Legislation – The National Health Service Pension Schemes (Remediable Service) Regulations 2023

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Introduction

PART 1
General provisions

1 Citation, commencement and extent

2 Interpretation

PART 2
Remediable service

3 Pension contributions of medical practitioners and non-GP providers: deferred choice members (immediate correction)

4 Pension contributions of medical practitioners and non-GP providers: immediate choice members and deceased members

5 Pension contributions of medical practitioners and non-GP providers: deferred choice members

6 Remediable service statements

PART 3
Elections

7 Eligibility to make an election: designated persons

8 Election for retrospective provision to apply to opted-out service

9 Election for 2015 scheme benefits: immediate choice members and deceased members

10 Pension benefits and lump sum benefits: immediate choice members and deceased members

11 Continuation of pensions: immediate or deferred choice election: dependent and eligible children of a remedy member

12 Election for 2015 scheme benefits: deferred choice members and deceased members

13 Pension benefits and lump sum benefits: deferred choice election: pensioner and deceased members

PART 4
Voluntary contributions

14 Interpretation of Part 4

15 Elections to pay contributions for additional pension: where they must be treated as if paid under a corresponding option exercised under the 1995 Regulations or the 2008 Regulations

16 Treatment of contributions paid after 31st March 2022 under a corresponding option exercised in accordance with regulation 15(2)(b)

17 Treatment of a corresponding option exercised in accordance with regulation 15 on the making of a deferred choice election for 2015 scheme benefits under regulation 12

18 Treatment of buy-out contributions made under 2015 regulation 48: deferred choice members

19 Treatment of additional contributions made under the legacy scheme: deferred choice members

20 Treatment of additional contributions made under the legacy scheme: immediate choice members and deceased members

21 Treatment of additional contributions made under the 2015 scheme: immediate choice members and deceased members

22 Treatment of buy-out contributions made under 2015 regulation 48: immediate choice members and deceased members

23 Remedial arrangements to pay voluntary contributions to secure legacy scheme additional pension

24 Revocation of cancellation of arrangement or option to secure legacy scheme additional service or additional pension

PART 5
Divorce or the dissolution of a civil partnership

25 Interpretation of Part 5

26 Pension debits: valuation of pension benefits before 1st October 2023: deferred choice members (immediate alternative debit of appropriate amount)

27 Pension debits: valuation of pension benefits before 1st October 2023: immediate choice election for 2015 scheme benefits: immediate choice members and deceased members

28 Pension debits: valuation of pension benefits before 1st October 2023: no immediate choice election for 2015 scheme benefits: immediate choice members and deceased members

29 Pension debits: deferred choice election for 2015 scheme benefits: deferred choice members

30 Valuation of pension benefits on or after 1st October 2023

31 Pension debits: valuation of pension benefits on or after 1st October 2023: immediate choice election for 2015 scheme benefits: immediate choice members

32 Pension debits: valuation of pension benefits on or after 1st October 2023: no immediate choice election for 2015 scheme benefits: immediate choice members

33 Pension credits: valuation of pension benefits before 1st October 2023: pension credit adjustment: remediable service shareable rights under the legacy scheme only or the 2015 scheme only

34 Pension credits: valuation of pension benefits before 1st October 2023: pension credit adjustment: remediable service shareable rights under the legacy scheme and the 2015 scheme

35 Pension credits: pensioner and deceased relevant pension credit members

36 Pension credits: valuation of pension benefits on or after 1st October 2023: creation of a pension credit

PART 6
Transfers

37 Interpretation of Part 6

38 Treatment of transfer and transfer value payments made to the 1995 Section or the 2008 Section that are not made under public sector transfer arrangements

39 Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treatment as transfer payments under the 1995 Section or transfer value payments under the 2008 Section: deferred choice members

40 Transfer value payments in accordance with regulation 39: variation of the member’s rights on the making of a deferred choice election

41 Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treatment as if accepted under the legacy scheme: immediate choice members and deceased members

42 Treatment of transfer and transfer value payments and statements accepted from other and corresponding health service schemes

43 Transferred out remediable service statements

44 Remediable transfer value payments made before 1st October 2023

45 Remediable transfer value payments made on or after 1st October 2023 that are not made under public sector transfer arrangements

46 Transfers of remediable rights in the legacy scheme to the 2015 scheme before 1st October 2023

47 Transfers of remediable rights in the legacy scheme to the 2015 scheme on or after 1st October 2023

48 Remediable transfer value payments accepted from other public service schemes but not accepted under the public sector transfer arrangements

49 Remediable club transfer value payments made before 1st October 2023

50 Remediable club transfer value payments made on or after 1st October 2023

51 Remediable club transfer value payments accepted before 1st October 2023

52 Remediable club transfer value payments accepted on or after 1st October 2023

53 Application and interpretation of regulations 54 to 56

54 Transferred in remediable rights treated as rights under the legacy scheme

55 Varying the value of benefits secured by virtue of transferred in remediable rights

56 Benefits already paid in relation to transferred in remediable rights

PART 7
Taxation

57 Interpretation of Part 7

58 Scheme administrator to be liable where private sector scheme administrator’s liability is discharged

59 The 2019/20 Pensions Annual Allowance Charge Compensation Scheme

60 Scheme pays

PART 8
Compensation

61 Applications for compensation or indirect compensation

62 Indirect compensation

PART 9
Interest and the payment, reduction or waiver of liabilities

63 Application and interpretation of Part 9

64 Interest and process

65 Interest not payable under the 1995 Regulations or the 2008 Regulations

66 Netting off of liabilities

67 Payments of amounts owed to the scheme

68 Payments of amounts owed to a person

69 Power to reduce or waive amounts owed by a person to the legacy scheme

PART 10
Immediate detriment remedy

70 Immediate detriment

PART 11
Revocation of election to convert pensionable service under the legacy scheme

71 Option to revoke election to convert pensionable service under the legacy scheme

PART 12
Retirement pensions

72 Premature retirement in the interests of efficiency

73 Premature retirement on grounds of redundancy

74 Partial retirement: immediate choice members

75 Partial retirement: deferred choice members

76 Determining whether a member meets the ill-health criteria in each scheme

77 Ill-health pension: acceptance of retrospective applications

PART 13
Consequential amendments

78 Consequential amendments of the 1995 Regulations, the 2008 Regulations and the 2015 Transitional Regulations

SCHEDULES

SCHEDULE 1 Immediate detriment remedy

SCHEDULE 2 Amendments of the 1995 Regulations, the 2008 Regulations and the 2015 Transitional Regulations

Signature

Explanatory note

PART 6Transfers

Transfer value payments made to the 2015 scheme that are not made under public sector transfer arrangements: treatment as if accepted under the legacy scheme: immediate choice members and deceased members
41.

(1)

This regulation applies to a remedy member—

(a)

who has pensionable service under the legacy scheme by virtue of section 2(1) of PSPJOA 2022;

(b)

who—

(i)

is an immediate choice member, or

(ii)

is a member who died before 1st October 2023;

(c)

in respect of whom—

(i)

an immediate choice election may be made or treated by the scheme manager as having been made in accordance with regulation 9;

(ii)

the scheme manager has accepted a transfer value payment in relation to the member that is a non-club transfer for the purposes of 2015 regulation 143 and, in respect of that payment, the member is entitled to an increase in the member’s pensionable earnings and has been credited with a period of pensionable service under paragraph (2) of that regulation; and

(iii)

the 2015 scheme joining date in relation to the transfer value payment referred to in paragraph (ii) falls within the period of that member’s remediable service.

(2)

Where this regulation applies, on the acceptance of an election referred to in paragraph (1)(c)(i) in respect of a member or at the end of the immediate choice election period if no such election is accepted—

(a)

all the remedy member’s rights secured by the transfer value payment mentioned in paragraph (1)(c)(ii) are extinguished;

(b)

the scheme manager must treat the payment as if it had been accepted for the purposes of—

(i)

1995 regulation N3 where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 1995 Section, or

(ii)

2008 regulation 2.F.11 or 2008 regulation 3.F.11 (whichever is relevant) where, pursuant to section 2(1) of PSPJOA 2022, the remedy member’s remediable service is treated as being pensionable service under the 2008 Section;

(c)

in respect of the payment, the member is entitled to count the additional period of pensionable service or the increase in pensionable earnings set out in paragraph (3) or (4) (whichever is relevant); and

(d)

paragraph (5) applies if the scheme manager determines that the benefits payable in respect of the member’s remediable service are 2015 scheme benefits.

(3)

If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 1995 Regulations, in respect of the payment the member is entitled to—

(a)

an additional period of pensionable service calculated in accordance with 1995 regulation N3, or

(b)

count an increase in the member’s pensionable earnings calculated in accordance with paragraph 18 of Schedule 2 to the 1995 Regulations.

(4)

If the scheme manager treats the transfer value payment as if it had been accepted for the purposes of the 2008 Regulations, in respect of the payment the member is entitled to—

(a)

an additional period of pensionable service calculated in accordance with paragraphs (1) to (4) of 2008 regulation 2.F.11, or

(b)

count an increase in the member’s pensionable earnings calculated in accordance with paragraphs (1) to (4) of 2008 regulation 3.F.11.

(5)

Where this paragraph applies (see paragraph (2)(d)), the scheme manager must, after having regard to the advice of the scheme actuary, vary the member’s rights to benefits in respect of the additional period of pensionable service or increase in pensionable earnings referred to in paragraph (3) or (4) (whichever is relevant) so that those rights are of an equivalent value to the rights the member would have secured if the transfer payment or transfer value payment (whichever is relevant) had been accepted for the purposes of 2015 regulation 143.