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STATUTORY INSTRUMENTS


2001 No. 1428

NATIONAL HEALTH SERVICE, ENGLAND AND WALES

The National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001

  Made 9th April 2001 
  Laid before Parliament 10th April 2001 
  Coming into force 1st May 2001 

The Secretary of State for Health, in exercise of the powers conferred upon him by section 10(1), (2), (2A) and (3) of, and Schedule 3 to, the Superannuation Act 1972[1], section 42 of the Welfare Reform and Pensions Act 1999[2], and of all other powers enabling him in that behalf, after consulting such representatives of persons likely to be affected by these Regulations as appear to him to be appropriate[3] and with the consent of the Treasury[4] hereby makes the following Regulations:

Citation and commencement
     1. These Regulations may be cited as the National Health Service (Pension Scheme and Additional Voluntary Contributions) (Pension Sharing) Amendment Regulations 2001 and shall come into force on 1st May 2001.

Interpretation
    
2. In these Regulations - 

Amendment of the Pension Scheme Regulations
     3. The Pension Scheme Regulations shall be amended in accordance with Schedule 1 to these Regulations.

Amendment of the AVC Regulations
    
4. The AVC Regulations shall be amended in accordance with Schedule 2 to these Regulations.



Signed by authority of the Secretary of State for Health


John Denham
Minister of State, Department of Health

9th April 2001



We consent to the making of these Regulations.


Jim Dowd

Clive Betts
Lords Commissioners of Her Majesty's Treasury

9th April 2001



SCHEDULE 1
Regulation 3


AMENDMENT OF THE PENSION SCHEME REGULATIONS


Amendment of regulation A2
     1. In regulation A2 (interpretation) there shall be inserted in the appropriate places in alphabetical order the following definitions - 

Insertion of new regulation in Part R
     2. In Part R (special provision for certain members), after regulation R11[11] there shall be inserted the following regulation - 

Insertion of new Schedule
     3. After Schedule 2 there shall be inserted the following Schedule - 





SCHEDULE 2
Regulation 4


AMENDMENT OF THE AVC REGULATIONS AND THEIR APPLICATION TO PENSION SHARING ON DIVORCE


Application of the AVC Regulations to a person entitled to a pension credit or a pension credit member
     1. Except as provided for in this Schedule the AVC Regulations shall not apply to a person entitled to a pension credit or to a pension credit member.

Amendment of regulation 2
     2. In regulation 2 (interpretation) - 

Amendment of regulation 13
     3. In regulation 13(1) and (2) (benefit limits) for "the Schedule" in each place where those words appear there shall be substituted "Schedule 1" and accordingly the Schedule to these Regulations shall become Schedule 1 to these Regulations.

Amendment of regulation 15
     4. In regulation 15 (payments by the Secretary of State) - 

Insertion of new regulation in Part IV
     5. In Part IV (miscellaneous provisions), after regulation 17 there shall be inserted the following regulation - 

Insertion of new Schedule
     6. After Schedule 1 there shall be inserted the following Schedule - 





EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations further amend the National Health Service Pension Scheme Regulations 1995 ("the Pension Scheme Regulations") which provide for the superannuation of persons engaged in the National Health Service, and amend the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 ("the AVC Regulations") which make provision for the payment of additional voluntary contributions by persons who are members of the NHS Pension Scheme, or by their employers, in order to secure additional pension benefits.

The amendments make provision in relation to rights resulting in the payment of pension credit benefit to or in respect of those entitled to pension credits as a result of the sharing of pensions following divorce or nullity of marriage.

Regulations 1 and 2 provide for citation, commencement and interpretation.

Regulation 3 and Schedule 1 amend the Pension Scheme Regulations. Paragraph 1 of Schedule 1 inserts new definitions into regulation A2 of the Pension Scheme Regulations.

Paragraph 2 of Schedule 1 inserts a new regulation R12 into the Pension Scheme Regulations which gives effect to a new Schedule 2A (inserted by paragraph 3 of Schedule 1).

The new Schedule 2A makes provision for the discharge of liability if the person entitled to the pension credit dies before liability has been discharged, the identification of safeguarded rights, the commutation of pension credit benefit before or at normal benefit age (age 60), the payment of pension credit benefit at normal benefit age, after the death of the pension credit member before the pension credit benefit becomes payable and after it becomes payable.

Paragraph 10 of Schedule 2A provides that transfers in or out of the NHS Pension Scheme in respect of pension credit rights or pension credit benefit shall not be allowed.

Schedule 2A also provides that any period of time which may be taken into account in relation to the pension credit benefit shall not count for any other purpose under the Pension Scheme Regulations.

Regulations F5 (payment of lump sum), T5 (offset for crime, negligence and fraud), T6 (loss of rights to benefits) and T8 (interest on late payment of benefits) are modified in their application to pension credit members.

Regulation 4 and Schedule 2 amend the AVC Regulations. Regulations 2, 13 and 15 of the AVC Regulations are amended (paragraphs 2 to 4 of Schedule 2). A new regulation 17A is inserted into the AVC Regulations which gives effect to a new Schedule 2 (paragraphs 5 and 6 of Schedule 2 to these Regulations).

The new Schedule 2 to the AVC Regulations makes provision for the discharge of liability in respect of a pension credit by the Secretary of State, the discharge of liability if the person entitled to the pension credit dies before liability has been discharged, the commutation of pension credit benefit before or at normal benefit age (age 60), the payment of pension credit benefit at normal benefit age, and after the death of the pension credit member before the pension credit benefit becomes payable and after it becomes payable.

Provision is also made for the investment of pension credit rights in a way which is similar to the investment of additional voluntary contributions under regulation 7 of the AVC Regulations. The transfer of pension credit rights out of the AVC scheme is also provided for.

Paragraph 11 of the new Schedule 2 enables a person entitled to a pension credit or a pension credit member to nominate someone other than a surviving spouse to receive the lump sum payable upon his death.

Paragraphs 13 and 14 of the new Schedule 2 to the AVC Regulations contain provisions regarding the reduction and forfeiture of rights to pension credit benefit to the extent that those rights are originally derived from contributions made by the employer of the pension credit member's former spouse and against whom the pension sharing order or provision was made. The provisions are similar to regulations 19 and 20 of the AVC Regulations.

These Regulations do not impose any costs on business.


Notes:

[1] 1972 c.11; subsection (1)(a) of section 10 was amended by Schedule 5 to the National Health Service Reorganisation Act 1973 (c.32); subsection (1) was amended, and subsection (2A) was inserted, by the Pensions (Miscellaneous Provisions) Act 1990 (c.7), sections 4(2) and 8(5).back

[2] 1999 c.30.back

[3] See section 10(4) of the Superannuation Act 1972.back

[4] See section 10(1) of the Superannuation Act 1972, and article 2 of the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 (S.I. 1981/1670).back

[5] S.I. 2000/619.back

[6] S.I. 1995/300, as amended by S.I. 1997/80, 1888, 1998/666, 2216 and 2000/605.back

[7] 1993 c.48.back

[8] Section 101B is inserted by section 37 of the Welfare Reform and Pensions Act 1999.back

[9] 1995 c.26. The definition of "pension credit member" is inserted by paragraph 61(3) of Schedule 12 to the Welfare Reform and Pensions Act 1999.back

[10] Section 68A was inserted by section 36 of the Welfare Reform and Pensions Act 1999.back

[11] Regulation R11 was inserted by S.I. 1998/666.back

[12] S.I. 2000/1053. Regulation 6 was substituted by S.I. 2000/2691.back

[13] Regulation F5 was amended by S.I. 2000/605.back

[14] S.I. 2000/1054, as amended by S.I. 2000/2691.back

[15] Regulation T8 was inserted by S.I. 2000/605.back

[16] Section 101P is inserted by section 37 of the Welfare Reform and Pensions Act 1999.back

[17] Section 101F is inserted by section 37 of the Welfare Reform and Pensions Act 1999.back

[18] Part IVA is inserted by Section 37 of the Welfare Reform and Pensions Act 1999.back

[19] Regulation 24 is amended by S.I. 2000/2691.back



ISBN 0 11 029414 9


 © Crown copyright 2001

Prepared 4 May 2001


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