PART 5Members’ benefits
CHAPTER 5Ill-health pension
Effect of re-employment on Tier 2 IHP95
1
This regulation applies if a member (M)—
a
is entitled to a Tier 2 IHP under regulation 90 in respect of earlier service;
b
did not opt to exchange the pension for a lump sum in accordance with regulation 109; and
c
has re-entered employment (M’s further employment).
2
M continues to be entitled to a Tier 2 IHP if M’s further employment—
a
is not NHS employment; and
b
is an excluded employment.
3
M continues to be entitled to a Tier 2 IHP during the initial period if M’s further employment—
a
is NHS employment; and
b
is an excluded employment.
4
M ceases to be entitled to a Tier 2 IHP and is treated as being entitled to a Tier 1 IHP if—
a
M’s employment—
i
is not NHS employment; and
ii
is not an excluded employment; or
b
during the initial period, M’s employment—
i
is NHS employment; and
ii
is not an excluded employment; or
c
after the initial period, M’s employment is NHS employment.
5
As regards further employment in NHS employment—
a
paragraph (4)(c) applies from the first day on which payment of a Tier 1 IHP falls after the first anniversary of M’s re-entry into NHS employment, whether or not that day is part of a continuous period of further NHS employment beginning with entry into that employment;
b
M may not re-join the scheme in respect of that employment or any other NHS employment until after the first anniversary of M’s re-entry into NHS employment, whether or not that or any other NHS employment is an excluded employment.
6
For the purposes of this regulation—
a
an employment is an excluded employment at any time in a tax year, in relation to M, if M’s earnings from the employment and any other employments are such that the lower earnings limit for that year is not exceeded;
b
for the purposes of paragraph (4) an employment that has been an excluded employment in a tax year is not treated as ceasing to be such an employment until the first day following the end of the pension pay period for the Tier 2 IHP in which the limit described in sub-paragraph (a) is first exceeded; and
c
“the initial period” means the period of 12 months beginning with the day on which M first enters an employment which results in this regulation applying.
7
M must—
a
notify the scheme manager if M is in NHS employment at the end of the initial period;
b
notify the scheme manager if M’s aggregate earnings for the purposes of national insurance from employments held in a tax year are such that the lower earnings limit for that year is exceeded; and
c
provide the scheme manager or any other person specified by the scheme manager with such further information as the scheme manager specifies concerning any further employment.
8
In this regulation—
a
the lower earnings limit must be read in accordance with section 5 of the Social Security Contributions and Benefits Act 199226;
b
“tax year” means a year of assessment for income tax purposes.