Legislation – The National Health Service Pension Schemes (Amendment) Regulations 2025

“(i)

in the case of a person who—

(i)

ceased to be an active member of the 1995 Section on leaving NHS employment,

(ii)

became a deferred member of that Section on leaving that employment and has not since become a pensioner member of that Section between the date of leaving that employment and joining this Section of the Scheme, and

(iii)

became an active member of this Section of the Scheme during the period beginning with 1st October 2008 and ending with 31st March 2015 and five years or more since last leaving NHS employment,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section,”

(4)

After sub-paragraph (i) insert—

“(j)

in the case of a person who—

(i)

was a deferred member of the 1995 Section who gave notice for the purposes of paragraph (1) or (1A)24 of regulation B4 of the 1995 Regulations (opting out of this Section of the Scheme),

(ii)

as a result of that notice was treated as ceasing to be an active member of that Section,

(iii)

pursuant to that notice remains opted-out of that Section for five years or more, and

(iv)

became an active member of this Section of the Scheme during the period beginning with 1st October 2008 and ending with 31 March 2015,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section, and

(k)

in the case of a person who—

(i)

was a deferred member of the 1995 Section who gave notice for the purposes of paragraph (1) or (1A) of regulation B4 of the 1995 Regulations and following that notice, ceased to be an active member of that Section for any one period of five years or more comprising the aggregate of—

(aa)

any period during which the person left NHS employment, and

(bb)

any period during which the person was treated as never having been an active member of that Section in accordance with paragraph (3)25 of regulation B4 of those Regulations in respect of one or more later periods of NHS employment entered into after having given the notice for the purposes of paragraph (1) or (1A) of that regulation, and

(ii)

became an active member of this Section of the Scheme during the period beginning with 1st October 2008 and ending with 31st March 2015,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section.”.

Amendment of regulation 2.A.810.

In regulation 2.A.8 (meaning of “pensionable pay”), after paragraph (11) insert—

“(12)

Paragraphs (13) to (19) apply to a member who has remediable service within the meaning of section 1 of the Public Service Pensions and Judicial Offices Act 2022 that is pensionable service under this Section of the scheme by virtue of section 2(1) of that Act (remedial service treated as pensionable under Chapter 1 legacy schemes) and whose pensionable pay and pensionable service in this Section of the Scheme is derived from contributions made to the 2015 Scheme in the relevant scheme years in respect of that remediable service, if—

(a)

at any time during that period of service, the terms of the member’s employment contract required the member to work less than whole-time, according to those terms, for any period of time; and

(b)

the member received a relevant payment.

(13)

The member, or if the member is deceased, the member’s personal representatives, may elect for all relevant payments to be included as pensionable pay for the purposes of this regulation, and for service in respect of that pensionable pay to be included in the member’s pensionable service for the purposes of regulations 2.A.2 and 2.A.3.

(14)

The member’s employing authority must before 1st January 2026, or in exceptional circumstances such later time as the scheme manager decides, send a notice in writing to the member or as the case may be, the member’s personal representatives, that they may make an election under paragraph (13).

(15)

The notice referred to in paragraph (14) must specify the amount of contributions the member and the member’s employing authority will be required to pay, and the amount of pensionable pay and pensionable service the member will be entitled to in respect of those contributions, if the member or as the case may be, the member’s personal representatives, makes an election under paragraph (13).

(16)

An election under paragraph (13) must be—

(a)

made—

(i)

by the member or as the case may be, the member’s personal representatives, in writing in such form and including such information as the member’s employing authority requires;

(ii)

in respect of all relevant payments received by the member; and

(b)

received by the member’s employing authority before—

(i)

the end of the period of three months beginning with the day on which the member is provided with the notice under paragraph (14); or

(ii)

such later date before 1st July 2026 as the member’s employing authority considers reasonable in all the circumstances.

(17)

For the purposes of this regulation, a relevant payment means so much of a payment of salary, wages, fees or other regular payment made to a member by the employing authority—

(a)

in respect of any period of time worked by the member in excess of the work required by the terms of their employment contract described in paragraph (12)(a) up to the whole-time equivalent according to the terms of the member’s employment contract during a scheme year falling within the period of the member’s remediable service; and

(b)

that was treated by the member’s employing authority as a payment for overtime for the purposes of regulation 27 of the 2015 Scheme.

(18)

Where a member, or as the case may be, the member’s personal representatives, has made an election under paragraph (13), that member will be treated as if they had made an election under regulation 27A(2) of the 2015 Scheme (election for relevant payments to be included as pensionable earnings).

(19)

If a member, or as the case may be, the member’s personal representatives, does not make an election under paragraph (13), all relevant payments made to that member will be treated as payments for overtime for the purposes of this regulation.”.

Amendment of regulation 2.A.911.

(1)

Regulation 2.A.9 (pensionable pay: breaks in service)26 is amended as follows.

(2)

In paragraph 4(b), for “(e)” substitute “(f)”.

(3)

In paragraph 8(b), for “(e)” substitute “(f)”.

Amendment of regulation 2.B.112.

In regulation 2.B.1 (eligibility: general)27, in paragraph (3)(a)(i) omit “on or”.

Amendment of regulation 2.E.2113.

In regulation 2.E.21 (payment of lump sums or pensions on death)28, in paragraph (7), for “regulation 2.J.7(2)” substitute “regulation 2.J.7(4)”.

Amendment of regulation 2.J.814.

(1)

Regulation 2.J.8 (deduction of tax)29 is amended as follows.

(2)

In paragraph (2)(a), after “benefit crystallisation event” insert “occurring on or before 6th April 2024,”.

(3)

After paragraph (2) insert —

“(2A)

If a person becomes entitled to a lump sum under this Part which is a relevant benefit crystallisation event, occurring on or after 6th April 2024, for the purposes of section 637Q or section 637S of the Income Tax (Earnings and Pensions) Act 200330, the Scheme administrator shall determine—

(a)

whether any tax is payable in respect of the lump sum in accordance with section 204 of the 2004 Act, and if so,

(b)

the amount of tax payable, and

(c)

the person liable for that tax.”.

Amendment of regulation 3.A.415.

(1)

Regulation 3.A.4 (pensionable service: breaks in service)31 is amended as follows.

(2)

In paragraph (3), for “(e)” substitute “(f)”.

(3)

In paragraph (3A), for “(e)” substitute “(f)”.

Amendment of regulation 3.A.516.

(1)

Regulation 3.A.5(1) (meaning of “qualifying service”)32 is amended as follows.

(2)

At the end of sub-paragraph (g) omit “and”.

(3)

For sub-paragraph (h) substitute—

“(h)

in the case of a person who—

(i)

ceased to be an active member of the 1995 Section on leaving NHS employment,

(ii)

became a deferred member of that Section on leaving that employment and has not since become a pensioner member of that Section between the date of leaving that employment and joining this Section of the Scheme, and

(iii)

became an active member of this Section of the scheme during the period beginning with 1st October 2008 and ending with 31 March 2015 and five years or more since last leaving NHS employment,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section,”.

(4)

After sub-paragraph (h) insert—

“(i)

in the case of a person who—

(i)

was a deferred member of the 1995 Section who gave notice for the purposes of paragraph (1) or (1A)33 of regulation B4 of the 1995 Regulations (opting out of the Scheme),

(ii)

as a result of that notice was treated as ceasing to be an active member of that Section,

(iii)

pursuant to that notice remains opted out of that Section for five years or more, and

(iv)

became an active member of this Section of the Scheme during the period beginning with 1st October 2008 and ending with 31st March 2015,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section, and

(j)

in the case of a person who—

(i)

was a deferred member of the 1995 Section who gave notice for the purposes of paragraph (1) or (1A) of regulation B4 of the 1995 Regulations and following that notice, ceased to be an active member of that Section for any one period of five years or more comprising the aggregate of—

(aa)

any period during which the person left NHS employment, and

(bb)

any period during which the person was treated as never having been an active member of that Section in accordance with paragraph (3)34 of regulation B4 of those Regulations in respect of one or more later periods of NHS employment entered into after having given the notice for the purposes of paragraph (1) or (1A) of that regulation, and

(ii)

became an active member of this Section of the Scheme during the period beginning with 1st October 2008 and ending with 31st March 2015,

a period equal in length to the period of qualifying service which the member is entitled to count under the 1995 Section.”.

Amendment of regulation 3.A.817.

In regulation 3.A.8 (pensionable earnings – breaks in service), in paragraph (4)(b), for “(e)” substitute “(f)”.

Amendment of regulation 3.B.118.

In regulation 3.B.1 (eligibility: general)35, in paragraph (3)(a)(i) omit “on or”.

Amendment of regulation 3.E.2119.

In regulation 3.E.21 (payment of lump sums or pensions on death)36, in paragraph (7), for “regulation 3.J.7(2)” substitute “regulation 3.J.7(4)”.

Amendment of regulation 3.J.820.

(1)

Regulation 3.J.8 (deduction of tax)37 is amended as follows.

(2)

In paragraph (2)(a), after “benefit crystallisation event” insert “, occurring on or before 6th April 2024,”.

(3)

After paragraph (2) insert—

“(2A)

If a person becomes entitled to a lump sum under this Part which is a relevant benefit crystallisation event, occurring on or after 6th April 2024, then for the purposes of section 637Q or section 637S of the Income Tax (Earnings and Pensions) Act 200338, the Scheme administrator shall determine—

(a)

whether any tax is payable in respect of the lump sum in accordance with section 204 of the 2004 Act, and if so,

(b)

the amount of tax payable, and

(c)

the person liable for that tax.”.