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The National Health Service Pension Scheme (Amendment) Regulations 2014

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Amendment of regulation C1

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5.  After paragraph (9) of regulation C1 (meaning of “pensionable pay” and “final year’s pensionable pay”), insert—

“(10) Where, having regard to the matters referred to in paragraph (11), the Secretary of Secretary of State considers that the amount which would, but for the Secretary of State’s determination under this paragraph, constitute the member’s final year’s pensionable pay is inordinate, determine—

(a)what the amount of that pensionable pay is to be, and

(b)the date from which any change in the amount of that pay as a result of that determination is to take effect.

(11) Those matters are—

(a)any variations in the level of the member’s pensionable pay during a period not exceeding ten years and ending with the earlier of the date the member ceases to be in pensionable employment or the date the member dies;

(b)the general level of pensionable pay pertaining in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a);

(c)promotion and re-grading prospects in NHS employment for members of the same or an equivalent grade or post during the period under consideration for the purposes of paragraph (a);

(d)any other matters the Secretary of State considers relevant.

(12) Where the Secretary of State determines the amount of a member’s final year’s pensionable pay pursuant to paragraph (10)—

(a)the difference between the amount which would, but for that determination, be the member’s final year’s pensionable pay and the amount so determined shall be ignored for the purposes of this regulation (“the ignored amount”);

(b)any contributions referable to the ignored amount and paid by the member pursuant to regulation D1 or Q6, paragraph 10 or 23 of Schedule 2 or Schedule 2B, must, net of any tax payable, be refunded to that member;

(c)any contributions referable to the ignored amount and paid by the employing authority pursuant to regulation D2 or paragraph 10 or 23 of Schedule 2, or Schedule 2B, must be refunded to that employing authority;

(d)the amount so determined is not to be regarded as an “excessive pay increase” for the purposes of regulation D3.”.

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