The National Health Service Pension Scheme Regulations 1995

Amount of member’s cash equivalent E+W+S

M3.—(1) Subject to paragraphs (2) and (3), the member’s cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971, calculated and verified as required by Chapter IV of Part IV of the Pension Schemes Act 1993 (transfer values).

(2) If the member requires the cash equivalent to be used to acquire rights under an occupational pension scheme which is not a contracted–out scheme within the meaning of Chapter I of Part III of the Pension Schemes Act 1993 or under a personal pension scheme which is not an appropriate scheme within the meaning of that Chapter and the trustees or managers of the receiving scheme are unable or unwilling to accept liability for the member’s rights to guaranteed minimum pensions the cash equivalent will be reduced by an amount sufficient for the Secretary of State to meet her liability to provide guaranteed minimum pensions in respect of the member.

(3) If the cash equivalent is not to be used to acquire rights in a scheme that participates in the Public Sector Transfer Arrangements and the Secretary of State fails, without reasonable excuse, to do what is needed to carry out what the member requires within 6 months of the member’s leaving pensionable employment or, if later, exercising the right, the member’s cash equivalent will be increased in accordance with paragraph (4).

(4) The amount of the increase under paragraph (3) will be equal to the greater of—

(a) interest on the cash equivalent at the same rate as that payable for the time being on judgment debts by virtue of section 17 of the Judgment Act 1838 M1 (judgment debts to carry interest), calculated on a daily basis over the period between the date of the member’s leaving pensionable employment or, if later, exercising the right to transfer or buy–out and the date on which the Secretary of State carries out what the member requires; and

(b) the amount (if any) by which the cash equivalent is less than what it would have been if the date of the member’s leaving pensionable employment or, if later, exercising the right, had been the date on which the Secretary of State carries out what the member requires.

(5) Subject to paragraph (7), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4) (transfers from other pension arrangements), plus the amount of the member’s contributions to the scheme.

(6) Subject to paragraph (7), if a member’s cash equivalent is used to acquire rights under another occupational pension scheme, any part of the cash equivalent that relates to service before 29th January 1988 will be calculated as described in the previous Regulations as applicable immediately before that date, if this would be more favourable to the member.

(7) Paragraphs (5) and (6) do not apply where the member requires the cash equivalent to be used to acquire rights under another occupational pension scheme that participates in the Public Sector Transfer Arrangements.

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

Marginal Citations

M1 1 & 2 Vict. c.110. Section 17 is amended by the Civil Procedure Acts Repeal Act 1879 (c.59) Schedule Part 1 and by article 2 of S.I. 1977/141.