Amendment of regulation D3
This section has no associated Explanatory Memorandum
5.—(1) Regulation D3 (further contributions by employing authorities in respect of excessive pay increases)() is amended as follows.
(2) In paragraphs (3)(b)(i)(), (4)(b)(i)() and (5)(b)(), for “4.5%” substitute “7%”.
(3) Omit paragraphs (7) to (11).
(4) After paragraph (12) insert—
“(12A) Paragraphs (12B) to (12G) apply in circumstances where a payer has been notified of a liability to pay an excess employer contribution on or after 1st April 2018.
(12B) Where a payer—
(a)has paid all of the excess employer contribution; and
(b)applies for a determination under this paragraph which is received by the Secretary of State within a period of six months from the commencement of this regulation,
the Secretary of State must determine the excess employer contribution in accordance with this regulation as in force on 1st July 2021.
(12C) Where the amount of any excess employer contribution payable following a determination under paragraph (12B) is less than the amount of any excess employer contribution together with any interest already paid, the Secretary of State must pay to the payer a sum equal to the difference between those amounts.
(12D) Where a payer—
(a)has failed to pay all, or any part, of the excess employer contribution; and
(b)applies for a determination under this paragraph which is received by the Secretary of State within a period of six months from the commencement of this regulation,
the Secretary of State must determine the excess employer contribution in accordance with this regulation as in force on 1st July 2021.
(12E) Subject to paragraph (12F), the amount of any excess employer contribution payable following a determination under paragraph (12D) must be paid to the Secretary of State within 1 month of the Secretary of State notifying the payer of its liability for that amount.
(12F) Where the amount of any excess employer contribution payable following a determination under paragraph (12D) is less than any excess employer contribution together with any interest already paid by the payer, the Secretary of State must pay to the payer a sum equal to the difference between those amounts.
(12G) Where the Secretary of State makes a determination under paragraph (12B) or (12D), any previous determination of an excess employer contribution payable in respect of the same member has no effect.”.
(5) In paragraph (17)(b), omit the words after “1st April 2014” to the end.
(6) After paragraph (19B)() insert—
“(19C) Where—
(a)the Secretary of State has approved terms and conditions relating to NHS employment; and
(b)a member’s pensionable pay has increased pursuant to those terms and conditions,
the increase in the member’s pensionable pay is to be disregarded for the purposes of this regulation.
(19D) An increase in a member’s pensionable pay by reason of an amount in respect of a national award recommended by the Advisory Committee on Clinical Excellence Awards is to be ignored for the purposes of this regulation.
(19E) An increase in a member’s pensionable pay due to promotion on the basis of fair and open competition is to be ignored for the purposes of this regulation.
(19F) An increase in the pensionable pay of a non-GP provider due to an increase in partnership profits within the three year period immediately prior to the date on which the non-GP provider ceased to be in pensionable employment is to be ignored for the purposes of this regulation if the non-GP provider’s percentage share in the partnership profits:
(a)has not increased during the same three year period;
(b)has increased during the same three year period, but only as the result of another partner leaving the practice; or
(c)has increased during the same three year period, but only as the result of another partner reducing their sessional commitment.
(19G) An increase in a member’s pensionable pay solely due to the ending of a salary sacrifice arrangement is to be ignored for the purposes of this regulation.”.
(7) In paragraph (21)—
(a)omit sub-paragraph (h);
(b)after sub-paragraph (i), insert—
“(j)“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.”.