The National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000

PART IV E+W MISCELLANEOUS PROVISIONS

Repayment of investments in certain cases E+W

14.—(1) In the case of a person who—

(a) ceases to be employed in pensionable employment; and

(b) has applied for and received a refund of contributions under regulation L2 of the Pension Scheme Regulations (refund of contributions),

the Secretary of State shall subject to paragraph (2), make arrangements for that person to receive a lump sum equal to the total realisable value of the investments made by the Secretary of State in respect of that person under regulation 7(1), 8(2) or 9(4) less the amount of tax chargeable under section 598 of the Taxes Act (charge to tax: repayment of employee’s contributions)(1), in accordance with regulation 15(4).

(2) Where, in the circumstances mentioned in paragraph (1), contributions have been made by an employer, the Secretary of State shall make arrangements for that employer to receive a lump sum equal to the total realisable value of the investments made by the Secretary of State under regulation 7(1) in respect of contributions made by that employer less the amount of tax chargeable under section 601 of the Taxes Act (charge to tax: payment to employers).

Commencement Information

I1 Reg. 14 in force at 10.4.2000, see reg. 1(2)

Payments by the Secretary of State E+W

15.—(1) Subject to paragraph (2), where an authorised provider fails to pay any amount due by way of an annuity or lump sum death benefit to be provided in accordance with these Regulations, the Secretary of State shall be liable to pay that amount.

(2) Where, on or after the date on which these Regulations come into force, a participator [F1 or a person entitled to a pension credit] elects for benefits to be provided by an authorised provider other than the provider selected by the Secretary of State, the Secretary of State shall not be liable under paragraph (1).

(3) Lump sums payable as mentioned in regulation 11(4), or under regulation 11(7) or 12 [F2 or paragraph 3(2), 8 or 9 of Schedule 2] shall be paid—

(a) to the deceased’s spouse; or

(b) to the deceased’s personal representatives if—

(i) there is no spouse; or

(ii) a notice has been given in accordance with regulation F5(3) of the Pension Scheme Regulations (payment of lump sum)(2) [F3 or, as the case may be, paragraph 11 of Schedule 2 to these Regulations] that the spouse is not to receive the payment.

(4) Lump sums payable under regulation 11(8) or 14(1) shall be paid to the participator.

(5) Subject to paragraph (6) below, if, on the death of a participator, a lump sum would have been payable under regulation 11(7) or 12, but the whole or part of that sum cannot be paid by reason of regulation 13 and paragraph 19 of [F4 Schedule 1], any amount which cannot be paid under these provisions shall be used for the purchase of annuity which complies with the provisions of regulation 11(2)(b) and (c) to provide a pension for—

(a) the spouse of the participator, but if none is living;

(b) any dependant child of the participator.

(6) In relation to paragraph (5) above any such pension shall be—

(a) subject to any limit imposed by regulation 13 and paragraph 18 of [F4 Schedule 1]; and

(b) paid to the deceased’s personal representatives after any amount of tax chargeable under section 599A of the Taxes Act(3) (charge to tax: payments out of surplus funds) has been deducted from—

(i) any amount remaining after the purchase of such a pension; or

(ii) the whole amount if no person who is mentioned in paragraph (5)(a) or (b) above is living.

(7) If, by reason of regulation 13 and paragraphs 11 to 18 of [F4 Schedule 1], an annuity falling to be provided under regulation 11 is not payable in full, there shall, subject to paragraph (8), be paid to the participator the balance of the amount, or aggregate of amounts, not exceeding the prescribed amount as defined in paragraph (9), out of investments realised by virtue of regulation 11(5) which would otherwise have been applicable to the purchase of the annuity, less the amount of any tax chargeable under section 599A of the Taxes Act.

(8) Where, in the circumstances mentioned in paragraph (7), contributions have been made by the employer, the balance (to the extent that it is attributable to contributions made by the employer) less the amount of any tax chargeable under section 601 of the Taxes Act (charge to tax: payments to employers), shall be paid to the employer.

(9) In paragraph (7) the reference to the prescribed amount is to an amount calculated in accordance with the method for the time being specified in regulations made for the purposes of section 591 of the Taxes Act (discretionary approval) as the method to be used for calculating the amount of any surplus funds.

(10) Subject to paragraph (11) below, in the case of a participator to whom any of regulations E1 to E5 or L1 of the Pension Scheme Regulations applies (benefits for members, or preserved pension), the Secretary of State may realise such part of the investments made under these Regulations as is derived from an contributions made by the participator’s employer without purchasing an annuity and, in that event, the amount shall be payable to the participator as a lump sum.

(11) In the case of a participator to whom regulation E2(7) (early retirement on grounds of ill health) or L1(5) (preserved pension) of the Pension Scheme Regulations applies, the Secretary of State may realise the investments made under these Regulations without purchasing an annuity and, in that event, the proceeds shall be payable to the participator as a lump sum less any charge to tax under section 599 of the Taxes Act.

Textual Amendments

F1 Words in reg. 15(2) inserted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 4(a)

F2 Words in reg. 15(3) inserted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 4(b)(i)

F3 Words in reg. 15(3) inserted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 4(b)(ii)

F4 Words in reg. 15(5)(6)(7) substituted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 4(c)

Commencement Information

I2 Reg. 15 in force at 10.4.2000, see reg. 1(2)

Information E+W

16.—(1) A person making an election under these Regulations, and his employer, shall give the Secretary of State such information as he may reasonably require for the purposes of his functions under these Regulations.

(2) Without prejudice to the generality of paragraph (1), a person making—

(a) an election under regulation 3(1)(b) or (6) for the provision of a lump sum death benefit; or

(b) an election under regulation 5(2)(a),

shall, in particular, give the Secretary of State such information about his health as the Secretary of State may reasonably require.

Commencement Information

I3 Reg. 16 in force at 10.4.2000, see reg. 1(2)

Payments in respect of deceased persons E+W

17.—(1) This regulation applies where a person dies and the total of—

(a) any sums that were due to him under these Regulations; and

(b) any sums payable under these Regulations to his personal representatives,

does not exceed the amount specified in any order for the time being in force for the purposes of section 1 of the Administration of Estates (Small Payments) Act 1965(4) and which applies in relation to the death.

(2) Where this regulation applies the Secretary of State may, without requiring the production of proof of title, pay any amount due under either, or, as the case may be, both of sub-paragraphs (a) and (b) of paragraph (1)—

(a) to the deceased’s personal representatives; or

(b) to the person, or to or among any one or more of any persons, appearing to him to be beneficially entitled to the estate,

and any person to whom such a payment is made, and not the Secretary of State, shall thereafter be liable to account for any amount so paid.

Commencement Information

I4 Reg. 17 in force at 10.4.2000, see reg. 1(2)

[F5 Pension sharing on divorce or nullity of marriage E+W

17A.   —Schedule 2 shall have effect in relation to—

(a) pension credit rights; and

(b) pension credit benefit payable,

under the AVC scheme.]

Textual Amendments

F5 Reg. 17A inserted (1.5.2001) by The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 (S.I. 2001/1428), reg. 1, Sch. 2 para. 5

Benefits not assignable on bankruptcy E+W

18.—(1) On the bankruptcy of a person entitled to benefit under these Regulations, no part of the benefit shall be paid to any trustee or other person acting on behalf of creditors, except as provided for in paragraph (2).

(2) Where, following the bankruptcy of any person entitled to benefit under these Regulations, the court makes an order under section 310 of the Insolvency Act 1986(5) that requires the Secretary of State to pay all or part of the benefit to the person’s trustee in bankruptcy the Secretary of State shall comply with that order.

Commencement Information

I5 Reg. 18 in force at 10.4.2000, see reg. 1(2)

Offset for crime, negligence or fraud E+W

19.  Where, on or after the date on which these Regulations come into force—

(a) the circumstances set out in regulation T5 of the Pension Scheme Regulations (offset for crime, negligence or fraud) have occurred; and

(b) there has been a loss to public funds,

the Secretary of State may, in relation to benefits which arise by virtue of any employer’s contributions paid on or after the date on which these Regulations come into force, reduce the amount of any benefit payable to or in respect of a person under these Regulations, to the extent set out, and subject to the conditions specified, in that regulation.

Commencement Information

I6 Reg. 19 in force at 10.4.2000, see reg. 1(2)

Loss of rights to benefits E+W

20.  Where—

(a) A person entitled to benefit under these Regulations is convicted of an offence referred to in paragraph (1) of regulation T6 of the Pension Scheme Regulations (loss of rights to benefits), which was committed on or after the date on which these Regulations come into force; and

(b) the circumstances are such that a direction may be made by the Secretary of State under regulation T6 of those Regulations,

the Secretary of State may direct that all or part of any rights to benefit under these Regulations which arise by virtue of any employer’s contributions paid on or after the date on which these Regulations come into force, are to be forfeited.

Commencement Information

I7 Reg. 20 in force at 10.4.2000, see reg. 1(2)

Determination of questions E+W

21.  Any question arising under these Regulations as to the rights or liabilities of any person shall be determined by the Secretary of State.

Commencement Information

I8 Reg. 21 in force at 10.4.2000, see reg. 1(2)

(1)

Section 598 was amended by section 75 of, and paragraphs 1, 10 and 18(1) of Part I of Schedule 6 to, the Finance Act 1989.

(2)

Paragraphs (1) to (3) of regulation F5 were substituted by S.I. 2000/605.

(3)

Section 599A was inserted by section 75 of, and paragraph 12 of Schedule 6 to, the Finance Act 1989, and amended by sections 121(8), 122(7)(b) and (c) and 205 of, and paragraph 6 of Part V of Schedule 41 to, the Finance Act 1996 (c. 8).

(4)

1965 c. 32. The amount specified in S.I. 1984/539 is £5,000.

(5)

1986 c. 45. Section 310(7) was amended by paragraph 2 of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c. 30).