The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008

CHAPTER 8 N.I. ABATEMENT

Application of Chapter 8 N.I.

241.—(1) This Chapter applies to practitioners.

(2) This Chapter applies if—

(a) a person who is a pensioner member of [F1 this Section of] the Scheme is employed in HSC employment, or

(b) the person's pension is a pension under—

(i) regulation 182 (early retirement on ill-health: active members),

(ii) regulation 184 (early retirement on ill-health: deferred members), and

(c) the person has not reached the age of 65.

(3) In this Chapter “HSC employment” includes—

(a) employment to which regulations made under sections 10 (1) and (2) and 12 (1) and (2) of, and Schedule 3 to, the Superannuation Act 1972 apply,

(b) employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967 M1 ,

(c) employment to which regulations made under section 10 of the Superannuation Act 1972 M2 and having effect in Scotland apply,

(d) employment [F2 commencing on or before 31st March 2012] to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald) applies,

(e) employment with an employer with whom an agreement has been made under section 235 of the National Health Service Act 2006.

(4) In this Chapter, subject to paragraph (5)—

(a) a person to whom this Chapter applies is referred to as an “employed pensioner”,

(b) the pension to which the employed pensioner is entitled is referred to as the “old service pension”,

(c) the employment in respect of which the pension is payable is referred to as “the old employment”, and

(d) the employment in which the employed pensioner is employed is referred to as the “new employment”.

(5) This Chapter applies whether or not the person is an active member of [F3 this Section of] the Scheme in the new employment.

F4 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in reg. 241(2)(a) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), reg. 1(2), Sch. 2 Pt. 1

F2 Words in reg. 241(3)(d) inserted (1.4.2012) by The Health and Personal Social Services (Superannuation), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2012 (S.R. 2012/78), regs. 1(2), 19

F3 Words in reg. 241(5) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), reg. 1(2), Sch. 2 Pt. 1

F4 Reg. 241(6) omitted (retrospective and with effect in accordance with reg. 1(4)(g) of the amending Rule) by virtue of The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 44

Marginal Citations

M1 1967 c. 28

M2 1972 c. 11

Information N.I.

[F5 242.— (1) A person who becomes an employed pensioner must—

(a) inform the person’s employer in the new employment, and any other person that the Department may specify, that the old service pension is payable; and

(b) where requested, provide any information about their relevant income in the new employment to the Department or to any other person that the Department may specify.

(2) A person who ceases to be an employed pensioner in one new employment and becomes an employed pensioner in another new employment must—

(a) inform the person’s employer in the other new employment, and any other person that the Department may specify, that the old service pension is payable; and

(b) where requested, provide any information about their relevant income in the new employment to the Department or to any other person that the Department may specify.

(3) In this regulation “relevant income” has the same meaning as in regulation 244.]

Textual Amendments

F5 Reg. 242 substituted (with effect in accordance with reg. 1(3) of the amending Rule) by The Health and Personal Social Services (Superannuation), Health and Social Care (Pension Scheme) and Health and Personal Social Services (Injury Benefits) (Amendment and Transitional Provisions) Regulations (Northern Ireland) 2009 (S.R. 2009/65), regs. 1(2), 76 (with reg. 89)

Reduction of pension N.I.

243.—(1) If the condition in paragraph (2) is met, the amount of the old service pension for any [F6 financial year] is reduced.

(2) The condition is that the employed pensioner's relevant income for the [F7 financial year] exceeds the employed pensioner's previous earnings.

(3) The amount of the reduction under paragraph (1) is equal to that excess but cannot exceed the enhancement amount.

(4) For the meaning of “relevant income” and “enhancement amount” see regulation 244.

(5) For the meaning of “previous earnings” see regulation 245.

[F8 (6) For the purpose of calculating the reduction to be made under paragraph (1) in respect of any part of a financial year, the amount of the member’s previous pay will be reduced proportionately.]

F8 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) If the member has a guaranteed minimum under section 10 of the 1993 Act in relation to the old service pension, nothing in this regulation requires the reduction of the old service pension below the amount of the member's guaranteed minimum in relation to it.

Textual Amendments

F6 Words in reg. 243(1) substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 45(2)

F7 Words in reg. 243(2) substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 45(2)

F8 Reg. 243(6) substituted for reg. 243(6)(7) (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 45(3)

Meaning of “relevant income” N.I.

244.—(1) The employed pensioner's relevant income for a [F9 financial year] is the aggregate of—

(a) the amount of pensionable earnings received by the employed pensioner during that year from the new employment (assuming, in any case where the employed pensioner is not an active member of [F10 this Section of] the Scheme in the new employment, that the employed pensioner is such a member), and

(b) the enhancement amount in relation to the old service pension.

(2) The enhancement amount, in relation to an old service pension, is the difference between—

(a) the amount of that pension for that year, and

(b) the amount that that pension would have been had it been payable under regulation 179 (early payment of pensions with actuarial reduction).

(3) If the old service pension is payable under regulation 182 or 184 (ill-health pensions) to an employed pensioner who had not reached the age of 55 at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)—

(a) the fact that entitlement to a pension under regulation 179 depends on reaching that age is ignored, but

(b) the employed person's actual age at the relevant time is taken into account in determining the reduction to be made under regulation 179(2).

(4) If the old service pension is a tier 2 ill-health pension, for the purposes of paragraph (2)(b), only the employed pensioner's actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 179.

(5) If the employed pensioner exercised the option under regulation 185 (general option to exchange part of pension for lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

[F11 (5A) The resulting reduction in the pension is taken into account for the purposes of this regulation if the employed pensioner—

(a) exercised the option under regulation 189 (Election to allocate pension) in relation to the old service pension; or

(b) is a 2008 Section Optant who was entitled to a lump sum under regulation 260K in relation to the old service pension.]

(6) References in this regulation to the amount of a pension for any [F12 financial year] are to its amount for that year after any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971 in respect of that pension, including the increases that would have been payable in respect of any amount not paid because of a reduction ignored under paragraph (5).

Textual Amendments

F9 Words in reg. 244(1) substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 46

F10 Words in reg. 244(1)(a) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), reg. 1(2), Sch. 2 Pt. 1

F11 Reg. 244(5A) inserted (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Injury Benefits and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/286), Pt. 3 reg. 48, reg. 1(2)

F12 Words in reg. 244(6) substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 46

Meaning of “previous earnings”: general N.I.

245.—(1) For the purposes of this Chapter an employed pensioner's previous earnings is the average of the annual amounts of the member's earnings in respect of practitioner service (or service which is treated as practitioner service) uprated to the date of entitlement to the pension in accordance with regulation 176(4)(b) and adjusted in each [F13 financial year] for inflation.

(2) The reference in paragraph (1) to adjusting that amount in each [F13 financial year] for inflation is to increasing it by the same amount as that by which an annual pension equal to that amount would have been increased under the Pensions (Increase) Act (Northern Ireland) 1971 at 6th April in that [F13 financial year] if—

(a) that pension was eligible to be so increased, and

(b) the beginning date for that pension were the same as the beginning date for the old service pension.

(3) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of section 8(2) of the Pensions (Increase) Act (Northern Ireland) 1971.

Textual Amendments

F13 Words in reg. 245 substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 47

Employed pensioners with more than one pension N.I.

246.—(1) This regulation provides for the application of this Chapter where a person is entitled to more than one old service pension falling within regulation 241(2)(c) in any [F14 financial year] .

(2) In regulation 243—

(a) for paragraphs (1) and (2) substitute—

“(1) If the condition in paragraph (2) is met, the amount of the old service pensions for any [F14 financial year] is reduced.

(2) The condition is that the employed pensioner's relevant income for the [F14 financial year] exceeds the employed pensioner's previous earnings for all the old employments.

(3) The amount of the reduction under paragraph (1) in the case of each of the pensions is equal to the same proportion of that excess as the amount of the pension for the [F14 financial year] before the reduction bears to the sum of the pensions for that year before the reduction”.

(2A) In regulation 244(1)(b) for “the old service pension” substitute “ all the old service pensions ”.

(3) Regulation 247 applies as if references to the old service pension were references to all those pensions.

Textual Amendments

F14 Words in reg. 246 substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 48

Provisional reductions and later adjustments N.I.

247.—(1) If it appears to the Department that the condition in regulation 243(2) will be met in any [F15 financial year] in respect of the old service pension for that year, the Department may reduce the amount of that pension paid at any time in the [F15 financial year].

(2) Where the old service pension for a [F15 financial year] is being reduced under this Chapter, the Department must review the amount of the reduction—

(a) at the end of the [F15 financial year], and

(b) at any time during the [F15 financial year] if it appears to the Department that—

(i) the amount of the reduction made for the year is or may become incorrect, or

(ii) no reduction should be made.

(3) If at any time during the [F15 financial year] it so appears, the Department must make such adjustments, whether by altering the amount of the reduction or by repaying to the employed pensioner any amount that should not have been deducted from the pension, as appear to the Department to be required.

(4) If at the end of the [F15 financial year] it is apparent that—

(a) the reduction in the old service pension for the year was excessive, or

(b) no such reduction should have been made,

the Department must repay the amount due to the employed pensioner.

(5) If at the end of the [F15 financial year] it is apparent that the old service pension paid for the year exceeded the amount due because the reduction in the old service pension required under regulation 243 was not made, the employed pensioner must repay the excess to the Department.

(6) Paragraph (5) does not affect the Department's right to recover a payment or overpayment in any case where the Department considers it appropriate to do so.

Textual Amendments

F15 Words in reg. 247 substituted (retrospective and with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme and Additional Voluntary Contributions), Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2013 (S.R. 2013/259), regs. 1(2), 49