The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008

[F1 Transfer of service from the 1995 Section N.I.

Textual Amendments

F1 Pt. 2 c. 10 added (with effect in accordance with reg. 1(2) of the amending Rule) by The Health and Personal Social Services (Superannuation Scheme, Compensation for Premature Retirement and Additional Voluntary Contributions), and Health and Social Care (Pension Scheme) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/22), regs. 1(2), 55

Service credited from the 1995 Section N.I.

(1) A 2008 Section Optant who—

(a) becomes a member of this Section of the Scheme; and

(b) is not entitled to a pension under regulation 13A of the 1995 Regulations (ill-health pension on early retirement),

is entitled to count the following service under this Section of the Scheme.

(2) The member may count as qualifying service a period equal in length to the period of qualifying service up to, and including, 31st March 2008 which the member was entitled to count under the 1995 Section (but not exceeding 45 years).

(3) The period of pensionable service which a 2008 Section Optant who is under age 60 on 1st October 2009 may count is a period equal in length to the period of superannuable service up to, and including, 31st March 2008 which the Optant was entitled to count under regulation 4 of the 1995 Regulations (Meaning of superannuable service).

• This is subject to paragraph (6) and regulation 136M.

(4) The period of pensionable service which a 2008 Section Optant who is age 60 or over on 1st October 2009 may count is a period equal in length to the superannuable service up to, and including, 31st March 2008 which the Optant was entitled to count under regulation 4 of the 1995 Regulations calculated by multiplying that period of service (specified in days) by the factor specified in paragraph (5) applicable to that case.

• This is subject to paragraph (6) and regulation 136M.

(5) The factor referred to in paragraph (4) is the factor specified by the Department for that purpose.

(6) For the purposes of paragraphs (3) and (4) the superannuable service which the 2008 Section Optant was entitled to count under regulation 4 of the 1995 Regulations—

(a) shall not include any superannuable service the Optant was entitled to count under regulation 4(1)(e) of those Regulations;

(b) shall be calculated without regard to paragraph (5) of regulation 76 of those Regulations (Mental Health Officers); and

(c) where the Optant is entitled to count any part-time superannuable service in the 1995 Section, shall be calculated in accordance with regulation 78 of those Regulations (Part-time employment).

(7) When a 2008 Section Optant becomes a member of this Section of the Scheme under this Part all rights in respect of that Optant under the 1995 Section are extinguished.

Treatment of Additional Pension N.I.

(1) This regulation applies to a 2008 Section Optant who, whilst a member of the 1995 Section, had exercised an option to purchase additional pension (“OPAP”) under regulation 73A or 73C or whose employing authority had done so under regulation 73D of those Regulations (which deal with the purchase of additional pension by periodical contributions and lump sum).

(2) Where paragraph (1) applies, the amount of additional pension that will count under this Section of the Scheme shall be calculated in accordance with—

(a) paragraph (3) when all the contributions required to be made under the OPAP have been made in accordance with regulation 73G of the 1995 Regulations (Effect of payment of additional contributions under this Part);

(b) paragraph (4) when the OPAP has ceased or been cancelled in accordance with regulation 73F of those Regulations (Cancellation and cessation of options under regulation 73A).

(3) Where paragraph (2)(a) applies, the amount of additional pension that will count under regulation 40 shall be equal to the amount of additional pension—

(a) purchased in the 1995 Section under regulation 73G of the 1995 Regulations where the person’s chosen birthday under the OPAP was 65;

(b) that would have been purchased in the 1995 Section under regulation 73G of the 1995 Regulations if the person’s chosen birthday had been 65 and, in determining that amount, the Department shall have regard to the advice of the Scheme actuary, where the person’s chosen birthday under the OPAP was 60.

• Paragraph (3)(b) is subject to paragraph (9).

(4) Where paragraph (2)(b) applies, the amount of additional pension that will count under regulation 42 shall be equal to the amount of additional pension—

(a) that was purchased in the 1995 Section under regulation 73H of the 1995 Regulations, where the person’s chosen birthday under the OPAP was 65;

(b) that would have been purchased in the 1995 Section under regulation 73H of the 1995 Regulations if the person’s chosen birthday had been 65 and, in determining that amount, the Department shall have regard to the advice of the Scheme actuary, where the person’s chosen birthday under the OPAP was 60.

• Paragraph (4)(b) is subject to paragraph (9).

(5) The additional pension referred to in paragraph (3) or (4) that counts in this Section of the Scheme shall do so from the effective date specified in paragraph (5) of regulation 136B.

(6) This paragraph applies—

(a) to a person referred to in paragraph (1); and

(b) where at the effective date specified in paragraph (5) of regulation 136B—

(i) that person—

(aa) was making additional contributions in accordance with an OPAP exercised under regulation 73A of the 1995 Regulations; or

(bb) had applied to make, but had not yet begun making, additional contributions under regulation 73A of the 1995 Regulations; or

(cc) had applied to make, but had not yet made, a single lump sum contribution in accordance with an OPAP exercised under regulation 73C of the 1995 Regulations, or

(ii) that person’s employing authority had applied to make, but had not yet made, a single lump sum contribution on the person’s behalf, in accordance with an OPAP exercised under regulation 73D of the 1995 Regulations.

(7) Where paragraph (6) applies and the person’s chosen birthday referred to in regulation 73A of the 1995 Regulations was 65, the OPAP referred to in that paragraph will apply in this Section of the Scheme as if the OPAP were an option to purchase additional pension in accordance with whichever of regulation 34, 36 or 37 would apply in that case.

(8) Where paragraph (6) applies and the person’s chosen birthday referred to in regulation 73A of the 1995 Regulations was 60, the OPAP referred to in that paragraph will apply in this Section of the Scheme—

(a) as if the OPAP were an option to purchase additional pension in accordance with whichever of regulation 34, 36 or 37 would apply in that case; and

(b) after adjustment, having regard to the advice of the Scheme actuary, so that—

(i) the amount of the additional pension purchased in this Section of the Scheme is the same as that which would have been purchased in the 1995 Section, but

(ii) the additional periodical or lump sum contributions payable, regard being had to the normal retirement age of 65 applying in this Section of the Scheme, reduce or (where appropriate) cease to be payable.

• This is subject to paragraph (9).

(9) If paragraph (3)(b), (4)(b) or (8) applies and—

(a) the amount of the additional pension calculated in accordance with paragraph (3)(b) or (4)(b) will exceed the limit on the total increase in the member’s pension referred to, as the case may be, in regulation 34, 36 or 37; or

(b) the limit on the total increase in the member’s pension referred to in regulation 34 will be exceeded by the amount of additional pension that counts in this Section of the Scheme in accordance with paragraph (8)(b)(i) notwithstanding any reduction in, or cessation of, additional contributions payable in accordance with paragraph (8)(b)(ii),

the total increase in the member’s pension under this regulation, taken together with any other increase under regulations 34, 36 or 37—

(i) will be subject to the limit on the total increase in the member’s pension described in regulation 34, 36 or 37, and

(ii) the amount of additional pension that counts in this Section of the Scheme in accordance with paragraphs (2) to (8) that exceeds that limit will be converted to pensionable service under regulation 7(1)(d), and in determining the amount of additional pension to be converted into pensionable service, the Department shall have regard to the advice of the Scheme actuary.

Treatment of Additional Service N.I.

(1) A 2008 Section Optant—

(a) who becomes a member of this Section of the Scheme; and

(b) is buying or has already bought a period of additional service that counts as superannuable service under regulation 4(1)(e) of the 1995 Regulations (Meaning of superannuable service),

will be able to count as pensionable service in this Section of the Scheme the service referred to in whichever of paragraphs (5) or (6) apply to that Optant.

(2) That additional service referred to in paragraph (1) is—

(a) any additional service bought under regulation 67 of the 1995 Regulations (Right to buy additional service) before the date that person’s option to join this Section of the Scheme was received by the Department in accordance with regulation 136B; and

(b) any additional service bought under regulations 22 or 23 of the Health Personal Social Services (Superannuation) Regulations (Northern Ireland) 1984.

• This is subject to paragraphs (3) and (4).

(3) The additional service referred to at paragraph (2)(a) will be calculated in accordance with—

(a) paragraph (4), and as the case may be paragraph (8), of regulation 67 of the 1995 Regulations, in the case of an election that had ceased and was paid for in full by the date referred to in paragraph (2)(a);

(b) paragraphs (1), (4) and (5) (but not (6)) of regulation 73 of the 1995 Regulations (Part payment for additional service or unreduced retirement lump sum), in the case of an election that had ceased but had only partially been paid for at that date; or

(c) paragraphs (1), (4) and (5) (but not (6)) of regulation 73 of the 1995 Regulations, in the case of an election that remained in force immediately before that date.

• Paragraph (3)(c) is subject to paragraph (7).

(4) The additional service referred to at paragraph (2)(b) will be calculated in accordance with whichever of—

(a) paragraph (3) or (4)(b) of regulation 22; or

(b) paragraph (1) or (3)(b) of paragraph 23,

of the Health and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1984 applies to the Optant.

(5) The period of pensionable service which a 2008 Section Optant who is under age 60 on 1st October 2009 may count under this Section of the Scheme is a period equal in length to the period of additional service calculated in respect of that Optant in accordance with whichever of paragraph (3) or (4) apply to the Optant.

(6) The period of pensionable service which a 2008 Section Optant who is age 60 or over on 1st October 2009 may count under this Section of the Scheme is the period found by—

(a) first taking a period equal in length to the period of additional service (specified in days) calculated in respect of that Optant in accordance with whichever of paragraph (3) or (4) applies (“Period AS”); and

(b) then multiplying Period AS by the factor specified by the Department for that purpose.

(7) Where a member was buying additional service by means of additional contributions immediately before the date referred to in paragraph (2)(a), the member's—

(a) election to buy additional service will cease from that date; and

(b) any additional contributions due under the election that are unpaid at that date will be deducted from the member’s pensionable pay in accordance with regulation 136B(6) and (7).

(8) For the purposes of calculating the Optant’s benefits under this Section of the Scheme the pensionable service that the Optant is entitled to count under paragraph (5) or, as the case may be, paragraph (6) of this regulation will be added to the pensionable service the member is entitled to count under—

(a) regulation 136C(3), if the member is under age 60 on 1st October 2009; or

(b) regulation 136C(4), if the member is age 60 or over on that date.

• This is subject to regulation 136R.

Treatment of unreduced retirement lump sum N.I.

(1) This regulation applies to a 2008 Section Optant who becomes a member of this Section of the Scheme and, at the date that person’s option to join this Section of the Scheme was received by the Department in accordance with regulation 136B, had made an election under regulation 68 of the 1995 Regulations (Right to buy an unreduced lump sum) to—

(a) purchase an unreduced retirement lump sum for service before 25th March 1972; or

(b) buy additional survivor’s pension for service before 6th April 1988,

which satisfies any of the conditions in paragraph (2).

(2) Those conditions are that the election—

(a) was paid for in full by the date referred to in paragraph (1);

(b) ceased before the date referred to in paragraph (1), but before completion of the additional contributions payable;

(c) was payable by additional contributions and remained in force immediately before the date referred to in paragraph (1); or

(d) was payable by deduction from the member’s retirement lump sum.

(3) If paragraph (1) applies, the election referred to in that paragraph will cease to be effective from 1st April 2008 and—

(a) any additional contributions under the election that were due but not paid at that date will be deducted in accordance with regulations 136B(6) and (7);

(b) any liability to pay additional contributions under the election will cease from, and including, 1st April 2008; and

(c) any requirement to pay for an unreduced retirement lump sum by the deduction referred to in paragraph (2)(d) will lapse.

Treatment of 2008 Section Optants to whom regulation 52(3) of the 1995 Regulations applied immediately before 1 April 2008 N.I.

(1) This regulation applies to a 2008 Section Optant—

(a) whose benefits on retirement or death would, but for this regulation, be calculated in accordance with Chapters 4 and 5 of this Part; and

(b) who, but for joining this Section of the Scheme, would otherwise have been entitled to have benefits on retirement or death calculated in accordance with regulation 52(3) of the 1995 Regulations (Early leavers returning to superannuable employment).

(2) For the purpose of calculating the benefits on retirement or death of a 2008 Section Optant referred to in paragraph (1), the Optant may, where it would be more beneficial to the Optant, be treated—

(a) as a deferred member of this Section of the Scheme in respect of any period of pensionable service credited to that Optant under regulation 136C that relates to one or more periods of superannuable employment in the 1995 Section that occurred before a break of 12 months or more in such employment (“an earlier service credit”); and

(b) as if the Optant became an active member for the first time on the first day of any period of pensionable service credited to that Optant under regulation 136C that relates to a period of superannuable employment in the 1995 Section that occurred after a break of 12 months or more in such employment.

• This is subject to paragraph (3).

(3) The Optant’s benefits in respect of an earlier service credit mentioned in paragraph (2)(a) shall be calculated—

(a) separately; and

(b) by reference to the final year’s superannuable pay calculated in accordance with regulation 3 of the 1995 Regulations (Meaning of superannuable pay and final year’s superannuable pay) in respect of that particular period.

• This is subject to regulation 52(5)(b)(ii).

Pension debit members N.I.

(1) This regulation applies where, on becoming a member of this Section of the Scheme, a 2008 Section Optant is a pension debit member.

(2) The amount of the reduction to be made to the Optant’s pension under this Section of the Scheme shall be the amount of the reduction that applied to the Optant’s pension under the 1995 Section calculated in accordance with Article 28 of the 1999 Order (Reduction of benefit) adjusted by the factor referred to in paragraph (3).

(3) The factor referred to in paragraph (2) is the factor specified by the Department for that purpose.

(4) The Department may, after taking advice from the Scheme actuary, make such modifications to—

(a) the Optant’s rights; and

(b) as to the form of the Optant’s benefits,

as the Department considers necessary for the purpose specified in paragraph (5).

(5) If in the opinion of the Department, it is necessary for the purpose of giving effect to the pension sharing order to which the Optant’s rights are subject for some or all of the benefits under this Section of the Scheme to be taken in a different form from that in which that Optant would otherwise be entitled to take them, the Department may modify those benefits as described in paragraph (4).

Treatment of 2008 Section Optants to whom regulation 82 of the 1995 Regulations applied immediately before 1st April 2008 N.I.

(1) This regulation applies to a 2008 Section Optant—

(a) whose earnings in respect of superannuable employment in the 1995 Section were reduced;

(b) whose employer certified that the reduction in sub-paragraph (a) occurred in the circumstances described in paragraph (2) of regulation 82 of the 1995 Regulations (Members whose earnings are reduced);

(c) who, subject to the agreement of the Department, would, on retirement or death, have become entitled to have a preserved pension calculated and paid as described in regulation 49 of the 1995 Regulations (Preserved pension) in respect of superannuable service in the 1995 Section before the Optant’s earnings were reduced; and

(d) whose benefits on retirement or death would, but for this regulation, be calculated in accordance with Chapters 4 and 5 of this Part.

(2) For the purpose of calculating the benefits on retirement or death of a 2008 Section Optant referred to in paragraph (1), the Optant may, where it would be more beneficial to the Optant, be treated—

(a) as a deferred member of this Section of the Scheme in respect of any period of pensionable service credited to that Optant under regulation 136C that relates to one or more periods of superannuable service in the 1995 Section before that Optant’s earnings were reduced as described in paragraph (1) (“a protected service credit”); and

(b) as if the Optant became an active member for the first time on the first day of any period of pensionable service credited to that Optant under regulation 136C that relates to a period of superannuable service in the 1995 Section after that Optant’s earnings were reduced as described in paragraph (1).

• This is subject to paragraph (3).

(3) The Optant’s benefits in respect of a protected service credit mentioned in paragraph (2)(a) shall be calculated—

(a) separately; and

(b) by reference to the final year’s superannuable pay calculated in accordance with regulation 3 of the 1995 Regulations (Meaning of superannuable pay and final year’s superannuable pay) in respect of that particular period.

Restriction on pensionable pay used for calculating benefits in respect of capped Optant service N.I.

(1) This regulation applies for determining the amount of an Optant’s pensionable pay for the purposes of calculating so much of any benefit under this Section of the Scheme as falls to be calculated by reference to capped Optant service.

(2) If an Optant’s pensionable pay exceeds the permitted maximum, the excess is disregarded for the purposes of any such calculation as is mentioned in paragraph (1).

(3) In this regulation “permitted maximum” means—

(a) in relation to the tax year 2009-10, £123,600; and

(b) in relation to any later tax year, the figure found for that year under paragraphs (4) and (5).

(4) If the retail prices index for the month of September preceding the tax year 2010-11 or any later tax year is higher than it was for the previous September, the figure for that year is an amount arrived at by—

(a) increasing the figure for the previous tax year by the same percentage as the percentage increase in the retail prices index; and

(b) if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.

(5) If the retail prices index for the month of September preceding the tax year 2010-11 or any later tax year is not higher than it was for the previous September, the figure for that year is the same as for the previous tax year.

(6) In this regulation “capped Optant service” has the meaning given by regulation 136K.

Meaning of “capped Optant service” N.I.

(1) This regulation applies if a 2008 Section Optant is entitled to count a period of service under this Section of the Scheme in accordance with—

(a) regulation 136C; or

(b) regulation 136E,

in respect of service in the 1995 Section that was, or included, capped service.

(2) For the purposes of this Part, the same proportion of the total service that the member is entitled to count under regulations 136C and 136E as the capped service bears to the whole of the Optant’s service in the 1995 Section up to and including 31st March 2008 is capped Optant service.

(3) For the purposes of paragraph (1) the Optant’s service in the 1995 Section was capped service so far as—

(a) in the case of service before 6th April 2006, the Optant was an active member of the 1995 Section whose pension under that Section in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) of the Income and Corporation Taxes Act 1988; or

(b) in the case of service on or after 6th April 2006, the Optant was an active member of the 1995 Section whose pension under that Section in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under section 590C(2) of the Income and Corporation Taxes Act 1988 was calculated for tax years ending before that date.

(4) For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the Optant’s remuneration in any tax year would have exceeded the amount of the limit.

Amount of pension and lump sum to be to be paid to a 2008 Section Optant N.I.

(1) This regulation applies to a 2008 Section Optant who—

(a) is entitled to an annual pension under Chapter 4 of this Part; or

(b) is entitled to the payment of a transfer value under Chapter 6 of this Part in respect of the pension that has accrued to, or in respect of, that Optant under this Section of the Scheme.

(2) In the case of a 2008 Section Optant referred to in paragraph (1)(a)—

(a) that Optant shall be entitled to the payment of a lump sum determined in accordance with whichever of the following paragraphs of this regulation apply to that Optant; and

(b) the annual amount of pension referred to in paragraph (1)(a) to which the Optant is entitled shall be reduced by an amount equal to the amount of the lump sum referred to in sub-paragraph (a) divided by 12.

(3) In the case of a 2008 section Optant referred to in paragraph (1)(b)—

(a) the transfer value shall be calculated by reference to a lump sum determined under paragraph (5); and

(b) the pension by reference to which, apart from this regulation, the transfer value in respect of that Optant would otherwise be calculated shall be reduced by an amount equal to the amount of the lump sum referred to in sub-paragraph (a) divided by 12.

(4) Except in the case of an Optant to whom paragraph (6), (8), (10) or (12) applies, the amount of the lump sum shall be determined as described in paragraph (5).

• This is subject to paragraphs (13) and (15).

(5) The amount of the lump sum shall be determined by—

(a) applying the formula—

and

(b) rounding down the amount found under sub-paragraph (a) to the nearest amount of whole pounds that is divisible by 12.

(6) In the case of an Optant who—

(a) becomes entitled to an annual amount of pension payable under regulation 48; and

(b) has not attained age 60 on the day of becoming entitled to that pension,

the amount of lump sum shall be determined as described in paragraph (7).

(7) The amount of the lump sum that is to be paid to an Optant referred to in paragraph (6) shall be calculated by—

(a) applying the formula—

and

(b) rounding down the amount found under sub-paragraph (a) to the nearest amount of whole pounds that is divisible by 12.

(8) In the case of an Optant who—

(a) becomes entitled to an annual amount of pension payable under regulation 49 for the first time; and

(b) has not attained age 60 on the day of becoming entitled to that pension,

the amount of lump sum shall be determined as described in paragraph (9).

(9) The amount of the lump sum that is to be paid to an Optant referred to in paragraph (8) shall be calculated by—

(a) applying the formula—

and

(b) rounding down the amount found under sub-paragraph (a) to the nearest amount of whole pounds that is divisible by 12.

(10) In the case of an Optant who—

(a) becomes entitled to an annual amount of pension payable under regulation 49 for the first time, and

(b) has attained age 60 on the day of becoming entitled to that pension,

the amount of lump sum shall be determined as described in paragraph (11).

(11) The amount of the lump sum that is to be paid to an Optant referred to in paragraph (10) shall be calculated by—

(a) applying the formula—

and

(b) rounding down the amount found under sub-paragraph (a) to the nearest amount of whole pounds that is divisible by 12.

(12) In the case of an Optant—

(a) who is a pensioner member as respects a pension payable under regulation 49 as described in paragraph (9)(a) of that regulation; and

(b) who—

(i) subsequently exercises an option under that regulation for the second or final time, or

(ii) becomes entitled to any other pension under Chapter 4 of this Part in respect of pensionable service not taken into account for the purposes of calculating the pension payable under sub-paragraph (a),

the amount of lump sum payable under this regulation shall be determined by the Department after taking advice from the Scheme actuary.

(13) If, on becoming a member of this Section of the Scheme, a 2008 Section Optant is a pension debit member the amount of the lump sum determined under this regulation shall be reduced by the amount calculated under paragraph (14) (“the pension debit reduction”).

(14) The amount of the pension debit reduction referred to in paragraph (13) shall be calculated by—

(a) applying the formula—

and

(b) rounding up the amount found in sub-paragraph (a) to the nearest amount of whole pounds that is divisible by 12.

(15) If any part of an Optant’s benefit under this Section of the Scheme falls to be calculated by reference to capped Optant service under regulation 136J the determinations in this regulation shall apply separately in respect of—

(a) the pension to which the Optant is entitled in respect of the service that falls to be calculated by reference to capped Optant service; and

(b) the pension to which the Optant is entitled in respect of the service that does not fall to be calculated by reference to capped Optant service.

(16) For the purposes of this regulation—

• “1995 Section Pension Debit” is the amount by which the Optant’s annual pension under the 1995 Regulations was to be reduced in accordance with Article 28 of the 1999 Order;

• “annual amount”, in relation to a pension, means the amount of the annual pension to which the member would be entitled under this Section of the Scheme apart from this regulation, together with any increases payable under the Pensions (Increase) Act (Northern Ireland) 1971, calculated as at the time payment would first be due;

• “Increase Factor” is the factor that would have applied to the 1995 Section Pension Debit for the purposes of Article 26 of the 1999 Order (Creation of pension debits and credits) if the Optant had become entitled to a pension under the 1995 Regulations—

  (a)

  on the date that the Optant becomes entitled to a pension referred to in paragraph (1)(a); or

  (b)

  on the day after the Optant’s last day of pensionable service if the Optant becomes entitled to the payment of a transfer value referred to in paragraph (1)(b);

• “Reckonable Pay” is the Optant’s reckonable pay calculated under Chapter 1 of this Part;

• “Reduction Factor” is the reduction factor that the Department, after taking advice from the Scheme actuary, determines would have applied to that Optant’s lump sum under regulation 17(7)(b) of the 1995 Regulations (Lump sum on retirement) if that Optant had become entitled to a pension calculated under regulation 16 of those Regulations (Early retirement pension (with actuarial reduction)) on the day he became entitled to a pension under regulation 48 or as the case may be regulation 49;

• “Relevant Service” is a period (expressed in days), equal to the aggregate of—

  (a)

  the period of pensionable service that the Optant is entitled to count under regulation 136C; and

  (b)

  the period of pensionable service (if any) that the Optant is entitled to count under regulations 136E and 136R;

• “Specified Service” is the amount of the Optant’s Relevant Service (expressed in days) multiplied by the specified percentage;

• “Specified percentage” is the percentage of the member’s pension in respect of which the member claims immediate payment under regulation 49(4)(a).

(17) In the case of an 2008 Section Optant whose benefits are subject to the modification provided in Part 4, this regulation is subject to regulation 260K(16).]