The National Health Service Pension Scheme Regulations 2015

Termination of employing authority status

159.—(1) The scheme manager must terminate an independent provider’s status as an employing authority in respect of a qualifying contract if the independent provider ceases to be a party to the contract.

(2) The scheme manager may terminate an independent provider’s status as an employing authority in respect of a qualifying contract in any of the following circumstances—

(a) if the independent provider subsequently acquires the status of an employing authority by virtue of being listed in Schedule 5 (ignoring paragraph 5 of that Schedule);

(b) if all of the employees of the independent provider who acquired membership of the scheme by virtue of regulation 18(1)(c) cease to satisfy the wholly or mainly condition;

(c) if the independent provider—

(i) fails to review, in accordance with regulation 154(5), the amount of cover guaranteed by its IP guarantee; or

(ii) having carried out the review fails to increase the amount of cover provided by the IP guarantee where such an increase is required;

(d) if, following the issue of a notice under regulation 156, the independent provider fails to pay to the scheme manager the amount specified in paragraph (1) of that regulation in the time so specified;

(e) if paragraph (7) of regulation 154 applies and the independent provider fails to act as required by that paragraph;

(f) if the independent provider fails to provide information required by regulation 158(2) or (4);

(g) if the scheme manager is not satisfied that the information provided by the independent provider pursuant to regulation 158(2) supports the continuation of its status as an employing authority;

(h) if the independent provider fails to notify the scheme manager that a guarantor of any of its IP guarantees has withdrawn or revoked its guarantee;

(i) if the independent provider has in any three years in a five year period exceeded the 75% threshold or has a pattern of doing so.

(3) If the scheme manager decides that the independent provider’s status as an employing authority in respect of a qualifying contract is to be terminated, the scheme manager must, as soon as reasonable practicable, give the independent provider notice of—

(a) the termination; and

(b) the date on which it takes effect.

(4) If an independent provider’s status as an employing authority is terminated, its employees who are or were eligible to be members of this scheme cease to be members or be eligible to be members on the date of termination.