xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Statutory Instruments

2000 No. 619

NATIONAL HEALTH SERVICE, ENGLAND AND WALES

The National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000

Made

16th March 2000

Laid before Parliament

20th March 2000

Coming into force

10th April 2000

The Secretary of State for Health, in exercise of the powers conferred upon him by sections 10(1), (2), (2A) and (3) and 12(1) of, and Schedule 3 to, the Superannuation Act 1972(1), and of all other powers enabling him in that behalf, after consulting such representatives of persons likely to be affected by these Regulations as appear to him to be appropriate(2) and with the consent of the Treasury(3), hereby makes the following Regulations:

PART IE+WPRELIMINARY

Citation, commencement and retrospective effectE+W

1.—(1) These Regulations may be cited as the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000.

(2) These Regulations shall come into force on 10th April 2000.

(3) The following regulations shall have effect from 1st February 1991(4)—

(a)regulations 1 to 10;

(b)regulations 11(1) to (5), (7) and (8);

(c)regulations 12 to 18; and

(d)regulation 21.

(4) Regulation 11(6) shall have effect from 1st December 1999.

Commencement Information

I1Reg. 1 in force at 10.4.2000, see reg. 1(2)

InterpretationE+W

2.—(1) In these Regulations—

[F1“the 1993 Act” means the Pension Schemes Act 1993;]

[F2“the 1995 Regulations” means the National Health Service Pension Scheme Regulations 1995;]

[F1“the 1999 Act” means the Welfare Reform and Pensions Act 1999;]

[F3“the 2004 Act” means the Finance Act 2004;]

[F2“the 2008 Regulations” means the National Health Service Pension Scheme Regulations 2008;]

[F1“the AVC scheme” means the scheme whose rules are set out in these Regulations;]

F4...

F5...

F6...

[F1“appropriate rights” means rights which are described in paragraph 5 of Schedule 5 to the 1999 Act (pension credits: mode of discharge—appropriate rights);]

“approved scheme” means a retirement benefit scheme approved under Chapter I of Part XIV of the Taxes Act (retirement benefit schemes);

[F7“authorised fund” means a fund managed by—

(a)

an authorised provider selected by the Secretary of State for the purposes of these Regulations; or

(b)

any successor, transmittee or assignee of any person in paragraph (a) who is—

(i)

an authorised provider; and

(ii)

approved by the Secretary of State;]

[F8“authorised provider” in relation to any benefit means a person listed in section 154(1)(a) to (g) of the Finance Act 2004 in relation to the provision of that benefit;]

[F9“child” means a person who qualifies for—

(a)

a child’s allowance under regulation H2 of the 1995 Regulations; or

(b)

a child’s pension under regulation 2.E.8 or 3.E.8 of the 2008 Regulations;]

“contributor” means a person in respect of whom an election under regulation 3(1) has effect;

[F9“date of retirement” means the date on which benefits become payable to the participator under—

(a)

regulation E1 to E5 or L1 of the 1995 Regulations; or

(b)

regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7 or 3.D.9 of the 2008 Regulations;]

[F9“dependant” means—

(a)

a surviving spouse of a participator (providing the marriage was not, prior to 6th March 1995, subject to an order of judicial separation);

(b)

any surviving child of a participator; or

(c)

any person in whose favour a participator has made an election under—

(i)

regulation J1 of the 1995 Regulations; or

(ii)

regulation 2.D.18 or 3.D.14 of the 2008 Regulations;

(d)

a surviving civil partner or surviving nominated partner;]

“dependant’s pension” means a pension which becomes payable to a dependant on the death of a participator;

[F1“eligible member” has the meaning given by section 101P(1) of the 1993 Act;]

F6...

“the Index” at any time means the Retail Price Index, or any successor agreed as appropriate by the Board of Inland Revenue, for the calendar month three months prior to that time;

F10...

[F11“insurer” means—

(a)

a person with permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of long-term insurance;]

[F3“lifetime allowance” shall be construed in accordance with Part 4 of the 2004 Act (pension schemes etc.);]

“lump sum death benefit” means a lump sum which will become payable in the event of a person’s death while paying contributions to provide for it;

[F9“NHS Pension Scheme” means the National Health Service Pension Scheme for England and Wales, the rules of which are set out in the 1995 Regulations and the 2008 Regulations, as the case may be;]

[F9“normal benefit age”, in relation to the AVC scheme, means—

(a)

in the case of a person whose pension arrangements are governed by the 1995 Regulations, the age of 60;

(b)

in any other case, the age of 65;]

[F12“occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993(5);]

“participator” means—

(a)

a contributor who has made benefits election under regulation 11(3);

(b)

a contributor who has died;

(c)

a person who has ceased to be a contributor but has not exercised any right to receive a cash equivalent within the meaning of section 94 of the Pension Schemes Act 1993(6) or to be paid a lump sum under regulation 14; or

(d)

a person in respect of whom investments have been made under regulation 7(1), 8(2) or 9(4);

[F3“pension commencement lump sum” means a lump sum for the purposes of Part I of Schedule 29 to the 2004 Act not exceeding 25 per cent of the proceeds of any investment made under regulation 7(1), 8(2) or 9(4);]

[F1“pension credit” means a credit under section 29(1)(b) of the 1999 Act and includes a credit under corresponding Northern Ireland legislation;]

[F1“pension credit benefit” has the meaning given by section 101B of the 1993 Act;]

[F1“pension credit member” has the meaning given by section 124(1) of the Pensions Act 1995;]

[F1“pension credit rights” has the meaning given by section 101B of the 1993 Act;]

“pensionable employment” means NHS employment in respect of which a person contributes to the NHS Pension Scheme, or such other employment as the Secretary of State may approve for the purposes of a direction under section 7(2) of the Superannuation (Miscellaneous Provisions) Act 1967(7);

[F9“pensionable service” is to be construed in accordance with whichever of the following is applicable—

(a)

regulation C2 of the 1995 Regulations;

(b)

regulation 2.A.2 or 3.A.3 of the 2008 Regulations;]

F6...

[F3“registered pension scheme” has the meaning given by section 150(2) of the 2004 Act;]

[F9“retirement” is to be construed in accordance with whichever of the following is applicable—

(a)

the 1995 Regulations;

(b)

the 2008 Regulations;]

F6...

“salary” means all salary, wages, fees and other payments paid or made to a person for his own use in respect of his employment.

(2) Subject as aforesaid and except where the context otherwise requires, other expressions in these Regulations have the same meaning as in [F13the 1995 Regulations or the 2008 Regulations, as the case may be].

[F14(3) The definition of “insurer” in paragraph (1) above must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

Textual Amendments

Commencement Information

I2Reg. 2 in force at 10.4.2000, see reg. 1(2)

PART IIE+WADDITIONAL VOLUNTARY CONTRIBUTIONS

Making and acceptance of electionsE+W

3.—(1) Subject to paragraph (3), a person in pensionable employment may elect to pay contributions under these Regulations for one or both of the following purposes—

(a)for investment under regulation 7(1) to provide for [F15an annuity or a pension commencement lump sum and an annuity payable on retirement]; or

(b)in accordance with regulation 7(2) to provide for a lump sum death benefit.

(2) An election under under paragraph (1) may relate to contributions to be paid by, or on behalf of, the contributor, or contributions to be paid by the contributor’s employer, or both.

(3) If the person making an election—

(a)under paragraph (1)(b) is on leave of absence from his employment due to ill health on the date on which the notice of such an election is received by the Secretary of State; or

(b)under paragraph (1)(a) or (b) is not receiving tax relief under [F16section 190 of the 2004 Act (annual limit of relief)] or otherwise in respect of contributions paid under regulation D1 [F17of the 1995 Regulations (contributions by members) or regulation 2.C.1 or 3.C.1 of the 2008 Regulations (contributions by members) as the case may be] on the date on which the notice of such an election is received by the Secretary of State,

such an election shall not have effect.

(4) An election under paragraph (1) shall be made by giving written notice to the Secretary of State which shall specify—

(a)whether the election is with a view to investment under regulation 7(1) of regulation 7(2), or both;

(b)the amount of contributions; and

(c)in relation to contributions for the purpose of investment under regulation 7(1), the authorised fund or funds in which the contributions are to be invested.

(5) The Secretary of State shall not accept an election under paragraph (1)—

(a)where any limit imposed by regulation 4(4) F18... or 13 (limits on contributions and benefits) would be exceeded; or

(b)in the case of an election for the purposes of paragraph (1)(b), unless he is satisfied that—

(i)the person making the election has complied with the requirements of regulation 16(2) (provision of information); and

(ii)at the time of making an election the person is in good health; and

(iii)there is not reason why his health should prevent him from making contributions.

(6) [F19In the case of a person whose membership of the NHS Pension Scheme is governed by the 1995 Regulations, subject to] paragraph (5)(b) above and regulation 4(4)—

(a)where contributions are paid for the purposes of paragraph (1)(b)—

(i)until the contributor reaches his 60th birthday; and

(ii)on reaching his 60th birthday he continues to be in pensionable employment,

the contributor may elect for further contributions to be paid until he reaches his 61st birthday; and

(b)a person to whom paragraph (a) above applies may continue to elect annually for further contributions to be paid provided he continues to be in pensionable employment.

[F20(6A) In the case of a person whose membership of the NHS Pension Scheme is governed by the 2008 Regulations, subject to paragraph (5)(b) and regulation 4(4)—

(a)if contributions are paid for the purposes of paragraph (1)(b)—

(i)until the contributor reaches their 65th birthday; and

(ii)on reaching their 65th birthday they continue to be in pensionable employment,

the contributor may elect for further contributions to be paid until they reach their 66th birthday; and

(b)a person to whom paragraph (a) applies may continue to elect annually for further contributions to be paid provided they continue to be in pensionable employment.]

(7) For the purposes of paragraph (1) or (6) of this regulation, an election shall have effect from the date when it is accepted by the Secretary of State.

(8) The Secretary of State shall notify in writing the person who has made an election under paragraph (1), of the Secretary of State’s acceptance of that election.

Textual Amendments

Commencement Information

I3Reg. 3 in force at 10.4.2000, see reg. 1(2)

Payment and amount of additional voluntary contributionsE+W

4.—(1) Contributions under these Regulations may be made by way of—

(a)periodical payments on a weekly, monthly, quarterly, or any other basis, depending upon when the contributor’s salary is paid; or

(b)a single payment.

(2) The contributor’s employer may deduct any amount payable by the contributor from the contributor’s salary.

(3) Deductions from salary made in accordance with paragraph (2) above—

(a)shall commence in respect of the first whole pay period falling after the date when the employer receives authorisation from the authorised provider to make the deductions;

(b)shall be remitted to the Secretary of State—

(i)as soon as is reasonably practicable; or

(ii)in the case of deductions to be made on or after the date on which these Regulations come into force, no later than 7 days after their deduction.

[F21(4) In any period of 12 months beginning on 6th April in any year the total contributions payable by the contributor shall not exceed 100 per cent of the amount which represents the contributor’s salary from NHS employment less the total of any contributions paid by the contributor in respect of that year—

(a)to another registered pension scheme; and

(b)under the [F221995 Regulations or the 2008 Regulations (as the case may be)].]

[F23(4A) In this regulation—

“employer” has the same meaning as “employing authority” in the 1995 Regulations or the 2008 Regulations (as the case may be) and, where the context requires, includes a host Trust or Board (as defined in the relevant Regulations); and

“salary” includes pensionable pay and pensionable earnings (within the meaning of the 1995 Regulations or the 2008 Regulations (as the case may be)).]

F24(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Commencement Information

I4Reg. 4 in force at 10.4.2000, see reg. 1(2)

Variation and cancellation of electionsE+W

5.—(1) A contributor who has elected under regulation 3(1)(a) to pay contributions for the purpose of investment under regulation 7(1) may at any time by giving written notice to the Secretary of State—

(a)subject to regulation 4(4), alter the amount of the contributions;

(b)require the whole or part of any future contributions to be invested in some other authorised fund;

(c)require the Secretary of State to realise the whole or part of any investments made and to reinvest the proceeds in some other authorised fund; or

(d)cancel the election.

(2) A contributor who has elected under regulation 3(1)(b) to pay contributions to provide a lump sum death benefit under regulation 7(2) may at any time by giving written notice to the Secretary of State—

(a)subject to regulation 4(4) F25... and provided the circumstances described in regulation 3(3) do not exist such that the Secretary of State would not accept an election under regulation 3(1)(b), elect that a specified larger sum is to be secured and the contributions increased accordingly; or

(b)cancel the election.

(3) The Secretary of State shall give effect as soon as is reasonably practicable to the terms of any notice given under this regulation.

Textual Amendments

Commencement Information

I5Reg. 5 in force at 10.4.2000, see reg. 1(2)

Circumstances in which elections cease to have effectE+W

6.—[F26(1) Subject to paragraph (2), an] election shall cease to have effect where a contributor—

(a)receives payment of benefits under regulations E1 to E5 or regulation L1, of the [F271995 Regulations], except where the contributor is entitled to accrue further benefits in the circumstances described in regulation B3(2) of those Regulations (restriction on further participation in the scheme);

[F28(aa)receives payment of benefits under regulations 2.D.1, 2.D.4, 2.D.5, 2.D.7, 2.D.9, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.8 or 3.D.10 of the 2008 Regulations;]

(b)leaves pensionable employment;

(c)ceases to be in pensionable employment by virtue of an election under regulation B4 [F29of the 1995 Regulations (opting-out of the scheme) or regulations 2.B.5 or 3.B.5 of the 2008 Regulations (opting-out of the scheme) as the case may be]; or

(d)ceases to receive tax relief under [F30section 190 of the 2004 Act (annual limit of relief)] or otherwise in respect of contributions paid under regulation D1 [F31of the 1995 Regulations (contributions by members) or regulation 2.C.1 or 3.C.1 of the 2008 Regulations (contributions by members) as the case may be].

[F32(2) Where paragraph (1)(a) [F33, (aa)] or (b) above applies, an election shall be treated as not having ceased to have effect if a contributor gives written notice to the Secretary of State for the purpose specified in regulation 5(1)(c).]

Textual Amendments

Commencement Information

I6Reg. 6 in force at 10.4.2000, see reg. 1(2)

Investment of additional voluntary contributionsE+W

7.—(1) Any contributions paid in respect of a contributor for investment under this paragraph shall be invested by the Secretary of State in accordance with any notice under regulation 3(4) or 5(1).

(2) Any contributions paid in respect of a contributor to provide for a lump sum death benefit under this paragraph shall be paid by the Secretary of State to an [F34insurer] selected by him so as to secure the payment of a lump sum death benefit of the amount required by any notice under regulation 3(4) or 5(2).

Textual Amendments

Commencement Information

I7Reg. 7 in force at 10.4.2000, see reg. 1(2)

Inward transfersE+W

8.—[F35(1) Where a person who enters pensionable employment has paid contributions to a registered additional voluntary contribution scheme for the purposes of the 2004 Act, that person, whether or not he becomes a contributor within the meaning of these Regulations, may—

(a)within 12 months of entering pensionable employment; or

(b)such longer period as the Secretary of State may in any particular case allow,

give written notice to the Secretary of State that he wishes the Secretary of State to accept from the trustees or managers of that scheme a transfer value representing at least the value of the investments derived from his contributions.]

(2) Where a transfer value is accepted by the Secretary of State it shall be invested by him, in accordance with the wishes of the person entering pensionable employment, in one or more of the authorised funds.

(3) Where a transfer value is invested under paragraph (2) the person may at any time, by giving written notice to the Secretary of State, require the Secretary of State to realise the whole or part of the sums so invested and to reinvest the proceeds in a different way.

Textual Amendments

Commencement Information

I8Reg. 8 in force at 10.4.2000, see reg. 1(2)

Inward transfers: mis-sold pensionsE+W

9.—(1) This regulation shall apply to a person to whom regulation B5 of the [F361995 Regulations] (opting into the scheme: mis-sold pensions) applies and in respect of whom a transfer payment within the meaning of regulation N3A of those Regulations(8) (transfers in respect of members to whom regulation B5 applies who elect to join or rejoin the scheme) has been paid by a personal pension scheme to the Secretary of State.

(2) Subject to paragraph (3), where, at any time, a person to whom this regulation applies elects to join or rejoin the scheme under regulation B4(5) of the [F361995 Regulations] (joining or rejoining the scheme after opting-out), that person, whether or not he becomes a contributor within the meaning of these Regulations, may, within 12 months of joining or rejoining the scheme, or such longer period as the Secretary of State may in any particular case allow, give written notice to the Secretary of State that he wishes the Secretary of State to accept a transfer value for the purposes of these Regulations.

(3) For the purposes of paragraph (2), the transfer value shall be of an amount representing the difference between—

(a)the capitalised value of the accrued rights to benefit in the personal pension scheme from which the transfer value is paid which is attributable to contributions made to that scheme by the person referred to in paragraph (1) during his opted-out service; and

(b)the amount referred to in regulation N3A(2)(i) of the [F371995 Regulations] (transfers in respect of members to whom regulation B5 applies who elect to join or rejoin the scheme).

(4) Where a transfer value is accepted by the Secretary of State it shall be invested by him, in accordance with the wishes of the person referred to in paragraph (1), in one or more of the authorised funds.

(5) Where a transfer value is invested under paragraph (4) that person may at any time, by giving written notice to the Secretary of State, require the Secretary of State to realise the whole or part of the sums so invested and to reinvest the proceeds in a different way.

(6) In this regulation—

“opted-out service” means the period of NHS employment in respect of which the Secretary of State has approved an additional period of pensionable service for the purposes of regulation N3A(2)(i) of the [F381995 Regulations]; and

“personal pension scheme” has the meaning given by regulation B5(4) of the [F381995 Regulations].

Textual Amendments

Commencement Information

I9Reg. 9 in force at 10.4.2000, see reg. 1(2)

[F39Outward transfersE+W

10.—(1) Subject to paragraphs (4) to (7), the Secretary of State shall as soon as is reasonably practicable after having received a notice in writing from an eligible person requesting a transfer of the value of that person’s investments made in relation to that person under regulation 7(1), 8(2) or, as the case may be, 9(4) pay a transfer value representing the value of all such investments at that person’s option—

[F40(a)where that person has left pensionable employment, to any other registered pension scheme in which the person may be participating; or]

(b)where that person remains in pensionable employment, to the scheme specified in paragraph (3).

F41(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F42(3) The scheme specified in this paragraph is a registered additional voluntary contribution scheme for the purposes of the 2004 Act.]

[F43(4) If the Secretary of State is required under paragraph (1) to make a transfer payment in circumstances where a transfer payment in respect of an eligible person is also provided and used in accordance with—

(a)regulation M1 of the 1995 Regulations (member’s right to transfer or buy-out); or

(b)regulation 2.F.1 or 3.F.1 of the 2008 Regulations (rights to transfer value payment),

the Secretary of State must do so in accordance with the time limits specified in whichever of the following is applicable—

(i)regulation M5 of the 1995 Regulations;

(ii)regulation 2.F.4 or 3.F.4 of the 2008 Regulations,

as if any reference in the regulations specified in (i) or (ii) to an application were a reference to the notice referred to in paragraph (1).]

(5) In any case where the Secretary of State has directed under regulation 20 (loss of rights to benefit) that all or part of any of an eligible person’s rights to benefit under these Regulations are to be forfeited the cash equivalent payable in respect of that person shall be reduced by the capitalised value of the rights which are to be forfeited.

(6) If disciplinary or court proceedings are commenced against the eligible person within 12 months after he leaves pensionable service and it appears to the Secretary of State that the proceedings may lead to all or part of that [F44person’s] rights to benefits being forfeited in accordance with regulation 20, the Secretary of State may defer doing what is needed to carry out what that person requires until the date 3 months after the conclusion of those proceedings (including any proceedings on appeal) where that date is later than the date which would otherwise apply by virtue of paragraph (4) above.

(7) Where the Secretary of State has done what is needed to carry out what the eligible person requires under this regulation, the Secretary of State shall be discharged from any obligation under regulation 15 (payments by the Secretary of State) to or in respect of that person.

(8) In this regulation “eligible person” means a person—

(a)who is a contributor; and

(b)either—

(i)who has not attained the age of 60 years on or before the date the notice referred to in paragraph (1) above is received by the Secretary of State; or

[F45(ii)to whom regulation M6 of the 1995 Regulations or regulation 2.F.14 or 3.F.14 of the 2008 Regulations applies.]]

Textual Amendments

PART IIIE+WPROVISION OF BENEFITS

Retirement and dependants' pensionsE+W

11.—[F46(1) Subject to paragraph (7) and regulation 15(10) and (11) the proceeds of any investment made under regulation 7(1), 8(2) or 9(4) may be—

(a)taken partially as a pension commencement lump sum with the remainder being used to purchase from an insurer an annuity which complies with the requirements of paragraph (2); or

(b)used solely for the purchase from an insurer of an annuity which complies with the requirements of that paragraph,

and not otherwise.]

(2) An annuity complies with the requirements of this paragraph if—

(a)it provides a retirement pension which commences not earlier than the date of the participator’s retirement and is payable to him for life;

[F47(b)any dependant’s pension which is payable under it is payable only on the death of the participator after his retirement and is payable to the dependant for life, except that—

(i)in the case of a dependant who is a child to whom Part H of the 1995 Regulations (child allowance) applies, it shall cease to be payable when that person ceases to be a dependent child within the meaning of those Regulations; or

(ii)in the case of a dependant who is a child to whom regulation 2.E.9 or 3.E.9 of the 2008 Regulations (meaning of dependent child) applies, it shall cease to be payable when that person ceases to be a dependent child within the meaning of those Regulations; and]

(c)it is not capable in whole or in part of surrender, assignment or commutation.

(3) Not earlier than 3 months before the date of his retirement, a participator, by giving written notice to the Secretary of State, shall make a benefits election which shall specify—

(a)whether only a retirement pension is to be provided;

[F48(aa)whether a pension commencement lump sum and retirement pension is to be provided;]

(b)for whom, if anyone, a dependant’s pension is to be provided;

(c)if more than one pension is to be provided; either—

(i)the proportion of the amount secured by the total investments made under regulation 7(1), 8(2) or 9(4) that is to be applied to the purchase of each of them; or

(ii)the dependants' pensions to be provided expressed as a percentage of the retirement pension;

(d)in respect of every pension to be provided, whether the annual rate of the pension—

(i)is to be fixed; or

(ii)is to vary in accordance with the Index; or

(iii)is to increase yearly by a specified percentage or, if lower than that percentage, by the increase in the Index for the year in question; and

(e)the authorised provider who is to provide each pension.

(4) In the case of a retirement pension, the notice of election under paragraph (3) may also specify that if the participator dies within the period of 5 years beginning with the date with which the retirement pension commences, the balance that would have been payable during the remainder of that period, if the pension had continued at the rate in force at the time of the participator’s death, is to be paid as a lump sum in accordance with regulation 15(3).

[F49(5) Upon receipt of a notice of election under paragraph (3), the Secretary of State shall, as soon as reasonably practicable, realise the investments made under regulations 7(1), 8(2) or 9(4) and—

(a)where sub-paragraph (aa) of that paragraph does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of election;

(b)where that sub-paragraph does apply—

(i)pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and

(ii)apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice.]

(6) Notwithstanding whether benefits to which a participator may be entitled under Part E or regulation L1 [F50of the 1995 Regulations (benefits for members or a preserved pension) or regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7 or 3.D.9 of the 2008 Regulations (normal retirement pensions, actuarially reduced pensions, ill health and early retirement pensions)] are payable, where a participator’s date of retirement falls on or after 1st December 1999 and he has—

(a)reached the age of 75; and

(b)failed to give a notice of election under paragraph (3) on or before the date of his 75th birthday,

the Secretary of State may realise the investments made under regulation 7(1), 8(2) or 9(4) and apply the proceeds to the purchase of a pension policy from an [F51insurer] in order to provide such benefits as appear to him to be suitable.

(7) Where the participator dies before retirement, or dies after retirement but before an annuity such as is mentioned in paragraph (5) is acquired, the investments made under regulation 7(1), 8(2) or 9(4) shall be realised and shall be payable as a lump sum in accordance with regulation 15(3), subject to any limit imposed by regulation 13 and paragraph 19 of the Schedule.

(8) If the benefits provided by the annuity purchased in accordance with paragraph (5), when aggregated with the benefits payable under the [F521995 Regulations or the 2008 Regulations (as the case may be)] arising from the participator’s pensionable service, do not exceed any amount prescribed by regulations for the time being in force under section 21(1) of the Pension Schemes Act 1993 (commutation, surrender and forfeiture), the authorised provider may discharge the liability for payment of the benefits under the annuity by payment of a lump sum representing their capital value in accordance with regulation 15(4).

Textual Amendments

Commencement Information

I10Reg. 11 in force at 10.4.2000, see reg. 1(2)

Lump sums on deathE+W

12.—(1) Subject to paragraph (2), where a contributor who has elected under regulation 3(1)(b) to pay contributions to provide for a lump sum death benefit dies, the lump sum shall be payable.

[F53(2) Any lump sum payable under paragraph (1) shall not exceed the amount permitted in accordance with Part 2 of Schedule 29 to the 2004 Act.]

Textual Amendments

Commencement Information

I11Reg. 12 in force at 10.4.2000, see reg. 1(2)

[F54Benefit limitsE+W

13.  Benefits that may be paid under these Regulations shall limited by reference to a person’s lifetime allowance.]

Textual Amendments

PART IVE+WMISCELLANEOUS PROVISIONS

Repayment of investments in certain casesE+W

14.—(1) In the case of a person who—

(a)ceases to be employed in pensionable employment; and

[F55(b)has applied for a refund of contributions under—

(i)regulation L2 of the 1995 Regulations (refund of contributions); or

(ii)regulation 2.C.18 or 3.C.16 of the 2008 Regulations (repayment of contributions),]

the Secretary of State shall subject to paragraph (2), make arrangements for that person to receive a lump sum equal to the total realisable value of the investments made by the Secretary of State in respect of that person under regulation 7(1), 8(2) or 9(4) less the amount of tax chargeable under [F56the 2004 Act], in accordance with regulation 15(4).

(2) Where, in the circumstances mentioned in paragraph (1), contributions have been made by an employer, the Secretary of State shall make arrangements for that employer to receive a lump sum equal to the total realisable value of the investments made by the Secretary of State under regulation 7(1) in respect of contributions made by that employer less the amount of tax chargeable under [F57the 2004 Act].

Textual Amendments

Commencement Information

I12Reg. 14 in force at 10.4.2000, see reg. 1(2)

Payments by the Secretary of StateE+W

15.—(1) Subject to paragraph (2), where an authorised provider fails to pay any amount due by way of an [F58annuity, pension commencement lump sum or lump sum death benefit] to be provided in accordance with these Regulations, the Secretary of State shall be liable to pay that amount.

(2) Where, on or after the date on which these Regulations come into force, a participator [F59or a person entitled to a pension credit] elects for benefits to be provided by an authorised provider other than the provider selected by the Secretary of State, the Secretary of State shall not be liable under paragraph (1).

(3) Lump sums payable as mentioned in regulation 11(4), or under regulation 11(7) or 12 [F60or paragraph 3(2), 8 or 9 of Schedule 2] shall be paid—

(a)to the deceased’s spouse [F61, nominated partner] [F62or civil partner]; or

(b)to the deceased’s personal representatives if—

(i)there is no spouse [F63, nominated partner] [F62or civil partner]; or

[F64(ii)a notice has been given in accordance with—

(aa)regulation F5 of the 1995 Regulations (payment of lump sum); or

(bb)regulation 2.E.21 or 3.E.21 of the 2008 Regulations (payment of lump sum on death); or

(cc)paragraph 11 of Schedule 2,

that the spouse is not to receive the payment.]

(4) Lump sums payable under regulation 11(8) or 14(1) shall be paid to the participator.

F65(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F65(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) Subject to paragraph (11) below, in the case of a participator to whom any of regulations E1 to E5 or L1 [F66of the 1995 Regulations (benefits for members, or preserved pension) or regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7 or 3.D.9 of the 2008 Regulations (normal retirement pensions, actuarially reduced pensions, ill health and early retirement pensions) applies], the Secretary of State may realise such part of the investments made under these Regulations as is derived from an contributions made by the participator’s employer without purchasing an annuity and, in that event, the amount shall be payable to the participator as a lump sum.

[F67(11) In the case of a participator to whom any of the following provisions apply—

(a)regulation E2(7), E2A(7) or L1(5) of the 1995 Regulations (ill health pensions and preserved pension);

(b)regulation 2.D.15 or 3.D.11 of the 2008 Regulations (option for members in serious ill health to exchange whole pension for lump sum),

the Secretary of State may realise the investments made under these Regulations without purchasing an annuity and, in that event, the proceeds shall be payable to the participator as a lump sum.]

Textual Amendments

Commencement Information

I13Reg. 15 in force at 10.4.2000, see reg. 1(2)

InformationE+W

16.—(1) A person making an election under these Regulations, and his employer, shall give the Secretary of State such information as he may reasonably require for the purposes of his functions under these Regulations.

(2) Without prejudice to the generality of paragraph (1), a person making—

(a)an election under regulation 3(1)(b) or (6) for the provision of a lump sum death benefit; or

(b)an election under regulation 5(2)(a),

shall, in particular, give the Secretary of State such information about his health as the Secretary of State may reasonably require.

[F68(3) Where a person is entitled to a benefit under these Regulations he shall (whether or not he intends to rely on entitlement to an enhanced lifetime allowance or to enhanced protection) give to the provider such information as will enable the provider to determine—

(a)whether any lifetime allowance is payable in respect of the benefit and, if so,

(b)the amount of that charge.

(4) If a person applying for a benefit under these Regulations intends to rely on entitlement to an enhanced lifetime allowance by virtue of any of the provisions listed in section 256(1) of the 2004 Act (enhanced lifetime allowance regulations), he shall give to the provider—

(a)the reference number issued by the Commissioners under the Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006 in respect of that entitlement;

(b)the information referred to in paragraph (3).

(5) The information referred to in paragraph (3) or, as the case may be, paragraph (4) shall be given to the provider—

(a)at the time the person makes a claim for a benefit, or

(b)where that information has not been provided at the time of making the claim, within such time as the provider specifies in writing, or

(c)where the person fails to provide all, or part of, the information referred to in paragraph (3) or, as the case may be, paragraph (4) within the time limits specified by the provider (where relevant), the provider may treat the whole of the benefit as a chargeable benefit and the charge may be paid on that basis.]

Textual Amendments

Commencement Information

I14Reg. 16 in force at 10.4.2000, see reg. 1(2)

Payments in respect of deceased personsE+W

17.—(1) This regulation applies where a person dies and the total of—

(a)any sums that were due to him under these Regulations; and

(b)any sums payable under these Regulations to his personal representatives,

does not exceed the amount specified in any order for the time being in force for the purposes of section 1 of the Administration of Estates (Small Payments) Act 1965(9) and which applies in relation to the death.

(2) Where this regulation applies the Secretary of State may, without requiring the production of proof of title, pay any amount due under either, or, as the case may be, both of sub-paragraphs (a) and (b) of paragraph (1)—

(a)to the deceased’s personal representatives; or

(b)to the person, or to or among any one or more of any persons, appearing to him to be beneficially entitled to the estate,

and any person to whom such a payment is made, and not the Secretary of State, shall thereafter be liable to account for any amount so paid.

Commencement Information

I15Reg. 17 in force at 10.4.2000, see reg. 1(2)

[F69Pension sharing on divorce or nullity of marriage [F70or, dissolution or nullity of civil partnership]E+W

17A.  —Schedule 2 shall have effect in relation to—

(a)pension credit rights; and

(b)pension credit benefit payable,

under the AVC scheme.]

Textual Amendments

Benefits not assignable on bankruptcyE+W

18.—(1) On the bankruptcy of a person entitled to benefit under these Regulations, no part of the benefit shall be paid to any trustee or other person acting on behalf of creditors, except as provided for in paragraph (2).

(2) Where, following the bankruptcy of any person entitled to benefit under these Regulations, the court makes an order under section 310 of the Insolvency Act 1986(10) that requires the Secretary of State to pay all or part of the benefit to the person’s trustee in bankruptcy the Secretary of State shall comply with that order.

Commencement Information

I16Reg. 18 in force at 10.4.2000, see reg. 1(2)

Offset for crime, negligence or fraudE+W

19.  Where, on or after the date on which these Regulations come into force—

(a)the circumstances set out in regulation T5 [F71of the 1995 Regulations (offset for crime, negligence or fraud) or regulation 2.J.6 or 3.J.6 of the 2008 Regulations (reduction in benefits in cases where loss caused by member’s crime, negligence or fraud)] have occurred; and

(b)there has been a loss to public funds,

the Secretary of State may, in relation to benefits which arise by virtue of any employer’s contributions paid on or after the date on which these Regulations come into force, reduce the amount of any benefit payable to or in respect of a person under these Regulations, to the extent set out, and subject to the conditions specified, in that regulation.

Textual Amendments

Commencement Information

I17Reg. 19 in force at 10.4.2000, see reg. 1(2)

Loss of rights to benefitsE+W

20.  Where—

(a)A person entitled to benefit under these Regulations is convicted of an offence referred to in paragraph (1) of regulation T6 [F72of the 1995 Regulations (loss of rights to benefits) or regulation 2.J.7 or 3.J.7 of the 2008 Regulations (forfeiture of rights to benefits)], which was committed on or after the date on which these Regulations come into force; and

(b)the circumstances are such that a direction may be made by the Secretary of State under regulation T6 of those Regulations,

the Secretary of State may direct that all or part of any rights to benefit under these Regulations which arise by virtue of any employer’s contributions paid on or after the date on which these Regulations come into force, are to be forfeited.

Textual Amendments

Commencement Information

I18Reg. 20 in force at 10.4.2000, see reg. 1(2)

Determination of questionsE+W

21.  Any question arising under these Regulations as to the rights or liabilities of any person shall be determined by the Secretary of State [F73and any dispute shall be resolved by the Secretary of State in accordance with the dispute resolution procedure issued from time to time by him in conformity with section 50 of the Pensions Act 1995].

Textual Amendments

Commencement Information

I19Reg. 21 in force at 10.4.2000, see reg. 1(2)

[F74TaxE+W

22.—[F75(1)] Benefits payable under these Regulations shall be paid net of any tax due under the 2004 Act.

[F76(2) For the purposes of the 2004 Act, the administrator of the AVC scheme shall be the NHS Business Services Authority (Awdurdod Gwasanaethau Busnes y GIG).]]

Textual Amendments

John Denham

Minister of State,

Department of Health

14th March 2000

We consent to the making of these Regulations.

Greg Pope

Clive Betts

Lords Commissioners of Her Majesty’s Treasury

16th March 2000

Regulation 13

F77SCHEDULE 1 E+WBENEFIT LIMITS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Regulation 17A

[F78SCHEDULE 2E+WPENSION SHARING ON DIVORCE OR NULLITY OF MARRIAGE [F79OR, DISSOLUTION OR NULLITY OF CIVIL PARTNERSHIP]

Textual Amendments

Discharge of liability in respect of a pension creditE+W

1.—(1) Where the Secretary of State discharges his liability in respect of a pension credit in accordance with sub-paragraph (2) of paragraph 1 of Schedule 5 to the 1999 Act (pension credits: mode of discharge: funded pension schemes—internal transfers) the appropriate rights shall be invested under paragraph 2 below to provide for the purchase from an [F80insurer] of an annuity which complies with the requirements of sub-paragraph (5) below.

(2) Where sub-paragraph (1) applies, the person entitled to the pension credit may elect, by giving written notice to the Secretary of State, the authorised fund or funds in which the appropriate rights are to be invested.

(3) The Secretary of State shall notify in writing the person who has made an election under sub-paragraph (2) of the Secretary of State’s acceptance of that election.

(4) Where an election has been made under sub-paragraph (2) it shall not be varied or cancelled after liability in respect of the pension credit has been discharged by the Secretary of State.

(5) An annuity complies with the requirements of this sub-paragraph if—

(a)it provides a pension which commences not earlier than normal benefit age and is payable to the pension credit member for life;

(b)any dependant’s pension which is payable under it is payable only on the death of the pension credit member after he has reached normal benefit age and is payable to the dependant for life, except that in the case of a dependant who is a child to whom Part H [F81of the 1995 Regulations (child allowance) or regulation 2.E.9 or 3.E.9 of the 2008 Regulations (meaning of dependent child)] would apply if the pension credit member were a member of the NHS Pension Scheme, it shall cease to be payable when that person ceases to be a dependent child within the meaning of those Regulations; and

(c)it is not capable in whole or in part of surrender, assignment or commutation.

Textual Amendments

Investment of appropriate rightsE+W

2.  Any appropriate rights invested under this paragraph shall be invested by the Secretary of State as soon as is reasonably practicable in accordance with any notice given under sub-paragraph (2) of paragraph 1.

Discharge of liability in respect of a pension credit following the death of the person entitled to the pension creditE+W

3.—(1) The Secretary of State shall, following the death of the person entitled to a pension credit before liability in respect of that credit has been discharged, discharge his liability in respect of that credit by making a payment of a lump sum in accordance with paragraph (2)(a)(i) of regulation 6 of the Pension Sharing (Implementation and Discharge of Liability) Regulations 2000.

(2) The lump sum payable under this paragraph shall be paid in accordance with regulation 15(3) (payments by the Secretary of State) of these Regulations.

Pension credit benefitE+W

4.—(1) The pension credit benefit to which a pension credit member shall be entitled under the AVC scheme shall consist of a pension [F82(including, where appropriate, a pension commencement lump sum)].

(2) A pension credit member shall be entitled to the payment of the pension credit benefit when he reaches normal benefit age.

(3) A pension payable in accordance with this paragraph shall be payable to the pension credit member for life.

(4) The value of the pension referred to in this paragraph shall be equal to the value of the pension credit rights which have accrued to or in respect of the pension credit member.

(5) Not earlier than 3 months before the date he reaches normal benefit age, a pension credit member, by giving notice to the Secretary of State, shall make a benefits election which shall specify—

(a)whether only a pension payable for life is to be provided;

[F83(aa)whether a pension commencement lump sum and a pension payable for life is to be provided;]

(b)for whom, if anyone, a dependant’s pension is to be provided;

(c)if more than one such pension is to be provided, either—

(i)the proportion of the amount secured by the total investments made under paragraph 2 that is to be applied to the purchase of each of them; or

(ii)the dependants' pensions to be provided expressed as a percentage of the pension for life;

(d)in respect of each pension to be provided, whether the annual rate of the pension—

(i)is to be fixed; or

(ii)is to vary in accordance with the Index; or

(iii)is to increase yearly by a specified percentage or, if lower than that percentage, by the increase in the Index for the year in question; and

(e)the authorised provider who is to provide each pension.

(6) For the purposes of this Schedule the authorised provider must meet the requirements referred to in regulations 12 to 14 of the Pension Sharing (Pension Credit Benefit) Regulations 2000.

[F84(7) Upon receipt of a notice of election under sub-paragraph (5) the Secretary of State shall, as soon as reasonably practicable, realise the investments made under paragraph 2 and—

(a)where sub-paragraph (5)(aa) does not apply, apply the proceeds to the purchase of an annuity from the authorised provider specified in the notice of election;

(b)where that sub-paragraph does apply—

(i)pay the percentage of the proceeds specified in the notice of election as a pension commencement lump sum, and

(ii)apply the balance of those proceeds to the purchase of an annuity from the authorised provider specified in that notice,

and not otherwise.]

(8) Notwithstanding that benefits under Part E or regulation L1 [F85of the 1995 Regulations (benefits for members or preserved pension) or regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7 or 3.D.9 of the 2008 Regulations (normal retirement pensions, actuarially reduced pensions, ill health and early retirement pensions)] may be payable to a pension credit member by virtue of him being a member of the NHS Pension Scheme, where a pension credit member has reached normal benefit age on or after 1st May 2001 and has—

(a)reached the age of 75; and

(b)failed to give a notice of election under sub-paragraph (5) on or before the date of his 75th birthday,

the Secretary of State may realise the investments made under paragraph 2 and apply the proceeds to the purchase of a pension policy which satisfies the requirements of regulations 12 to 14 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 from an [F86insurer] in order to provide such benefits as appear to him to be suitable.

Textual Amendments

Outward transfersE+W

5.—(1) The Secretary of State shall, upon receipt of a notice in writing under section 101F(1) of the 1993 Act (power to give transfer notice) from an eligible member, pay a transfer value in accordance with the provisions of Chapter II of Part IVA of the 1993 Act (requirements relating to pension credit benefit: transfer values) and Part III of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (provision of benefits).

(2) The transfer value referred to in sub-paragraph (1) shall represent the value of the appropriate rights invested under paragraph 2 calculated in accordance with regulation 24 of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (manner of calculation and verification of cash equivalents).

Commutation of the whole of pension credit benefit before normal benefit ageE+W

6.—(1) A pension credit member shall be entitled to the commutation of the whole of his pension credit benefit before having reached normal benefit age in the circumstances described in regulation 3(2) of the Pension Sharing (Pension Credit Benefit) Regulations 2000 (commutation of pension credit benefit).

(2) In the case of a pension credit member to whom this paragraph applies, the Secretary of State may realise the investments made under paragraph 2 without purchasing an annuity and the proceeds shall be payable to the pension credit member as a lump sum.

Commutation of the whole of pension credit benefit at normal benefit ageE+W

7.—(1) A pension credit member shall be entitled to the commutation of the whole of his pension credit benefit at normal benefit age in the circumstances described in sub-paragraph (2).

(2) The circumstances described in this sub-paragraph are—

(a)the pension credit member is suffering from serious ill health at normal benefit age; or

[F87(b)the total benefits payable would be treated as a trivial amount under paragraph 5(1)(b) of Schedule 2A to the 1995 Regulations or regulation 2.J.5 or 3.J.5 of the 2008 Regulations.]

(3) In the case of a pension credit member to whom this paragraph applies, the Secretary of State may realise the investments made under paragraph 2 without purchasing an annuity and the proceeds shall be payable to the pension credit member as a lump sum.

(4) In this paragraph “serious ill health” means ill health which is such as to give rise to a life expectancy of less than one year from the date on which the payment of the pension credit benefit of the pension credit member is applied for.

Textual Amendments

Pension credit member dies before pension credit benefit becomes payableE+W

8.  If a pension credit member dies before his pension under the AVC scheme becomes payable under paragraph 4 of this Schedule, the Secretary of State may realise the investments made under paragraph 2 without purchasing an annuity and the proceeds shall be payable as a lump sum in accordance with regulation 15(3) of these Regulations.

Pension credit member dies after pension credit benefit becomes payableE+W

9.  If a pension credit member dies within the period of 5 years beginning with the date upon which payments of pension credit benefit under paragraph 4 of this Schedule commence, the balance that would have been payable during the remainder of that period, if the payments of pension credit benefit had continued at the rate in force at the time of the pension credit member’s death, shall be payable as a lump sum in accordance with regulation 15(3) of these Regulations.

Excluded membershipE+W

10.  Where a pension credit member is also a participator in the AVC scheme, any period which may count for any purpose in connection with his pension credit benefit shall not be taken into account for the purpose of ascertaining his entitlement to, or as the case may be, the calculation of, benefits other than pension credit benefits under the AVC scheme.

Payment of lump sum on deathE+W

11.—(1) Where a lump sum is payable under any of paragraphs 3, 8 or 9 of this Schedule, unless sub-paragraph (2) or (3) below applies, the lump sum shall be paid to the personal representative of the person entitled to a pension credit or, as the case may be, the pension credit member.

(2) Where the person entitled to a pension credit or, as the case may be, the pension credit member dies and leaves a [F88widow, widower [F89, nominated partner] or surviving civil partner], the lump sum may be paid to the [F88widow, widower [F89, nominated partner] or surviving civil partner], unless—

(a)the person entitled to a pension credit or, as the case may be, the pension credit member has given notice to the Secretary of State in accordance with sub-paragraph (4) below that the [F88widow, widower [F89, nominated partner] or surviving civil partner] is not to receive the payment, and has not revoked that notice; or

(b)sub-paragraph (3) below applies.

(3) Where the person entitled to a pension credit or, as the case may be, the pension credit member has given notice to the Secretary of State in accordance with sub-paragraphs (4) and (5) below that the lump sum is to be paid to a person specified in the notice, and has not revoked that notice, the lump sum may be paid to that person unless—

(a)that person has died before the payment can be made; or

(b)payment to that person is not, in the opinion of the Secretary of State, reasonably practicable.

(4) Notice to the Secretary of State for the purpose of sub-paragraph (2) or (3) above—

(a)shall be given only by a person entitled to a pension credit or, as the case may be, a pension credit member under the AVC scheme;

(b)shall be given in writing; and

(c)may at any time be revoked in writing,

[F90(d)shall nominate the whole of the lump sum to a nominee and, in the case of a notice that specifies more than one person, shall also specify the percentage of the lump sum to be paid to each such person,]

and a person entitled to a pension credit or, as the case may be, a pension credit member who revokes such a notice may give further notice for the purpose of one of those sub-paragraphs.

[F91(5) A notice given under subparagraph (3) must specify one or more persons who may be—

(a)an individual;

(b)a body corporate;

(c)an unincorporated body;

(d)the member’s personal representatives,

but must not specify one or more persons referred to in paragraph (a) together with a body referred to in either of paragraphs (b) or (c).]

Textual Amendments

Miscellaneous provisionsE+W

12.  Regulations 17 (payments in respect of deceased persons), 18 (benefits not assignable on bankruptcy) and 21 (determination of questions) of these Regulations shall apply in respect of a person entitled to a pension credit or, as the case may be, a pension credit member.

Offset for crime, negligence or fraudE+W

13.—(1) Where, on or after the date on which this Schedule comes into force—

(a)the circumstances set out in regulation T5 [F92of the 1995 Regulations (offset for crime, negligence or fraud) or regulation 2.J.6 or 3.J.6 of the 2008 Regulations (reduction in benefits in cases where loss caused by member’s crime, negligence or fraud and forfeiture of right to benefits)] have occurred in respect of a pension credit member who is also a member of the NHS Pension Scheme; and

(b)there has been a loss to public funds,

the Secretary of State may, in relation to pension credit benefit which arises by virtue of pension credit rights which are derived from any employer’s contributions paid on or after the date on which the AVC Regulations came into force in respect of the relevant participator, reduce the amount of any pension credit benefit payable to or in respect of a pension credit member under this Schedule, to the extent set out, and subject to the conditions specified, in that regulation.

(2) In this paragraph and in paragraph 14 “relevant participator” means the participator in relation to whose rights under the AVC scheme the pension sharing order or provision, which gave the pension credit member in question entitlement to a pension credit, was made.

Textual Amendments

Loss of rights to benefitsE+W

14.—(1) Where—

(a)a pension credit member is convicted of an offence referred to in paragraph (1) of regulation T6 [F93of the 1995 Regulations (loss of rights to benefits) or regulation 2.J.7 or 3.J.7 of the 2008 Regulations (forfeiture of rights to benefits)], which was committed on or after the date on which this Schedule comes into force; and

(b)the circumstances are such that a direction may be made by the Secretary of State under regulation T6 of those Regulations,

the Secretary of State may direct that all or part of any rights to pension credit benefit under this Schedule which arise by virtue of pension credit rights which are derived from any employer’s contributions paid on or after the date on which the AVC Regulations came into force in respect of the relevant participator, are to be forfeited.

(2) “Relevant participator” has the meaning given to that expression in paragraph 13(2) of this Schedule.]

Textual Amendments

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision for the payment of additional voluntary contributions by persons who are members of the pension scheme constituted by the National Health Service Pension Scheme Regulations 1995 (“the NHS Pension Scheme”), or by their employers, in order to secure additional benefits financed by investment of those contributions. Regulations 1 to 10, 11(1) to (5), (7) and (8), 12 to 18 and 21 take effect from 1st February 1991. Regulation 11(6) takes effect from 1st December 1999. Section 12(1) of the Superannuation Act 1972 confers power to make Regulations having effect from a date earlier than the date of their making.

Regulations 1 and 2 provide for citation, commencement and interpretation.

Regulation 3 provides for elections to pay periodical contributions in order to secure additional retirement and dependants' pensions and a lump sum death benefit in the event of death while paying such contributions and contains general provisions as to the making and acceptance of elections.

Regulation 4 deals with the payment of contributions and imposes a limit on their total amount.

Regulation 5 allows elections made under regulation 3 to be varied or cancelled, and regulation 6 prescribes the circumstances under which an election ceases to have effect.

Regulation 7 makes provision in relation to the investment of contributions by the Secretary of State.

Regulation 8 makes provision relating to the acceptance of a transfer value from another scheme.

Regulation 9 makes special provision regarding the acceptance of a transfer value from a personal pension scheme in the case of persons who have opted out of the NHS Pension Scheme and suffered a loss as the result of a contravention which is actionable under section 62 of the Financial Services Act 1986 (mis-sold personal pensions).

Regulation 10 makes provision regarding payment of a transfer value (representing the value of the investments) to another scheme.

Regulation 11 makes provision for the payment of retirement and dependant’s pensions and for the making of elections relating thereto, and regulation 12 provides for the payment of lump sum death benefits.

Regulation 13 and the Schedule impose limits on benefits payable under the Regulations.

Regulation 14 provides for the realisable value of investments to be repaid where contributions under the National Health Service Pension Scheme Regulations 1995 are repaid.

Regulation 15 makes provision in relation to the circumstances in which the Secretary of State will make any payments of benefits that an authorised provider fails to make. It also makes provision as to the persons to whom certain payments are to be made and as to the deduction of income tax.

Regulation 16 provides for the Secretary of State to be given information needed for the purposes of his functions under the Regulations.

Regulation 17 provides for any payments, up to a prescribed maximum (currently £5,000), payable to the personal representatives of deceased persons, to be made without proof of title.

Regulation 18 provides that on bankruptcy, benefits under the Regulations may only be assigned to a person’s trustee in bankruptcy if the court makes an order to that effect.

Regulation 19 provides for the offsetting of any benefits arising from the employer’s contributions in circumstances of crime, negligence or fraud, and regulation 20 provides for the forfeiture of rights to any benefits arising from the employer’s contributions in certain circumstances.

Regulation 21 provides for the determination of questions by the Secretary of State.

These Regulations do not impose any costs on business.

(1)

1972 c. 11; subsection (1)(a) of section 10 was amended by the National Health Service Reorganisation Act 1973 (c. 32), Schedule 5; subsection (1) was amended, and subsection (2A) was inserted, by the Pensions (Miscellaneous Provisions) Act 1990 (c. 7), sections 4(2) and 8(5).

(2)

See section 10(4) of the Superannuation Act 1972.

(3)

See section 10(1) of the Superannuation Act 1972, and article 2 of the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 (S.I. 1981/1670).

(4)

See section 12(1) of the Superannuation Act 1972 which provides that regulations may be framed so as to have effect from a date earlier than that of their making.

(5)

Subsection (6) was added to section 10 by section 8(6) of the Pensions (Miscellaneous Provisions) Act 1990 (c. 7) and was amended by section 190 of, and paragraph 7 of Schedule 8 to, the Pension Schemes Act 1993 (c. 48).

(6)

1993 c. 48. Section 94 was amended by section 154 of the Pensions Act 1995 (c. 26).

(7)

1967 c. 28. Section 7(2) was amended by section 10(5) and 29(1) of, and paragraph 66(b) of Schedule 6 to, the Superannuation Act 1972.

(8)

Regulations B5 and N3A were inserted by S.I. 1997/80.

(9)

1965 c. 32. The amount specified in S.I. 1984/539 is £5,000.

(10)

1986 c. 45. Section 310(7) was amended by paragraph 2 of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c. 30).