# The National Health Service Pension Scheme Regulations 2015, Regulation 41: Amount of refund

Extent: E+W

(1) The amount of a repayment to a member (M) pursuant to regulation 40 is—
(a) if the 1993 Act condition applies, the amount to which M is entitled to be paid pursuant to Chapter 2 of Part 4ZA of that Act, less the appropriate deductions;
(b) if the short service condition applies, an amount equal to the sum of the contributions paid by M, less the appropriate deductions.
(2) The appropriate deductions are—
(a) so much of the contributions equivalent premium paid in respect of M under section 55 of the 1993 Act or article 3 of the 2016 Order; and
(b) an amount equal to the income tax payable under section 205 of the 2004 Act (short service lump sum charge) as a result of the repayment.
(3) M is entitled to interest on the amount of the repayment unless M's pensionable service ceases because M's employment is terminated—
(a) pursuant to M's contract of employment;
(b) at M's request; or
(c) by reason of misconduct or inefficiency.
(4) The rate of interest is 2.5% per year calculated on a compound basis with yearly rests.
(5) Interest is payable in respect of the period starting on 1st April following the day when M started to pay contributions and ending on the day M leaves pensionable service.
(6) Paragraphs (4) and (5) do not apply if—
(a) regulation 40(1)(a) applies; and
(b) M is entitled to a greater amount of interest under Chapter 2 of Part 4ZA of the 1993 Act.
(7) So far as contributions paid by M were paid under another scheme and were included in a transfer payment to this scheme—
(a) interest for the period before the transfer period was made is calculated in accordance with the other scheme (subject to any enactment applicable to the transfer); and
(b) paragraphs (4) and (5) do not apply as respects that period.

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Source: https://www.legislation.gov.uk/uksi/2015/94/regulation/41 (the official version)
Page: https://openlegislation.uk/national-health-service-pension-scheme-regulations-2015/regulation-41
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.