The National Health Service Pension Scheme (Amendment No.2) Regulations 2014

• Citation: S.I. 2014/1607
• Sections: 18

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the National Health Service Pension Scheme (Amendment No.2) Regulations 2014.

(2) These Regulations shall come into force on 21st July 2014 and shall have effect from 1st April 2014.

Section 2 Interpretation of Part 2

In this Part, an alphanumerical reference to a regulation or a reference to a Schedule is a reference to a provision of the National Health Service Pension Scheme Regulations 1995 bearing that designation.

Section 3 Amendment of regulation A2

In the definition of “consumer prices index” in regulation A2 (interpretation) , omit “for the month of February immediately preceding a relevant year”.

Section 4 Amendment of regulation D1

For the table in paragraph (1B) of regulation D1 (contributions by members) , substitute—

Column 1

Pensionable pay band

Column 2

Contribution percentage rate

Section 5 Amendment of regulation D3

(1) Regulation D3 (further contributions by employing authorities in respect of excessive pay increases) , is amended as follows.

(2) In sub-paragraph (b) of paragraph (3)—

(i) for paragraph (i), substitute—

(i) the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 1 is higher than it was for the previous February, and

(ii) in paragraph (ii), before “Year 1” insert “for”.

(3) In sub-paragraph (b) of paragraph (4)—

(i) for paragraph (i), substitute—

(i) the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 2 is higher than it was for the previous February, and

(ii) in paragraph (ii), before “Year 2” insert “for”.

(4) For sub-paragraph (b) of paragraph (5), substitute—

(b) the member’s pensionable pay for the year immediately preceding Year 3 increased by the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 3 is higher than it was for the previous February.

(5) In Step 6 (a) in paragraph (6), for “Amount C” substitute “Amount D”.

(6) For paragraph (17), substitute—

(17) For the purposes of this regulation an increase in pensionable pay during Year 3, Year 2 or, as the case may be, Year 1 is to be ignored where the Secretary of State is satisfied it arises as a result of—

(a) the member taking up a new employment with a new employer: provided the Secretary of State is satisfied that the employer in question is a new employer;

(b) the ending of a salary sacrifice arrangement made before 1st April 2014: for these purposes a salary sacrifice arrangement is one under which the member gives up the right to receive an amount of pensionable pay in return for the provision of a benefit in kind including, but not limited to, a benefit consisting of a motor car or other vehicle, meals, care or vouchers.

Section 6 Amendment of regulation T9

For paragraph (7) of regulation T9 (interest and administration charges: late paid contributions) , substitute—

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

Section 7 Amendment of Schedule 2

(1) Schedule 2 (medical and dental practitioners) is amended as follows.

(2) For table 2 in sub-paragraph (1A) of paragraph 10 (contributions to this section of the scheme) , substitute—

Scheme Year 2014-2015

Column 1

Pensionable earnings band

Column 2

Contribution percentage rate

(3) In paragraph 23 (accounts and actuarial reports)—

(a) in sub-paragraph (12) , for “In respect of” to “of any” substitute “Each employing authority and GDS or PDS contractor must, in respect of each scheme year, provide the host Board and the Secretary of State with a statement of estimated contributions due under regulations D1, D2, Q6 and Q8 in respect of any”;

(b) in sub-paragraph (14), for “The Secretary of State” substitute “The host Board and the Secretary of State”.

Section 8 Interpretation of Part 3

In this Part, an alphanumerical reference to a regulation is a reference to a provision of the National Health Service Pension Scheme Regulations 2008 bearing that designation.

Section 9 Amendment of regulation 2.A.1

In the definition of “consumer prices index” in paragraph (1) of regulation 2.A.1 (interpretation: general) , omit “for the month of February immediately preceding a relevant year”.

Section 10 Amendment of regulation 2.C.2

For the table in paragraph (2A) of regulation 2.C.2 (contribution rate for members other than non-GP providers) , substitute—

Column 1

Pensionable pay band

Column 2

Contribution percentage rate

Section 11 Amendment of regulation 2.C.4

For table 2 in paragraph (20) of regulation 2.C.4 (contribution rate and determination of pensionable earnings for non-GP providers) , substitute—

Scheme Year 2014-2015

Column 1

Pensionable earnings band

Column 2

Contribution percentage rate

Section 12 Amendment of regulation 2.J.9A

(1) Regulation 2.J.9A (interest and administration charges: late paid contributions) is amended as follows.

(2) In paragraph (1), after “2.C.1,” insert “2.C.4,”.

(3) For paragraph (7), substitute—

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

Section 13 Amendment of regulation 2.M.3

(1) Regulation 2.M.3 (approval applications) is amended as follows.

(2) In sub-paragraph (h) of paragraph (3)—

(a) in paragraph (v), after “2.C.5” insert “, 2.C.6”;

(b) in paragraph (vii), for “employee” substitute “employees”.

(3) In paragraph (7), after “become” omit “an”.

Section 14 Amendment of regulation 3.C.2

For table 2 in paragraph (22) of regulation 3.C.2 (members’ contribution rate) , substitute—

Scheme Year 2014-2015

Column 1

Pensionable earnings band

Column 2

Contribution percentage rate

Section 15 Amendment of regulation 3.C.5

After paragraph (18) of regulation 3.C.5 (payment of contributions) , insert—

(18A) Arrears of contributions that are due in accordance with paragraphs (11) to (16) of regulation 3.C.2 must be paid to the relevant host Board at the same time as the member is due to provide that Board with a certificate of pensionable earnings under regulation 3.J.14.

Section 16 Amendment of regulation 3.J.9A

For paragraph (7) of regulation 3.J.9A (interest and administration charges: late paid contributions) , substitute—

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

Section 17 Amendment of regulation 3.J.14

(1) Regulation 3.J.14 (employing authority and certain member record keeping and contribution estimates) is amended as follows.

(2) In paragraph (11) , before “the Secretary of State” insert “the host Board and”.

(3) In paragraph (13), for “The Secretary of State” substitute “The host Board and the Secretary of State”.

Section 18 Option to persons detrimentally affected by these Regulations

(1) This regulation applies in relation to any benefit which is being paid or may become payable under the regulations amended by these Regulations to or in respect of a person who, having served in an employment or office, service in which qualified the person to participate in the benefits provided under the regulations amended by these Regulations, ceased to serve therein before these Regulations came into force.

(2) Where, in a case to which this regulation applies, any provision of these Regulations would operate in relation to any person so as to place that person in a worse position than that person would have been if that provision had not applied, that person may elect that the provision shall not apply by giving notice in accordance with paragraph (3).

(3) A notice given pursuant to paragraph (2) must be in writing and be delivered to the Secretary of State within six months of the coming into force of these Regulations or such longer period as the Secretary of State may allow.

(4) An election pursuant to paragraph (2) has effect in relation to the benefit referred to in paragraph (1) only to the extent that such benefit has accrued by virtue of periods of service rendered prior to the cessation referred to in paragraph (1) (or, if there has been more than one such cessation, the last of them before the coming into force of these Regulations) and in determining entitlement to, and the amount of, the benefit to that extent, such person shall be treated as if that person had never recommenced service at any time after that cessation (or, as the case may be, the last such cessation).