The National Health Service Pension Schemes (Remediable Service) (Scotland) Regulations 2023

Elections to pay contributions for additional pension: where they must be treated as if paid under a corresponding option exercised under the 2011 Regulations or the 2013 Regulations

15.—(1) This regulation applies to a remedy member, other than a pensioner remedy member, who has pensionable service in the legacy scheme by virtue of section 2(1) of PSPJOA 2022 and was an active or deferred member of the 2015 scheme on 30 September 2023 in respect of that service where, during the remedy period, one or both of the following occurred—

(a) the member’s additional pension account was credited with an amount of additional pension in accordance with 2015 regulation 61;

(b) the member paid contributions in accordance with 2015 regulation 63.

(2) Where this regulation applies—

(a) all the remedy member’s rights secured by the credit or payment of contributions mentioned in paragraph (1) are extinguished, and

(b) those contributions are to be treated as if they had been paid in the relevant scheme year in which they were paid under a corresponding option exercised under the 2011 Regulations or the 2013 Regulations,

but as an alternative to (a) and (b) above, the scheme manager, on the application of the remedy member may make a compensation payment to the remedy member equal to the value of the contributions received under 2015 regulation 63.

(3) In paragraph (2)(b), “corresponding option” means—

(a) where pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2011 Regulations—

(i) an option under 2011 regulation Q8 if the member paid contributions in accordance with 2015 regulation 63;

(ii) an option under 2011 regulation Q10 if the member paid the lump sum contribution referred to in 2015 regulation 61; or

(iii) an option under 2011 regulation Q11 if the member’s employing authority paid the lump sum contribution referred to in 2015 regulation 61; or

(b) where pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2013 Regulations—

(i) an option under 2011 regulation 2.C.8 or 2011 regulation 3.C.6 if the member paid contributions in accordance with 2015 regulation 63;

(ii) an option under 2013 regulation 2.C.10 or 2013 regulation 3.C.8 if the member paid the lump sum contribution referred to in 2015 regulation 61; or

(iii) an option under 2011 regulation 2.C.11 or 2011 regulation 3.C.9 if the member’s employing authority paid the lump sum contribution referred to in 2015 regulation 61.

(4) For the purposes of this regulation, the reference to “£5,000” in paragraph (7) of 2011 regulation Q8, 2013 regulation 2.C.8 and 2013 regulation 3.C.6 is to be read as if it were a reference to “£12,079”.

(5) Paragraph (6) applies where the member’s contributions are treated as if they had been paid under a corresponding option in accordance with paragraph (2)(b).

(6) Where this paragraph applies, the scheme manager must, after having regard to the advice of the scheme actuary, take those contributions into account when making one or both of the determinations mentioned in paragraph (7).

(7) For the purposes of paragraph (6), the determinations are—

(a) whether the scheme manager is prohibited from accepting an election from a member under regulation 54 of the 2015 Regulations (election to pay contributions for additional pension) in so far as the effect of accepting it would be to provide the member with one or more pensions which exceeds, or in aggregate exceed, the overall limit that applies to such provision under regulation 60 of those Regulations (overall limit on extra pension ) for providing additional pensions, and

(b) whether the scheme manager is prohibited from accepting an election from a member under regulation 42(1) of the 2015 Regulations (eligibility to make buy-out election) because the value of the actuarial reduction bought out exceeds the greater of the first and second amounts in regulation 45(3) of those Regulations (overall limit on extra pension).