The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2015

New Regulation D1A

6.  After regulation D1 (contributions by members), insert—

“Members’ contributions: redundancy

D1A.— (1) This regulation applies if—

(a) a member’s employment is terminated by reason of redundancy,

(b) the member becomes entitled to payment of a pension under regulation E3A where regulation E3AB applies,

(c) an additional contribution option applies to that member, and

(d) unless that member pays an additional contribution as mentioned in paragraph (2), the amount of the member’s pension would be reduced pursuant to paragraphs (5) to (10) of regulation E3AB.

(2) The member may pay such additional contribution as the Secretary of State (having regard to the advice of the Scheme Actuary) determines will be sufficient to meet the cost of the pension insofar as that cost is not met by the contribution paid by the member’s employing authority under regulation D2(3A).

(3) For the purposes of paragraph (2), the Secretary of State must provide the member’s employing authority with such information as will enable the employing authority to notify the member as to the effect that paying contributions of any particular amount would have on the amount of the pension payable to the member.

(4) The amount of the additional contribution payable pursuant to paragraph (2) must be—

(a) not less than £500 (or such other figure as the Secretary of State thinks appropriate);

(b) a whole number of pounds divisible by £10.

(5) For the purposes of paragraph (4)—

(a) if the insufficiency mentioned in paragraph (7)(b) of regulation E3AB is less than £500, sub-paragraph (a) is ignored;

(b) if it is necessary to do so to comply with sub-paragraph (b), the figure must be rounded down to the nearest whole number of pounds divisible by £10.

(6) If the member decides to pay an additional contribution, the amount of the contribution must be paid to the member’s employing authority in sufficient time to enable the authority to remit the payment to the Secretary of State at the same time as the authority pays the contribution it is required to pay pursuant to regulation D2(3A).”.