The National Health Service Pension Scheme Regulations 1995

Reduction of pension on return to NHS employment E+W+S

S2.— [F1 (1) Subject to paragraph (15), this regulation applies to a member—

(a) until the member attains the age of 60; and

(b) who is in receipt of a relevant pension; and

(c) who continues in, or subsequently returns to, NHS employment.

(1A) A relevant pension for the purpose of this regulation is a pension payable,—

(a) in respect of pensionable employment that ceased before 1st April 2008,—

(i) under any or regulations E2 to E3C (pensions on ill health retirement and redundancy), or

(ii) in accordance with L1(2)(b)(preserved pension), or

(b) in respect of pensionable employment that ceased on or after 1st April 2008,—

(i) any of regulations E2 to E3, or

(ii) in accordance with E3A(2)(d)(ii)(early retirement pension (termination of employment by employing authority)) or

(iii) except where paragraph (c) applies, in accordance with L1(2)(b), or

(c) where the member is a special class officer —

(i) regulation E1(normal retirement pension), or

(ii) if regulation R2(3)(b)(nurses, physiotherapists, midwives and health visitors) [F2 or regulation R3(9) (mental health officers)] applies to the member, in accordance with L1(2)(b).]

[F3 (2) A member to whom this regulation applies must—

(a) inform the member’s employer, and any other person that the Secretary of State may specify, that the member’s pension under the scheme has become payable, and

(b) if requested to do so, provide any information (or authorise any other person to provide information) about the member’s pay from NHS employment to the Secretary of State or to any other person the Secretary of State may specify.]

[F4 (3) If the relevant pension is one referred to in paragraph (1A)(a) or (c)—

(a) the member’s pension will be reduced by the appropriate amount;

(b) the appropriate amount is the difference between the member’s previous pay and the aggregate of—

(i) the amount of the member’s pension (including in that amount any amount by which that pension has been reduced pursuant to an election under regulation E7); and

(ii) the amount of the member’s pay from NHS employment for any financial year after the pension becomes payable.

(3A) If the relevant pension is one referred to in paragraph (1A)(b), the member’s pension will be reduced in accordance with paragraphs (3B) to (3D) if Amount A exceeds the member’s previous pay.

(3B) The reduction in that member’s pension shall be equal to the difference between amount A and the member’s previous pay, but shall not exceed Amount B.

(3C) For the purposes of paragraphs (3A) and (3B), amount A is the aggregate of—

(a) the amount of the member’s pay from NHS employment for any financial year after the pension becomes payable; and

(b) Amount B.

(3D) For the purposes of paragraphs (3B) and (3C), amount B is the difference between—

(a) the amount of the member’s pension (including in that amount any amount by which that pension has been reduced pursuant to an election under regulation E7); and

(b) the amount of an actuarially reduced pension.]

(4) A member’s pension will be reduced as described in this regulation whether or not the member is included in the scheme in respect of the employment after his pension becomes payable and regardless of any provision of these Regulations under which a member may be treated as having left NHS employment without actually leaving.

(5) For the purposes of paragraph (3), the amount to be taken as the member’s previous pay shall—

(a) be increased in each financial year by the amount by which a pension beginning on the date on which the member’s pension under the scheme became payable (or, if earlier, the member left pensionable employment) would have been increased under Part I of the Pensions (Increase) Act 1971 at the 6th April falling in that financial year;

(b) in the case of a person who holds a continuing employment (otherwise than as a practitioner), be increased by the annual rate of pay in respect of the continuing employment; and

(c) in the case of a person who is employed as a practitioner in continuing employment, be increased by the average of the annual amounts of uprated earnings in respect of the last 3 financial years prior to the pension referred to in paragraph (1) becoming payable.

(6) For the purpose of calculating the reduction to be made under paragraph (3) in respect of any part of a financial year, the amount of the member’s “previous pay" will be reduced proportionately.

(7) This paragraph applies to a person who held a part–time pensionable employment immediately before the pension described in paragraph (1) became payable and who, within the 12 months preceding the date on which the pension became payable, held a concurrent part–time pensionable employment.

(8) Where paragraph (7) applies and the concurrent part–time pensionable employment terminated before the pension described in paragraph (1) became payable, previous pay shall be increased as described in paragraph (9).

(9) For the purpose of paragraph (8), previous pay shall be increased by the annual rate of pay in respect of the concurrent part–time employment mentioned in that paragraph or, if higher, that part of the pensionable pay for that employment which falls within the 12 month period mentioned in paragraph (7).

(10) This paragraph applies to a person who within the 12 months preceding the date on which the pension described in paragraph (1) became payable, was in pensionable employment as a practitioner.

(11) Where paragraph (10) applies and the pensionable employment as a practitioner terminated before the pension described in paragraph (1) became payable, previous pay shall be increased as described in paragraph (12).

(12) For the purpose of paragraph (11), previous pay shall be increased by the average of the annual amounts of the member’s uprated earnings in respect of the pensionable employment as a practitioner mentioned in that paragraph.

(13) For the purpose of paragraph (11), “uprated earnings" means the same as in paragraph 11(2) of Schedule 2.

(14) For the purposes of this regulation—

[F5 “actuarially reduced pension” means such annual amount as the Secretary of State determines, after consulting the Scheme Actuary, to be the amount that would have been payable to the member (regardless of whether the member has reached normal minimum pension age or protected minimum pension age) if the member become entitled to a pension—

(a)

calculated in accordance with regulation E5 (early retirement pension with actuarial reduction) at the time he became entitled to a pension mentioned in paragraph (1A)(b), plus

(b)

any increases to that amount payable under Part I of the Pensions (Increase) Act 1971 for that period;]

“annual rate of pay" means the annual rate of so much of the member’s pensionable pay immediately before his pension became payable as consisted of salary, wages or other regular payments of a fixed nature plus so much of his pensionable pay as consisted of fees and other regular payments not of a fixed nature as was payable during the last year before his pension became payable;

“continuing employment" means a pensionable employment which a person held immediately before he became entitled to a pension under the scheme and which he continues to hold whether it is pensionable or not;

“NHS employment" has the same meaning as in regulation S1(5);

“pension" means the amount of pension paid under the scheme for any financial year, plus any increases to that pension payable under Part I of the Pensions (Increase) Act 1971 for that period;

“pay" means the amount of pensionable pay received by the member during that financial year from NHS employment (or what would have been his pensionable pay had he been in pensionable employment); and

“previous" pay means, the greater of—

(a)

final year’s pensionable pay; and

(b)

the annual rate of pay for any pensionable employment in respect of which the pension referred to in paragraph (1) became payable and which the member held immediately before becoming entitled to that pension.

[F6 (15) This regulation does not apply to—

(a) practice staff in respect of whom a pension is payable under any of regulations E1 to E5(retirement pensions) and L1 (preserved pension) who were employed by a registered medical practitioner on both 31st August 1997 and 1st September 1997 and who—

(i) were ineligible to rejoin the scheme with effect from 1st September 1997; or

(ii) made an election not to rejoin the scheme with effect from that date and who have not cancelled that election; and

(b) members who are transferred into NHS employment as a result of a transfer of an undertaking to the employer.]

Textual Amendments

F1 Reg. S2(1)(1A) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 57(2)

F2 Words in reg. S2(1A)(c)(ii) inserted (28.11.2011) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2011 (S.I. 2011/2586), regs. 1(2), 8

F3 Reg. S2(2) substituted (1.10.2008) by The National Health Service Pension Scheme and Injury Benefits (Amendment) Regulations 2008 (S.I. 2008/2263), regs. 1(2)(3), 15 (with reg. 93)

F4 Regs. S2(3)-(3D) substituted for reg. S2(3) (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 57(3)

F5 Words in reg. S2(14) inserted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 57(4)

F6 Reg. S2(15) substituted (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 57(5)