The National Health Service Superannuation Scheme (Scotland) Amendment Regulations 2008

Publication Date:January 01, 2008
 
FREE EXCERPT

2008No. 226

NATIONAL HEALTH SERVICE

The National Health Service Superannuation Scheme (Scotland) Amendment Regulations 2008

4thJune2008

5thJune2008

28thJune2008

The Scottish Ministers make the following Regulations, in exercise of the powers conferred by sections 10 and 12 of, and Schedule 3 to, the Superannuation Act 1972 1, and of all other powers enabling them to do so.

In accordance with section 10(1) of that Act, these Regulations are made with the consent of the Treasury 2.

In accordance with section 10(4) of that Act, the Scottish Ministers have consulted with such representatives of persons likely to be affected by these Regulations as appear to them to be appropriate.

Citation, commencement and effect

1.These Regulations may be cited as the National Health Service Superannuation Scheme (Scotland) Amendment Regulations 2008 and come into force on 28th June 2008 but have effect from 1st April 2008 3.

Amendment of the National Health Service Superannuation Scheme (Scotland) Regulations 1995

2.The National Health Service Superannuation Scheme (Scotland) Regulations 1995 4 are amended in accordance with regulations 3 to 64 of these Regulations.

Amendment of regulation A2

3.-

(1) Regulation A2(4) (interpretation) is amended as follows.

(2) Insert the following definitions in the appropriate place in alphabetical order-

"scheme year"

A period of one year beginning on 1st April and ending on 31st March;

;

"section 9(2B) rights"

The same meaning as it has in the Occupational Pension Schemes (Contracting-out) Regulations 1996 5;

; and

"tax year"

Any year beginning on 6th April and ending on 5th April the following year;

(3) For the meaning of "final year's pensionable pay" substitute "The meaning given in regulation C1".

Replacement of regulation B2

4.For regulation B2 (age limits and restrictions on membership) substitute-

Age limits and restrictions on membership

B2.-

(1) A person is not eligible to join the scheme if-

(a) that person is-(i) under the age of 16;(ii) over the age of 75; or(iii) over the age of 70 on or before 31st March 2008;(b) that person is a special class officer over the age of 65;(c) that person is an officer in "contributory service" under the Teachers' Superannuation (Scotland) Regulations 2005 6 in any hospital vested in the Scottish Ministers;(d) that person holds an honorary appointment and does not at the same time hold any other employment which entitles him to join the scheme;(e) that person, on or after 1st April 2008, enters NHS employment for the first time and has not previously been a member of the scheme;(f) that person, on or after 1st April 2008, returns to NHS employment and was entitled to a refund of contributions under regulation E9 (early leavers' entitlement to refund of contribution) when he last left employment, unless paragraph (4), but not paragraph (5), of regulation L1 (treatment of pensionable service of early leavers returning to pensionable employment) applies to that person;(g) that person-(i) leaves pensionable employment on, or after, 1st April 2008; and(ii) before returning to NHS employment, exercises his right to transfer out all of his benefits in the scheme in accordance with regulation M1 (member's right to transfer or buy-out) or M2 (exercising a right to transfer or buy-out); or(iii) that person has been a member of the National Health Service Pension Scheme whose membership was determined by the National Health Service Pension Scheme Regulations 2008 7.

(2) In paragraph (1), "pensionable employment" includes employment that qualified the member for a benefit under a health service scheme.

(3) The Scottish Ministers may permit a person who would otherwise not be eligible to join the scheme in accordance with paragraph (1)(f) to (h) to do so if-

(a) that person's employment is transferred to an employing authority by virtue of a transfer of undertakings or by virtue of arrangements equivalent to a transfer of undertakings (whether or not the transferring employer is in the public sector provided that person's employment was originally transferred out of the public sector); and(b) the employment from which the member is transferred-(i) qualified the member for benefits under an occupational pension scheme; and(ii) the rules of that scheme (in the opinion of the Scottish Ministers) entitle the member to receive benefits on retirement upon, or prior to, attaining the age of 60.

(4) The reference in paragraph (3)(a) to arrangements equivalent to a transfer of undertakings is to arrangements-

(a) which the Scottish Ministers consider to be equivalent to the transfer of an undertaking; and(b) under which the parties to the arrangements have agreed that the rights of the persons whose employments are being transferred should as far as practicable be treated in the same way as they would have been under a transfer of an undertaking.

(5) For the purposes of paragraph (3)(b)(ii) a person is not to be treated as being entitled under the rules of a pension scheme to receive benefits upon, or prior to, attaining the age of 60 years, where such entitlement arises by virtue of any scheme rule making special provision-

(a) as to early retirement on the grounds of ill health, redundancy or otherwise; or(b) for benefits to be reduced for early payment.

(6) Before permitting a person referred to in paragraph (3) to join the scheme the Scottish Ministers must take advice from the scheme actuary..

Amendment of regulation B3

5.-

(1) Regulation B3 (restrictions on further participation in the scheme) is amended as follows.

(2) For paragraph (1) substitute -

(1) Members who-

(a) cease to satisfy the conditions for eligibility for membership specified in regulation B1(1); or(b) opt out of the scheme in accordance with regulation B4,

may not continue to contribute to or accrue further pensionable service under the scheme.

(3) In paragraph (2)-

(a) omit "applies" where it first occurs; and(b) after "(further pensionable employment under the age of 50 after early retirement pension (ill health) becomes payable)" insert ", E2A(11) (ill health pension on early retirement) applies".

Amendment of regulation C1

6.-

(1) Regulation C1 (meaning of "pensionable pay") is amended as follows.

(2) After paragraph (1) insert-

(1A) Paragraphs (2) to (4) and (5) to (6) apply in respect of pensionable employment before 1st April 2008..

(3) After paragraph (4) insert-

(4A) Paragraphs (4B) to (6) apply in respect of pensionable employment on, or after, 1st April 2008.

(4B) Subject to paragraph (4C), pensionable pay in excess of the permitted maximum will not be ignored.

(4C) Pensionable pay in excess of the permitted maximum will be ignored in respect of additional service being bought under regulation Q1 (right to buy additional service) and an unreduced lump sum being bought under regulation Q2 (right to buy an unreduced retirement lump sum) if-

(a) the member elected to make such a purchase under regulation Q6(3) (electing to buy additional service or unreduced retirement lump sum) from a birthday falling before 1st April 2008;(b) the member's pensionable pay was restricted under paragraph (2) before that date; or(c) the member's pensionable pay would have been restricted under that paragraph if it had exceeded the permitted maximum..

(4) After paragraph (5) insert-

(5A) Subject to paragraph (5B), in these Regulations "final year's pensionable pay" means pensionable pay in respect of the member's last year of pensionable employment, ending on the date the member ceases to be in such employment, or dies, whichever occurs first, except-

(a) if the member was in pensionable employment for less than 12 months, "final year's pensionable pay" means-Pensionable pay/Number of days pensionable employment

× 365

(b) if pensionable pay was greater in either or both of the two consecutive years immediately preceding the last year, "final year's pensionable pay" means pensionable pay in respect of the year immediately preceding the last year or, if greater, pensionable pay in respect of the first of those two consecutive years.

(5B) If the pensionable pay of a member credited with any period of pensionable service under regulation N2 (transfers made under the public sector transfer arrangements) or N4 (special terms for transfers in (bulk transfers etc.)) has exceeded the permitted maximum and either-

(a) paragraph 20 of Schedule 6 to the Finance Act 1989 8 applied to the member without the modification made by regulation 5 of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990 9 in respect of benefits derived from all or part of that service under the transferring scheme; or(b) any equivalent scheme provision applied to the member in respect of all or part of that service when that person was a member of the transferring scheme from which the transfer was accepted,

that excess shall be ignored for the purposes of calculating the final year's pensionable pay under paragraph (5A) in respect of the corresponding period of pensionable service credited under regulation N2 or N4.

(5) For paragraph (6) substitute-

(6) In this regulation, "permitted maximum" means-

(a) in relation to any tax year before the tax year 2006 07, the figure specified for that tax year in an order made under section 590C of the Income and Corporation Taxes Act 1988 10; or(b) subject to paragraphs (7) and (8), the figure for any later year is £108,600.

(7) If the retail prices index for the month of September preceding the tax year 2007 08 or any later tax year is higher than it was for the previous September, the figure for that year is an amount arrived at by-

(a) increasing the figure for the previous tax year by the same percentage as the percentage increase in the retail prices index; and(b) if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.

(8) If the retail prices index for the...

To continue reading

REQUEST YOUR TRIAL