There are outstanding changes not yet made by the legislation.gov.uk editorial team to The National Health Service Pension Scheme Regulations 1995. Any changes that have already been made by the team appear in the content and are referenced with annotations.
E7.—(1) This regulation applies to a member whose pensionable employment ceases on or after 1st April 2008.
(2) A member may opt to exchange part of a pension to which the member would otherwise be entitled for a lump sum, which must be an evenly divisible multiple of £12.
(3) If a member so opts, for every £1 by which the member’s annual pension is reduced, the member is to be paid a lump sum of £12.
(4) An option under paragraph (2) must relate to an annual amount of pension that is a whole number of pounds (and accordingly the lump sum will be exactly divisible by 12).
(5) In paragraph (4) “annual amount” in relation to a pension means the amount of the annual pension to which the member would be entitled under these regulations apart from the option, together with any increases payable under the Pensions (Increase) Act 1971, calculated as at the time the payment would be first due.
(6) A member may not exchange pension for lump sum under this regulation to the extent that it would result in a scheme chargeable payment for the purposes of Part 4 of the 2004 Act.
(7) If the member has a guaranteed minimum under section 14 of the 1993 Act in relation to the whole or part of a pension, paragraph (2) only applies to so much of the pension as exceeds that guaranteed minimum, multiplied by such factor as is indicated for a person of the member’s description in tables provided by the Scheme Actuary.
(8) [F2Subject to paragraphs (9) and (10), the option] under this regulation may only be exercised by giving notice in writing to the scheme administrator in the form required by the Secretary of State—
(a)at the time of claiming the pension; or
(b)before a later time specified in writing by the scheme administrator.]
[F3(9) If the pension is an ill-health pension under regulation E2A, the option under this regulation may only be exercised by giving notice in writing to the scheme administrator in the form required by the Secretary of State—
(a)where the member is awarded—
(i)a tier 1 pension under paragraph (3)(a) of that regulation, at the time of claiming that tier 1 pension,
(ii)a tier 2 pension under paragraph (3)(b) of that regulation, at the time of claiming that tier 2 pension; or
(b)before such later time as the scheme administrator specifies in writing.
(10) If the pension is a tier 2 ill-health pension under regulation E2B to be paid in place of a tier 1 ill-health pension under regulation E2A, the option under this regulation may only be exercised—
(a)in relation to the difference between the tier 1 pension that is replaced by the tier 2 pension in accordance with paragraph (3) of regulation E2B and the tier 2 pension to which the member becomes entitled under that paragraph, and
(b)by giving notice in writing to the scheme administrator in the form required by the Secretary of State—
(i)at the time of award of the tier 2 pension under that paragraph, or
(ii)before such later time as the scheme administrator specifies in writing.]
Textual Amendments
F1Reg. E7 inserted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 14
F2Words in reg. E7(8) substituted (1.4.2009) by The National Health Service Pension Scheme and Injury Benefits (Amendment) Regulations 2009 (S.I. 2009/381), regs. 1(2), 7(a) (with reg. 89)
F3Reg. E7(9)(10) added (1.4.2009) by The National Health Service Pension Scheme and Injury Benefits (Amendment) Regulations 2009 (S.I. 2009/381), regs. 1(2), 7(b) (with reg. 89)
Modifications etc. (not altering text)
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