# The National Health Service Pension Scheme Regulations 1995, Regulation E5B: Increase in pensionable pay following exercise of option under regulation E5A


(1) This regulation applies if, in a case where a member has exercised the option under regulation E5A—
(a) during the period of 12 months beginning with the day after the option day the terms on which the member holds the employment or employments referred to in regulation E5A(1)(a)(iii) change again; and
(b) as a result, the member’s pensionable pay in that employment or those employments is increased (disregarding any increase in pensionable pay resulting from the member leaving a salary sacrifice arrangement) to more than 90% of the member’s pensionable pay during the period of 12 months ending with the option day; or
(c) following an increase referred to in sub-paragraph (b), the member’s pensionable pay in that employment or those employments is reduced (disregarding any reduction in pensionable pay resulting from the member entering into a salary sacrifice arrangement) to less than 90% of the member’s pensionable pay during the period of 12 months ending with the option day.
(2) In the circumstances referred to in—
(a) paragraph (1)(b), the amount of the member’s pension mentioned in sub-paragraphs (a), (b) and (c) of regulation E5A(5) (excluding any additional benefits) shall be abated to zero from the first pension day immediately following the day on which the level of the member’s pensionable pay increased;
(b) paragraph (1)(c), subject to any adjustments in accordance with sub-paragraph (c), the member shall again be entitled to receive payment of the full amount of the pension mentioned in sub-paragraphs (a), (b) and (c) of regulation E5A(5) as from the first pension day immediately following the day on which the level of the member’s pensionable pay reduced;
(c) where sub-paragraph (b) applies, before restoring the payment of a pension the Secretary of State shall have regard to the advice of the Scheme Actuary as to whether the amount of the pension should be adjusted in view of the length of time during which it was abated to zero in accordance with sub-paragraph (a).
(3) If the member was not in pensionable employment during the whole of the period of 12 months mentioned in paragraph 1(b), that paragraph applies as if the member’s pensionable pay during that period were—
PP x (365/N)
where—
PP is the member’s pensionable pay for the part of that period during which the member was in pensionable employment; and
N is the number of days in that period on which the member was in pensionable employment.
(4) If, in the opinion of the Secretary of State, had the terms and conditions of the member’s employment remained the same after the option day (apart from pensionable pay), the annual rate of pensionable pay for the employment as at the time of the change mentioned in paragraph (1)(a) would have exceeded the annual rate referred to in paragraph (1)(b)—
(a) paragraph (2)(a) does not apply; and
(b) this regulation applies as if paragraph (1)(b) referred to that annual rate instead of the actual annual rate.
(5) For the purposes of this regulation, if during the period of 12 months beginning with the day after the option day the member enters a further pensionable employment or employments—
(a) that event is treated as if the terms on which the member holds the employment in respect of which the option was exercised (“the option employment”) had changed again; and
(b) the member’s pensionable pay in the further employment is treated as an increase in the member’s pay in the option employment.
(6) In this regulation “the option day” and “additional benefits” have the same meaning as in regulation E5A(12).

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Source: https://www.legislation.gov.uk/uksi/1995/300/regulation/E5B (the official version)
Page: https://openlegislation.uk/national-health-service-pension-scheme-regulations-1995/regulation-E5B
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.