The National Health Service Pension Scheme, Additional Voluntary Contributions, Compensation for Premature Retirement and Injury Benefits (Amendment) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations further amend the National Health Service Pension Scheme Regulations 1995 (S.I. 1995/300) (“the 1995 Regulations”), the National Health Service Pension Scheme Regulations 2008 (S.I. 2008/653) (“the 2008 Regulations”), the National Health Service Pension Scheme (Additional Voluntary Contributions) Regulations 2000 (S.I. 2000/619) (“the AVC Regulations”), the National Health Service (Compensation for Premature Retirement) Regulations 2002 (S.I. 2002/1311) (“the Compensation Regulations”) and the National Health Service (Injury Benefits) Regulations 1995 (S.I. 1995/866) (“the Injury Benefits Regulations”) as a result of the commencement of certain provisions of the Marriage (Same Sex Couples) Act 2013 (c.30). They also make some minor unrelated amendments to the 2008 Regulations and the AVC Regulations as well as further amendments to the 2008 Regulations to facilitate the undertaking of a scheme valuation in preparation for the making of a new pension scheme under powers in section 1 of the Public Service Pensions Act 2013 (c.25).

Regulation 1 provides for citation and commencement, including that regulations 9 and 10 (dealing with the scheme valuation) come into effect earlier than the remainder of the Regulations.

Amendment of the 1995 Regulations

Regulation 3 amends regulation A2 to insert new definitions to clarify that “civil partner” and “civil partnership” are to be read in accordance with new regulation A4 (inserted by regulation 4), references to “marriage” and “married” do not include a reference to a marriage of a same sex couple unless otherwise provided and “widow” and “widower” do not include a reference to a marriage of a same sex couple.

Regulation 4 inserts a new regulation A4 which provides that a reference to civil partnership is to be read as including a reference to marriage of a same sex couple. Equally, a reference to a person living with another person as if they were civil partners (as per the Civil Partnership Act 2004 (c.33)) is to be read as including a reference to a person who is living with another person of the same sex as if they were married. Regulation 4 therefore limits the effect of section 11 of the Marriage (Same Sex Couples Act) 2013 and disapplies Schedule 3 of that Act. This amendment gives effect to government policy that same sex spouses are to be treated in the same manner as civil partners under the 1995 Regulations.

Regulations 5 and 6 amend regulations G9 and G13 respectively to remove restrictions on the transfer of previously purchased additional spouse or partner cover for survivor benefits. This cover can now apply to a member’s opposite sex widower, civil partner, nominated partner or same sex spouse (as applicable at the time of the member’s death), irrespective of the date on which this cover was purchased.

Regulation 7 amends regulation G16 to introduce a further facility for active members of the 1995 Section to purchase additional spouse or partner cover for survivor benefits. Generic cover can be purchased in respect of an active member’s opposite sex widower, civil partner, nominated partner or same sex spouse; the member does not need to be in any such relationship at the date of purchase.

Regulation 8 amends regulation G17 to provide that, should a member who has purchased additional cover under G16 be survived by an opposite sex widower, civil partner, nominated partner or same sex spouse, that survivor may take the benefit of the additional cover purchased under regulation G16. This has the effect of extending cover previously purchased under regulation G16 to pensions for surviving same sex spouses, as well as giving effect to the new purchase facility created by the amendments made to regulation G16 by regulation 7.

Amendment of the 2008 Regulations

Regulation 10 amends regulation 1.B.1 to provide for the Scheme actuary to undertake a valuation of the Scheme as at 31st March 2012, and to take account of any Treasury directions given pursuant to sections 11(2) and 12(3) of the Public Service Pensions Act 2013 where the valuation is to be used for the purposes of setting the employer cost cap for a proposed new scheme to be made under section 1 of that Act. This valuation applies in respect of both the Section of the scheme governed by the 2008 Regulations as well as the Section of the scheme governed by the 1995 Regulations.

Regulations 11 and 14 amend regulations 2.A.1 and 3.A.1 respectively to insert new definitions to clarify that “civil partner” and “civil partnership” are to be read in accordance with new regulations 2.A.1A and 3.A.1A (inserted by regulations 12 and 15 respectively), references to “marriage” and “married” do not include a reference to a marriage of a same sex couple unless otherwise provided and “widow” and “widower” do not include a reference to a marriage of a same sex couple.

Regulations 12 and 15 insert new regulations 2.A.1A and 3.A.1A respectively to provide that a reference to civil partnership is to be read as including a reference to marriage of a same sex couple. Equally, a reference to a person living with another person as if they were civil partners (as per the Civil Partnership Act 2004) is to be read as including a reference to a person who is living with another person of the same sex as if they were married. Regulations 13 and 16 therefore limit the effect of section 11 of the Marriage (Same Sex Couples Act) 2013 and disapply Schedule 3 of that Act. This amendment gives effect to government policy that same sex spouses are to be treated in the same manner as civil partners under the 2008 Regulations.

Regulations 13 and 16 remove from regulations 2.F.10 and 3.F.10 respectively the requirement to test against a spouse’s entitlement to a guaranteed minimum pension when considering whether to accept a transfer value payment. This is consistent with the position under the 1995 Regulations.

Amendment of the AVC Regulations

Regulation 18 amends regulation 2 of the AVC Regulations to insert new definitions to clarify that “civil partner” and “civil partnership” are to be read in accordance with new regulation 2A (inserted by regulation 19), references to “marriage” do not include a reference to a marriage of a same sex couple unless otherwise provided and “widow” and “widower” do not include a reference to a marriage of a same sex couple.

Regulation 19 inserts new regulation 2A which provides that a reference to civil partnership is to be read as including a reference to marriage of a same sex couple. Equally, a reference to a person living with another person as if they were civil partners (as per the Civil Partnership Act 2004) is to be read as including a reference to a person who is living with another person of the same sex as if they were married. Regulation 20 therefore limits the effect of section 11 of the Marriage (Same Sex Couples Act) 2013 and disapplies Schedule 3 of that Act. This amendment gives effect to government policy that same sex spouses are to be treated in the same manner as civil partners under the AVC Regulations.

Regulation 20 amends regulation 15 to clarify the persons to whom lump sums may be payable by the Secretary of State in respect of a deceased contributor.

Amendment of the Compensation Regulations

Regulation 22 amends regulation 2 of the Compensation Regulations to insert new definitions to clarify that “civil partner” and “civil partnership” are to be read in accordance with new regulation 2A (inserted by regulation 23) and that references to “widow” and “widower” do not include a reference to a marriage of a same sex couple.

Regulation 23 inserts new regulation 2A which provides that a reference to civil partnership is to be read as including a reference to marriage of a same sex couple. Equally, a reference to a person living with another person as if they were civil partners (as per the Civil Partnership Act 2004) is to be read as including a reference to a person who is living with another person of the same sex as if they were married. Regulation 24 therefore limits the effect of section 11 of the Marriage (Same Sex Couples Act) 2013 and disapplies Schedule 3 of that Act. This amendment gives effect to government policy that same sex spouses are to be treated in the same manner as civil partners under the Compensation Regulations.

Amendment of the Injury Benefits Regulations

Regulation 25 amends regulation 2 of the Injury Benefits Regulations to insert new definitions to clarify that “civil partner” and “civil partnership” are to be read in accordance with new regulation 2B (inserted by regulation 26), references to “marriage” and “married” do not include a reference to a marriage of a same sex couple unless otherwise provided and “widow” and “widower” do not include a reference to a marriage of a same sex couple.

Regulation 26 inserts new regulation 2B which provides that a reference to civil partnership is to be read as including a reference to marriage of a same sex couple. Equally, a reference to a person living with another person as if they were civil partners (as per the Civil Partnership Act 2004) is to be read as including a reference to a person who is living with another person of the same sex as if they were married. Regulation 27 therefore limits the effect of section 11 of the Marriage (Same Sex Couples Act) 2013 and disapplies Schedule 3 of that Act. This amendment gives effect to government policy that same sex spouses are to be treated in the same manner as civil partners under the Injury Benefits Regulations.

No impact assessment has been prepared for this instrument as it will not impose or reduce costs on business or the third sector nor will it result in costs to the public sector in excess of £5million.