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

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)(1) [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(2) (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

I1 Reg. 15 in force at 10.4.2000, see reg. 1(2)

(1)

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

(2)

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).