The National Health Service Pension Schemes (Amendment) Regulations 2024

Part 2 Amendments to the National Health Service Pension Scheme Regulations 1995

General

2.  The National Health Service Pension Scheme Regulations 1995(1) are amended in accordance with this Part.

Amendment of regulation A2

3.  In regulation A2 (interpretation), at the appropriate places insert—

““lump sum and death benefit allowance” in relation to a person, has the meaning given in section 637R of the Income Tax (Earnings and Pensions) Act 2003(2);

“salary sacrifice arrangement” means an arrangement under which the member gives up the right to receive an amount of pensionable pay in return for the provision of a benefit in kind including, but not limited to, a benefit consisting of a motor car or other vehicle, meals, care or vouchers;”.

Amendment of regulation D3

4.  In regulation D3(21) (further contributions by employing authorities in respect of excessive pay increases)(3), omit sub-paragraph (j).

Amendment of regulation E5A

5.—(1) Regulation E5A (partial retirement pension)(4) is amended as follows.

(2) In paragraph (1)—

(a) after the first occurrence of “pensionable employment”, insert “or who is a non-pensionable 1995 Section member”;

(b) in sub-paragraph (a)(iii), after the first occurrence of “pensionable employment”, insert “for the purposes of the 2015 Scheme”;

(c) in sub-paragraph (c), after “is reduced”, insert “(disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement)”.

(3) In paragraph (2), after all three occurrences of “pensionable employment”, insert “for the purposes of the 2015 Scheme”.

(4) In paragraph (7)(b), for “lifetime allowance”, substitute “lump sum and death benefit allowance”.

(5) After paragraph (11), insert—

“(11A) For the purposes of this regulation, in the case of a non-pensionable 1995 Section member, “pensionable pay” means the member’s pensionable earnings for the purposes of the 2015 Scheme.”.

(6) In paragraph (12), at the appropriate place, insert—

““non-pensionable 1995 Section member” has the same meaning as in regulation 2 of the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015(5);”.

Amendment of regulation E5B

6.—(1) Regulation E5B(1) (increase in pensionable pay following exercise of option under regulation E5A)(6) is amended as follows.

(2) In sub-paragraph (b), after “is increased”, insert “(disregarding any increase in pensionable pay resulting from the member leaving a salary sacrifice arrangement)”.

(3) In sub-paragraph (c), after “is reduced”, insert “(disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement)”.

Amendment of regulation E5C

7.—(1) Regulation E5C (application of regulations E5A and E5B with modifications where concurrent part-time employments held)(7) is amended as follows.

(2) In paragraph (1), after “pensionable employment”, insert “in the 2015 Scheme”.

(3) In paragraph (3), after “is reduced”, insert “(disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement)”.

(4) In paragraph (5), after “is increased”, insert “(disregarding any increase in pensionable pay resulting from the member leaving a salary sacrifice arrangement)”.

Amendment of regulation S2

8.—(1) Regulation S2 (reduction of pension on return to NHS employment) is amended as follows.

(2) In paragraph (1A)—

(a) in sub-paragraph (b)(iii)—

(i) for “paragraph (c) applies”, substitute “regulation R2(3)(b) (nurses, physiotherapists, midwives and health visitors) or regulation R3(9) (mental health officers) applies to the member”;

(ii) omit “, or”;

(b) omit sub-paragraph (c).

(3) In paragraph (3), omit “or (c)”.

(1)

S.I. 1995/300.

(2)

2003 c. 1. Section 637R was inserted by the Finance Act 2024 (c. 3).

(3)

Regulation D3 was amended by S.I. 2017/275 and 2021/631.

(4)

Regulation E5A was inserted by S.I. 2023/952.

(5)

S.I. 2015/95.

(6)

Regulation E5B was inserted by S.I. 2023/952.

(7)

Regulation E5C was inserted by S.I. 2023/952.