The National Health Service Pension Scheme Regulations 2015

• Citation: S.I. 2015/94
• Sections: 292

Section 1 Citation, extent and commencement

These Regulations—

(a) may be cited as the National Health Service Pension Scheme Regulations 2015;

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

(c) extend to England and Wales.

Section 2 Establishment of the NHS Pension Scheme 2015

(1) A scheme is established for the payment of pensions and other benefits to or in respect of—

(a) health service workers mentioned in regulation 18(1); and

(b) such other persons mentioned in regulation 18(2).

(2) This scheme is to be known as the NHS Pension Scheme 2015.

Section 3 Scheme manager

(1) The Secretary of State is the scheme manager and is responsible for managing or administering—

(a) this scheme; and

(b) any statutory pension scheme that is connected with it.

(2) The Secretary of State may make arrangements for any or all of the functions and responsibilities as scheme manager under these Regulations to be performed on the Secretary of State's behalf by—

(a) the NHS Business Services Authority (Awdurdod Gwasanaethau Busnes y GIG) ; or

(b) one or more persons or bodies corporate or unincorporate (and where more than one, may include that Authority),

but any such arrangements do not affect the Secretary of State's liability for those functions and responsibilities.

Section 4 Pension Board

There is to be a Pension Board constituted in accordance with Schedule 1 which has responsibility for assisting the scheme manager in relation to—

(a) securing compliance with these Regulations and other legislation relating to the governance and administration of—

(i) this scheme; and

(ii) any statutory pension scheme that is connected with it;

(b) securing compliance with any requirements imposed by the Pensions Regulator in relation to—

(i) this scheme; and

(ii) any statutory pension scheme that is connected with it.

Section 5 Scheme Advisory Board

There is to be a Scheme Advisory Board constituted in accordance with Schedule 2 which has responsibility for providing advice where requested to the Secretary of State on the desirability of changes to—

(a) this scheme; and

(b) any statutory pension scheme that is connected with it.

Section 6 Appointment of scheme actuary

(1) The Secretary of State must appoint a person (the scheme actuary) for the purposes of carrying out—

(a) actuarial valuations of this scheme and connected schemes required by Treasury directions given under section 11 of the 2013 Act; and

(b) such other actuarial functions as may be required in relation to this scheme or a connected scheme.

(2) Before making an appointment under paragraph (1), the Secretary of State must be satisfied that the person to be appointed is appropriately qualified.

Section 7 Actuarial valuations

(1) The scheme actuary must carry out an actuarial valuation of this scheme and connected schemes as at the effective date.

(2) The scheme actuary must provide a valuation report to the scheme manager not later than such date as may be agreed by the Secretary of State.

(3) The effective date is—

(a) in respect of the first valuation under paragraph (1), 31st March 2016;

(b) in respect of subsequent valuations, such dates as enable the scheme to comply with Treasury directions as to valuations.

Section 8 Employer cost cap

(1) The employer cost cap for this scheme is 11.6% of the pensionable earnings of members of the scheme.

(2) “ Employer cost cap ” has the same meaning as in section 12 of the 2013 Act.

Section 9 Cost of scheme exceeds margins

The scheme actuary must give notice to the Secretary of State if the actuarial valuation shows that the cost of this scheme would be outside the margins specified in Treasury regulations pursuant to section 12(5) of the 2013 Act.

Section 10 Procedure for agreeing steps to achieve target cost

(1) This regulation applies if notice is given under regulation 9.

(2) The Secretary of State must make a request to the Scheme Advisory Board—

(a) to consider the matter; and

(b) give advice to the Secretary of State as to the means by which the target cost is to be achieved.

(3) The Secretary of State must consider the advice and seek to reach agreement with the Scheme Advisory Board as to the means by which the target cost is to be achieved.

(4) In acting under paragraphs (2) and (3), the Secretary of State must specify the date before which—

(a) the advice must be provided; and

(b) agreement must be reached.

Section 11 No agreement reached

(1) This regulation applies if no agreement is reached as mentioned in regulation 10.

(2) If the costs of the scheme are outside the margins as mentioned in regulation 9, the Secretary of State must adjust the fraction specified in paragraph 13(3) of Schedule 9 so as to achieve the target cost.

Section 12 Approval mechanism

An agreement under regulation 10 or an adjustment under regulation 11 must not be implemented unless—

(a) the scheme actuary certifies that the agreement or adjustment (as the case may be) will have the effect of enabling the scheme to meet the target cost; and

(b) the Treasury approves the agreement or adjustment.

Section 13 Target cost

In regulations 10 to 12, “target cost” must be construed in accordance with section 12(5)(b) of the 2013 Act.

Section 14 Administrative matters

Schedule 3 makes provision in relation to—

(a) scheme accounts and information;

(b) claims for, and payments of, benefits;

(c) interest on late payments;

(d) assignment, offset and forfeiture;

(e) insolvency of persons entitled to benefits;

(f) determination of questions;

(g) taxation.

Section 15 Joining and leaving the scheme

(1) Each person who is eligible to join this scheme pursuant to regulation 18 is included in the scheme—

(a) automatically on commencing NHS employment;

(b) subject to regulation 16, where the person has previously opted out of this scheme, on the date determined under paragraph 2 of Schedule 4, where that paragraph applies;

(c) subject to regulation 16, where the person has previously opted out of this scheme and is a person to whom section 3 or 5 of the 2008 Act applies—

(i) on that person's automatic enrolment date; or

(ii) on that person's automatic re-enrolment date, except where the notice referred to in paragraph 1 of Schedule 4 was given within the 12 months immediately preceding that date.

(2) A person who is included in this scheme may opt out at any time in accordance with paragraph 1 of Schedule 4.

(3) In this Chapter—

(a) “ the 2008 Act ” means the Pensions Act 2008;

(b) “ the 2010 Regulations ” means the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 .

(4) Paragraph (1) does not apply to a locum practitioner.

(5) A locum practitioner who wishes to join this scheme must make an application to the scheme manager in such form as the scheme manager requires.

(6) The application must not relate to a period of engagement which ended more than 10 weeks before the date of the application.

(7) If the scheme manager accepts an application under paragraph (5) the locum practitioner's membership of this scheme takes effect on the date specified by the scheme manager.

Section 16 Re-joining the scheme

(1) Subject to paragraph (2), a person who has opted out of this scheme in accordance with paragraph 1 of Schedule 4 may re-join this scheme pursuant to paragraph 2 of that Schedule.

(2) A person may not re-join this scheme during any period of absence from work for any reason.

Section 17 Automatic enrolment legislation

(1) Regulations 15 and 16 do not apply to a person to whom sections 3, 5 or 8 of the 2008 Act and regulations 9 or 15 of the 2010 Regulations applies (that is, a person who is subject to automatic enrolment or re-enrolment in this scheme as a qualifying scheme who does not wish to participate in it).

(2) Paragraph (1) does not affect the rights of such a person who subsequently joins or re-joins this scheme in circumstances where those provisions of the 2008 Act and 2010 Regulations do not apply.

Section 18 Membership

(1) Subject to regulation 19, a person is eligible to join this scheme if the person is a health service worker and is—

(a) employed by an NHS organisation listed in Part 1 of Schedule 5;

(b) an individual who is a medical contractor, or who is employed by a medical contractor or dental contractor, listed in Part 2 of that Schedule;

(c) an individual who is employed by an independent provider in circumstances described in paragraph (4);

(d) an individual who is a medical practitioner or dental practitioner listed in Part 3 of that Schedule; or

(e) who is employed by a determination employer: see Part 4 of that Schedule.

(2) Subject to regulation 19, a person is eligible to join this scheme if the person is—

(a) an individual of a category or description listed in Schedule 6; and

(b) a person in respect of whom the Secretary of State has made a determination under section 25(5) of the 2013 Act.

(3) Where such a determination is made, these Regulations apply to the person subject to any modification made by the Secretary of State by direction under section 25(8) of the 2013 Act.

(4) The circumstances are that the person—

(a) performs services pursuant to an approved qualifying contract (see regulation 150(3)); and

(b) satisfies the wholly or mainly condition (see regulation 150(4)).

(5) In paragraph (1), the reference to a person being employed does not include a reference to a person engaged under a contract for services.

(6) Where, in relation to a single employment or engagement for provision of services, a person is eligible to join this scheme by virtue of more than one of the sub-paragraphs of paragraphs (1) or (2), the scheme manager must determine which one sub-paragraph is to be used as the basis for membership.

Section 19 Restrictions on membership

(1) A person is not eligible to be a member of this scheme if the person—

(a) is under the age of 16 or over the age of 75;

(b) is eligible to be an active member of—

(i) a superannuation scheme established under section 1 or 9 of the Superannuation Act 1972 ; or

(ii) a public service pension scheme established under section 1(2)(a) or l(2)(d) of the 2013 Act,

in respect of service in such a scheme and is such a member;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) is a pensioner member of the 1995 Section or the 2008 Section except so far as otherwise provided pursuant to the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015;

(e) holds an honorary appointment and is not at the same time otherwise entitled to join this scheme;

(f) is employed by a dental contractor but is not a dental practitioner;

(g) is employed by—

(i) a GMS practice;

(ii) a PMS practice; or

(iii) an APMS contractor,

(iv) a primary care network management company

but does not assist the employer in the provision of services for the purposes of the GMS contract, PMS agreement or APMS contract or primary care network standard sub-contract (as the case may be);

(h) is a person—

(i) who—

(aa) becomes entitled to a Tier 2 IHP (see regulation 90); and

(bb) opts to exchange the Tier 2 IHP for a lump sum pursuant to regulation 109; or

(ii) to whom regulation 96(5)(b) applies.

(2) Schedules 7 and 8 make provision in relation to other persons who are not eligible to become members of this scheme except as permitted by the Secretary of State.

Section 20 Pensionable service

(1) Pensionable service is the aggregate of the following periods—

(a) a period of service in which a member (M) contributes to this scheme under regulation 30 or 31;

(b) a period of absence from service which counts as pensionable service under regulation 21; and

(c) a period of service credited to M as pensionable service under Part 7 (transfers).

(2) M's pensionable service does not include—

(a) a period of service in respect of which an employing authority or the Secretary of State has paid contributions to another occupational pension scheme in respect of M;

(b) where M is a pensioner member or a deferred member, a period taken into account—

(i) in determining M's entitlement to the pension in payment or, as the case may be, the deferred pension; or

(ii) in calculating the amount of the pension;

(c) a period of service in which the Secretary of State's liability to provide benefits is discharged—

(i) by the payment of a contributions equivalent premium under section 55(2) of the 1993 Act or article 3 of the 2016 Order ;

(ii) under regulation 42 (effect of refund); or

(iii) by the payment of a transfer value payment on transfer out under Part 7 (transfers).

(3) Paragraph (4) applies if—

(a) the employment in which M is an active member ceases; and

(b) a payment is made in respect of untaken leave.

(4) If this paragraph applies—

(a) M's pensionable service is treated as continuing for a period equal to the period of leave in respect of which payment is made; and

(b) the payment is treated as M's pensionable earnings for the period.

(5) If M—

(a) is a pensioner member; and

(b) is entitled to a pension under regulation 85 (partial retirement),

paragraph (2)(b) applies only to so much of M's pensionable service as is mentioned in regulation 85(3)(a) (the specified percentage of the pensionable service in respect of which M is an active member on the election day).

(6) For the purposes of calculating the length of a period of pensionable service—

(a) a year is a period of 365 days;

(b) 29th February in any year is ignored;

(c) part of a day is treated as a whole day.

Section 21 Absence from work

(1) Paragraph (2) applies if a member (M) is absent from work because of—

(a) illness or injury;

(b) maternity leave;

(c) adoption leave;

(d) paternity leave; ...

(e) parental leave shared parental leave or parental bereavement leave ; ...

(f) carer’s leave ; or

(g) neonatal care leave .

(2) The period of absence counts as pensionable service if M contributes to this scheme under regulation 30 or 31 in respect of the period of absence.

(3) Paragraph (4) applies if M—

(a) is on leave of absence;

(b) is not within paragraph (1); and

(c) contributes to this scheme by contributions made at the same intervals as those made by M before the absence.

(4) The maximum period of leave that can be counted as pensionable service is—

(a) if M contributes for a continuous period of 6 months starting with the first day of M's leave of absence, 6 months;

(b) if M contributes for a continuous period of less than 6 months starting with that day, the period in respect of which M pays the contributions.

(5) Paragraph (6) applies if M—

(a) has paid contributions for the period mentioned in paragraph (4)(a);

(b) remains on leave of absence that is not within paragraph (1); and

(c) at the same intervals as contributions made by M before the absence, contributes both member contributions under regulation 30 or 31 and employing authority contributions under regulation 33.

(6) The maximum period of leave that can be counted as pensionable service is—

(a) if M contributes for a continuous period of 18 months starting immediately after the end of the period mentioned in paragraph (4)(a), 18 months; and

(b) if M contributes for a continuous period of less than 18 months starting immediately after the end of that period, the period in respect of which M pays the contributions.

Section 22 Qualifying service

(1) The qualifying service of a member (M) is the aggregate of the following periods—

(a) M's pensionable service, except service mentioned in regulation 20(1)(c);

(b) a transfer in period;

(c) a transferred undertaking period;

(d) a period treated as qualifying service by virtue of paragraph (6);

(e) a period of relevant qualifying service in a connected scheme; and

(f) a period of service in respect of which M is a pensioner member in this scheme.

(2) In determining a period of pensionable service for the purposes of paragraph (1)(a), paragraph (b) of regulation 20(2) must be ignored.

(3) A transfer in period is the period equal to M's period as an active member in another occupational pension scheme (including a connected scheme) in relation to which a transfer value in respect of M's rights under the scheme has been accepted under Part 7.

(4) A transferred undertaking period is the period of employment that qualified M for rights under another occupational pension scheme where—

(a) M became an active member of this scheme on the transfer of M's employment to a new employer as the result of a transfer of undertaking to that employer; and

(b) no transfer payment in respect of those rights has been accepted under Part 7.

(5) Paragraph (6) applies if M is employed on a casual basis or is a locum practitioner and, for a period not exceeding 3 months—

(a) M ceases to pay contributions because of a break not exceeding that period in the employment in which M is an active member, but before the end of the period M re-enters the employment on the same basis as before the break; or

(b) M is not engaged as such a practitioner and so is not treated as being in pensionable service, but before the end of the period M is re-engaged as such a practitioner.

(6) The period mentioned in paragraph (5) is treated as a period when M continues to be in qualifying service and—

(a) M is not required to re-join the scheme on re-entering the employment or on being re-engaged; and

(b) if M is engaged as a locum practitioner, the period does not count as pensionable service as a practitioner.

(7) Relevant qualifying service in a connected scheme is service that counts for the purposes of—

(a) regulation C3 of the 1995 Regulations; or

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

Section 23 Effect of break in pensionable service

(1) In the following table a break in a period of pensionable service of a member (M) in circumstances set out in column 1 has the effect described in column 2.

Table

(2) In paragraph (1) a reference to the repayment of a refund of contributions includes the repayment of any interest on the contributions.

Section 24 Establishment of pension accounts

(1) The scheme manager must establish and maintain one or more of the following pension accounts for each member of this scheme in accordance with Schedule 9—

(a) active member's account;

(b) deferred member's account;

(c) pensioner member's account;

(d) additional pension account;

(e) pension credit member's account.

(2) A pension account—

(a) may be kept in any form the scheme manager considers appropriate; and

(b) must specify the details required by these Regulations.

(3) References in these Regulations to any amount specified in a pension account are references to the amount that is required by these Regulations to be so specified and not, if different, the amount actually so specified.

Section 25 Closure of pension accounts on transfer out or repayment of balance of contributions

(1) All pension accounts relating to a member (other than a pension credit member's account) must be closed if—

(a) a transfer payment is made in respect of the member's accrued rights under this scheme; or

(b) the member is repaid the balance of contributions under regulation 41.

(2) Paragraph (1) does not require the scheme manager to close an account that includes amounts to which the transfer payment or the refund does not relate or is not attributable.

(3) An account that is not closed because of paragraph (2) must be adjusted as the scheme manager considers appropriate to reflect the extinguishment of rights under this scheme.

Section 26 Calculation of amount of accrued pension

(1) For the purpose of a full retirement pension, the amount of accrued pension is calculated in accordance with paragraph 28 of Schedule 9.

(2) For the purpose of a partial retirement pension, the amount of accrued pension is calculated in accordance with paragraph 29 of Schedule 9.

(3) For the purpose of a deferred member's account, the amount of accrued earned pension is calculated in accordance with paragraph 30 of Schedule 9.

Section 27 Pensionable earnings

(1) The pensionable earnings of a member (M) are defined by the appropriate entry in the Table where—

(a) column 1 applies an identifying letter to the group to which M belongs;

(b) column 2 describes M's employment in or engagement with a health service activity; and

(c) column 3 specifies the nature of the income derived by M from the employment or engagement.

(2) M's pensionable earnings may be attributable to M belonging concurrently to more than one group in the Table.

(3) If M is a non-GP provider—

(a) paragraph (2) does not apply;

(b) if M derives income from more than one entity as a non-GP provider, M's practitioner income in respect of only one of those may be taken into account for the purpose of establishing M's pensionable earnings.

(4) If, in addition to an employment mentioned in paragraph (1), M holds an honorary office or appointment, a distinction award payable to M as a consequence of holding the office or appointment is treated—

(a) where M is in one employment, as pensionable earnings of that employment;

(b) where M is in two or more employments, as pensionable earnings of such of the employments as the scheme manager thinks appropriate.

(5) In paragraph (1), a practitioner is a person who is—

(a) a fully registered person (within the meaning of section 55 of the Medical Act 1983 ) who is not a GP registrar and is—

(i) a medical practitioner;

(ii) an ophthalmic practitioner; or

(iii) a locum practitioner; or

(b) a dental practitioner.

Section 27A Regulation 27A Pensionable earnings: scheme years 2015/16 to 2023/24

(1) This regulation applies to a member (M) if, during the scheme years 2015/16 to 2023/24—

(a) the terms of M’s employment contract required M to work less than whole-time, according to those terms, for any period of time; and

(b) M received a relevant payment.

(2) M, or if M is deceased, M’s personal representatives, may elect for all relevant payments to be included as pensionable earnings for the purposes of regulation 27.

(3) M’s employing authority must, before 1st January 2026, or in exceptional circumstances such later time as the scheme manager decides, send a notice in writing to M, or as the case may be, M’s personal representatives, that they may make an election under paragraph (2).

(4) The notice referred to in paragraph (3) must specify the amount of contributions M and M’s employing authority will be required to pay, and the amount of pensionable earnings M will be entitled to in respect of those contributions, if M or as the case may be, M’s personal representatives, makes an election under paragraph (2).

(5) An election under paragraph (2) must be—

(a) made—

(i) by M or as the case may be, M’s personal representatives, in writing in such form and including such information as M’s employing authority requires; and

(ii) in respect of all relevant payments received by M; and

(b) received by M’s employing authority before—

(i) the end of the period of three months beginning with the day on which M is provided with the notice under paragraph (3); or

(ii) such later date before 1st July 2026 as M’s employing authority considers reasonable in all the circumstances.

(6) For the purposes of this regulation, a relevant payment means so much of a payment of salary, wages, fees or other regular payment made to M by the employing authority—

(a) in respect of work undertaken by M during the scheme years 2015/16 to 2023/24 that was in excess of the work required by the terms of their employment contract described in paragraph (1)(a) up to the whole-time equivalent according to the terms of the member’s employment contract; and

(b) that was treated by M’s employing authority as a payment for overtime for the purposes of regulation 27.

(7) Where M, or as the case may be, M’s personal representatives, has made an election under paragraph (2), M will be treated as if they had also made an election under whichever of regulations C1(14) of the 1995 Regulations (meaning of “ pensionable pay ” and “ final year’s pensionable pay ”) or regulation 2.A.8(13) of the 2008 Regulations (meaning of “ pensionable pay ”) applies to M.

Section 28 Pensionable earnings: break in service

(1) Paragraph (3) applies to a member (M) if—

(a) the absence condition is satisfied; and

(b) the earnings used to calculate M's pensionable earnings under regulation 27 are reduced or cease.

(2) The absence condition is that M is absent from work because of—

(a) illness or injury;

(b) maternity leave;

(c) adoption leave;

(d) paternity leave; ...

(e) parental leave shared parental leave or parental bereavement leave ...

(f) carer’s leave ; or

(g) neonatal care leave .

(3) Amounts equal to the pensionable earnings that M would have received but for the absence are treated as having been paid to M.

(4) Paragraph (3) does not apply to M as respects any period after the earnings used to calculate M's pensionable earnings under regulation 27 have ceased to be paid to M if—

(a) M is neither a practitioner nor a non-GP provider; and

(b) M is within paragraph (2)(a).

(5) For the purposes of regulations 27 to 31, amounts equal to reduced earnings to which paragraph (6) applies are treated as pensionable earnings.

(6) The reduced earnings are the amount to which the earnings used to calculate M's pensionable earnings under regulation 27 are reduced—

(a) for any period while M is within paragraph (2);

(b) for any period (period A) while M is within paragraph (2)(b) to (g) and during a period following that period (period B) whilst M continues to be within that paragraph and M's earnings are reduced to zero ;

(c) for any period while M is within paragraph (2)(b) to (g) and M's earnings are immediately reduced to zero .

(7) For the purposes of paragraph (6)(b)—

(a) pay received by M in respect of days during which M returns to work for the purpose of keeping in touch with the workplace must be ignored;

(b) earnings reduced to zero in period B are treated as if they were reduced to the amount applicable to period A.

(7A) For the purposes of paragraph (6)(c)—

(a) pay received by M in respect of days during which M returns to work for the purpose of keeping in touch with the workplace must be ignored;

(b) earnings reduced to zero are treated as if they were the amount equal to the rate of M’s pensionable earnings immediately before the period of absence.

(8) During any period of absence which counts as pensionable service under regulation 21(4) or (6) (up to 24 months leave of absence with full contributions), amounts equal to the rate of M's pensionable earnings immediately before the absence are treated as pensionable earnings.

(9) This paragraph applies if M belongs to group D in regulation 27(1) and M's earnings have been reduced or ceased—

(a) if M is one of a number of practitioners or non-GP providers who have elected under paragraph 4(4) of Schedule 10, each practitioner's or non-GP provider's pensionable earnings are calculated as if the partnership's aggregate pensionable earnings were equal to the amount of the partnership's aggregate pensionable earnings for the period of 12 months ending immediately before M's earnings were reduced or ceased;

(b) in any other case, M is treated as having continued to receive the same average rate of pensionable earnings as during that period.

(10) If the earnings used to calculate M's pensionable earnings cease during a period of absence specified in paragraph (2)—

(a) a practitioner or non-GP provider within paragraph (2)(a) is treated as having continued in pensionable employment for a period of 12 months starting on the date on which M's earnings ceased and M is not treated as having left pensionable employment until the end of that period;

(b) a practitioner or non-GP provider falling within paragraph (2)(b) to (g) who paid contributions on the basis of reduced earnings in accordance with paragraphs (5) and (6)(b) or (c) must continue to pay contributions at that rate, but no refund of contributions or other benefit is payable until M actually leaves pensionable employment;

(c) a member other than a practitioner or non-GP provider is treated (subject to paragraph (7) and (7A) ) as having left pensionable employment, but no refund of contributions or other benefit is payable until M actually leaves pensionable employment.

(11) For the purposes of paragraph (10)(a)—

(a) during the 12 month period, the practitioner's or non-GP provider's pensionable earnings are to be calculated in accordance with paragraph (9)(a) or (b);

(b) at the end of the 12 month period, when M is regarded as having left pensionable employment, no refund of contributions or other benefit is payable until M leaves pensionable employment.

(12) For the purposes of paragraph (10)(b), the rate of contributions payable is the rate that would have been payable on the basis of reduced earnings in accordance with paragraph (5) and (6)(a) if the practitioner's or non-GP provider's reduced earnings had excluded earnings for a day during which the practitioner or non-GP provider, whilst on ... leave, returned to work for the purpose of keeping in touch with the workplace.

(13) If M fails to pay contributions which are required to be paid in respect of a period of absence to which this regulation applies—

(a) M is treated as having left pensionable employment; but

(b) no refund of contributions or other benefit is payable until M actually leaves pensionable employment.

(14) Benefits payable on the death of a member whose earnings ceased during a period of absence to which paragraph (2) applies are calculated as if the member had died in pensionable employment the day before the earnings ceased.

Section 29 Pensionable earnings: more than one employment

(1) This regulation applies if, at any time, a member (M) is in receipt of pensionable earnings in respect of two or more employments each of which is attributable to M belonging to any of groups A to C in the table in regulation 27.

(2) If it appears to the scheme manager that the total pensionable earnings for the employments exceeds the comparable amount, the excess is ignored for the purposes of this Part.

(3) The comparable amount is the amount that would be the pensionable earnings for a single comparable whole-time employment, not held concurrently with any other employment, under which services of the kinds performed in the two or more employments are performed.

(4) Each employing authority of M's must provide the scheme manager with such information relating to M's employment as the scheme manager requires for the purpose of enabling the scheme manager to determine what is a single comparable whole-time employment.

(5) In determining what is a single comparable whole-time employment, the scheme manager must have regard to guidance issued by the scheme actuary for the purpose.

(6) It is immaterial whether one or more of the employments mentioned in paragraph (1)—

(a) is with the same employing authority; or

(b) is treated as a part-time employment.

(7) An employment includes a contract to perform services.

Section 30 Members' contributions: employees

(1) This regulation applies in relation to an active member (M) who belongs to group A, B or C in regulation 27(1).

(2) M must make contributions to this scheme (“members' contributions”)—

(a) in respect of M's pensionable earnings;

(b) at M's contribution rate for the scheme year in question.

(3) Where paragraph 2 of Schedule 11 (determination of pensionable earnings for the purposes of setting a contribution rate for members) applies, M's contribution rate for the scheme years 2025/26 to 2027/28 is the percentage specified in column 2 of the following table in respect of the corresponding pensionable earnings band specified in column 1 into which M's pensionable earnings fall.

Table Scheme Years 2025/26 to 2027/28

(3A) Where paragraph 2A or 3 of Schedule 11 applies, M’s contribution rate for the scheme years 2025/26 to 2027/28 is the percentage specified in column 2 of the following table in respect of the corresponding pensionable earnings band specified in column 1 into which M’s pensionable earnings fall.

Table Scheme Years 2025/26 to 2027/28

(4) The Secretary of State must—

(a) with the consent of the Treasury; and

(b) having considered the advice of the scheme actuary,

determine the pensionable earnings bands and contribution percentage rates in the tables set out in this regulation in respect of each subsequent scheme year.

(5) M's employing authority must deduct member contributions from M's pensionable earnings and pay them to the scheme manager not later than the 19th day of the month following that in which the earnings were paid to M.

(6) If M's employing authority has failed to deduct contributions pursuant to paragraph (5), the scheme manager may recover the amount of unpaid contributions by deduction from benefits payable to, or in respect of, M if the scheme manager has notified M of an intention to do so.

(7) The figures in column 1 of the tables in paragraph (3) and (3A) (except the figures £13,259 and £13,260) are to be increased at the beginning of each scheme year starting with the scheme year 2026/27 , and ending with (and including) scheme year 2027/28, if there is a relevant increase in the consumer prices index for that scheme year, by the appropriate percentage for the scheme year rounded up to the nearest £1.

(8) For the purposes of paragraph (7)—

(a) there is a relevant increase in the consumer prices index for a scheme year if the consumer prices index for the month of September before that scheme year is higher than that for the previous September;

(b) the appropriate percentage for the scheme year is the same percentage as any percentage increase in the consumer prices index over the period specified by sub-paragraph (a);

(c) the “ consumer prices index ” means the general index of consumer prices (for all items) published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007;

(d) where there is a relevant increase after 1st April 2026 , the figures to be increased on the relevant date are the figures applicable to the previous scheme year.

Section 31 Members' contributions: practitioners and non-GP providers

(1) This regulation applies to an active member (M) who belongs to group D in regulation 27(1).

(2) M must make contributions to this scheme (“members' contributions”)—

(a) in respect of M's pensionable earnings;

(b) at M's contribution rate for the scheme year in question.

(3) M's contribution rate for the scheme year in question is the percentage specified in column 2 of the relevant table in paragraph (9) ...in respect of the corresponding pensionable earnings band specified in column 1 of the relevant table in paragraph (9) into which M's pensionable earnings fall.

(4) The Secretary of State must—

(a) with the consent of the Treasury; and

(b) having considered the advice of the scheme actuary,

determine the pensionable earnings bands and contribution percentage rates specified in paragraph (9) in respect of each subsequent scheme year.

(5) In determining members' contributions payable in accordance with this regulation, a host Board must take account of pensionable earnings from all practitioner service, including such pensionable earnings determined by another host Board.

(6) An employing authority that is not a host Board must, in respect of pensionable earnings it pays to M, take advice from a relevant host Board in determining the contributions payable in accordance with this regulation.

(7) If M is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, the authority must—

(a) deduct contributions due under this regulation from any pensionable earnings it pays to M; and

(b) if it is not also the host Board, pay the contributions to the host Board not later than the 7th day of the month following the month in which the earnings were paid.

(8) In any other case, M must pay members' contributions to the host board not later than the 7th day of the month following the month in which the earnings were paid.

(9) For the purposes of this regulation, the “ relevant table ” means—

(a) in respect of the scheme year 2022/23, Table 1A and Table 1B as applicable ;

(b) in respect of the scheme year 2023/24 , Table 2 ;

(c) in respect of the scheme year 2024/25 ... , Table 3 ;

(d) in respect of the scheme years 2025/26 to 2027/28, Table 4.

Table 1A Scheme Year 2022/23 from 1st April 2022 to 30th September 2022

Table 1B Scheme Year 2022/23 from 1st October 2022 to 31st March 2023

Table 2 Scheme Year 2023/24

Table 3 Scheme Year 2024/25 ...

Table 4 Scheme Years 2025/26 to 2027/28

(10) Regulations 38 and 39 and Schedule 12 make provision supplementary to this regulation and references in those regulations to the relevant table must be construed in accordance with paragraph (3).

(11) The figures in column 1 of Table 4 (except the figures £13,259 and £13,260) are to be increased at the beginning of each scheme year starting with the scheme year 2026/27 and ending with (and including) scheme year 2027/28, if there is a relevant increase in the consumer prices index for that scheme year, by the appropriate percentage for the scheme year rounded up to the nearest £1.

(12) For the purposes of paragraph (11)—

(a) there is a relevant increase in the consumer prices index for a scheme year if the consumer prices index for the month of September before that scheme year is higher than that for the previous September;

(b) the appropriate percentage for the scheme year is the same percentage as any percentage increase in the consumer prices index over the period specified by sub-paragraph (a);

(c) the “ consumer prices index ” means the general index of consumer prices (for all items) published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007;

(d) where there is a relevant increase after 1st April 2026 , the figures to be increased on the relevant date are the figures applicable to the previous scheme year.

Section 32 Members' contributions: redundancy

(1) This regulation applies if—

(a) a member's (M) employment is terminated by reason of redundancy;

(b) M will become entitled to payment of a pension under regulation 82 on the entitlement day for a premature retirement pension;

(c) the additional contribution option applies to M; and

(d) unless M pays an additional contribution as mentioned in paragraph (2), the amount of M's pension would be reduced pursuant to paragraph 7(5) of Schedule 13.

(2) M may pay such additional contribution as the scheme manager (having regard to the advice of the scheme actuary) determines will be sufficient to meet the cost of the pension insofar as that is not met by the contribution paid by M's employing authority under regulation 35.

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

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

(a) not less than £500 (or such other figure as the scheme manager thinks appropriate);

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

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

(a) if the insufficiency mentioned in paragraph 7(4) of Schedule 13 is less than £500, sub-paragraph (a) is ignored;

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

(6) If M decides to pay an additional contribution, the amount of the contribution must be paid to M's employing authority in sufficient time to enable the authority to remit the payment to the scheme manager at the same time as the authority pays the contribution it is required to pay pursuant to regulation 35.

(7) The additional contribution option applies if the terms and conditions of M's employment entitle M optionally to make an additional contribution towards the cost of paying the pension if the lump sum payment is insufficient to meet that cost in full.

Section 33 Contributions by employing authorities

(1) The employing authority of an active member of this scheme must contribute to the scheme in respect of the pensionable earnings of the member at the employing authority's standard rate: 23.7% .

(2) Paragraph (3) applies if—

(a) during the same period a person who belongs to any of groups A to C in the table in regulation 27(1) holds more than one employment (whether under a contract of service or for services) with an employing authority; and

(b) is an active member of this scheme in respect of each employment.

(3) This regulation and regulations 34 and 35 apply in respect of each employment as if it were the only employment held by the person.

(4) The Secretary of State may direct that for the purposes of this Part, “ employing authority ” includes one or more of the following—

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

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

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

(b) a successor, transmittee or assignee of all or part of an employing authority's business or functions;

(c) the last employing authority of a person to whom these Regulations apply.

(5) The employing authority's standard rate contribution must be paid to the scheme manager not later than the 19th day of the month following that in which the member is paid the pensionable earnings to which the contribution relates.

(6) A member's employing authority is determined in accordance with the following table where column 1 describes the nature of the member's engagement in the provision of health services and column 2 identifies the employing authority relating to that engagement.

Table

(7) Despite paragraph (1), employing authority contributions for—

(a) a medical practitioner employed by a medical contractor or non-GP provider must be paid by the medical contractor or non-GP provider (as the case may be);

(b) a medical contractor (including an ophthalmic medical practitioner with a GOS contract) or a non-GP provider must be paid by the medical contractor or non-GP provider (as the case may be).

(8) Contributions payable by an employing authority under regulation 48(3) or 57 for a medical practitioner employed by a medical contractor or non-GP provider must be paid by the medical contractor or non-GP provider (as the case may be) rather than the host Board.

Section 34 Employing authority contributions: interests of efficiency

(1) This regulation applies if—

(a) a member's (M) employment is terminated by M's employing authority in the interests of the efficient discharge of the employing authority's functions; and

(b) M will become entitled to payment of a pension under regulation 81 on the entitlement day for a premature retirement pension.

(2) The employing authority must make a contribution to the scheme manager in respect of the amount the scheme manager determines is required to meet the cost of paying the premature retirement pension under regulation 81.

(3) Paragraph (4) applies if—

(a) a pension becomes payable to M under regulation 81 in respect of the termination of M's employment with an employing authority (the “ first authority ” ); and

(b) M elects that at the same time a pension also becomes payable to M in respect of pensionable service with one or more other employing authorities.

(4) The first authority must also make any additional contribution for which the other employing authority or authorities would be liable in accordance with paragraph (2) if the other authority or authorities had terminated M's employment as mentioned in paragraph (1)(a).

(5) An employing authority is not responsible for meeting any costs in respect of the early payment of benefits to the extent that the benefits are attributable to contributions made under Chapter 5 of Part 4 (additional pension).

(6) An employing authority must pay contributions under this regulation by a single payment made within one month of the date on which the pension under regulation 81 becomes payable.

(7) The scheme manager, on the advice of the scheme actuary, must determine—

(a) the costs mentioned in paragraph (2);

(b) the amount of the payment mentioned in paragraph (4).

Section 35 Employing authority contributions: redundancy

(1) This regulation applies if—

(a) a member's (M) employment is terminated by reason of redundancy; and

(b) M will become entitled to payment of a pension under regulation 82 on the entitlement day for a premature retirement pension.

(2) M's employing authority must make a single lump sum contribution to the scheme manager of the relevant amount.

(3) The contribution must be paid—

(a) if the additional contribution option applies, not less than one month before the entitlement day (see regulation 83);

(b) in any other case, within one month of the date on which the pension under regulation 82 became payable.

(4) The relevant amount is—

(a) if the additional contribution option applies, whichever is the lesser of—

(i) the amount the scheme manager determines is required to meet the cost of paying the premature retirement pension under regulation 82; and

(ii) the amount the employing authority would otherwise be required to pay to M in consequence of M's redundancy;

(b) in any other case, the amount determined under sub-paragraph (a)(i).

(5) The reference to the additional contribution option must be construed in accordance with regulation 32(7).

(6) Paragraph (7) applies if—

(a) a pension becomes payable to M under regulation 82 in respect of the termination of M's employment with an employing authority (the “ first authority ” ); and

(b) M elects that at the same time a pension also becomes payable to M in respect of pensionable service with one or more employing authorities.

(7) The first authority must also make any additional contribution for which the other employing authority or authorities would be liable in accordance with paragraph (2) if the other authority or authorities had terminated M's employment as mentioned in paragraph (1)(a).

(8) In making a determination for the purposes of paragraph (4)(a)(i), the scheme manager must have regard to the advice of the scheme actuary.

Section 36 Interest and administration charges: late paid contributions

(1) There is a chargeable event if an employing authority fails to pay—

(a) the contributions and the scheme administration charge it is required to pay under regulation 30, 31, 33, 34, 35, 36A, 48 or 57;

(b) on or before the date specified in the regulation concerned.

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

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

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

(c) any other factors that the scheme manager considers relevant.

(3) Where there is a chargeable event, the employing authority is liable to pay—

(a) standard rate interest on the amount of unpaid contributions constituting that event or the amount of unpaid scheme administration charge constituting that event; or

(b) both interest and the charge referred to in (a); and

(c) a supplementary charge in respect of each such event.

(4) Where the scheme manager becomes aware of a chargeable event, the scheme manager must give the employing authority a written notice specifying—

(a) the date of the chargeable event;

(b) the amount of unpaid contributions or, as the case may be, the scheme administration charge determined under paragraph (2);

(c) the amount of interest at the standard rate payable in respect that event;

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

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

(5) An amount payable by way of interest or payable by way of an supplementary charge is to be paid as a single lump sum unless the scheme manager—

(a) considers the case to be exceptional; and

(b) considers it appropriate for all, or part, of the amount to be paid over a period and by a number of instalments determined by the scheme manager.

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

(7) The standard rate of interest in respect of arrears for the scheme year 2015/2016 and subsequent years is the rate of the consumer prices index for the month of February immediately preceding the scheme year in which the chargeable event arose plus 3% compounded at annual intervals.

(8) The supplementary charge in respect of arrears for the scheme year 2015/2016 and subsequent years is £75.

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

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

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

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

(b) a successor, transmittee or assignee of all or part of an employing authority's business or functions.

(10) In paragraph (7), “ consumer prices index ” means the all item consumer prices index published by the UK Statistics Authority.

Section 36A Scheme Administration Charge

(1) Each employing authority must, in respect of each member who is liable to contribute to this scheme, pay a scheme administration charge in accordance with this regulation.

(2) The scheme administration charge is to be paid to the scheme manager on the same day, and in respect of the same period, as the employer’s standard rate contributions under regulation 33 are to be paid by that employing authority in respect of the member referred to in paragraph (1).

(3) The scheme administration charge is to be calculated as a percentage of that member’s pensionable earnings, for period mentioned in paragraph (2).

(4) The percentage mentioned in paragraph (3) is to be determined by the scheme manager taking into account the administrative costs of running the scheme and notified to each employing authority.

Section 37 Members' contributions: records and estimates

(1) An employing authority must, in respect of a person, keep a record of—

(a) contributions paid under regulation 30, 48, 62 or 64;

(b) contributions due under regulation 30, 48, 62 or 64, but unpaid;

(c) contributions paid under regulation 33 , 34 or 35 ;

(d) contributions due under regulation 33 , 34 or 35 , but unpaid;

(e) hours or sessions of service if the employment is not whole-time employment;

(f) pensionable earnings;

(g) absences from work referred to in regulation 21;

(h) starting and termination of pensionable employment;

(i) reasons for termination of pensionable employment.

(2) The record must be in a manner approved by the scheme manager.

(3) Unless the scheme manager waives the requirement, an employing authority must provide a composite statement in respect of the matters referred to in paragraph (1) in respect of all scheme members to the scheme manager before the end of the period of 2 months starting with the end of each scheme year.

(4) Where—

(a) an employing authority has provided information in accordance with paragraph (3); and

(b) there is a change to the information,

the authority must, before the end of the period of one month after the change, provide the scheme manager with the revised information.

(5) An employing authority must provide to the scheme manager in respect of each scheme year details of the total contributions paid for all scheme members under regulations 30, 33, 62 and 64 and the details must be provided—

(a) before the end of the period of 2 months after a request for the information is made;

(b) in a manner required by the scheme manager.

(6) Where—

(a) an employing authority has provided the information requested in paragraph (5); and

(b) there is a revision to the total contributions made,

the authority must, before the end of the period of one month after the revision, provide the scheme manager with the revised total.

(7) If the scheme manager so requests, an employing authority must, in respect of each scheme year, provide to the scheme manager a statement of estimated total contributions under regulations 30, 33, 48, 62 and 64—

(a) not later than one month before the start of the scheme year;

(b) in a manner required by the scheme manager.

Section 38 Members' contributions: supplementary: medical practitioners and non-GP providers

(1) This regulation applies to a member (M) who belongs to group D in regulation 27(1) by virtue of being—

(a) a medical practitioner; or

(b) a non-GP provider.

(2) Paragraph (3) applies if, in respect of a scheme year, M—

(a) has certified M's pensionable earnings in accordance with Part 1 of Schedule 12 and forwarded a record of the earnings to the host Board; or

(b) was not required to certify M's earnings in accordance with Part 1 of Schedule 12 but the host Board has the figure that represents M's pensionable earnings for that year.

(3) M's contributions payable for the scheme year in question are those specified in column 2 of the relevant table in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to the aggregate of—

(a) certified or final pensionable earnings from all group D sources uprated according to the formula:

where—

PE is the certified or final amount of M's pensionable earnings from all group D sources for the year;

NDPS is the number of days of M’s group D service in the scheme year ; and

(b) any reduced pensionable earnings M is treated as having received during an absence from work in accordance with regulation 28.

(4) If paragraph (3) does not apply to M in respect of a scheme year, M must pay contributions at the rate in column 2 of the relevant table on the basis of whichever of the following the host Board considers the most appropriate in the circumstances (including amounts equal to reduced pensionable earnings that M is treated as having received during an absence from work (see regulation 28)) —

(a) an amount of M's earnings that has been agreed between M and the host Board;

(b) an amount of M's earnings that corresponds to M's most recent certified or final pensionable earnings referred to in paragraph (2); or

(c) an amount of M's earnings that corresponds to the host Board's estimate of M's pensionable earnings from all group D sources for that year.

(5) If paragraph (4) applies to M in respect of a scheme year and paragraph (2)(a) or (b) is subsequently satisfied in respect of that year, M must pay contributions at the rate determined in accordance with paragraph (3).

(6) A host Board may adjust M's contribution rates for a scheme year determined in accordance with paragraph (4)—

(a) by agreement between M and the host Board; or

(b) without such agreement, if the host Board is satisfied that M's pensionable earnings will exceed the amount used to so determine the contribution rate.

(7) If M concurrently belongs both to group D and to any of groups A to C in regulation 27(1)—

(a) contributions payable in respect of M's service for the purposes of group D must be determined under this regulation; and

(b) contributions payable in respect of M's service for the purposes of any of groups A to C must be determined under regulation 30.

(8) In the application of this regulation to a non-GP provider who derives income from more than one group D source, a reference to all group D sources must be construed as a reference to such one of those sources as the non-GP provider specifies for the purposes of this regulation.

Section 39 Members' contributions: supplementary: dental practitioners

(1) This regulation applies to a member (M) who belongs to group D in regulation 27(1) by virtue of being a dental practitioner.

(2) Paragraph (3) applies if, in respect of a scheme year, M—

(a) has reconciled or certified M's pensionable earnings in accordance with Part 1 of Schedule 12 and forwarded a record of those earnings to the host Board; or

(b) was not required to reconcile or certify M's earnings in accordance with Part 1 of Schedule 12, but the host Board has the figure that represents M's pensionable earnings for the scheme year.

(3) M's contributions payable for the scheme year in question are those specified in column 2 of the relevant table in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to the aggregate of—

(a) reconciled, certified or final pensionable earnings from all group D sources uprated according to the formula:

where—

PE is the reconciled, certified or final amount of the dental practitioner's pensionable earnings from all group D sources for the year;

NDPS is the number of days of dental practitioner service in the scheme year ; and

(b) any reduced pensionable earnings M is treated as having received during an absence from work in accordance with regulation 28.

(4) If paragraph (3) does not apply to M in respect of a scheme year, M must pay contributions at the rate in column 2 of the relevant table on the basis of whichever the host Board considers the most appropriate in the circumstances (including amounts equal to reduced pensionable earnings that M is treated as having received during an absence from work (see regulation 28)) —

(a) the amount of M's earnings that has been agreed between the host Board and M;

(b) the amount of M's earnings that correspond to M's most recent certified or final pensionable earnings referred to in paragraph (2); or

(c) the amount of M's earnings that corresponds to the host Board's estimate of M's pensionable earnings from all group D sources for the year uprated in accordance with the formula in paragraph (3)(a).

(5) If paragraph (4) applies to M in respect of a scheme year, and paragraph (2)(a) or (b) is subsequently satisfied in respect of that year, M must pay contributions at the rate determined in accordance with paragraph (3).

(6) A host Board may adjust M's contribution rates for a scheme year determined in accordance with paragraph (4)—

(a) by agreement between M and the host Board; or

(b) without such agreement, if the host Board is satisfied that M's pensionable earnings will exceed the amount used to so determine the contribution rate.

Section 40 Eligibility for refund

(1) Contributions made by a member (M) must be repaid to M if—

(a) the 1993 Act condition applies; or

(b) the short service condition applies.

(2) The “1993 Act condition” is that—

(a) Chapter 2 of Part 4ZA of the 1993 Act applies to M; and

(b) the repayment is made in accordance with that Chapter.

(3) The short service condition applies if—

(a) M does not qualify for benefits under regulation 72;

(b) M is not a pensioner member;

(c) M ceases to be an active member;

(d) the 1993 Act condition does not apply to M; and

(e) M makes a claim in writing to the scheme manager for the repayment.

Section 41 Amount of refund

(1) The amount of a repayment to a member (M) pursuant to regulation 40 is—

(a) if the 1993 Act condition applies, the amount to which M is entitled to be paid pursuant to Chapter 2 of Part 4ZA of that Act, less the appropriate deductions;

(b) if the short service condition applies, an amount equal to the sum of the contributions paid by M, less the appropriate deductions.

(2) The appropriate deductions are—

(a) so much of the contributions equivalent premium paid in respect of M under section 55 of the 1993 Act or article 3 of the 2016 Order ; and

(b) an amount equal to the income tax payable under section 205 of the 2004 Act (short service lump sum charge) as a result of the repayment.

(3) M is entitled to interest on the amount of the repayment unless M's pensionable service ceases because M's employment is terminated—

(a) pursuant to M's contract of employment;

(b) at M's request; or

(c) by reason of misconduct or inefficiency.

(4) The rate of interest is 2.5% per year calculated on a compound basis with yearly rests.

(5) Interest is payable in respect of the period starting on 1st April following the day when M started to pay contributions and ending on the day M leaves pensionable service.

(6) Paragraphs (4) and (5) do not apply if—

(a) regulation 40(1)(a) applies; and

(b) M is entitled to a greater amount of interest under Chapter 2 of Part 4ZA of the 1993 Act.

(7) So far as contributions paid by M were paid under another scheme and were included in a transfer payment to this scheme—

(a) interest for the period before the transfer period was made is calculated in accordance with the other scheme (subject to any enactment applicable to the transfer); and

(b) paragraphs (4) and (5) do not apply as respects that period.

Section 42 Effect of refund

(1) If a repayment of contributions is made pursuant to regulation 40, the rights of the member (M) under this scheme are extinguished unless—

(a) M or M's spouse or civil partner is entitled to a guaranteed minimum pension under the scheme; and

(b) no contributions equivalent premium has been paid.

(2) Paragraph (1) does not apply if—

(a) M again becomes a member of this scheme; and

(b) before the end of the period of 6 months starting on the date M again becomes a member, M repays to the scheme manager the contributions together with any interest paid in respect of them.

Section 43 Eligibility to make buy-out election

(1) A member (M) who has a prospective normal pension age over 65 may elect to pay contributions to buy out the actuarial reduction (“buy-out election”) in accordance with this Chapter.

(2) A buy-out election ceases to have effect when the earliest of the following occurs—

(a) M reaches normal pension age;

(b) a retirement pension other than a partial retirement pension becomes payable to M;

(c) M revokes the election or is taken to revoke the election.

(3) A buy-out election may only be made before the end of the period of 3 months after—

(a) M enters pensionable service under this scheme in accordance with paragraph (3A) ; or

(b) the beginning of a subsequent scheme year.

(3A) For the purposes of paragraph (3)(a), M is treated as entering pensionable service on each occasion that an active member’s account is established in respect of that service in accordance with regulation 24(1)(a).

(4) When making a buy-out election, M must—

(a) be in pensionable service; and

(b) not have reached normal pension age.

(5) M may make an election under this regulation on one occasion only during each period of pensionable service in respect of which an active member’s account is established in accordance with regulation 24(1)(a).

Section 44 Making and varying a buy-out election

(1) A buy-out election made by a member (M) must state the number of years in respect of which the actuarial reduction is to be bought out.

(2) The number of years—

(a) must not exceed 3 or (if less) the number of years from the date of M's 65th birthday until M's prospective normal pension age; and

(b) must be a whole number of years unless—

(i) M's prospective normal pension age is expressed otherwise than as a whole number of years; or

(ii) the scheme manager (having considered the advice of the scheme actuary) considers in M's circumstances it is unreasonable to restrict the period to whole years.

(3) A buy-out election must be made by written notice to the scheme manager.

(4) The notice of election must—

(a) if M is a member of this scheme by virtue of more than one employment, specify the names of each of the employing authorities; and

(b) be in such form and provide such other information as the scheme manager requires.

(5) The scheme manager may ask M to provide further information.

(6) M may by written notice to the scheme manager vary a buy-out election to increase the period for which the actuarial reduction is bought out at any time before a retirement pension becomes payable to M.

(7) Paragraph (6) is subject to paragraph (2) and regulations 43(3) and (4).

(8) Regulation 46 applies to a notice under paragraph (6) as it applies to an election under regulation 43(1) and, for the purposes of this paragraph, the amount found under regulation 46(2) includes the value of any increase mentioned in paragraph (6).

Section 45 Accepting a buy-out election

(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (M).

(2) The notice must state—

(a) the rate of the monthly payments determined under regulation 47; and

(b) the date on which M reaches prospective normal pension age.

(3) A buy-out election takes effect when M receives notice that the scheme manager has accepted the election.

(4) The buy-out period is the number of scheme years starting with (and including) the scheme year in which the buy-out election takes effect and ending with (and including) the scheme year in which the earliest of the following occurs—

(a) M revokes or is taken to have revoked the election;

(b) M ceases to be a member of the scheme;

(c) M reaches normal pension age.

(5) The buy-out period does not include a scheme year in which payment of buy-out contributions is suspended by virtue of regulation 49.

Section 46 Overall limit on extra pension

(1) The scheme manager must not accept an election under regulation 43(1) from a member if—

(a) the member has made an election under regulation 55; and

(b) paragraph (2) applies.

(2) This paragraph applies if the value of the actuarial reduction bought out exceeds the greater of the first and second amounts in paragraph (3).

(3) In this paragraph—

(a) the first amount is B – A;

(b) the second amount is L – A,

where—

B is the maximum potential value (determined having regard to the advice of the scheme actuary and the limits in regulation 44(2)) at the date of the election under regulation 43 (in terms of annual pension) of the reduction for the period for which the buy-out has effect;

L is the overall limit for the purposes of regulation 61; and

A is the value (in terms of annual pension) of any additional pension purchased or being purchased by the member under this scheme.

(4) A reference to the value of an additional pension is, in the case of a member who has made more than one election under regulation 55, a reference to the aggregate value of all the additional pensions in respect of which the member has made an election.

Section 47 Determination of contributions payable

(1) The scheme manager must, after consultation with the scheme actuary, determine the rate of the monthly payments to be paid in respect of a buy-out election.

(2) The scheme manager—

(a) may determine the rate of the monthly payments by reference to the length of the period between the date of the buy-out election and the date when the member will reach prospective normal pension age; and

(b) may exercise the functions under this paragraph so as to re-determine the rate of the monthly payments during that period.

(3) Unless the scheme manager re-determines the rate, monthly payments following a gap in service not exceeding 5 years are the same as before the gap.

Section 48 Payment of buy-out contributions

(1) A member (M) must—

(a) make the first monthly payment within 2 months after the end of the month in which a buy-out election is accepted; and

(b) continue to make the monthly payments until the end of the period mentioned in regulation 47(2)(a).

(2) If the scheme manager re-determines the amount of the monthly payment during the period mentioned in regulation 47(2)(a), M must pay the re-determined amount from—

(a) the start of the next scheme year; or

(b) such later date as the scheme manager specifies.

(3) If the member's employing authority agrees to pay any or part of the contributions, the amount payable by the employing authority must be paid at the time the member would otherwise have been required to pay them.

(4) For the purpose of determining the amount of contributions payable during any period in which M's pensionable earnings are reduced as mentioned in regulation 28, the reduction in pensionable earnings must be disregarded.

(5) In this regulation, “ the first monthly payment ” includes any monthly payment due in arrears for the period between the start of the scheme year in which the buy-out election is accepted and the date of that first payment.