No election to secure AP may be accepted if it would result in the aggregate of all AP (in the NHSPS 2015) and any existing ERRBO agreement exceeding the limit for the year. The limit is adjusted each scheme year. In the absence of a HM Treasury published limit, Pensions (Increase) Act 1971 increases will be applied to the prior year limit. Note the value of an ERRBO agreement may exceed the limit in which case there is no scope for AP.

Where there are no ERRBO agreements in place the limit applicable to purchasing any AP is the maximum limit for the year less any AP already secured (uprated to its current value with pension increases).

The available headroom for AP is calculated as:

Available headroom = A - (B + C)

Where:

A = The maximum available for extra funded pension = Maximum limit for the year less any AP already secured (uprated to its current value with pension increases).

B = Value of existing ERRBO election = accrued pension x 1.015^{future service} x (1-ERF)

C = Amount of future ERRBO value = [Future service x Pay x 1.015^{Future service} x (1 - ERF)] / 54

Where

• Accrued pension is the pension accrued during period of ERRBO contribution payments including revaluation to immediately preceding 1 April
• Future service is the service in years and days from previous 1 April to selected reduced retirement age (RRA) linked to ERRBO election (i.e. age at which no early retirement reduction will apply)
• ERF is the Early Retirement Factor applicable for period PNPA - RRA selected by ERRBO election
• Pay is full time equivalent pensionable pay

Points to note in calculating limits:

• Where a member has varied an ERRBO election B and C above will need to be calculated for each effective RRA
• Where an ERRBO election has been revoked, C = 0
• Where an ERRBO election is in a suspension period it should be assumed that it will recommence from the relevant 1 April (ie to allow for a 1 year suspension period)
• If accrued pension and/or pay at the relevant election date is not available amounts for the preceding year may be used in conjunction with future service being assumed to start at the same date and with both pension and pay being adjusted by the pension increase over the year.