The National Health Service Pension Scheme Regulations 1995

Members whose earnings are reduced

R9.—(1) A member with at least 2 years' qualifying service who suffers a reduction in earnings in the circumstances described in paragraph (2) may opt to take a preserved pension under regulation L1 in respect of his pensionable service before his earnings were reduced.

(2) A member acquires the right described in this regulation if the reduction is due to—

(a)the member being transferred to other employment with an employing authority;

(b)the member taking up other employment with an employing authority, in circumstances approved by the Secretary of State; or

(c)a change in the member’s duties, while continuing in the same employment, otherwise than at the member’s request or as a result of something done by the member.

(3) The preserved pension will be calculated and paid as described in regulation L1 (preserved pension), as if the member had left pensionable employment immediately before his earnings were reduced.

(4) A member wishing to exercise the option described in this regulation must make application in writing to the Secretary of State within 3 months after his earnings are reduced.

(5) If a member continues to contribute to the scheme after exercising the option described in this regulation, the member’s pensionable service before and after the member’s earnings are reduced will, subject to paragraph (6), be treated separately unless, when the member becomes entitled to receive a pension, or dies, (whichever occurs first), it would be more favourable to the member to treat the member’s pensionable service before and after the reduction, and all such other reductions (if any), as continuous.

(6) The member’s pensionable service before and after the member’s earnings are reduced—

(a)will be treated as continuous for the purpose of calculating the member’s qualifying service under regulation C3 (meaning of “qualifying service”); and

(b)if the member next leaves pensionable employment with a pension under regulation E2 (early retirement pension on grounds of ill–health), will be treated as continuous for the purpose of calculating whether, and if so to what extent, the pensionable service on which the pension is based should be increased.

(7) If the member leaves pensionable employment with a pension under regulation E2 and the member’s pensionable service falls to be increased as described in paragraphs (4) to (6) of that regulation then, if the member’s pensionable service before and after the break is treated seperately under paragraph (5), the increase will apply only in respect of benefits attributable to the period after the member’s earnings were reduced.