The National Health Service Pension Scheme Regulations 1995

Preserved pension E+W+S

L1.—(1) Subject to paragraphs (3) and (4), a member who leaves pensionable employment before age 60 without becoming entitled to a pension under any of regulations E1 to E5 shall be entitled to receive a pension and retirement lump sum under this regulation from age 60 if—

(a) the member leaves with at least 2 years’ qualifying service, or

(b) a transfer payment has been made to the scheme in respect of the member’s rights under a personal pension scheme.

[F1 (2) The pension under this regulation will be calculated–

(a) where it becomes payable by virtue of paragraph (3)(d) below, in accordance with paragraphs (2) to (4) of regulation E5, as if it were a pension under that regulation; and

(b) in any other case, as described in regulation E1;

and the retirement lump sum will be calculated as described in regulation E6.]

(3) The member shall be entitled to receive the pension and retirement lump sum before age 60 if—

(a) the member is in NHS employment and the Secretary of State is satisfied that the member is suffering from mental or physical infirmity that makes him permanently incapable of efficiently discharging the duties of that employment;

(b) the Secretary of State is satisfied that the member is suffering from mental or physical infirmity that makes him permanently incapable of engaging in regular employment; or

(c) some other pension becomes payable to the member under any of regulations E1 to E5;

[F2 (d) the member—

(i) left pensionable employment after 30th March 2000,

(ii) has reached the [F3 normal minimum pension age or, where relevant, protected pension age], and

(iii) has applied to the Secretary of State for payment of the pension and retirement lump sum under this regulation.]

(4) [F4 Except in a case to which paragraph (4A) applies,] if the member is in NHS employment (whether with the same or another employing [F5 authority)—

(a) in the case of a member to whom sub-paragraph (d) of paragraph (3) above applies, when he makes the application referred to in head (iii) of that sub-paragraph, or

(b) in any other case, when he reaches the age of 60,

the pension] and lump sum on retirement will not become payable until the member leaves NHS employment or reaches age 70, whichever is the earlier.

[F6 (4A) Paragraph (4) may not apply where the NHS employment which the member is in when he reaches age 60 is employment into which he has been transferred as a result of a transfer of an undertaking to the employer.

(4B) Where a member receives a pension under paragraph (1) while being in the new employment to which paragraph (4A) applies—

(a) his benefits in respect of any pensionable service in that new employment shall be calculated without regard to any pensionable service in any earlier employment;

(b) for the purposes of regulation C2 (meaning of “pensionable service”) and regulation D1(3) and (4) (contributions by members), his service in the earlier employment and in the new employment shall be aggregated.]

(5) Subject to paragraph (6), where on or after the coming into force of these Regulations a member becomes entitled to a pension under paragraph (3)(a) or (b), the Secretary of State may discharge her liability for that pension by the payment of a lump sum.

(6) A lump sum payment under paragraph (5) may be made only if the Secretary of State is satisfied that it is appropriate in all the circumstances having regard to the life expectancy of the member and the member was in pensionable employment on or after the coming into force of these Regulations.

(7) For the purpose of paragraph (6), the Secretary of State may require whatever medical evidence that she considers necessary.

(8) The amount of the lump sum payable under paragraph (5) will be equal to 5 times the difference between the yearly rate of the member’s pension (calculated in accordance with this regulation) and the yearly rate of the member’s guaranteed minimum pension F7 ... and shall be payable in addition to the lump sum on retirement payable under this regulation, which shall not be subject to any reduction such as is described in regulation E6(3).

Textual Amendments

F1 Reg. L1(2) substituted (31.3.2000) by The National Health Service (Pension Scheme and Compensation for Premature Retirement) Amendment Regulations 2000 (S.I. 2000/605), regs. 1(1)(a), 8(a)

F2 Reg. L1(3)(d) inserted (31.3.2000) by The National Health Service (Pension Scheme and Compensation for Premature Retirement) Amendment Regulations 2000 (S.I. 2000/605), regs. 1(1)(a), 8(b)

F3 Words in reg. L1(3)(d)(ii) substituted (6.4.2006) by virtue of The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006 (S.I. 2006/600), regs. 1(2)(b), 13

F4 Words in reg. L1(4) inserted (1.4.2003) by The National Health Service (Pension Scheme, Injury Benefits and Compensation for Premature Retirement) Amendment Regulations 2003 (S.I. 2003/631), reg. 1(1), Sch. para. 2(a)

F5 Words in reg. L1(4) substituted (31.3.2000) by The National Health Service (Pension Scheme and Compensation for Premature Retirement) Amendment Regulations 2000 (S.I. 2000/605), regs. 1(1)(a), 8(c)

F6 Regs. L1(4A)(4B) inserted (1.4.2003) by The National Health Service (Pension Scheme, Injury Benefits and Compensation for Premature Retirement) Amendment Regulations 2003 (S.I. 2003/631), reg. 1(1), Sch. para. 2(b)

F7 Words in reg. L1(8) omitted (with effect from 1.4.1998) by virtue of The National Health Service (Pension Scheme and Injury Benefits) Amendment Regulations 2004 (S.I. 2004/665), regs. 1(1)(2), 3(4)