in paragraph (2A) but with the modifications set out in paragraph (12).

(12) The modifications referred to in paragraph (11) are—

(a) in paragraph (2A)(a) for “on the day he died” substitute “on the member’s last day of pensionable employment”; and

(b) in both paragraph (4C) and (4D) for “member’s pensionable pay when he died” substitute “member’s final year’s pensionable pay”.

Section 32 Amendment of regulation H4

(1) Regulation H4 (member dies after pension becomes payable) is amended as follows.

(2) For paragraph (2) substitute—

(2) Subject to paragraphs (2A) and (8), the allowance will be calculated, as described in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension or, if greater, the amount that the member’s pension would have been if it had been based on 10 years pensionable service.

(2A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension 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 the member had stayed in pensionable employment until age 65.

(3) In paragraph (3) after “or civil partner”, insert “or nominated partner”.

(4) After paragraph (8) insert—

(9) If a member who was in receipt of a substitute tier 1 pension under regulation E2C (further employment after a benefit is paid under regulation E2A) dies before the end of the protection period that applies to him under regulation E2C(6)(a) or E2C(6)(b), the member’s pension referred to in paragraph (2) means that member’s original tier 2 pension.

(10) For the purpose of paragraphs (2) and (7), no account will be taken of any reduction to the member’s pension under regulation E7 (general option to exchange part of pension for lump sum).

Section 33 Amendment of regulation H5

(1) Regulation H5 (member dies with preserved pension) is amended as follows.

(2) In paragraph (2)—

(a) for “if the member dies” substitute “Subject to paragraph (2A), if the member dies”;

(b) omit “and, if applicable, H3(3)”.

(3) After paragraph (2) insert—

(2A) Subject to paragraph (2B), if the member’s pensionable employment ceased on or before 31st March 2008 the allowance will be calculated, as described in whichever of paragraphs (4) or (5) apply, as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health with a pension under regulation E2 on the day the member died.

(2B) If the member has less than 5 years’ pensionable service, the allowance will be calculated as if the pension described in paragraph (2A) were based on the shorter of—

(a) 10 years’ pensionable service; and

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

(4) For paragraph (3) substitute—

(3) Subject to paragraph (3A), if the member dies 12 months or more after leaving pensionable employment, the allowance will be calculated as described in whichever of paragraphs (4) or (5) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount that the preserved pension would have been if it had been based on 10 years’ pensionable service.

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

(a) 10 years’ pensionable service; and

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

(5) In paragraphs (4) and (5) —

(a) after “or civil partner”, insert “or nominated partner”;

(b) for “paragraph (2)”, substitute “paragraphs (2) to (3A)”.

(6) In paragraph (6) —

(a) after “or civil partner”, insert “or nominated partner”;

(b) for “or surviving civil partner’s”, substitute “, surviving civil partner’s or surviving nominated partner’s”.

Section 34 Amendment of regulation H7

(1) In the heading to regulation H7 (dependent child not being maintained by surviving parent or spouse or civil partner of a parent), after “civil partner” insert “or nominated partner”.

(2) In regulation H7 after “civil partner” (where three times occurring), insert “or nominated partner”.

Section 35 Amendment of regulation J1

For paragraph (4)(b) of regulation J1 (allocation of pension) substitute—

(b) if in pensionable employment—

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

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

Section 36 Substitution of regulation K1

For regulation K1 (contracting-out conditions to be overriding) substitute—

Contracting-out conditions to be overriding

(K1)

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

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

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

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

(c) if a pension is forfeited for the reasons specified in sub-paragraphs (b) or (c) of regulation T6(1).

(3) In this Part—

(a) “contracting-out conditions” means the conditions specified in sections 9(2A) and 9(2B) of the 1993 Act;

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

(c) “guaranteed minimum pension” is a pension calculated in accordance with the guaranteed minimum requirements;

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

Section 37 Amendment of regulation K2

(1) Regulation K2 (guaranteed minimum pensions) is amended as follows.

(2) In paragraph (1) for “section 14 of the Pension Schemes Act 1993 (earner’s guaranteed minimum)”, substitute “section 13 of the 1993 Act”.

(3) In paragraphs (4) and (4A) for “tax year 1988-89 and subsequent tax years”, substitute “tax years 1988-89 to 1996-97 inclusive”.

(4) In paragraph (5) for “tax year 1988-89”, substitute “tax years 1988-89 to 1996-97 inclusive”.

(5) For paragraph (6) substitute—

(6) A member who on leaving pensionable employment—

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

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

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

(7) The benefits are—

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

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

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

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

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

Section 38 Amendment of regulation L1

(1) Regulation L1 (preserved pension) is amended as follows.

(2) In paragraph (2)(b) after “E1”, insert “as if it were a pension under that regulation”.

(3) In paragraph (3)(b) after “regular employment”, insert “of like duration”.

(4) For paragraph (4) substitute—

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

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

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

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

(b) the relevant time—

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

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

(5) After paragraph (8) insert—

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

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

(11) The factors to be taken into account for paragraph (9) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity;

(b) the member’s—

(i) mental capacity; and

(ii) physical capacity;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity, irrespective of whether such rehabilitation is undergone; and

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

(12) The factors to be taken into account for paragraph (10) are—

(a) whether the member has received appropriate medical treatment in respect of the incapacity; and

(b) such reasonable employment as the member would be capable of engaging in if due regard is given to the member’s—

(i) mental capacity;

(ii) physical capacity;

(iii) previous training; and

(iv) previous practical, professional and vocational experience,

irrespective of whether or not such employment is actually available to the member;

(c) such type and period of rehabilitation which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such rehabilitation is undergone) having regard to the member’s—

(i) mental capacity, and

(ii) physical capacity:

(d) such type and period of training which it would be reasonable for the member to undergo in respect of the member’s incapacity (irrespective of whether such traning is undergone) having regard to the member’s—

(i) mental capacity,

(ii) physical capacity,

(iii) previous training, and

(iv) previous practical, professional and vocational experience, and

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

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

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

(b) the geographical location of the member.

(14) For the purpose of this regulation—

“appropriate medical treatment” means such medical treatment as it would be normal to receive in respect of the incapacity, but does not include any treatment that the Secretary of State considers—

that it would be reasonable for the member to refuse,

would provide no benefit to restoring the member’s capacity for—

efficiently discharging the duties of the member’s employment under paragraph (3)(a), or

regular employment of like duration under paragraph (3)(b),

before the member reaches normal benefit age; and

that, through no fault on the part of the member, it is not possible for the member to receive before the member reaches normal benefit age;

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

“regular employment of like duration” means—

in the case of a member who was a non-GP provider, such employment as the Secretary of State considers would involve a similar level of engagement to the member’s pensionable service as a non-GP provider immediately before that service ceased; and

in all other cases, where prior to leaving employment that was pensionable the member was employed—

on a whole-time basis, regular employment on a whole-time basis;

on a part-time basis, regular employment on a part-time basis,

regard being had to the number of hours, half-days and sessions the member worked in that employment.

Section 39 Amendment of regulation L2

For paragraph (3) of regulation L2 (refund of contributions) substitute—

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

Section 40 Amendment of regulation L4

In paragraph (3)(b) of regulation L4 (early leavers returning to pensionable employment), for “(early retirement pension on grounds of ill health)” substitute “or E2A”.

Section 41 Substitution of Part M

For Part M substitute—

TRANSFERS AND BUY-OUTS

Member’s right to transfer or buy-out

(M1)

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

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

(a) to purchase one or more buy-out policies from one or more insurance companies chosen by the member; or

(b) to acquire rights under—

(i) another occupational pension scheme; or

(ii) a personal pension scheme,

that satisfies the requirements of Chapter IV of Part IV of the 1993 Act; or

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

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

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

(4) The benefits attributable to—

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

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

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

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

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

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

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

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

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

(7) If a member—

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

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

(c) has at least 2 years’ service before 6th April 1988,

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

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

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

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

Exercising a right to a transfer or a buy out

(M2)

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

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

(a) falls within the required period; and

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

(c) is specified in the statement of entitlement; and

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

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

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

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

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

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

Amount of member’s cash equivalent

(M3)

(1) Subject to the following provisions of this regulation, the member’s guaranteed cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971, calculated and verified as required by Chapter IV of Part IV of the 1993 Act.

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

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

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

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

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

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

Applications for transfer value payments: General

(M4)

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

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

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

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

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

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

Applications for transfer value payments: time limits

(M5)

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

(a) 6 months after that date; or

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

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

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

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

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

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

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

(4) Paragraph (5) applies if—

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

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

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

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

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

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

Special terms for transfer out (bulk transfers etc)

(M6)

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

(a) leave pensionable employment,

(b) join another occupational pension scheme, and

(c) exercise a right to transfer to that scheme under regulation M2,

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

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

Section 42 Amendment of regulation N1

In paragraph (2)(b) of regulation N1 (member’s right to transfer accrued rights to benefits to the scheme) after “amount of the transfer payment”, insert “that relates to rights accrued in the transferring scheme before 6th April 1997”.

Section 43 Omission of regulation N5

Regulation N5 (waiver of transfer payment) shall be omitted.

Section 44 Amendment of regulation P2

In regulation P2 (other leave of absence) for paragraphs (1) and (2), substitute—

(1) This regulation applies to a member who starts a leave of absence from work on, or after, 1st April 2008 for reasons other than those referred to in regulation P1.

(2) A period of absence to which this regulation applies will count as pensionable service if for a continuous period not exceeding 6 months commencing with the member’s first day of leave of absence, the member contributes to the scheme.

Section 45 Amendment of regulation Q1

(1) Regulation Q1 (right to buy additional service) shall be amended as follows.

(2) After paragraph (1) insert—

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

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

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

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

(3) For paragraph (2) substitute—

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

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

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

(c) a combination of (a) and (b).

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

(4) In paragraph 4(a) for “(early retirement pension on grounds of ill health)”, substitute “or E2A”.

(5) After paragraph (5A) insert—

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

(6) In paragraph (11) omit the definition of “tax year”.

Section 46 Amendment of regulation Q2

In paragraph (1) of regulation Q2 (right to buy an unreduced retirement lump sum) omit “or in a civil partnership ” .

Section 47 Amendment of regulation Q4

(1) Regulation Q4 (paying for additional service by single payment) is amended as follows.

(2) For paragraph (1) substitute—

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

(3) Omit paragraph (2).

(4) For paragraph (3) substitute—

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

(5) Omit paragraph (7).

Section 48 Amendment of regulation Q5

After paragraph (2A) of regulation Q5 (paying for unreduced lump sum by single payment) insert—

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

Section 49 Amendment of regulation Q6

(1) Regulation Q6 (paying for additional service or unreduced retirement lump sum by regular additional contributions) is amended as follows.

(2) In paragraph (6) after “scheme” insert “before 1st April 2008” and for “the Inland Revenue” substitute “ HM Revenue and Customs”.

(3) After paragraph (6) insert—

(6A) The member’s total regular additional contributions made on or after 1st April under this regulation may not exceed—

(a) in the case of a member paying contributions of 5 per cent of the member’s pensionable pay under regulation D1 on the member’s birthday immediately following the date of the election referred to in paragraph (3), 10 per cent of pensionable pay;

(b) in the case of a member paying contributions of more than 5 per cent of the member’s pensionable pay under regulation D1 on the birthday referred to in (a), 9 per cent of pensionable pay, or

(c) in any case referred to in (a) or (b) above, any other limit specified for the time being by HM Revenue and Customs.

Section 50 Amendment of regulation Q7

(1) Regulation Q7 (part payment for additional service or unreduced retirement sum) is amended as follows.

(2) In paragraph (2) for “(early retirement pension on grounds of ill health)”, substitute “or E2A”.

(3) In paragraph (3) after “E2”, insert “or E2A”.