# The National Health Service Pension Scheme (Amendment No.2) Regulations 2014, Regulation 5: Amendment of regulation D3


(1) Regulation D3 (further contributions by employing authorities in respect of excessive pay increases), is amended as follows.
(2) In sub-paragraph (b) of paragraph (3)—
(i) for paragraph (i), substitute—
“(i) the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 1 is higher than it was for the previous February, and”;
(ii) in paragraph (ii), before “Year 1” insert “for”.
(3) In sub-paragraph (b) of paragraph (4)—
(i) for paragraph (i), substitute—
“(i) the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 2 is higher than it was for the previous February, and”;
(ii) in paragraph (ii), before “Year 2” insert “for”.
(4) For sub-paragraph (b) of paragraph (5), substitute—
“(b) the member’s pensionable pay for the year immediately preceding Year 3 increased by the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 3 is higher than it was for the previous February.”.
(5) In Step 6 (a) in paragraph (6), for “Amount C” substitute “Amount D”.
(6) For paragraph (17), substitute—
“(17) For the purposes of this regulation an increase in pensionable pay during Year 3, Year 2 or, as the case may be, Year 1 is to be ignored where the Secretary of State is satisfied it arises as a result of—
(a) the member taking up a new employment with a new employer: provided the Secretary of State is satisfied that the employer in question is a new employer;
(b) the ending of a salary sacrifice arrangement made before 1st April 2014: for these purposes a salary sacrifice arrangement is one under which the member gives up the right to receive an amount of pensionable pay in return for the provision of a benefit in kind including, but not limited to, a benefit consisting of a motor car or other vehicle, meals, care or vouchers.”.

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Source: https://www.legislation.gov.uk/uksi/2014/1607/regulation/5 (the official version)
Page: https://openlegislation.uk/national-health-service-pension-scheme-amendment-no2-regulations-2014/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.