The National Health Service (Pension Scheme and Injury Benefits) Amendment Regulations 2005

Amendment of Schedule 2 to the Pension Scheme Regulations

11.—(1) Schedule 2 to the Pension Scheme Regulations (medical and dental practitioners) shall be amended in accordance with the following provisions of this regulation.

(2) In paragraph 1(1) (additional definitions)—

(a)omit the definition of “associate practitioner”;

(b)for the definitions of “assistant practitioner”, “locum practitioner” and “principal practitioner” substitute respectively—

““assistant practitioner” means—

““locum practitioner” means a registered medical practitioner (other than a trainee practitioner) whose name is included in a medical performers list and who is engaged, otherwise than in pursuance of a commercial arrangement with an agent, under a contract for services by—

to deputise or assist temporarily in the provision of essential services, additional services, enhanced services, dispensing services, OOH services, commissioned services, certification services or collaborative services (or any combination thereof),”;

““principal practitioner” means—

(c)insert each of the following definitions at the appropriate place in the alphabetical order—

““Board and advisory work” means—

but which is not in itself the performance of primary medical services, and payment for which is made by that authority directly to the person carrying out that work;”;

““collaborative services” means primary medical services provided by a GP performer, a GMS practice, a PMS practice, an APMS contractor or an OOH provider under or as a result of an arrangement between—

under section 26(4) of the 1977 Act, under which the Secretary of State, the National Assembly for Wales, the Primary Care Trust or the Local Health Board is responsible for providing services for purposes related to the provision of health care;”;

““commissioned services” means medical services provided under a contract between—

which is for the purposes of the health service;”;

““local authority” means—

(3) In paragraph 2 (application of Regulations with modifications) in—

(a)sub-paragraph (1) omit the words “or the appropriate contracting party”, in both places where they appear;

(b)sub-paragraph (1A)—

(i)for paragraph (a) in the definition of “the listing authority”, substitute—

“(a)the medical performers list; or”;

(ii)omit the definition of “appropriate contracting party”.

(4) In paragraph 3 (meaning of “pensionable earnings”)—

(a)in sub-paragraph (1)—

“(i)after “principal practitioner”, insert “and a non-GP provider who is not in receipt of a salary, wages, fees or any other regular payment in respect of his employment as an officer by virtue of the application of these Regulations to him as if he were such an officer under regulation R1;.

(ii)for paragraph (a) substitute—

(a)any sum on account of practice expenses; and”;

(b)for sub-paragraph (2)(a)(7) substitute—

“(a)income which accrues to the practitioner or the non-GP provider which is derived from—

(i)a GMS contract,

(ii)a PMS agreement,

(iii)an APMS contract,

(iv)payments from, or to, a practitioner who is a GMS practice, a PMS practice or an APMS contractor in respect of the performance of certification services, commissioned services or collaborative services,

(v)his engagement by a Primary Care Trust or a Local Health Board to assist in the provision of primary medical services under section 16CC(2)(a) of the 1977 Act,

(vi)in the case of a practitioner, the provision of locum services,

(vii)payments made to a principal practitioner by an OOH provider in respect of the performance of primary medical services, commissioned services, collaborative services and certification services,

(viii)payments made to a principal practitioner by an employing authority in respect of general dental services, general opthalmic services or pharmaceutical services provided by the practitioner,

(ix)practice-based work carried out in educating or training, or organising the education or training of, medical students or practitioners.”;

(c)for sub-paragraph (2)(d), substitute—

“(d)in the case of a practitioner, allowances and any other sums (but excluding payments made to cover expenses) paid in respect of Board and advisory work.”.

(5) For paragraph 4(8) (calculating “pensionable earnings” of practitioners in partnership), substitute—

“Calculating pensionable earnings of practitioners in partnership

4.—(1) In the case of practitioners practising in partnership (with or without a non-GP provider who is a partner in a partnership), the pensionable earnings of each principal practitioner and non-GP provider who is a partner in a partnership shall be calculated by aggregating the pensionable earnings of each (including for this purpose, any amount that would constitute pensionable earnings in the case of any of them who are not included in the scheme) and, subject to sub-paragraph (2), dividing the total equally by reference to the number of such partners.

(2) Where the principal practitioners and any non-GP providers who are partners in a partnership do not share equally in the partnership profits, they may elect that each partner’s pensionable earnings shall correspond to each partner’s share of the partnership profits.

(3) Where a registered medical practitioner practising in partnership also has earnings in respect of NHS employment otherwise than as a practitioner, the partners may elect that the pensionable earnings of that practitioner, as determined in accordance with sub-paragraph (1) or (2) , shall be reduced by the amount of those earnings and the pensionable earnings of each of them (including that practitioner) be then increased in proportion to their respective shares of the partnership profits.

(4) The calculations described in sub-paragraphs (2) and (3) will be made by the Local Health Board or Primary Care Trust to which the partners are required to give notice of their election in accordance with paragraph 5.”.

(6) In paragraph 5 (elections relating to calculation of “pensionable earnings” in partnerships) —

(a)in sub-paragraph (1) after—

(i)“Practitioner's”, insert “and any non-GP providers who are partners in any partnership”;

(ii)“writing”, insert “to their host Trust or Board”;

(b)in sub-paragraph (4) after—

(i)“principal practitioners” insert “and non-GP providers”;

(ii)“each practitioner's” insert “and non-GP provider's”;

(c)omit sub-paragraph (3);

(d)sub-paragraph (5) for “quarter” in both places where it occurs, substitute “financial year”.

(7) In paragraph 6 (meaning of “pensionable earnings” in relation to other practitioners)—

(a)for sub-paragraph (1)(9), substitute—

“(1) In the case of an assistant practitioner, “pensionable earnings” means—

(a)all salary, wages, fees and other regular payments paid to the practitioner by an employing authority in respect of the performance of essential services, additional services, enhanced services, dispensing services, OOH services, commissioned services, certification services, collaborative services, general dental services or pharmaceutical services; but does not include bonuses or payments made to cover expenses or for overtime;

(b)allowances and other sums (but excluding payments made to cover expenses) paid by an employing authority in respect of Board and advisory work; and

(c)practice-based work carried out in educating or training, or organising the education or training of, medical students or practitioners.”;

(b)in sub-paragraph (2)—

(i)in paragraph (a) before “practitioner”, insert “dental”;

(ii)in paragraph (b) omit “medical or”;

(c)for sub-paragraph (4), substitute—

“(4) In this paragraph, references to the provision of locum services, in relation to a practitioner, are to primary medical services, commissioned services, collaborative services or pharmaceutical services performed by a practitioner engaged by an employing authority under a contract for services to deputise for a registered medical practitioner or to temporarily assist in the provision of such services.”.

(8) For paragraph 10 (contributions to the scheme), substitute—

“Contributions to the scheme

10.—(1) In the case of members who are practitioners or non-GP providers, regulation D1 (contributions by members) and regulation D2 (contributions by employing authorities) are modified as described in the following sub-paragraphs.

(2) The contribution rate for practitioners and non-GP providers is 6 per cent of pensionable earnings.

(3) Contributions must be paid until the member—

(a)reaches age 70 or completes 45 years' pensionable service and reaches age 65, if the member is not a special class officer;

(b)reaches age 65, or completes 45 years' pensionable service and reaches age 60, if the member is a special class officer.

(4) Save where sub-paragraph (5) applies, principal practitioners and non-GP providers shall pay D1 contributions to the host Trust or Board and dental practitioners shall pay such contributions to the Dental Practice Board.

(5) Where a principal practitioner or a non-GP provider is engaged under a contract of service or for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority shall—

(a)deduct D1 contributions from any pensionable earnings it pays to him; and

(b)where it is not also the host Trust or Board, pay those contributions to that Trust or Board.

(6) Subject to sub-paragraph (7), where a principal practitioner or a non-GP provider is—

(a)an employing authority which is a GMS practice, a PMS practice or an APMS contractor; or

(b)a shareholder or partner in such an employing authority,

that employing authority shall pay D2(1) contributions to the host Trust or Board.

(7) Where the principal practitioner or non-GP provider is a shareholder or partner in more than one employing authority referred to in sub-paragraph (6), each such employing authority shall pay D2(1) contributions on any pensionable earnings it pays to the practitioner or non-GP provider or, as the case may be, on the practitioner’s or non-GP provider’s share of the partnership profits, to the host Trust or Board.

(8) Where sub-paragraph (5) applies (but sub-paragraph (6) does not) and the employing authority referred to in that sub-paragraph is—

(a)not the host Trust or Board, that authority shall pay D2(1) contributions to the host Trust or Board;

(b)is the host Trust or Board, that Trust or Board shall pay contributions to the Secretary of State in respect of any pensionable earnings it pays to him.

(9) Where an assistant practitioner (other than a locum practitioner) is engaged under a contract of service or for services by an employing authority, that authority shall—

(a)deduct D1 contributions from any pensionable earnings it pays to him; and

(b)where it is not also the host Trust or Board, pay those contributions to that Trust or Board.

(10) Where paragraph (9) applies, and the employing authority referred to in that sub-paragraph—

(a)is not the host Trust or Board, that authority shall pay D2(1) contributions to the host Trust or Board;

(b)is the host Trust or Board, that Trust or Board shall pay D1 and D2(1) contributions to the Secretary of State in respect of any pensionable earnings it pays to him.

(11) Locum practitioners must pay D1 contributions to the host Trust or Board.

(12) Where a locum practitioner is liable to pay contributions under sub-paragraph (11) in respect of pensionable locum work he does for an employing authority which is not—

(a)the host Trust or Board;

(b)a GMS practice;

(c)a PMS practice; or

(d)an APMS contractor,

that employing authority shall pay D2(1) contributions to the host Trust or Board.

(13) Where contributions are payable by a locum practitioner under sub-paragraph (11) in respect of pensionable locum work carried out for an employing authority which is—

(a)a host Trust or Board;

(b)a GMS practice;

(c)a PMS practice; or

(d)an APMS contractor,

the host Trust or Board shall pay contributions payable under regulation D2(1) in respect of such a practitioner.

(14) Contributions which are required to be paid to the host Trust or Board in accordance with this paragraph shall be paid to that Trust or Board not later than the 7th day of the month following the month in which the earnings were paid.

(15) Where an employing authority—

(a)is not the host Trust or Board, it shall be a function of that employing authority to provide the host Trust or Board with a record of any—

(i)pensionable earnings paid by it to a practitioner;

(ii)contributions deducted by it in accordance with sub-paragraph (5) or (9),

not later than the 7th day of the month following the month in which the earnings were paid;

(b)is the host Trust or Board that has deducted contributions in accordance with sub-paragraph (5) or (9) and is liable to pay D2(1) contributions in respect of any pensionable earnings it pays to a practitioner, it shall be a function of that Trust or Board to maintain a record of—

(i)the matters referred to in paragraph (a)(i) and (ii) above;

(ii)any contributions paid to it by a principal practitioner; and

(iii)any contributions paid to it by a locum practitioner.

(16) It shall be a function of the host Trust or Board to pay the contributions—

(a)paid to it by a principal practitioner or locum practitioner;

(b)paid to it by another employing authority;

(c)it is liable to pay by virtue of sub-paragraphs (8)(b) and (10)(b),

in accordance with the provisions of this paragraph, to the Secretary of State not later than the 19th day of the month following the month in which the earnings were paid.

(17) Without prejudice to any other method of recovery, where in respect of D1 contributions—

(a)a principal practitioner, assistant practitioner, locum practitioner or non-GP provider has failed to pay contributions;

(b)an employing authority has failed to deduct such contributions,

in accordance with this paragraph, the Secretary of State may recover any sum that remains due in respect of those contributions by deduction from any payment by way of benefits to, or in respect of, the member entitled to them where—

(a)the member agrees to such a deduction; and

(b)the deduction is to the member’s advantage.

(18) For the purposes of this paragraph—

(a)“D1 contributions” means contributions payable under regulation D1 by a practitioner under the scheme;

(b)“D2(1) contributions” means contributions payable under regulation D2(1) by an employing authority in respect of a practitioner.”.

(9) In sub-paragraph (6)(10) of paragraph 19 (members absent from work)—

(a)omit the words “medical or” in both places where they occur;

(b)in paragraph (b), omit the words from “whether” to the end.

(10) After paragraph 22 (reduction of pension on return to NHS employment), add—

“Accounts and actuarial reports

23.—(1) In the case of members who are practitioners or non-GP providers, regulation U3 (U3 accounts and actuarial reports) is modified as described in this paragraph.

(2) In respect of each financial year, a principal practitioner and a non-GP provider shall provide the host Trust or Board with a certificate of their pensionable earnings based on—

(a)the accounts drawn up in accordance with generally accepted accounting practice by the practice of which he is a member; and

(b)the return he has made to the Inland Revenue in respect of his earnings for that year,

no later than 1 month from the date on which that return was required to be submitted to the Inland Revenue.

(3) In respect of each financial year, a host Trust or Board shall forward a record of—

(a)all contributions to the scheme made under paragraph 10 in respect of principal practitioners and non-GP providers; and

(b)their pensionable earnings,

to the Secretary of State within 1 month of the end of the financial year immediately following the financial year to which that return relates.”.