The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015

New regulation 2.D.11A

29.  After regulation 2.D.11 (early retirement on termination of employment by employing authority), insert—

“2.D.11A    Early retirement on termination of employment by employing authority: additional contribution option

(1) This regulation applies to a member who satisfies the conditions in regulation 2.D.11 and has an additional contribution option.

(2) Where this regulation applies the payment of the member’s pension under regulation 2.D.11 does not start until the employing authority has—

(a) remitted to the Secretary of State the member’s contribution paid to it pursuant to regulation 2.C.4A(6); and at the same time,

(b) paid the contribution under regulation 2.C.6(2A).

(3) Sub-paragraph (a) of paragraph (2) does not apply if—

(a) the member has chosen not to pay a contribution as mentioned in regulation 2.C.4A, and

(b) the employing authority gives confirmation of that in writing to the Secretary of State.

(4) Paragraph (5) applies if—

(a) the member has received payment referred to in regulation 2.D.11(6)(a),

(b) the terms and conditions of the employment require the payment to be reduced to take account of any contribution the employing authority is required to make to the Secretary of State pursuant to regulation 2.C.6, and

(c) the payment has not been reduced.

(5) The amount of the payment (or all such payments) is deducted from the amount of the pension otherwise payable pursuant to regulation 2.D.11.

(6) Paragraph (7) applies both where the member has exercised an additional contribution option and where the member has not.

(7) Paragraph (8) applies if—

(a) the reason for the termination of the member’s employment is redundancy, and

(b) the contribution paid by the employing authority under regulation 2.C.6 is insufficient to meet the cost of the pension payable pursuant to regulation 2.D.11.

(8) The amount of the pension is reduced by the appropriate amount.

(9) The appropriate amount is the amount determined by the Secretary of State as being necessary to ensure that the cost does not exceed payment unless and to the extent that a contribution paid by the member under regulation 2.C.4A makes up the deficiency.

(10) The cost referred to in paragraph (9) is the amount which the Secretary of State determines is necessary to buy out the cost of the actuarial reduction that would apply if the pension and the lump sum (if any) were calculated pursuant to regulations 2.D.4 and 2.K.12.

(11) In determining the appropriate amount referred to in paragraph (8) and the amount referred to in paragraph (10), the Secretary of State must have regard to the advice of the Scheme actuary.

(12) The cost of the actuarial reduction referred to in paragraph (10) does not include the cost of early payment of an additional pension under regulation 2.C.8, 2.C.10 or 2.C.11.”.