The National Health Service Pension Scheme Regulations 1995

PART K E+W+S Contracting–out

[F1 Contracting-out conditions to be overriding E+W+S

K1.— (1) The scheme will be administered in conformity with the contracting-out conditions and, with the exception of the circumstances specified in paragraph (2), regulations K2 to K7 override any inconsistent provisions of these regulations.

(2) The circumstances referred to in paragraph (1) are—

(a) if a trivial pension is commuted in accordance with regulation T7; or

(b) if a pension is commuted in accordance with regulations E2(10), E2A(10) or L1(5) (pensions on early retirement due to ill health and preserved pensions); or

(c) if a pension is forfeited for the reasons specified in sub-paragraphs (b) or (c) of regulation T6(1).

(3) In this Part—

(a) “contracting-out conditions” means the conditions specified in sections 9(2A) and 9(2B) of the 1993 Act;

(b) “guaranteed minimum” means the guaranteed minimum as defined in sections 13 to 17 of the 1993 Act;

(c) “guaranteed minimum pension” is a pension calculated in accordance with the guaranteed minimum requirements;

(d) “protected rights” has the same meaning as in the 1993 Act.]

Textual Amendments

F1 Reg. K1 substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 36

Guaranteed minimum pensions E+W+S

K2.—(1) This regulation applies where the member has a guaranteed minimum, in relation to the pension provided for the member under the scheme, in accordance with [F2 section 13 of the 1993 Act].

(2) The weekly rate of the member’s pension from State pension age will not be less than the member’s guaranteed minimum, except that—

(a) payment may, at the discretion of the Secretary of State, be postponed for up to 5 years if the member remains in NHS employment, or for any period if the member consents; and

(b) payment may be reduced or suspended under regulation S1 or S2 (members who return to NHS employment after becoming entitled to a pension) if the member returns to NHS employment,

in either of which cases the member’s guaranteed minimum pension will be increased as described in regulation K3 (late retirement).

(3) If the member is a man and dies leaving a widow, the weekly rate of the widow’s pension will not be less than one–half of the member’s guaranteed minimum.

(4) If the member is a woman and dies leaving a widower, the weekly rate of the widower’s pension will not be less than one–half of the part of the member’s guaranteed minimum that is attributable to earnings for the [F3 tax years 1988-89 to 1996-97 inclusive].

[F4 (4A) If the member is in a civil partnership and dies leaving a surviving civil partner, the weekly rate of the surviving civil partner’s pension will not be less than one-half of the part of the member’s guaranteed minimum that is attributable to earnings for the [F3 tax years 1988-89 to 1996-97 inclusive].]

(5) The part of any guaranteed minimum pension that is attributable to earnings for the [F5 tax years 1988-89 to 1996-97 inclusive] and subsequent tax years will be increased each year by the percentage specified in any order made by the Secretary of State under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions).

[F6 (6) A member who on leaving pensionable employment—

(a) becomes entitled to a refund of contributions under regulation L2; or

(b) exercises a right to require a transfer or buy-out in accordance with regulation M2,

but, in either case, remains (as described in regulation L2(3)) entitled to a guaranteed minimum pension or section 9(2B) rights, shall be entitled to the benefits specified in paragraph (7).

(7) The benefits are—

(a) a pension payable from the date on which the member reaches state pension age at a weekly rate equal to the member’s guaranteed minimum (if any); and

(b) a pension and lump sum from the date the member reaches normal benefit age in respect of the member’s section 9(2B) rights.

(8) On the death of a member to whom paragraph (6) applies, no benefit will be payable except for a widow’s, widower’s or surviving civil partner’s pension equal to the aggregate of—

(a) that described in paragraph (3) or, as the case may be, paragraph (4); and

(b) half the member’s pension in respect of section 9(2B) rights.]

Textual Amendments

F2 Words in reg. K2(1) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 37(2)

F3 Words in reg. K2(4)(4A) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 37(3)

F4 Reg. K2(4A) inserted (5.12.2005) by The National Health Service (Pension Scheme, Injury Benefits, Additional Voluntary Contributions and Compensation for Premature Retirement) (Civil Partnership) Amendment Regulations 2005 (S.I. 2005/3074), regs. 1, 2(16)(a)

F5 Words in reg. K2(5) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 37(4)

F6 Regs. K2(6)-(8) substituted for reg. K2(6) (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 37(5)

Late retirement E+W+S

K3.  If a member’s pension is postponed for more than 7 weeks after State pension age, or is reduced or suspended after it becomes payable, the member’s guaranteed minimum pension, as increased under section 109 of the Pension Schemes Act 1993 (annual increases of guaranteed minimum pensions), will be increased by 1/7th per cent. for each complete 7 days of postponement.

Early leavers E+W+S

K4.—(1) Subject to paragraph (2), if a member leaves contracted–out employment under the scheme before State pension age, the member’s guaranteed minimum pension at the date of leaving will be increased, when the member reaches State pension age or dies (if earlier), by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 M1 (revaluation of earnings factors) to come into force before the tax year in which the member reaches State pension age or dies (if earlier).

(2) If a guaranteed minimum pension is to be transferred to another scheme, or bought out by a buy–out policy, under which early leavers’ guaranteed minimum pensions are increased by a method other than that described in paragraph (1), the Secretary of State may adopt that other method for the guaranteed minimum pension in question.

(3) If a member returns to contracted–out employment under the scheme within 6 months after leaving, the two periods of contracted–out employment will be treated as continuous, unless the first period is covered by—

(a) a state scheme premium under Chapter III of Part III of the Pension Schemes Act 1993,

(b) a transfer to another occupational pension scheme or to a personal pension scheme, or

(c) any guaranteed minimum pension being bought out under a buy–out policy.

Marginal Citations

M1 1992 c.5.

Guaranteed minimum pensions transferred to the scheme E+W+S

K5.—(1) Where a guaranteed minimum pension has been transferred to the scheme and the member subsequently leaves contracted–out employment under the scheme, the guaranteed minimum pension transferred to the scheme will be increased for each complete tax year after the date on which the member left contracted–out employment under the scheme in which the transferred guaranteed minimum pension accrued, until the member reaches State pension age or dies (if earlier).

(2) If the transfer is from another occupational pension scheme, the guaranteed minimum pension will be increased by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches State pension age or dies (if earlier).

(3) If the transfer is from a buy–out policy, the guaranteed minimum pension will be increased by the same method as was in use under the policy or, if the Secretary of State so determines, by the appropriate percentage specified in relation to each relevant year in the last order under section 148 of the Social Security Administration Act 1992 (revaluation of earnings factors) to come into force before the tax year in which the member reaches State pension age or dies (if earlier).

Protected rights transferred to the scheme E+W+S

K6.—(1) Where protected rights have been transferred to the scheme from another occupational pension scheme or a personal pension scheme, the protected rights will be used to provide guaranteed minimum pensions equal to those to which the member and the member’s spouse [F7 or civil partner] would have been treated as entitled under the transferring scheme had the transfer not been made.

(2) Any guaranteed minimum pensions to which a member and his spouse [F7 or civil partner] are entitled by virtue of paragraph (1) will be revalued as described in regulation K5(2).

Textual Amendments

F7 Words in reg. K6 inserted (5.12.2005) by The National Health Service (Pension Scheme, Injury Benefits, Additional Voluntary Contributions and Compensation for Premature Retirement) (Civil Partnership) Amendment Regulations 2005 (S.I. 2005/3074), regs. 1, 2(17)

State scheme premiums E+W+S

K7.—(1) The Secretary of State may discharge her liability to provide any guaranteed minimum pension by paying a state scheme premium under Chapter III of Part III of the Pension Schemes Act 1993.

(2) Where a member, or a member’s [F8 widow, widower or surviving civil partner], is entitled to a pension under the scheme in respect of a period for which a contributions equivalent premium has been paid under section 55(2) of the Pension Schemes Act 1993, the pension will be reduced by the amount of the guaranteed minimum pension that would have been payable under the scheme to the member, [F8 widow, widower or surviving civil partner], as the case may be, if the contributions equivalent premium had not been paid.

Textual Amendments

F8 Words in reg. K7(2) substituted (5.12.2005) by The National Health Service (Pension Scheme, Injury Benefits, Additional Voluntary Contributions and Compensation for Premature Retirement) (Civil Partnership) Amendment Regulations 2005 (S.I. 2005/3074), regs. 1, 2(18)