The National Health Service Superannuation and Pension Schemes (Miscellaneous Amendment) (Scotland) Regulations 2024

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations further amend the National Health Service Superannuation Scheme (Scotland) Regulations 2011 (“the 2011 Regulations”), the National Health Service Superannuation Scheme (Scotland) (2008 Section) Regulations 2013 (“the 2013 Regulations”), the National Health Service Pension Scheme (Scotland) 2015 Regulations (“the 2015 Regulations”), the National Health Service Pension Scheme (Transitional and Consequential Provisions) (Scotland) Regulations 2015 (“the 2015 Transitional Regulations”) and the National Health Service Pension Scheme (Scotland) (Additional Voluntary Contributions) Regulations 2018 (“the 2018 Regulations”) and make temporary modifications of restrictions on return to work provisions in the 2011 Regulations, the 2013 Regulations and the 2015 Regulations and temporary modifications of member contribution provisions in the 2015 Regulations.

Part 2 makes temporary modifications to the 2011 Regulations, the 2013 Regulations and the 2015 Regulations to suspend the operation of various provisions applying to members who partially retire or return to NHS employment after their pension becomes payable. These provisions were originally suspended by section 46 of the Coronavirus Act 2020 (c. 7). These temporary modifications in regulation 3 apply until the end of 31 March 2025 and the modifications in regulations 4 and 5 apply until the end of 31 March 2023.

Part 3 amends the 2011 Regulations. Regulations 7, 8 and 9 amend regulations A2, C1 and C2 to insert definitions relating to salary sacrifice arrangements, to update definitions of “pensionable pay” and “pensionable service”, and to include provisions for partial retirement for members of the 1995 scheme, which is set out by the 2011 Regulations. Regulation 10 amends regulation D3 to make some changes in relation to final pay control provisions, with the percentage figure relevant to the calculation of the “allowable amount” increased to 7%. Regulation 11 inserts new regulations E11A, E11B and E11C. New regulation E11A sets out the qualifying requirements for partial retirement and the entitlements. New regulation E11B deals with abatement of partial retirement benefits where members who partially retire then increase their pensionable pay. New regulation E11C makes provision for how new regulations E11A and E11B apply in circumstances where a member is in employment in two or more part-time employments. Regulation 12 amends regulation E12 to exclude non-pensionable members becoming entitled to their pension without having to leave NHS employment. Regulations 13 and 14 amend regulations E13 and E14 to update provisions for lump sum on retirement. Regulation 15 makes a consequential amendment to regulation F2 and Regulation 16 inserts new regulation F2A to provide for lump sums for members who die after partial retirement pension becomes payable. Regulation 17 amends regulation G3 to provide that any actuarial reduction applied to a partial retirement pension is not applied to the corresponding widow’s pension that is payable. Regulation 18 amends regulation H4 to provide that any actuarial reduction is not applied to any child survivor pension payable. Regulation 19 amends regulation H5 to disapply the 10-year underpin from the calculation of child survivor pension payable where members have taken partial retirement. Regulation 20 amends regulation J1 to provide that members taking partial retirement are not entitled to allocate part of that pension to their partner or spouse on death. Regulation 21 amends regulation K2 to omit reference to regulations S1 and S3. Regulation 22 amends regulation Q1 to prevent added years being included automatically in the calculation of partial retirement and regulation 23 amends regulation Q15 to ensure that partial retirement pensions are in scope of the rules on reduction of added years. Regulations 24, 25 and 26 make further amendments to provisions relating to members returning to NHS employment. Regulation 27 amends schedule 1 to make provision for partial retirement election for 1995 scheme medical and dental practitioners.

Part 4 amends the 2013 Regulations. Regulations 29 and 35 insert references relating to salary sacrifice arrangements and lump sum and death benefit allowance. Regulations 31, 32, 33, 38 and 39 make provision regarding partial retirement in the 2008 scheme, which is set out by the 2013 Regulations, in two ways. Firstly, regulations 31(2)(a), (3), (5) and (6), 33(2), 38(a) and 39 ensure that members of the 2008 scheme who have reached maximum service are able to access partial retirement with respect to their 2008 scheme benefits. Secondly, regulations 31(2)(b), 32, 33(3) and (4) ensure that the effect on pensionable earnings of entering into or leaving a salary sacrifice arrangement is disregarded for partial retirement purposes.

Part 5 amends the 2015 Regulations. Regulation 41 amends regulation 19 to make provision for non-pensionable old scheme members to join the 2015 scheme, which is set out by the 2015 Regulations. Regulations 42, 44 and 49 amend the 2015 Regulations to add carer’s leave to the list of absences from work that can count towards pensionable service and pensionable earnings and to make provision regarding the payment of contributions where a member is making periodic contributions. Regulation 43 amends regulation 27 to give powers to the scheme manager determine whether salary sacrifice schemes are pensionable. Regulations 45, 46 and 48 amend regulations 30, 31 and 37 to introduce a new structure in respect of member contributions and amend contribution rates paid by members towards their pension and create new pensionable earning bands and contributions rates to be paid by members from 1 April and October 2023, and from 1 April and 1 October 2024. Regulations 50, 51 and 52 ensure that the effect on pensionable earnings of entering or leaving a salary sacrifice arrangement is disregarded for partial retirement purposes in the 2015 scheme. Regulations 53 and 55 ensure that the date on which CARE pensions accruing in the 2015 scheme are revalued each year is aligned with the date on which the Public Service Pensions Revaluation Order 2023 came, and subsequent similar orders will come, into effect. In respect of the 2015 Scheme, this date is changed from 1 April each year to 6 April each year with effect from the financial year commencing 6 April 2023. This will align the rate of CPI used in the in-service revaluation of CARE pensions and the pension benefit growth calculation for annual allowance purposes. Regulation 54 amends schedule 4 to omit sub-paragraphs (5) and (6) and removes the requirement for practitioners to opt out of all employments. Regulation 56 amends schedule 9 to allow for the setting of new contribution rates. Regulation 57 amends schedule 13 to introduce the definitions of “assistant practitioner” and “salary sacrifice arrangement”.

Part 6 amends the 2015 Transitional Regulations. Regulation 59 amends regulation 2 to insert new definitions into the interpretation provisions for “lump sum and death benefit allowance”, “non-pensionable 1995 Section member”, “non-pensionable 2008 Section member” and “non-pensionable old scheme members”, and to make provision regarding other definitions. Regulation 60 amends regulation 10A in respect of such a non-pensionable old scheme member recommencing service after a break. Regulation 61 amends regulation 14 to make provision on the determination of certain members’ pensionable pay, final pensionable pay and reckonable pay. Regulation 62 amends regulation 15 to provide for the refund of contributions in cases of inordinate pay. Regulation 63 amends regulation 16 to provide that the final salary ling may not be applied to non-pensionable old scheme members whose benefits have been put into payment. Regulation 64 introduces new regulation 17A which provides that the final salary link may not be applied to non-pensionable old scheme members joining the 2015 scheme, if to not apply it would be more beneficial to the member. Regulation 65 amends regulation 31 requiring members who take partial retirement to claim their benefits from the old scheme before claiming any benefits in the new scheme. Regulations 66 and 67 make provision regarding the variation of lump sums for members who have taken partial retirement. Regulation 69 amends regulation 38 to make provision for death benefits for non-pensionable old scheme members, inserting a new Table 2 setting out the benefits payable to non-pensionable old scheme members who join the 2015 scheme, ensuring their entitlements under the new scheme are not worse than under the old scheme.

Part 7 makes temporary modifications to the 2015 Regulations to ensure that the member contributions reconciliation provisions for medical practitioners, non-GP providers and dental practitioners for scheme year 2023/24 reflect the mid-scheme year contribution rate change which came into force on 1 October 2023. These temporary modifications apply until the end of 31 March 2025.

Part 8 amends the 2018 Regulations to reflect changes made by the Finance Act 2024 to include a pension commencement excess lump sum as an optional payment.