The National Health Service Pension Scheme Regulations 2015

PART 1 Age retirement pension

Annual rate of age retirement pension

1.—(1) The annual rate of age retirement pension payable to the member (M) is found by—

(a) taking the amount of full retirement earned pension specified in M’s pensioner member’s account;

(b) subtracting the conversion amount (if any) specified in that account in relation to that amount;

(c) subtracting the allocation amount (if any) specified in that account in relation to that amount;

(d) adding the amount of full retirement additional pension (if any) specified in that account;

(e) subtracting the conversion amount (if any) specified in that account in relation to that amount; and

(f) adding the amount of late payment actuarial increase (if any) calculated in accordance with paragraph 2.

(2) In calculating the pension under this paragraph the scheme manager must take account of—

(a) any buy-out election under Chapter 3 of Part 4;

(b) the scheme years that fall within the buy-out period (see regulation 45(6)); and

(c) in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.

Late payment of pension with actuarial increase

2.—(1) The late payment actuarial increase must be calculated in relation to so much of the amount of pension to which the member would otherwise be entitled under paragraph 1(a) and (d) as is attributable to—

(a) all of the member’s pensionable service; and

(b) any contributions paid under regulation 60.

(2) The amount of late payment actuarial increase must be calculated in accordance with guidance and tables provided by the scheme actuary to the scheme manager for the purposes of this regulation.

(3) In preparing that guidance and those tables the scheme actuary must use such factors as the scheme actuary considers appropriate having regard, in particular, to—

(a) the period after reaching normal pension age before the member becomes entitled to payment of the pension; and

(b) the life expectancy of the member.

(4) In calculating the amount of actuarial increase under sub-paragraph (2), the scheme manager must take account of—

(a) any buy-out election under Chapter 3 of Part 4;

(b) the scheme years that fall within the buy-out period (see regulation 45(6)); and

(c) in relation to each such scheme year, the number of years in respect of which the actuarial reduction is bought out.