This note is addressed to the Health and Social Care in Northern Ireland ('HSC') as administrator of the Health and Social Care Pension Scheme 2015 ('HSCPS 2015' or the 'Scheme'). It sets out the method and factors required to determine the amount payable by a member electing to secure Additional Pension (AP). It also provides calculation guidance for the purchase of AP benefits when a member who had a monthly contribution election does not make contributions during the whole of their payment period and how the revised AP credit should be calculated in this situation.
There is a cap on the amount of Additional Pension that can be purchased. This is covered in more detail in "Limits on the purchase of Additional Pension".
No advice or factors issued for the Health and Social Care Pension Scheme ('HSCPS') should be used for any calculations relating to AP from the HSCPS 2015. There is no interaction between the limits applied on AP purchase in the HSCPS or HSCPS 2015.
The additional contribution rate payable by a member on election to secure AP is determined based on a member's age (in complete years) at the start of the AP agreement. All rates are reassessed regularly and the revised payment amounts following each revision of factors should be based on the member's age (in complete years) at the date of the initial election.
The following changes have been made when reviewing this guidance:
- Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
- Calculation methodology: No changes have been made to the calculation methodology.
- Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
- Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
- Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
- Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.