Legislation – The National Health Service Pension Schemes (Remediable Service) Regulations 2023
PART 12Retirement pensions
Premature retirement on grounds of redundancy
73.
(1)
This regulation applies in relation to a relevant remedy member (“M”) where M’s employing authority has made or makes a contribution to the scheme manager in accordance with—
(a)
(b)
(c)
regulation 35 of the 2015 Regulations (employing authority contributions: redundancy).
(2)
Paragraphs (3) and (4) apply if the cost of any benefits on termination in respect of M increase as a result of—
(a)
the scheme manager accepting—
(i)
an immediate choice election made by or in respect of M in accordance with regulation 9, or
(ii)
a deferred choice election made by or in respect of M in accordance with regulation 12, or
(b)
an election referred to in sub-paragraph (a) not being made by or in respect of M before the end of the immediate choice election period or the end of the deferred choice election period (whichever election period applies in respect of M).
(3)
M may pay all or part of the additional contribution as the scheme manager, after having regard to the advice of the scheme actuary, determines will be sufficient to meet the increased cost of the benefits insofar as that cost—
(a)
is not met by the contribution referred to in paragraph (1), and
(b)
exceeds the cost in respect of which M was entitled to make an additional contribution on becoming entitled to any benefits on termination.
(4)
If M elects not to pay any additional contribution in accordance with paragraph (3), the scheme manager must reduce the amount of pension pursuant to—
(a)
(b)
(c)
paragraph 7(4) to (6) and (8) to (10) of Schedule 13 to the 2015 Regulations (calculation of amount of premature retirement pension).
(5)
Subject to paragraph (6), if the member is not entitled to make an additional contribution to meet the increase in costs referred to in paragraph (2) and that increase is to be met by M’s employing authority in accordance with the terms and conditions relevant to M’s employment, the scheme manager must waive the element of the further contribution due from the employing authority that relates to the increase.
(6)
Where M has received a relevant employing authority payment and that payment must be reduced as a consequence of the increase in costs referred to in paragraph (5), the amount that must be waived under that paragraph must also be reduced by the same amount.
(7)
Paragraph (8) applies if the cost of any benefits on termination in respect of M decrease as a result of—
(a)
the scheme manager accepting—
(i)
an immediate choice election made by or in respect of M in accordance with regulation 9, or
(ii)
a deferred choice election made by or in respect of M in accordance with regulation 12, or
(b)
an election referred to in sub-paragraph (a) not being made by or in respect of M before the end of the immediate choice election period or the end of the deferred choice election period (whichever election period applies in respect of M).
(8)
The scheme manager must send a notice in writing to M or the designated person of the amount by which the cost of any benefits on termination in respect of M have decreased.
(9)
In this regulation—
“additional contribution” has the meaning given in (whichever is relevant)—
(a)
regulation E3AB of the 1995 Regulations;
(b)
regulation 2.D.11A of the 2008 Regulations; or
(c)
regulation 32 of the 2015 Regulations (members’ contributions: redundancy);
“benefits on termination” means benefits under—
(a)
(b)
(c)
regulations 77 (conversion of part of pension into lump sum) and 82 (premature retirement on grounds of redundancy) of the 2015 Regulations;
“relevant remedy member” means a member who, in respect of the termination of M’s employment by M’s employing authority, is entitled to the payment of any benefits on termination;
“relevant employing authority payment” means a payment made to M by M’s employing authority in respect of the cessation of M’s employment referred to in (whichever is relevant)—
(a)
regulation E3A(5)(a) of the 1995 Regulations;
(b)
regulation 2.D.11(6)(a) of the 2008 Regulations; or
(c)
paragraph 7(2)(a) of Schedule 13 to the 2015 Regulations.