The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations further amend the National Health Service Pension Scheme Regulations 1995 (S.I.1995/300) (“the 1995 Regulations”), the National Health Service Pension Scheme Regulations 2008 (S.I. 2008/653) (“the 2008 Regulations”), the National Health Service Pension Scheme 2015 (S.I. 2015/94) (“the 2015 Regulations”), the National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015 (S.I. 2015/95) (“the Transitional Regulations”), and the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 (S.I. 2000/619) (“the AVC Regulations”).

The Regulations come into force on 1^st April 2017, but regulation 1 provides for certain provisions to take effect from a date before that date. Section 12(1) of the Superannuation Act 1972 (c.11) and section 3(3)(b) of the Public Service Pensions Act 2013 provide authority for the regulations to take effect as from a date earlier than the making of these Regulations.

The remainder of the Regulations are divided into five Parts, with Parts 2, 3, 4, 5 and 6 amending the 1995 Regulations, the 2008 Regulations, the 2015 Regulations, the Transitional Regulations and the AVC Regulations respectively.

The changes specific to the 1995 Regulations—

amend regulation D3 of the 1995 Regulations relating to pensionable pay increases solely due to increases in the national minimum wage (regulation 4(3) and (4)).

The changes specific to the 1995 Regulations, the 2008 Regulations, and the 2015 Regulations—

insert a new definition of “scheme administration charge” (regulations 3(6), 12(2), 22(2) and 49(2))

insert a provision providing more information relating to the scheme administration charge to be paid by the employing authority (regulations 5, 15, 25 and 31)

make consequential provisions relating to interest due where the scheme administration charge is paid late (regulations 4(2), 7, 9(4) and (5), 19, 21, 28 and 30)

insert a provision relating to specific circumstances where practitioners or non-GP providers are required to pay the scheme administration charge (regulations 8, 12(7) and 22(7))

amend the definition of a “qualifying contract” in relation to IPs to include an NHS standard-sub-contract (regulations 3(5), 12(6), 22(6) and 42)

make amendments relating to employees working wholly or mainly on the relevant health care contract (regulations 9(2) and (3), 20 and 43)

amend the definition of NHS standard sub-contract to make reference to the latest 2016/17 guidance (regulations 3(3), 12(4), 22(4), and 49(2))

make amendments relating to work performed under NHS standard sub-contracts in the context of “practice staff” (regulations 3(4), 12(5), 22(5) and 49(3)).

The changes specific to the 1995 Regulations and 2008 Regulations only—

make amendment to the definition of “NHS standard contract” to ensure consistency across the NHS Schemes’ Regulations (regulations 3(2), 12(3) and 22(3))

make amendments to the provision relating to the rights of deferred members of the 1995 and 2008 Sections returning after a break in service exceeding five years transferring into the 2015 Scheme (regulations 6, 17 and 26)

The changes specific to the 2008 Regulations only—

make amendments relating to certain members of public service final salary schemes in Northern Ireland who join the NHS in England and Wales (regulations 12(2), 13, 22(2), and 24)

make amendments in relation to service in another public service pension scheme that qualifies for a final salary link under either the Public Service Pensions Act 2013 or the Public Service Pensions Act (Northern Ireland) 2014 (regulation 16).

The changes specific to the 2015 Regulations only—

make amendments to the regulation relating to members’ eligibility to make a buy-out election (regulation 32)

make various technical refinements to regulations relating to members or their employers’ purchase of additional pension (regulations 33 to 38)

make amendments to provisions covering ill-health retirement (regulations 39 and 40)

make amendments relating to “appropriate medical treatment” (regulation 40)

make amendments relating to the scope of pension increase to be included in the base child pension where a member dies within twelve months of leaving the scheme (regulation 41)

make amendments to the definition of “leaver index adjustment” and further provision relating to benefit accounts for members who leave without qualifying for benefits (regulation 46)

make amendments to clarify that bonuses are non-pensionable (regulation 47)

make amendments relating to lump sum payment where a member dies in service but also has entitlement to a deferred pension for earlier service (regulation 48)

make amendments refining the definition of “revalued pensionable earnings” for the purposes of calculating a lump sum on death (regulation 48)

Changes specific to the Transitional Regulations only—

correct an omission relating to the uprating due in respect of credit of earnings for added years of service purchased under transitional arrangements (regulation 51)

make amendment to ensure that relevant provisions in the 2015 Regulations do not underpay the portion of the survivor benefits that represent the value of the member’s benefits in the old scheme (regulation 52).

The changes specific to the AVC Regulations—

make amendments to extend death benefit nomination options to money purchase additional voluntary contributions MPAVC members (regulation 57).

Other minor and technical amendments—

Other amendments make minor and technical corrections to scheme regulations (regulations 11, 14, 18, 23, 27, 44, 53, 55 and 56).

An impact assessment has not been prepared for this instrument as no impact on the costs of business or the voluntary sector is foreseen.