The Health and Social Care Pension Schemes (Partial Retirement etc.) Regulations (Northern Ireland) 2024

New regulations 16A, 16B and 16C

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).”.