The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2016

Amendment of regulation 2.B.2

24.—(1) Regulation 2.B.2 (restrictions on eligibility: general) is amended as follows.

(2) After paragraph (1L), insert—

“(1LA) Paragraph (1LE) applies to a person if—

(a) paragraph (1LB) is satisfied, and

(b) that person’s employment was originally transferred out of the public sector (whether or not the employment from which that person is being transferred for the purposes of paragraph (1LB) to (1LF) is in the public sector).

(1LB) This paragraph is satisfied if, in the opinion of the Secretary of State—

(a) the person’s employment is transferred to an employing authority by virtue of—

(i) a transfer of undertakings, or

(ii) arrangements equivalent to a transfer of undertakings; and

(b) the employment from which the person is transferred—

(i) qualified that person for benefits under an occupational pension scheme, and

(ii) the rules of that scheme (in the opinion of the Secretary of State) entitle that person to receive benefits on retirement upon attaining the age of 65 years.

(1LC) The reference in paragraph (1LB) to arrangements equivalent to a transfer of undertakings is to arrangements—

(a) which the Secretary of State considers to be equivalent to the transfer of an undertaking, and

(b) under which the parties to the arrangements have agreed that the rights of a person whose employment is being transferred should, as far as practicable, be treated in the same way as they would have been under a transfer of an undertaking.

(1LD) For the purposes of paragraph (1LB)(b)(ii), a person is not to be treated as being entitled under the rules of a pension scheme to receive benefits upon, or prior to, attaining the age of 65 years, where such entitlement arises by virtue of any scheme rule making special provision—

(a) as to early retirement on the grounds of ill health, redundancy or otherwise, or

(b) for benefits to be reduced for early payment.

(1LE) The Secretary of State may permit a person referred to in paragraph (1LA) who would otherwise not be permitted to join this Section of the Scheme in accordance with regulation 2.B.1 to do so and, for the purposes of paragraphs (1C) to (1G), the member’s previous service as an active member under the occupational pension scheme referred to in paragraph (1LB)(b)(i) will be treated as if it were previous service as an active member of this Section of the Scheme.

(1LF) Before permitting a person referred to in paragraph (1LE) to join this Section of the Scheme the Secretary of State must take advice from the Scheme actuary.”

(3) In paragraph (1M), for “or (1K)” substitute “, (1K) or (1LE)”.

(4) In paragraph (2) of regulation 2.B.2 (restrictions on eligibility: general)—

(a) omit the “or” at the end of sub-paragraph (b); and

(b) omit sub-paragraph (c).