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The National Health Service Pension Scheme (Scotland) Regulations 2008

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Revaluation of increases bought under options: members' pensions
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3.C.15—(1) This regulation applies for the purposes of determining the final amount of the increase in a member’s pension as a result of the exercise of an option under regulation 3.C.6, 3.C.8 or 3.C.9.

(2) The amount of that increase immediately before the beginning date for that pension is found as follows–

  • Step 1–

    • calculate the amount of the increase in accordance with regulations 3.C.14 to 3.C.16 immediately before that date (“the basic amount”);

  • Step 2–

    • multiply the basic amount by the retail prices index for the second month before that in which the person becomes entitled to it, to find the Step 2 amount;

  • Step 3–

    • divide the Step 2 amount by the retail prices index for the month in which the option was exercised to find the Step 3 amount;

  • Step 4–

    • add to the Step 3 amount any amount by which the Step 3 amount would be increased under the Pensions (Increase) Act 1971 if it were the amount of the member’s pension, to find the Step 4 amount;

  • Step 5–

    • divide the Step 4 amount by the Step 3 amount to find the Step 5 factor; and

  • Step 6–

    • divide the Step 3 amount by the Step 5 factor to find the adjusted basic amount.

(3) The amount of the increase in a member’s pension as a result of the exercise of an option under regulation 3.C.6, 3.C.8 or 3.C.9 as at the beginning date for that pension is–

(a)if the adjusted basic amount is greater than the basic amount, the adjusted basic amount; and

(b)otherwise the basic amount.

(4) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) (meaning of “pension” and other supplementary provisions) of that Act).

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