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

[F1 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).]

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