The National Health Service Pension Scheme Regulations 2015

CHAPTER 2 Age retirement

Entitlement to age retirement pension

73.—(1) A member is entitled to payment of an age retirement pension from the entitlement day if the member—

(a) has reached normal pension age;

(b) is qualified for retirement benefits or the member ceases pensionable service after reaching normal pension age;

(c) has left all NHS employment or reached age 75; and

(d) has applied under paragraph 4 of Schedule 3 for the payment of an age retirement pension.

(2) An age retirement pension is payable for life.

(3) This regulation does not apply to a pension derived from pension credit rights (see section 101B of the 1993 Act(1)).

Annual rate of age retirement pension

74.  The annual rate of age retirement pension payable to an active member or a deferred member who becomes entitled to payment of an age retirement pension is calculated in accordance with paragraph 1 of Schedule 13.

Late payment of pension with actuarial increase

75.—(1) Paragraph (2) applies where a member becomes entitled to the immediate payment of an age retirement pension on ceasing pensionable employment after reaching normal pension age.

(2) An increase amount (“the late payment actuarial increase”) must be calculated in accordance with paragraph 2 of Schedule 13.

Pension credit member

76.—(1) A pension credit member is entitled to a pension derived from the member’s pension credit rights (see section 101B of the 1993 Act) if—

(a) the relevant event occurs; and

(b) the member claims payment of the pension.

(2) The relevant event is whichever is the later of the following—

(a) the pension credit member reaches whichever is the later of the age of 65 or state pension age; and

(b) the date on which the pension sharing order or provision under which the member is entitled to the pension credit takes effect.

(3) The pension becomes payable on the occurrence of the relevant event.

(4) The amount of the pension is equal to the member’s pension credit calculated in accordance with regulations under paragraph 5(b) of Schedule 5 to the 1999 Act.

(5) A pension credit member who does not fall within paragraph (2)(a) is entitled to immediate payment of a reduced pension if the member—

(a) has reached normal minimum pension age; and

(b) claims payment of the pension.

(6) The amount of the pension under paragraph (5) is—

(a) the amount calculated pursuant to paragraph (4), less

(b) such amount as the scheme manager determines to be appropriate in consequence of payment of the pension before the pension credit member is within paragraph (2)(a).

(7) For the purposes of making a determination under paragraph (6)(b), the scheme manager must consult the scheme actuary.

(8) A claim under paragraph (1) or (5)—

(a) must be made in writing in such form as the scheme manager requires;

(b) takes effect from the date specified in the claim as the date on which the pension is to become payable.

(9) A pension credit member in relation to whom the relevant event has not occurred is entitled to immediate payment of a pension if, in the opinion of the scheme manager, the pension credit member—

(a) meets the ill-health condition in paragraph 1 of Schedule 28 to the 2004 Act;

(b) had previously been engaged in regular employment but is now permanently incapable of engaging in regular employment due to mental or physical infirmity; and

(c) claims payment of the pension.

(10) The amount of the pension under paragraph (9) is calculated as mentioned in paragraph (4).

(11) For the purposes of paragraph (9), the scheme manager may require whatever medical evidence the scheme manager thinks necessary.

(12) A pension sharing order or provision is an order or provision mentioned in section 28(1) of the 1999 Act(2).

Conversion of part of pension into lump sum

77.—(1) Subject to paragraph (2) and Part 2 of Schedule 13, the following members may apply to the scheme manager to receive a lump sum in place of part of a pension—

(a) a member who is entitled to payment of a retirement pension;

(b) a pension credit member who is entitled to payment of a pension credit retirement pension.

(2) Paragraph (l)(b) only applies if—

(a) the member’s pension credit is derived from rights attributable to the pensionable service of a pension debit member; and

(b) a retirement pension does not become payable to the pension debit member before the day on which a pension sharing order takes effect in respect of that pensionable service.

(3) Subject to paragraph (4), where an application is made pursuant to paragraph (1), the amount of pension converted into a lump sum is £1 for every £12 paid as a lump sum to the member.

(4) Paragraph (5) applies if a retirement pension converted under this regulation—

(a) is adjusted by virtue of regulation 93, or

(b) is abated to zero by virtue of regulation 86(3) and regulation 87 applies.

(5) The amount of pension converted into a lump sum for any retirement pension that subsequently becomes payable to the member is an amount determined by the scheme manager after consulting the scheme actuary.

(6) If the pension is an ill-health pension under regulation 90, the option under this regulation may only be exercised by giving notice to the scheme manager—

(a) at the time of claiming the pension; or

(b) before such later time as the scheme manager specifies in writing.

(7) If the pension is a Tier 2 IHP under regulation 93 in substitution for a Tier 1 IHP under regulation 90, the option under this regulation may only be exercised—

(a) in relation to the difference between the Tier 1 IHP that ceases to be payable pursuant to sub-paragraph (a) of regulation 93(5) and the Tier 2 IHP to which the member becomes entitled under sub-paragraph (b) of that regulation; and

(b) by giving notice to the scheme manager—

(i) at the time of the award of the Tier 2 IHP, or

(ii) before such later time as the scheme manager specifies in writing.

(8) Notice under paragraph (6) or (7) must be—

(a) given in writing;

(b) in such form as the scheme manager requires.

(9) In paragraph (7) the references to a Tier 1 IHP and a Tier 2 IHP must be construed in accordance with regulation 90.

(10) This regulation does not apply to a pension credit member whose rights under this scheme are attributable to a disqualifying pension credit for the purposes of paragraph 2 of Schedule 29 to the 2004 Act(3).

Entitlement day

78.—(1) The entitlement day for the purposes of an age retirement pension is—

(a) if the member (M) is in NHS employment on the day on which M reaches normal pension age—

(i) the day after M ceases to be in NHS employment; or

(ii) the day on which M reaches the age of 75;

(b) if M is not in NHS employment on the day on which M reaches normal pension age, that day.

(2) If regulation 98 applies to M, for the purposes of M’s entitlement to a pension in respect of old employment (within the meaning of regulation 101(3)) a reference in this regulation to M ceasing to be in NHS employment must be treated as a reference to M ceasing to be in the old employment.

(1)

Section 101B was inserted by section 37 of the Welfare Reform and Pensions Act 1999 (c.30).

(2)

Section 28(1) has been amended by section 261(1) of, and paragraph 159(1) to (7) of Schedule 27 to, the Civil Partnership Act 2004 (c.33).

(3)

Paragraph 2 of Schedule 29 has been amended by section 161(1) of, and paragraphs 1 and 23 of Schedule 23 to, the Finance Act 2006 (c.25), section 70 of, and paragraphs 1 and 11(1) and (4) of Schedule 20 to, the Finance Act 2007 (c.11), section 65 of, and paragraphs 23 and 25 of Schedule 16 to, the Finance Act 2011 (c.11) and section 48(5) of, and paragraphs 5 and 8(1) and (2) of Schedule 22 to, the Finance Act 2013 (c.29).