The National Health Service Pension Scheme Regulations 2015

PART 1 E+W Interpretation

Interpretation E+W

1.  In this Schedule—

[F1 “index adjustment” means—

(a)

in relation to the opening balance of earned pension for a scheme year (other than the opening balance of club transfer earned pension), the percentage increase or decrease in prices specified in an order (in respect of the NHS Pension Scheme 2015) made by the Treasury under section 9(2) of the 2013 Act in relation to the previous scheme year, plus 1.5%; and

(b)

in relation to the opening balance of club transfer earned pension for a scheme year, the adjustment that is—

(i)

equal to the adjustment that would apply to the opening balance of that amount of earned pension under the sending scheme for the previous scheme year, and

(ii)

applied to the opening balance of club transfer earned on the date that the order (in respect of the NHS Pension Scheme 2015) made by the Treasury under section 9(2) of the 2013 Act in relation to the previous scheme year, has effect];

“AP index adjustment” means, in relation to the opening balance of additional pension for a scheme year, the percentage increase or decrease in prices specified in an order [F2 (in respect of the NHS Pension Scheme 2015)] made by the Treasury under section 9(2) of the 2013 Act in relation to the previous scheme year;

“the leaving year” means the scheme year in which the relevant last day falls;

“the relevant last day” means—

(a)

for a member who has made a partial retirement application, the day before the entitlement day for a partial retirement pension; and

(b)

otherwise, the last day of pensionable service.

Textual Amendments

F1 Words in Sch. 9 para. 1 substituted (1.4.2023) by The National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301), regs. 1(2), 17(2)(a)

F2 Words in Sch. 9 para. 1 inserted (1.4.2023) by The National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301), regs. 1(2), 17(2)(b)

Pensionable service E+W

2.  For the purpose of this Schedule, a person who re-enters pensionable service after a break in service not exceeding 5 years is taken to be in pensionable service during the break.

Meaning of “leaver index adjustment” E+W

3.—(1)  [F3 Subject to sub-paragraph 2A, the] leaver index adjustment for an amount of accrued earned pension other than an amount of club transfer accrued earned pension is an amount calculated as follows—

• Step 1 Add 1.5 to the percentage increase or decrease in prices specified in an order [F4 (in respect of the NHS Pension Scheme 2015)] made by the Treasury under section 9(2) of the 2013 Act in relation to the leaving year.

• Step 2 Multiply the result at Step 1 by

  where—

  • A is the number of complete months in the period between the beginning of the leaving year and the end of the relevant last day; and

  • B is 12.

  The resulting percentage is the leaver index percentage.

• Step 3 Multiply the amount of accrued earned pension by the leaver index percentage. The resulting amount is the leaver index adjustment.

[F5 (2) Subject to sub-paragraph 2A, the leaver index adjustment for an amount of club transfer accrued earned pension is—

(a) equal to the adjustment that would apply under the sending scheme to an amount of accrued earned pension equal to the amount of club transfer accrued earned pension specified in the active member’s account at the end of the relevant last day; and

(b) applied to the amount of club transfer earned pension at the end of the relevant last day on the date that the order (in respect of the NHS Pension Scheme 2015) made by the Treasury under section 9(2) of the 2013 Act in relation to the previous scheme year, has effect.]

[F6 (2A) If the amount of the leaver index adjustment under sub-paragraphs (1) or (2) is an amount that is less than zero, the amount of the leaver index adjustment for the purposes of those paragraphs is zero.]

(3) In this paragraph, “complete months” includes an incomplete month that consists of at least 16 days.

Textual Amendments

F3 Words in Sch. 9 para. 3(1) substituted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 46(2)(a)

F4 Words in Sch. 9 para. 3(1) inserted (1.4.2023) by The National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301), regs. 1(2), 17(3)(a)

F5 Sch. 9 para. 3(2) substituted (1.4.2023) by The National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301), regs. 1(2), 17(3)(b)

F6 Sch. 9 para. 3(2A) inserted (with effect in accordance with reg. 1(2)(a) of the amending S.I.) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 46(2)(b)

Meaning of “leaver AP index adjustment” E+W

4.—(1) The leaver AP index adjustment for an amount of accrued additional pension is calculated in accordance with paragraph (2).

(2) The leaver AP index adjustment is an amount equal to the amount of leaver index adjustment found if—

(a) the accrued additional pension were an accrued earned pension; and

(b) 1.5 is not added to the percentage increase or decrease in prices specified in an order [F7 (in respect of the NHS Pension Scheme 2015)] made by the Treasury in Step 1 of paragraph 3(1).

Textual Amendments

F7 Words in Sch. 9 para. 4(2)(b) inserted (1.4.2023) by The National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301), regs. 1(2), 17(4)

Meaning of “full retirement earned pension” E+W

5.—(1) The amount of full retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under paragraph 28(2); and

(b) the leaver index adjustment for that amount.

(2) In calculating the amount of full retirement earned pension, the leaver index adjustment is not applied to the amount of accrued earned pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active scheme year.

Meaning of “full retirement additional pension” E+W

6.—(1) The amount of full retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under paragraph 28(3); and

(b) the leaver AP index adjustment for that amount.

(2) In calculating the amount of full retirement additional pension, the leaver AP index adjustment is not applied to the amount of accrued additional pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active scheme year.

Meaning of “partial retirement earned pension” E+W

7.  The amount of partial retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under paragraph 29(2); and

(b) the leaver index adjustment for that amount.

Meaning of “partial retirement additional pension” E+W

8.  The amount of partial retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under paragraph 29(3); and

(b) the leaver AP index adjustment for that amount.

Meaning of “actuarial reduction” E+W

9.—(1) In these Regulations, “ actuarial reduction” means the actuarial reduction that is applied (after obtaining the advice of the scheme actuary) when calculating the annual rate of pension payable to a member who, on the entitlement day for a pension other than a pension specified in sub-paragraph (2) has not reached normal pension age.

(2) The pensions are—

(a) an age retirement pension;

(b) a premature retirement pension unless the additional contribution option applies (see regulation 32(7);

(c) an ill-health pension.

Meaning of “conversion amount^” E+W

10.  In these Regulations, “ conversion amount”, in relation to any pension converted in part to a lump sum under regulation 77, means the amount of pension converted to a lump sum.