The National Health Service Pension Schemes (Amendment) Regulations 2024

Explanatory Note

(This note is not part of the Regulations)

These Regulations further amend the National Health Service Pension Scheme Regulations 1995 (S.I. 1995/300) (“the 1995 Regulations”), the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 (S.I. 2000/619) (“the 2000 Regulations”); the National Health Service Pension Scheme Regulations 2008 (S.I. 2008/653) (“the 2008 Regulations”); the National Health Service Pension Scheme Regulations 2015 (S.I. 2015/94) (“the 2015 Regulations”); the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015 (S.I. 2015/95) (“the Transitional Regulations”) and the National Health Service Pension Schemes (Amendment) Regulations 2023 (S.I. 2023/301).

These Regulations come into force on 1st April 2024, although regulation 1(3) provide for certain provisions to take effect from an earlier date. Section 3(3)(b) of the Public Service Pensions Act 2013 (c. 25) provides that Scheme Regulations may make retrospective provision.

Regulations 3 and 4 amend the 1995 Regulations to make provision regarding definitions.

Regulations 5, 6 and 7 make provision regarding partial retirement in the 1995 Scheme in two ways. Firstly, regulations 5(2)(a) and (b), (3), (5) and (6), and regulation 7(2) ensure that members of the 1995 Scheme who have reached maximum service are able to access partial retirement with respect to their 1995 Scheme benefits. Secondly, regulations 5(2)(c), 6, 7(3) and (4) ensure that the effect on pensionable pay of entering into or leaving a salary sacrifice arrangement is disregarded for partial retirement purposes.

Regulation 5(4) amends the 1995 Regulations to reflect changes made by the Finance Act 2024, in removing the lifetime allowance and replacing this with the lump sum and death benefit allowance. The 2008, 2015 and Transitional Regulations are amended to similar effect by regulations 12(4), 16(3), 25(3) and 33 respectively.

Regulations 8 and 35 amend the 1995 Regulations and the Transitional Regulations respectively to remove special class abatement.

Regulation 9 amends the 2000 Regulations to reflect changes made by the Finance Act 2024 to include a pension commencement excess lump sum as an optional payment, having received proceeds from an investment made under regulation 7(1), 8(2) or 9(4) of the 2000 Regulations.

Regulations 11 and 15 amend the 2008 Regulations to make provision regarding definitions.

Regulations 12, 13, 14, 16 and 17 make provision regarding partial retirement in the 2008 Scheme in two ways. Firstly, regulations 12(2)(a), (3), (5) and (6), 14(2), 16(2) and 17 ensure that members of the 2008 Scheme who have reached maximum service are able to access partial retirement with respect to their 2008 Scheme benefits. Secondly, regulations 12(2)(b), 13, 14(3) and (4) ensure that the effect on pensionable earnings of entering into or leaving a salary sacrifice arrangement is disregarded for partial retirement purposes.

Regulations 19, 20, 24, 28 and 29 amend the 2015 Regulations to add carer’s leave to the list of absences from work that can count towards pensionable service and pensionable earnings and to make provision regarding the payment of contributions where a member is making periodic contributions.

Regulations 21 and 22 update member contribution provisions to reflect the start of scheme years 2024/25 to 2027/28. Regulation 21 updates the tables in paragraph (3) and (3A) of regulation 30 (members’ contributions: employees), which set out pensionable earnings bands and contribution rates, to reflect scheme years 2024/25 to 2027/28. Regulation 22 inserts table 3 in regulation 31 (members’ contributions: practitioners and non-GP providers) which sets out the pensionable earnings bands and contribution rates for year 2024/25 to 2027/28. Regulations 21 and 22 also introduce an automatic increase to the pensionable earnings bands in column 1 of the tables in paragraph (3) and (3A) of regulation 30 and table 3 in regulation 31, from scheme year 2025/26 and ending with (and including) scheme year 2027/28, where there is an increase in the consumer price index for that scheme year.

Regulation 23 amends the employer contribution rate.

Regulations 25, 26 and 27 ensure that the effect on pensionable earnings of entering or leaving a salary sacrifice arrangement is disregarded for partial retirement purposes in the 2015 Scheme.

Regulation 30 makes provision regarding definitions, notably by amending the definition of overtime. Regulations 30(3)(a), (d), (e) and (f) correct omissions in the 2015 Regulations.

Regulation 32 amends the Transitional Regulations by making provision regarding definitions.

Regulation 34 makes provision for the calculation of lump sums on death with regards to non-pensionable old scheme members who have partially retired with respect to their 1995 or 2008 Scheme benefits.

Regulation 36 amends S.I. 2023/301 to extend the temporary modifications made by that instrument.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.