PART 2 N.I.Amendments to the Health and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1995

General N.I.

2.  The Heath and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1995(1) are amended in accordance with this Part.

Commencement Information

I1 Reg. 2 in operation at 1.4.2024, see reg. 1

Amendment of regulation 2 N.I.

3.  In regulation 2 (interpretation), at the appropriate place in alphabetical order insert—

““active member” means a person who is in superannuable service under the scheme;”.

Commencement Information

I2 Reg. 3 in operation at 1.4.2024, see reg. 1

Amendment of regulation 3 N.I.

4.—(1) Regulation 3 (meaning of “superannuable pay and “final year’s superannuable pay”)(2) is amended as follows.

(2) In paragraph (6), for “paragraph (6A)”, substitute “paragraphs (6A) and (6B)”.

(3) After paragraph (6A), insert—

“(6B) If a member becomes entitled to a pension under regulation 16A (partial retirement pension), “final year’s superannuable pay” means superannuable pay in respect of the year immediately preceding the day on which the reduction in the member’s superannuable pay takes effect by virtue of which the member becomes entitled to the partial retirement pension.”.

Commencement Information

I3 Reg. 4 in operation at 1.4.2024, see reg. 1

Amendment of regulation 4 N.I.

5.—(1) Regulation 4 (meaning of “ superannuable service”)(3) is amended as follows.

(2) In paragraph (2), for sub-paragraph (b) substitute—

“(b) in the case of a member who has become entitled to a pension (including a preserved pension) any period taken into account—

(i) in determining the member’s entitlement to the pension in payment or, as the case may be, the preserved pension, or

(ii) in calculating the amount of that pension,

but, in the case of a member entitled to a pension under regulation 16A (partial retirement pension), subject to paragraph (7);”.

(3) After paragraph (6), insert—

“(7) In the case of a member entitled to a pension under regulation 16A (partial retirement pension), paragraph (2)(b) only applies to so much of the member’s superannuable service as is mentioned in regulation 16A(11)(a) (the pension to which the member is immediately entitled as a result of exercising the option and the specified percentage of the superannuable service that pension represents).”.

Commencement Information

I4 Reg. 5 in operation at 1.4.2024, see reg. 1

New regulations 16A, 16B and 16C N.I.

6.  After regulation 16 (early retirement pension (with actuarial reduction)), insert—

“Partial retirement pension

16A.— (1) A member who is in superannuable employment may exercise an option under this regulation if—

(a) the member—

(i) has reached normal minimum pension age or, where relevant, protected pension age;

(ii) has at least two years’ qualifying service; and

(iii) continues to be in superannuable employment or, where the member is in more than one superannuable employment, the member continues to be in at least one of those superannuable employments;

(b) the terms on which the member holds the superannuable employment or employments referred to in sub-paragraph (a)(iii) change; and

(c) as a result, the annual rate of the member’s superannuable pay is reduced to 90% or less of the amount of the member’s superannuable pay during the period of 12 months ending with the option day.

(2) If the member was not in superannuable employment during the whole of the period of 12 months referred to in paragraph (1)(c), that paragraph applies as if the member’s superannuable pay during that period were—

PP x (365 / N)

where—

• PP is the member’s superannuable pay for the part of that period during which the member was in superannuable employment, and

• N is the number of days in that period on which the member was in superannuable employment.

(3) The option may only be exercised by notice in writing in such form as the Department requires and must be accompanied by a statement in writing by the member’s employing authority, or employing authorities, that the conditions in paragraph (1)(b) and (c) are met.

(4) The option must specify—

(a) the percentage of the member’s pension (excluding any additional pension) in respect of which the member claims immediate payment (“the specified percentage”);

(b) whether the superannuable service used to calculate the pension referred to at sub-paragraph (a) is to include additional service (if any) that the member has purchased under regulation 67 (right to buy additional service); and

(c) whether the member claims immediate payment of additional pension (if any).

(5) A member who duly exercises the option under this regulation is entitled—

(a) in the case of a member who has reached the age of 60, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 12 (normal retirement pension) if the member had retired from superannuable employment on the option day (including any additional service specified under paragraph (4)(b) but disregarding any additional pension);

(b) in the case of a member who has not reached the age of 60, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 16 (early retirement pension with actuarial reduction) if the member had retired from superannuable employment on the option day (including any additional service specified under paragraph (4)(b) but disregarding any additional pension);

(c) in the case of a special class officer who meets the retirement condition in paragraph (12) and has reached the age of 55, to immediate payment of the specified percentage of the pension to which the member would be entitled under regulation 12 (normal retirement pension) if the member had retired from superannuable employment on the option day (including any additional service specified under paragraph (4)(b) but disregarding any additional pension); and

(d) where the option specifies that the member claims immediate payment of additional pension—

(i) if the option day falls after the member’s chosen birthday, to the immediate payment of the additional pension; and

(ii) if the option day falls before the member’s chosen birthday, to the immediate payment of the additional pension reduced in accordance with paragraphs (5) and (6) of regulation 73H (effect of death or early payment of pension after option exercised under regulation 73A, 73C or 73D).

(6) If—

(a) the option specifies that the superannuable service used to calculate the pension referred to at paragraph (5)(a), (b) or (c) is to include additional service that the member has purchased under regulation 67;

(b) the member’s method of payment for the additional service is regular additional contributions; and

(c) the option day falls before the member’s chosen date,

then the proportion of additional service to be included in the superannuable service used to calculate that pension will be reduced in accordance with paragraph (6) of regulation 73 (part payment for additional service or unreduced retirement sum).

(7) Subject to paragraph (8), the specified percentage must be such that the pension to which the member becomes entitled as a result of the option (before the exercise of the option under regulation 17A (general option to exchange part of pension for lump sum) and disregarding any additional benefits)—

(a) is not less than the amount of the pension payable by reference to 20% of the member’s superannuable service at the end of the option day (disregarding any additional benefits); and

(b) is not less than 0.05% of the member’s lifetime allowance on the option day.

(8) Where a member has reached protected pension age but not yet reached normal minimum pension age, the specified percentage must be 100% of the member’s superannuable service at the end of the option day (disregarding any additional benefits).

(9) Where a pension is payable under paragraph (5)(b), the lump sum payable under regulation 17 (lump sum on retirement) will be reduced in accordance with paragraph (7) of regulation 17.

(10) The option under this regulation may only be exercised on no more than two occasions and the Department shall take advice from the Scheme Actuary regarding—

(a) any benefits to be paid after the exercise of the first option (but before the exercise of the second option);

(b) any benefits to be paid after the exercise of the second option; and

(c) the final payment.

(11) For the purposes of these Regulations, a member who has exercised the option under this regulation—

(a) is a member to whom a pension has become payable in respect of the pension to which the member is immediately entitled as a result of exercising the option and the specified percentage of the superannuable service that that pension represents;

(b) if the member continues as an active member of the 2015 Scheme after the option day, is treated as a member who is in superannuable employment in respect of so much of the member’s superannuable service in this Section of the scheme that does not fall within sub-paragraph (a) (“the unspecified service”); and

(c) if the member does not continue as an active member of the 2015 Scheme after the option day, is a member with a preserved pension in respect of the unspecified service.

(12) In this regulation—

“additional benefits” means any additional service specified under paragraph (4)(b) and any additional pension specified under paragraph (4)(c);

“chosen birthday” has the meaning given in paragraph (9) of regulation 73A (option to pay additional periodical contributions to purchase additional pension);

“chosen date” has the meaning given in paragraph (3) of regulation 72 (paying for additional service or unreduced retirement lump sum by regular additional contributions);

“the option day” means the day before the reduction in superannuable pay by virtue of which the option is exercisable takes effect;

“the retirement condition” is met if the Department determines that regulation 75(3)(a) or regulation 76(5) (whichever applies) would have applied to the special class officer if the officer’s superannuable employment had terminated on the option day.

Increase in superannuable pay following exercise of option under regulation 16A

16B.— (1) This regulation applies if, in a case where a member has exercised the option under regulation 16A—

(a) during the period of 12 months beginning with the day after the option day the terms on which the member holds the employment or employments referred to in regulation 16A(1)(a)(iii) change again; and

(b) as a result, the member’s superannuable pay in that employment or those employments is increased to more than 90% of the member’s superannuable pay during the period of 12 months ending with the option day; or

(c) following an increase referred to in sub-paragraph (b), the member’s superannuable pay in that employment or those employments is reduced to less than 90% of the member’s superannuable pay during the period of 12 months ending with the option day.

(2) In the circumstances referred to in—

(a) paragraph (1)(b), the amount of the member’s pension mentioned in sub-paragraphs (a), (b) and (c) of regulation 16A(5) (excluding any additional benefits) shall be abated to zero from the first pension day immediately following the day on which the level of the member’s superannuable pay increased;

(b) paragraph (1)(c), subject to any adjustments in accordance with sub-paragraph (c), the member shall again be entitled to receive payment of the full amount of the pension mentioned in sub-paragraphs (a), (b) and (c) of regulation 16A(5) as from the first pension day immediately following the day on which the level of the member’s superannuable pay reduced;

(c) where sub-paragraph (b) applies, before restoring the payment of a pension the Department shall have regard to the advice of the Scheme Actuary as to whether the amount of the pension should be adjusted in view of the length of time during which it was abated to zero in accordance with sub-paragraph (a).

(3) If the member was not in superannuable employment during the whole of the period of 12 months mentioned in paragraph (1)(b), that paragraph applies as if the member’s superannuable pay during that period were—

PP x (365/N)

where—

• PP is the member’s superannuable pay for the part of that period during which the member was in superannuable employment; and

• N is the number of days in that period on which the member was in superannuable employment.

(4) If, in the opinion of the Department, had the terms and conditions of the member’s employment remained the same after the option day (apart from superannuable pay), the annual rate of superannuable pay for the employment as at the time of the change mentioned in paragraph (1)(a) would have exceeded the annual rate referred to in paragraph (1)(b)—

(a) paragraph (2)(a) does not apply; and

(b) this regulation applies as if paragraph (1)(b) referred to that annual rate instead of the actual annual rate.

(5) For the purposes of this regulation, if during the period of 12 months beginning with the day after the option day the member enters a further superannuable employment or employments—

(a) that event is treated as if the terms on which the member holds the employment in respect of which the option was exercised (“the option employment”) had changed again; and

(b) the member’s superannuable pay in the further employment is treated as an increase in the member’s pay in the option employment.

(6) In this regulation “additional benefits” and “the option day” have the same retrospective meanings as in regulation 16A(12).

Application of regulations 16A and 16B with modifications where concurrent part-time employments held

16C.— (1) This regulation provides for the application of regulations 16A and 16B with modifications if a member is in superannuable employment in two or more part-time employments held concurrently on the option day.

(2) Those regulations apply in relation to each of the employments as if it were the only employment held by the member on that day, but with the modifications set out in paragraphs (3) to (8).

(3) In regulation 16A(1), for sub-paragraph (c) substitute—

“(c) as a result of that change, the sum of the annual rate of the member’s superannuable pay in that employment and every other employment held by the member on the option day is reduced to 90% or less of the sum of—

(i) the member’s superannuable pay in the employment during the period of 12 months ending with the option day; and

(ii) the member’s superannuable pay during that period in every other employment held by the member on the option day.”.

(4) In regulation 16A(2)—

(a) after “paragraph (1)(c)”, insert “in the employment or any other employment referred to in that paragraph”; and

(b) after “that period”, insert “in that employment”.

(5) In regulation 16B(1), for sub-paragraph (b) substitute—

“(b) as a result the annual rate of the member’s superannuable pay in that employment is increased to more than 90% of the sum of—

(i) the member’s superannuable pay in the employment during the period of 12 months ending with the option day; and

(ii) the member’s superannuable pay during that period in every other employment held by the member on the option day.”.

(6) In regulation 16B(3)—

(a) after “paragraph (1)(b)”, insert “in the employment or any other employment referred to in that paragraph”; and

(b) after “that period”, insert “in that employment”.

(7) For regulation 16B(4), after “referred to in paragraph (1)(b)”, insert “for that employment”.

(8) Where—

(a) a member’s pension is abated in accordance with regulation 16B(2)(a), in the circumstances described in regulation 16B(1)(b); and

(b) the member’s superannuable pay does not reduce in the manner described in regulation 16B(1)(c),

the pension will (in any event) be payable by the Department when the member retires, or partially retires again, from superannuation employment or attains the age of 75 and in doing so the Department shall—

(i) have regard to any pensions already paid, including any lump sum paid as a result of the member exercising an option under regulation 17A (general option to exchange part of pension for lump sum); and

(ii) take advice of the Scheme Actuary.

(9) In this regulation “the option day” has the same meaning as in regulation 16A(12).”.

Commencement Information

I5 Reg. 6 in operation at 1.4.2024, see reg. 1

Amendment of regulation 17 N.I.

7.—(1) Regulation 17 (lump sum on retirement)(4) is amended as follows.

(2) In paragraph (1), for “16”, substitute “16A”.

(3) In paragraph (7)—

(a) for “16 applies (early retirement pension with actuarial reduction)”, substitute “16 (early retirement pension with actuarial reduction) or regulation 16A (partial retirement pension) applies”; and

(b) in sub-paragraph (a), after “regulation 16(2)”, insert “or regulation 16A(5)(b);”.

Commencement Information

I6 Reg. 7 in operation at 1.4.2024, see reg. 1

Amendment of regulation 19 N.I.

8.—(1) Regulation 19 (member dies after pension becomes payable) is amended as follows.

(2) At the end of the heading, add “(other than a pension under regulation 16A)”.

(3) For paragraph (1) substitute—

“(1) Subject to paragraph (7), if a member dies after the member’s pension under any of regulations 12 to 16 becomes payable, a lump sum on death shall be payable in accordance with regulation 22.”.

Commencement Information

I7 Reg. 8 in operation at 1.4.2024, see reg. 1

New regulation 19A N.I.

9.  After regulation 19 (member dies after pension becomes payable) insert—

“Member dies after a pension under regulation 16A becomes payable

19A.— (1) If a member dies after one or more pensions under regulation 16A become payable to the member, a lump sum on death shall be payable in accordance with regulation 22.

(2) The lump sum on death will be equal to 5 times the yearly rate of each of the member’s pensions (less the amount of pension already paid) provided that the maximum payment under this paragraph shall not exceed the aggregate lump sum cap.

(3) The aggregate lump sum cap is equal to twice the appropriate fraction of the member’s final year’s superannuable pay by reference to which the pension to which the member became entitled on last exercising the option under regulation 16A was calculated, less an amount equal to the aggregate of—

(a) the member’s retirement lump sum under regulation 17, and

(b) any lump sum paid to the member under regulation 17A.

(4) In this regulation—

“the appropriate fraction” means—

DPS / TDPS

where

• DPS is, where the member continues in superannuable service as an active member of the 2015 Scheme on the option day (or the last such option day if the option has been exercised more than once), the total number of days of superannuable service in that Scheme and this Section of the scheme which do not relate to the specified percentage of pension on the option day;

• TDPS is the aggregate of DPS and the total number of days of superannuable service (at the option day or the last such option day if the option has been exercised more than once) which relate to the specified percentage of pension payable;

“the option day” has the meaning given in regulation 16A(12); and

“specified percentage” has the meaning given in regulation 16A(4) (a).”.

Commencement Information

I8 Reg. 9 in operation at 1.4.2024, see reg. 1

Amendment of regulation 25 N.I.

10.  In regulation 25 (member dies after pension becomes payable), in paragraph (5) after “(early retirement pension with actuarial reduction)” insert “or regulation 16A (partial retirement pension)”.

Commencement Information

I9 Reg. 10 in operation at 1.4.2024, see reg. 1

Amendment of regulation 35 N.I.

11.  In regulation 35 (member dies after pension becomes payable), in paragraph (9)(5) after regulation “regulation 13C” insert “(further employment after a benefit is paid under regulation 13A) or regulation 16A (partial retirement pension)”.

Commencement Information

I10 Reg. 11 in operation at 1.4.2024, see reg. 1

Amendment of regulation 36 N.I.

12.  In regulation 36 (member dies with preserved pension), for paragraph (3)(6) substitute—

“(3) Subject to paragraph (3A), if the member dies 12 months or more after leaving superannuable employment, the allowance will be calculated as described in whichever of paragraph (4) or (5) applies, as a proportion of the amount of the member’s preserved pension if paragraph (11)(c) of regulation 16A applies to the member, otherwise the greater of—

(a) the member’s preserved pension; and

(b) the amount that the preserved pension would have been if it had been based on 10 years’ superannuable service.”.

Commencement Information

I11 Reg. 12 in operation at 1.4.2024, see reg. 1

Amendment of regulation 39 N.I.

13.  In regulation 39 (allocation of pension)(7), in paragraph (4)(a), after “put into payment” insert “other than a pension payable under regulation 16A (partial retirement pension)”.

Commencement Information

I12 Reg. 13 in operation at 1.4.2024, see reg. 1

Amendment of regulation 43 N.I.

14.  In regulation 43 (guaranteed minimum pensions)(8), in paragraph (2)(b), for “reduced or suspended under regulation 84 (Suspension of pension on return to HSC employment) or regulation 85 (Reduction of pension on return to HSC employment) if the member returns to HSC employment” substitute “reduced under regulation 85 (reduction of pension on return to HSC employment)”.

Commencement Information

I13 Reg. 14 in operation at 1.4.2024, see reg. 1

Amendment of regulation 49 N.I.

15.  In regulation 49 (preserved pension)(9), in paragraph (14), for the definition of “HSC employment”, substitute⸺

““HSC employment” does not include employment with an employing authority in respect of which⸺

(a)

a member is eligible to join the 2008 Section; or

(b)

a member, other than a member who is no longer required to pay contributions pursuant to regulation 10(3) or (4) (contributions by members), is eligible to join the 2015 Scheme and that member’s service in this Section does not qualify as, or has ceased to be, superannuable service to which paragraphs 1(2)(i) and (ii) or paragraphs 2(2)(i) and (2)(ii) of Schedule 7 (final salary link) to the 2014 Act applies;”.

Commencement Information

I14 Reg. 15 in operation at 1.4.2024, see reg. 1

Amendment of regulation 67 N.I.

16.  In regulation 67 (right to buy additional service)(10), in paragraph (4), after sub-paragraph (b), for the full stop substitute a semi colon and insert—

“(c) for the purpose of calculating any pension the member becomes entitled to under paragraph (5)(a), (b) or (c) of regulation 16A (partial retirement pension), unless the member specifies that any additional service is to be included in the calculation of that pension in accordance with paragraph (4)(b) of that regulation.”.

Commencement Information

I15 Reg. 16 in operation at 1.4.2024, see reg. 1

Amendment of regulation 77 N.I.

17.  In regulation 77 (members doing more than one job), omit paragraph (8).

Commencement Information

I16 Reg. 17 in operation at 1.4.2024, see reg. 1

Amendment of regulation 73H N.I.

18.  In regulation 73H (effect of death or early payment of pension after option exercised under regulation 73A, 73C or 73D), in paragraph (5), at the end of sub-paragraph (c), insert “; or” and after that sub-paragraph add—

“(d) becomes entitled to a pension under regulation 16A before the member’s chosen birthday,”.

Commencement Information

I17 Reg. 18 in operation at 1.4.2024, see reg. 1

Omission of regulation 84 N.I.

19.  Omit regulation 84 (suspension of pension on return to HSC employment)(11).

Commencement Information

I18 Reg. 19 in operation at 1.4.2024, see reg. 1

Amendment of regulation 85 N.I.

20.  In regulation 85 (reduction of pension on return to HSC employment), in paragraph (14), for the definition of “HSC employment” substitute—

““HSC employment” includes—

(a) employment in respect of which regulations made under section 10 of the Superannuation Act 1972, and having effect in Great Britain apply; and employment commencing on or before 31st March 2012 to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald) applies; and

(b) employment with an employer with whom an agreement has been made under Article 12(9) of the Superannuation (Northern Ireland) Order 1972 or in respect of whom a direction has been made under Article 12(6) of that Order.”

Commencement Information

I19 Reg. 20 in operation at 1.4.2024, see reg. 1

Amendment of Schedule 2 N.I.

21.  In Schedule 2 (medical and dental practitioners), after paragraph 12, insert—

“Partial retirement pension

12A.— (1) In the case of members who are or have been practitioners, regulations 16A (partial retirement pension) and 16B (increase in superannuable pay following exercise of option under regulation 16A) are modified as follows.

(2) Regulation 16A is modified so that—

(a) the reference to holding superannuable employment in paragraph (1)(b) is treated as a reference to engaging in superannuable employment;

(b) the condition in paragraph (1)(c), for the reduction of the member’s superannuable pay to 90% or less of the member’s superannuable pay during the period of 12 months ending with the option day, is treated as a condition for the reduction of the member’s engagement in such employment to 90% or less of its pre-change level;

(c) paragraph (2) is omitted;

(d) the requirement in paragraph (3), for a statement in writing by the member’s employing authority that the conditions in paragraph (1)(b) and (c) are met, is treated as a requirement for appropriate supporting evidence and a statement in writing approved by the Department that the conditions in paragraph (1)(b) and (c) are met;

(e) the requirement in paragraph (7)(a), for the pension to which the member becomes entitled to not be less than the amount of the pension payable by reference to 20% of the member’s superannuable service at the end of the option day (disregarding any additional benefits), is treated as a requirement for the pension to which the member becomes entitled to not be less than 20% of the pension that would have been payable if the member had ceased to be employed in all of his employments at the end of the option day (disregarding any additional benefits);

(f) for the purposes of regulation 16A—

(i) “pre-change level” means the level of the member’s engagement in the employment referred to in regulation 16A(1)(a)(iii) during the period of 12 months ending with the option day; and

(ii) “pension” means the pension that a member would have been entitled to on the option day if the member had ceased to be employed in all of his employments and, in the case of practitioner services, the superannuable earnings taken into account when working out the pension will be drawn from the latest certificate referred to in paragraph 23 of this Schedule (accounts and actuarial reports), or the latest scheme year’s final superannuable earnings referred to in paragraph 10 of this Schedule (contributions to this Section of the scheme), and agreed with the Department.

(3) Regulation 16B is modified so that the condition in paragraph (1)(b), for the member’s superannuable pay to increase to more than 90% of the member’s superannuable pay during the period of 12 months ending with the option day, is treated as a condition for the level of the member’s engagement in the employment or employments referred to in regulation 16A(1)(a)(iii) to increase to more than 90% of the member’s pre-change level.

(4) For the purposes of regulation 16B—

(a) “pre-change level” has the meaning given in paragraph (2)(f)(i);

(b) a member’s “employment” means practitioner service together with any concurrent HSC employment.”.

Commencement Information

I20 Reg. 21 in operation at 1.4.2024, see reg. 1

(1)

S.R.1995 No. 95.

(2)

Amended by S.R. 2008 No. 163.

(3)

Amended by S.R. 2008 No.163 & 2010 No. 22.

(4)

Relevant amending regulations are S.R. 2006 No. 410, S.R. 2008 No. 130 and S.R. 2010 No. 492.

(5)

Paragraphs (9) and (10) were inserted by S.R. 2008 No. 163.

(6)

Paragraphs (3) and (3A) were substituted by S.R. 2008 No. 163.

(7)

Relevant amending regulations are S.R. 2008 No. 130, S.R. 2008 No. 163 and S.R. 2010 No. 22.

(8)

Regulation 43 was amended by S.R. 2010 No 420.

(9)

Relevant amending regulations are S.R.2008 No. 163 and S.R. 2015 No. 122.

(10)

Relevant amending regulations are S.R. 2008 No. 163 and S.R. 2010 No. 22.

(11)

Section 47 of the Coronavirus Act 2020 made a temporary modification to regulation 84; this modification was extended by S.R. 2022 No 153 and S.R. 2022 No 245