The National Health Service Pension Scheme (Scotland) Regulations 2015

Relevant income and enhancement amount

103.—(1) An employed pensioner’s relevant income for a scheme year is the aggregate of—

(a) the amount of earnings received by the employed person during the year from the new employment; and

(b) the enhancement amount.

(2) The enhancement amount is the difference between—

(a) the amount of the old service pension for that scheme year; and

(b) the amount the pension would have been had it been payable under regulation 78 (early retirement).

(3) If the old service pension is payable under regulation 89 or 93 (ill-health pensions) to an employed pensioner who had not attained normal minimum pension age at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)—

(a) the fact that entitlement to a pension under regulation 78 depends on reaching that age is ignored; but

(b) the employed pensioner’s actual age at the relevant time is taken into account in determining the reduction to be made under Part 3 of Schedule 11.

(4) If the old service pension is an ill-health pension at Upper Tier level, for the purposes of paragraph (2)(b) only the employed pensioner’s actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 78.

(5) If the employed pensioner exercised the option under regulation 76 (conversion of part of pension lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

(6) If the employed pensioner exercised the option under regulation 50 (election to allocate of pension) in relation to the old service pension, the resulting reduction is taken into account for the purpose of this regulation.

(7) References to the amount of a pension for a scheme year are to its amount for that year after any increases payable in respect of the pension under the Pensions (Increase) Act 1971, including increases that would have been payable in respect of an amount not paid because of a reduction ignored under paragraph (5).

(8) For the purposes of paragraph (1)(a), the employed pensioner is assumed to be an active member of this scheme in the new employment.