The National Health Service Pension Scheme Regulations 1995

Refund of contributions E+W+S

L2.— [F1 (1) A member who leaves pensionable employment without becoming entitled to a pension under regulations E1 to E5 or a preserved pension under regulation L1 shall be entitled to receive a lump sum refund of his contributions, less tax at—

(a) 20 per cent (or at such other rate as applies from time to time) in respect of so much of the lump sum as does not exceed £10,800 (or such other amount as applies from time to time); and

(b) 40 per cent (or at such other rate as applies from time to time) in respect of so much (if any) of it as exceeds that limit.]

(2) A member who wishes to take a refund of contributions must apply in writing to the Secretary of State.

[F2 (2A) An application in writing referred to in paragraph (2) may be—

(a) made or given by means of an electronic communication that is approved by the Secretary of State for that purpose;

(b) given to the Secretary of State by a person other than the member.]

[F3 (3) If the member’s employment was contracted-out by reference to the scheme, the member (and the member’s spouse or civil partner, if any) will remain entitled to a guaranteed minimum pension and section 9(2B) rights under the scheme, unless the Secretary of State discharges her liability in respect of that entitlement by paying a contributions equivalent premium under section 55(2) of the 1993 Act.]

(4) If a contributions equivalent premium is paid, the member’s refund of contributions will be reduced by the amount recoverable under section 61 of the Pensions Schemes Act 1993 (deduction of contributions equivalent premium from refund of contributions).

(5) If a contributions equivalent premium is not paid, the member’s refund of contributions will be reduced by the amount that the Secretary of State estimates would have been recoverable under section 61 of the Pensions Schemes Act 1993 if the premium had been paid.

(6) A member shall not be entitled to a refund of contributions for any period of service in respect of which the Secretary of State has received a transfer payment in respect of his rights under a personal pension scheme.

(7) Where a refund of contributions is made, the Secretary of State shall be discharged from any obligation to provide benefits under the scheme except to any extent provided for under paragraph (3).

Textual Amendments

F1 Reg. L2(1) substituted (6.4.2006) by The National Health Service (Pension Scheme, Injury Benefits and Additional Voluntary Contributions) Amendment Regulations 2006 (S.I. 2006/600), regs. 1(2)(b), 14

F2 Reg. L2(2A) inserted (1.10.2008) by The National Health Service Pension Scheme and Injury Benefits (Amendment) Regulations 2008 (S.I. 2008/2263), regs. 1(2)(3), 11 (with reg. 93)

F3 Reg. L2(3) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 39