The National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015

Ill health benefits : members below old scheme normal pension age E+W

28.—(1) This regulation applies in relation to a transition member who—

(a) becomes entitled to an ill-health pension under the new scheme; and

(b) has not reached the old scheme normal pension age.

(2) If this regulation applies—

(a) an ill-health pension and lump sum are not payable under the old scheme;

(b) an ill-health pension is payable under the new scheme in accordance with this regulation;

(c) the member becomes a deferred member of the old scheme (but no entitlement to a pension arises under—

(i) regulation L1(3) of the 1995 Regulations; or

(ii) regulations 2.D.4, 2.D.10, 3.D.4 and 3.D.9 of the 2008 Regulations,

by virtue of becoming a deferred member pursuant to this regulation).

(3) If the member meets the Tier 1 conditions set out in regulation 90 (entitlement to ill-health pension) of the 2015 Regulations—

(a) the annual rate of ill-health pension payable under the new scheme is the sum of—

(i) the annual rate of a Tier 1 ill-health pension payable under the new scheme; and

(ii) the annual rate of earned pension that would, if the member was entitled to payment of an ill-health pension under the old scheme, be payable to the member at the old scheme normal pension age; and

(b) the member is entitled to payment of a lump sum of the amount of the lump sum (if any) that would, had the member been entitled to payment of an ill-health pension under the old scheme, be payable to the member under—

(i) regulation E6 (lump sum on retirement) of the 1995 Regulations;

(ii) regulation 2.K.12 (amount of pension and lump sum to be paid to a 2008 Section Optant) of the 2008 Regulations; or

(iii) regulation 3.K.11 (amount of pension and lump sum to be paid to a 2008 Section Optant) of the 2008 Regulations.

(4) If the member meets the Tier 2 conditions set out in regulation 90 (entitlement to ill-health pension) of the 2015 Regulations, the annual rate of ill-health pension and lump sum payable under the new scheme is the sum of—

(a) the amounts specified at paragraph (3); and

(b) the annual rate of a Tier 2 addition payable under the new scheme.

(5) If, after the ill-health pension becomes payable under this regulation, a transfer payment is made from the old scheme in respect of the member’s rights under that scheme, the scheme manager must deduct from the amount of ill-health pension payable under this regulation in respect of service in the old scheme an amount which is equal to the value of the pension and lump sum represented by that transfer payment.

(6) The amount of pension payable under this regulation which represents the amount that would have been payable under the old scheme is subject to the same conditions, and ceases to be payable in the same circumstances, as the pension to which the member would have been entitled under the old scheme in accordance with whichever of the 1995 Regulations or the 2008 Regulations are applicable.

[F1 (6A) Paragraphs (6B) and (6C) apply if a member receiving an ill-health pension under this regulation dies before reaching the old scheme normal pension age.

(6B) If a surviving adult dependant of the member is entitled to a pension in accordance with regulation 116 (amount of pension: survivor of pensioner member) of the 2015 Regulations the annual rate of the adult survivor pension payable under paragraph (4)(a) of that regulation is F2 ...—

[F3 (a) if the member was in pensionable employment in the 1995 Section before becoming an active member of the new scheme, the sum of—

(i) 33.75% of the pension to which the member was entitled at the date of death (disregarding any additional pension) under the new scheme;

(ii) 16.25% of the amount (if any) by which that pension has been increased in accordance with regulation 27(16); and

(iii) 16.25% of the old scheme pension to which the member was entitled at the date of death in accordance with paragraph (3)(a)(ii) of this regulation; or

(b) if the member was an active member of the 2008 Section before becoming an active member of the new scheme, the sum of—

(i) 33.75% of the pension to which the member was entitled at the date of death (disregarding any additional pension) under the new scheme;

(ii) 3.75% of the amount (if any) by which that pension has been increased in accordance with regulation 27(16); and

(iii) 3.75% of the old scheme pension to which the member was entitled at the date of death in accordance with paragraph (3)(a)(ii) of this regulation.]

(6C) If a child’s pension becomes payable in respect of an eligible child of the member in accordance with regulation 124 (amount of child pension: deceased pensioner member) of the 2015 Regulations the basic death pension for the purposes of paragraph (3)(a) of that regulation is F4 ...—

[F5 (a) if the member was in pensionable employment in the 1995 Section before becoming an active member of the new scheme, the sum of—

(i) 67.5% of the deceased member’s annual pension (disregarding any additional pension) under the new scheme;

(ii) 32.5% of the amount (if any) by which that pension has been increased in accordance with regulation 27(16); and

(iii) 32.5% of the old scheme pension to which the member was entitled at the date of death in accordance with paragraph (3)(a)(ii) of this regulation; or

(b) if the member was an active member of the 2008 Section before becoming an active member of the new scheme, the sum of—

(i) 67.5% of the deceased member’s annual pension (disregarding any additional pension) under the new scheme;

(ii) 7.5% of the amount (if any) by which that pension has been increased in accordance with regulation 27(16); and

(iii) 7.5% of the old scheme pension to which the member was entitled at the date of death in accordance with paragraph (3)(a)(ii) of this regulation.]]

(7) In this regulation and regulation 29—

(a) a reference to the annual rate of earned pension payable under the old scheme means the annual pension payable under the following provisions—

(i) if the member was an active member of the 1995 Section before becoming an active member of the new scheme, regulation E1 of that Section;

(ii) if the member was an active member of the 2008 Section before becoming an active member of the new scheme, regulation 2.D.1 or 3.D.1 of that Section;

(b) a reference to an ill-health pension payable under the old scheme means a pension payable under the following provisions—

(i) if the member was an active member of the 1995 Section before becoming an active member of the new scheme, regulation E2A of that Section;

(ii) if the member was an active member of the 2008 Section before becoming an active member of the new scheme, regulation 2.D.8 or 3.D.7 of that Section;

(c) a reference to an ill-health pension payable under the new scheme means an ill-health pension payable under regulation 90 of the 2015 Regulations;

(d) a reference to the old scheme normal pension age means—

(i) as regards the 1995 Section, normal benefit age under the 1995 Regulations; or

(ii) as regards the 2008 Section, the age specified in regulation 2.D.1 or 3.D.1 (normal retirement pensions) of the 2008 Regulations.

Textual Amendments

F1 Reg. 28(6A)-(6C) inserted (with effect from 1.4.2015) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(a), 52

F2 Words in reg. 28(6B) omitted (1.4.2022) by virtue of The National Health Service Pension Schemes (Amendment) Regulations 2022 (S.I. 2022/327), regs. 1(2), 5(7)(a)(i)

F3 Reg. 28(6B)(a)(b) substituted (1.4.2022) by The National Health Service Pension Schemes (Amendment) Regulations 2022 (S.I. 2022/327), regs. 1(2), 5(7)(a)(ii)

F4 Words in reg. 28(6C) omitted (1.4.2022) by virtue of The National Health Service Pension Schemes (Amendment) Regulations 2022 (S.I. 2022/327), regs. 1(2), 5(7)(b)(i)

F5 Reg. 28(6C)(a)(b) substituted (1.4.2022) by The National Health Service Pension Schemes (Amendment) Regulations 2022 (S.I. 2022/327), regs. 1(2), 5(7)(b)(ii)

Commencement Information

I1 Reg. 28 in force at 1.4.2015, see reg. 1(b)