Regulation R8 Members whose earnings are reduced

(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 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 choosing to transfer to 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 E6 (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 (qualifying service); and

(b)

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

(7)

If the member leaves pensionable employment with an immediate pension under regulation E2 and the member’s pensionable service falls to be increased as described in paragraphs (4) to (6) of that regulation, the increase will apply only in respect of benefits attributable to the period after the member’s earnings were reduced.

(8)

If a member dies in pensionable employment after exercising the option described in this regulation, the benefits that become payable on the member’s death will be equal to the greater of—

(a)

the benefits that would be payable in the case of death in pensionable employment, in which case the member’s exercise of the option will be disregarded; and

(b)

the benefits that would have been payable if the member had left pensionable employment immediately before the member’s death.