The National Health Service Pension Scheme and Injury Benefits (Amendment) Regulations 2008

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the National Health Service Pension Scheme Regulations 1995 (S.I. 1995/300) (“the 1995 Regulations”), the National Health Service Pension Scheme Regulations 2008 (S.I. 2008/653) (“the 2008 Regulations”) and the National Health Service (Injury Benefits) Regulations 1995 (S.I. 1995/866) (“the Injury Benefits Regulations”).

Regulation 1 provides for citation, commencement and effect, including that certain provisions of this instrument are to take effect from various dates before commencement. Section 12(1) of the Superannuation Act 1972 (c.11) provides authority for the regulations specified in regulation 1(4) to (7) to take effect as from a date earlier than the making of these Regulations.

The remainder of the Regulations are divided into four Parts, with Parts 1 to 3 amending the 1995 Regulations, the 2008 Regulations and the Injury Benefits Regulations respectively, and Part 4 providing that certain persons detrimentally affected by these Regulations may elect for the provisions not to apply to them.

Parts 1 and 2 make similar amendments in respect of both the 1995 Regulations and the 2008 Regulations. They also introduce amendments specific to either the 1995 Regulations or the 2008 Regulations.

The changes dealing with similar issues in Parts 1 and 2—

• exclude certain returning deferred members from the 1995 Regulations (regulation 4);

• provide for an option to transfer out their benefits to the 2008 Regulations (regulations 3(a), 10 and 13);

• include in the 2008 Regulations certain deferred members excluded from the 1995 Regulations (regulations 30, 31(b), 60 and 61);

• provide for an option to transfer their benefits into the 2008 Regulations (regulations 45 and 77);

• adjust the definition of “qualifying service” in the 2008 regulations (regulations 28(a) and 57(a));

• ensure that the 45 year service limit takes account of service in both the 1995 Regulations and 2008 Regulations (regulations 26(b), 55 and 85);

• ensure that similar principles apply to transfers from corresponding NHS schemes in Scotland, Northern Ireland and the Isle of Man (regulations 25(2)(b) and (c), 41(a), (b) and (c), 42 to 44, 54(2)(b) and (c), 73(a) to (c), 74, 75 and 76(e) and (f));

• make miscellaneous amendments to statutory cross-references (regulations 3(b), 6, 25(2)(a) and 54(2)(a));

• continue provision of pension benefits for ophthalmic medical practitioners (regulations 3(d), (e), (h), (i), and (j), 54(2)(d), (e), (h), (i) and (j));

• cater for practitioners who have an agreement with more than one Primary Care Trust or Local Health Board (regulations 3(f), 22(9)(a), 25(2)(d), 53(b), 54(2)(f) and 83);

• update the definition of Out of Hours Services to cater for Alternative Provider Medical Services contracts and contractors (regulations 3(g), 25(2)(e) and 54(2)(g));

• allow the use of electronic communications (regulations 3(a), 11, 18, 49 and 79);

• require the consent of the Treasury before the members’ contribution rate is adjusted (regulations 5(a), 32, 33(a), 63(a) and 64);

• adjust the period for ill-health reviews (regulations 7, 34 and 66);

• provide for lump sums on death of a pensioner over age 75 to be converted to a pension (regulations 8, 20, 23, 37 to 39, 50, 51, 69 to 71, 80 and 81);

• require the Scheme Manager to be responsible for the calculation and verification of cash equivalent transfer values (regulations 12, 40 and 72);

• allow authorised unpaid leave to be pensionable for up to 24 months (regulations 14, 27, 29(c), 56(a)(ii) and (b) and 59(c));

• provide that pensioners returning to work in the NHS must provide information about their new NHS pay (regulations 15, 46 and 78);

• provide that certain determinations may be made by medical practitioners or that medical examinations may be required (regulations 21, 52(a)(ii) and (b) and 82(a)(ii) and (b)).

The changes specific to Part 1—

• remove obsolete references (regulation 3(c));

• replace a scheme year reference (regulation 5(b));

• amend cross-references in provisions dealing with child allowances (regulation 9);

• amend the benefits payable on death in pensionable service where the member returns after leaving on ill-heath under the old rules (regulation 16);

• amend the benefits payable on death in pensionable service where the member returns after leaving on ill-heath under the new rules (regulation 17);

• amend the rules on forfeiture of pension to cater for nominated surviving partners (regulation 19);

• make various amendments to Schedule 2 of the 1995 Regulations to remove obsolete definitions, insert references to “Local Health Board” in various places, and change the age to which contributions must be paid (regulation 22).

The changes specific to Part 2—

• amend a cross-reference in the regulations setting out the meaning of pensionable service (regulation 26(a));

• provide for qualifying service under the 1995 Regulations to count where a former member of the scheme under the 1995 Regulations re-joins under the 2008 Regulations within one month of leaving (regulations 28(b) and 57(b) and (c));

• clarify the arrangements for non-GP providers on breaks of service (regulation 29(a), (b) and (d) to (i));

• correct a minor typographical error (regulation 31(a));

• allow for employer contributions to be recovered from successor and assignee employers (regulation 33(b));

• remove references to “impairment” and insert a reference to permanence in ill-health provisions (regulations 35, 52(a)(i), 67 and 82(a)(i));

• change cross-references in provisions relating to children’s pensions (regulations 36 and 68);

• replace references to the Income and Corporation Taxes Act 1988 (c.1) with references to the Finance Act 2004 (c.12) (regulation 41(d) and 73(d));

• clarify the rules on previous pay for abatement purposes (regulation 47 and 48);

• change the heading to regulation 2.J.14 to make it consistent with the equivalent regulation in Part 3 of the 2008 Regulations (regulation 53(a));

• omit an unnecessary cross-reference in the provision on breaks in pensionable service (regulation 56(a)(i));

• clarify the pensionable earnings of a type 1 medical practitioner performing Out of Hours Services (regulation 58);

• bring the cross-references in regulation 3.A.8 into line with the equivalent regulation in Part 2 of the 2008 Regulations (regulation 59(a) and (b));

• clarify the provisions on opting-out of the Scheme (regulation 62);

• make changes to the level of contributions due from a member in respect of later employments (regulation 63(b) to (d));

• amend the heading to regulation 3.D.6 of the 2008 Regulations (regulation 65);

• changes the point at which credit is given in respect of transferred-in pensionable service (regulation 76);

• simplify the definition of “type 1 practitioner” (regulation 84);

• update the table of equivalent regulations in regulation 4.D.2 of the 2008 Regulations (regulation 86).

The changes made to the Injury Benefits Regulations by Part 3—

• remove the specified definition of “PMS practice” (regulation 88);

• provide that the unreduced amount of a pension under the 1995 Regulations or the 2008 Regulations (before any pension is converted to lump sum) is used for the purposes of the Injury Benefits Regulations (regulation 89);

• amend the provisions on re-charging benefits to employers to deal with situations of multiple employers (regulation 90);

• amend the provisions on claiming benefits to require a claim in writing within 6 months of becoming entitled (regulation 91);

• provide for new notification requirements, obliging employers to notify the Secretary of State when temporary injury allowance is paid under the Injury Benefits Regulations, and obliging claimants to notify the Secretary of State if they recover damages in respect of the injury for which they receive benefits under the scheme (regulation 92).

Part 4 provides that deferred members, or members in receipt of a relevant benefit, who are detrimentally affected by these Regulations may elect for the provisions not to apply to them by giving notice within six months of the coming into force of these Regulations (regulation 93).

A full impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities or the voluntary sector.