The National Health Service Pension Scheme Regulations 1995

Meaning of “pensionable pay" and “final year’s pensionable pay" E+W+S

C1.— [F1 (1) In these Regulations, “pensionable pay” means, subject to the provisions of this regulation—

(a) all salary, wages, fees and other regular payments made to a member in respect of pensionable employment as an officer, but does not include bonuses, payments made to cover expenses or payments for overtime;

(b) pensionable earnings calculated in accordance with paragraph 3, or as the case may be, paragraph 4 of Schedule 2 in the case of a non-GP provider who does not receive any of the payments referred to above in respect of his pensionable employment as an officer by virtue of the application of these Regulations to him as if he were such an officer under regulation R1.]

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

[F2 (3) In the case of a member who—

(a) joined the scheme before 1st June 1989 and has a break in pensionable employment on or after that date—

(i) any pensionable pay earned preceding the break in that employment in excess of the permitted maximum will not be ignored;

(ii) any pensionable pay earned after the break in that employment in excess of the permitted maximum will be ignored;

(b) joined the scheme before 1st June 1989 and to whom sub-paragraph (a) does not apply, pensionable pay in excess of the permitted maximum will not be ignored.]

[F3 (3A) Where a member who was eligible to be a member before 1st June 1989 joins the scheme on or after that date by virtue of being a person to whom regulation B5 applies, any amount by which that member’s pensionable pay exceeds the permitted maximum will not be ignored when calculating the amount of any contributions or benefits payable under these Regulations except in relation to a period following a break in pensionable employment on or after that date.]

(4) For the purposes of [F4 paragraphs (3) and (3A)], no account shall be taken of a break in pensionable employment if—

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

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

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

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

(e) the break corresponds to the member’s absence from work wholly or partly because of pregnancy or confinement and the member returns to work after the break in exercise of her right under Section 39(1) of the Employment Protection (Consolidation) Act 1978 M1 and returns to pensionable employment no later than one month after returning to work;

[F5 (f) the break is due to the member opting out of the scheme as the result of a contravention which is actionable under section 62 of the Financial Services Act 1986 [F6 or section 150 of the Financial Services and Markets Act 2000].]

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

(6) In these Regulations, “final year’s pensionable pay" means pensionable pay in respect of the member’s last year of pensionable employment, ending on the date the member ceases to be in such employment, or dies, whichever occurs first, except—

(a) if pensionable pay was greater in either or both of the 2 consecutive years immediately preceding the last year, “final year’s pensionable pay" means pensionable pay in respect of the year immediately preceding the last year or, if greater, pensionable pay in respect of the first of those 2 consecutive years; and

(b) if the member was in pensionable employment for less than 12 months, “final year’s pensionable pay" means—

(7) In this regulation, “the permitted maximum" means the same as in section 590C of the Income and Corporation Taxes Act 1988 (earnings cap) M2 .

Textual Amendments

F1 Reg. C1(1) substituted (with effect from 1.4.2004) by The National Health Service (Pension Scheme and Injury Benefits) Amendment Regulations 2005 (S.I. 2005/661), regs. 1(1), 5

F2 Reg. C1(3) substituted (with effect from 1.4.2003) by The National Health Service Pension Scheme (Amendment) Regulations 2003 (S.I. 2003/2322), regs. 1(1)(2)(b), 2(2)

F3 Reg. C1(3A) inserted (12.2.1997) by The National Health Service Pension Scheme and Provision of Information and Administrative Expenses etc. (Amendment) Regulations 1997 (S.I. 1997/80), regs. 1, 4(1)

F4 Words in reg. C1(4) substituted (12.2.1997) by The National Health Service Pension Scheme and Provision of Information and Administrative Expenses etc. (Amendment) Regulations 1997 (S.I. 1997/80), regs. 1, 4(2)(a)

F5 Reg. C1(4)(f) added (12.2.1997) by The National Health Service Pension Scheme and Provision of Information and Administrative Expenses etc. (Amendment) Regulations 1997 (S.I. 1997/80), regs. 1, 4(2)(b)

F6 Words in reg. C1(4)(f) inserted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 483(3)

Marginal Citations

M1 1978 c.44. Section 39 was inserted by section 23 of, and Schedule 2 to, the Trade Union Reform and Employment Rights Act 1993 c.19.

M2 1988 c.1. Section 590C was inserted by section 75 of, and Part I of Schedule 6 to, the Finance Act 1989.