The National Health Service (Superannuation Scheme, Pension Scheme, Injury Benefits and Additional Voluntary Contributions) (Scotland) Amendment (No. 2) Regulations 2010

PART 6 Amendment of the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998

Amendment of the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998

79.—(1) The National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998(1) are amended as follows.

(2) At the end of paragraph (1) of regulation 3 (making and acceptance of elections), insert (as full out words) “Paragraph (1)(a) is subject to regulation 11(1A).”.

(3) In paragraph (1) of regulation 9 (inward transfers: mis-sold pensions), after “opting into” insert “this Section of”.

(4) In regulation 11 (retirement and dependants’ pensions)—

(a) in paragraph (1), after “Subject to paragraph”, insert “(1A) and”;

(b) after paragraph (1), insert—

“(1A) Paragraphs (1B) to (1E) apply where the proceeds of any investment made under regulation 7(1), 8(2) or 9(4) are insufficient for the authorised fund to provide benefits in accordance with paragraph (1), and the participator is unwilling or unable to secure benefits in accordance with that paragraph from another insurer.

(1B) In the case of a single authorised fund, that fund may discharge its liability for the payment of the benefits described in paragraph (1) by the payment of a lump sum that complies with the conditions in paragraph (1E).

(1C) In the case of more than one authorised fund, each such fund may discharge its liability for the payment of the benefits described in paragraph (1), by the payment of a lump sum.

(1D) Where paragraph (1C) applies, the lump sums referred to in that paragraph must (in aggregate) comply with the conditions in paragraph (1E).

(1E) Those conditions are that the lump sum or sums—

(a) represent the capital value of the benefits referred to in paragraph (1); and

(b) meet the requirements of regulation 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009(2) (payments by larger pension schemes).”;

(c) at the beginning of paragraph (3), insert “Subject to paragraph (1A),”;

(d) at the beginning of paragraph (5), insert “Subject to paragraph (1A),”; and

(e) in paragraph (7), omit “and paragraph 19 of the Schedule 1.”.

(5) In regulation 15 (payments by Secretary of State)—

(a) for paragraph (1), substitute—

“(1) Subject to paragraph (2), where an authorised provider fails to pay any amount due by way of—

(a) an annuity;

(b) a pension commencement lump sum;

(c) a lump sum death benefit; or

(d) a lump sum payment referred to in regulation 11(1B) or (1C),

the Scottish Ministers shall be liable to pay that amount.”;

(b) in paragraph (3), for “regulation 11(4), or under regulations” substitute “regulations 11(1B), 11(1C), 11(4)”; and

(c) in paragraph (4), before “11(8)” insert “11(1B), 11(1C)”.

(6) After paragraph 4(8) of Schedule 2 (pension sharing on divorce or nullity of marriage or dissolution or nullity of civil partnership) insert—

“(9) This paragraph is subject to regulation 11(1A).”.

(1)

S.I. 1998/1451, as amended by S.I. 2001/3649, S.S.I. 2001/465, 2004/62, 2005/544, 2006/307, 2008/92 and 225 and 2010/22.

(2)

S.I. 2009/1171.