The National Health Service Pension Scheme Regulations 2015

PART 2 Governance

CHAPTER 1 Management

Scheme manager

3.—(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)(1); 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.

Pension Board

4.  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.

Scheme Advisory Board

5.  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.

CHAPTER 2 Actuary and valuation

Appointment of scheme actuary

6.—(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.

Actuarial valuations

7.—(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.

Employer cost cap

8.—(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.

Cost of scheme exceeds margins

9.  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.

Procedure for agreeing steps to achieve target cost

10.—(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.

No agreement reached

11.—(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.

Approval mechanism

12.  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.

Target cost

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

CHAPTER 3 General

Administrative matters

14.  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.

(1)

The Authority was established by S.I. 2005/2414.