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

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

Textual Amendments

F1 Pt. 3 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), 96

Service and pensionable earnings 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 pensionable earnings and service which a 2008 Section Optant who is under age 60 on 1st October 2009 may count is an amount equal to the amount of superannuable earnings for practitioner 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 paragraphs (9) and regulation 260K.

(4) The pensionable earnings and service which a 2008 Section Optant who is age 60 or over on 1st October 2009 may count is an amount equal to the amount of superannuable earnings for practitioner service up to, and including, 31st March 2008 which the Optant was entitled to count under regulation 4 of the 1995 Regulations multiplied by the factor specified in paragraph (8) applicable to the case.

• This is subject to paragraphs (5), (8), (9) and (10) and regulation 260K.

(5) In determining the amounts of superannuable earnings up to, and including, 31st March 2008 in paragraph (3) or (4), the Department shall have regard to—

(a) the superannuable earnings for any scheme year recorded by the Optant’s host Board;

(b) the superannuable earnings for any scheme year certified by the Optant in accordance with paragraph 23 of Schedule 2 to the 1995 Regulations.

• This is subject to paragraph (6).

(6) If, in respect of any particular scheme year, the superannuable earnings referred to in paragraph (5)(a) or (b) are not available, the Department shall determine the superannuable earnings for that scheme year and in doing so shall have regard to—

(a) the contributions paid in accordance with regulation 10 of the 1995 Regulations (as modified by paragraph 10 of Schedule 2 to those Regulations) (Contributions by members) or regulation 160; or

(b) the figure supplied by the host Board.

• This is subject to paragraph (7).

(7) If—

(a) the Department has made a determination of superannuable earnings in accordance with paragraph (6); and

(b) the superannuable earnings referred to in paragraph (5) that were not available to the Department at the time of that determination, subsequently become available,

the Department shall revise that determination accordingly.

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

(9) For the purposes of paragraphs (3) and (4) the superannuable earnings for practitioner service which the 2008 Section Optant was entitled to count under regulation 4 of the 1995 Regulations shall not include any superannuable service the Optant was entitled to count under regulation 4(1)(e) of that Section.

(10) 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 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 the 1995 Regulations (which deal with the purchase of additional pension by periodical contributions and lump sums).

(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 171 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 173 shall be equal to the amount of additional pension—

(a) purchased in the 1995 Section under regulation 73F 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 73F 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 shall do so from the effective date specified in paragraph (5) of regulation 260B.

(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 260B—

(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 165, 167 or 168 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 165, 167 or 168 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) of this regulation 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 165, 167 or 168; or

(b) the limit on the total increase in the member’s pension referred to in regulation 165 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 165, 167 or 168—

(i) will be subject to the limit on the total increase in the member’s pension described in regulation 165, 167 or 168, 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 earnings for the purposes of regulation 143(10), and in determining the amount of such additional pension to be converted into pensionable earnings, the Department shall have regard to the advice of the Scheme actuary.

Treatment of Additional Service and pensionable earnings 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 Section (Meaning of superannuable service),

will be able to count an additional amount of pensionable earnings for that superannuable service in this Section of the Scheme as described in whichever of paragraphs (5) or (6) apply to that Optant.

(2) The additional pensionable earnings referred to in paragraph (1) are—

(a) any additional superannuable earnings bought under regulation 67 of the 1995 Regulations, as modified by paragraph 20(2) of Schedule 2 to those 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 260B; and

(b) any additional superannuable earnings bought under regulation 22 of the Health and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1984 (Purchase of added years of contributing service).

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

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

(a) paragraph (4) of regulation 67 of the 1995 Regulations, as modified by paragraph 20(2) or, as the case may be, paragraph 20(4) of Schedule 2 to those Regulations, in the case of an election that had ceased and was paid for in full by the date referred to paragraph (2)(a);

(b) paragraphs (1), (4) and (5) (but not (6)) of regulation 73 of those 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 those 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 superannuable earnings referred to at paragraph (2)(b) will be calculated in accordance with whichever of paragraph (3) or (4)(b) of regulation 22 of the Health and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1984 applies to the Optant.

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

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

(a) first taking the additional superannuable earnings calculated in respect of that Optant in accordance with whichever of paragraph (3) or (4) applies (“ASE”), and

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

(7) Where a member was buying additional service by means of regular 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 260B(6) and (7).

(8) For the purposes of calculating the Optant’s benefits under this Section of the Scheme the additional pensionable earnings 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 amount of pensionable earnings the member is entitled to count under—

(a) regulation 260C(3), if the member is under age 60 on 1st October 2009; or

(b) regulation 260C(4), if the member is age 60 or over on that date.

• This is subject to regulation 260R.

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 260B, 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 260B(6) and (7);

(b) any liability to pay additional contributions 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 1st 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 practitioner service and pensionable earnings credited to that Optant under regulation 260C that relates to one or more periods of practitioner service in the 1995 Section that occurred before a break of 12 months or more in such service (“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 practitioner service and pensionable earnings credited to that Optant under regulation 260C that relates to a period of superannuable service in the 1995 Section that occurred after a break of 12 months or more in such service.

• 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 member’s uprated earnings calculated in accordance with paragraph 11 of Schedule 2 to the 1995 Regulations (Normal retirement pension) in respect of that particular period.

• This is subject to regulation 182(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 under pension sharing order following divorce or nullity of marriage) 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).

Pensionable earnings credited under regulations 260C and 260E to be treated as capped Optant pensionable earnings N.I.

(1) This regulation applies for the purpose of determining the amount of an Optant’s pensionable earnings (if any) that fall to be treated as capped Optant pensionable earnings for the purposes of calculating benefits payable to, or in respect of, the Optant under this Part.

(2) In paragraph (1) “capped Optant pensionable earnings” means the amount of pensionable earnings that the Optant is entitled to count under regulations 260C and 260E in respect of an amount of capped superannuable earnings for service in the 1995 Section up to, and including, 31st March 2008.

(3) For the purposes of paragraph (2), the Optant’s pensionable earnings were capped superannuable earnings in respect of service in the 1995 Section so far as—

(a) in the case of superannuable earnings in respect of service before 6th April 2006,—

(i) the Optant was an active member of the 1995 Section, and

(ii) that Optant’s pension under that Section in respect of the service was to be calculated by reference to superannuable earnings 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 superannuable earnings in respect of service on or after 6th April 2006,—

(i) the Optant was an active member of the 1995 Section, and

(ii) that Optant’s pension under that Section in respect of the service was to be calculated by reference to superannuable earnings 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 referred to in that paragraph, the Optant’s earnings in any tax year would have exceeded the amount of the limit.]