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The Coronavirus Act 2020 and an update on the end of temporary suspensions for retire and return

Since the 25 March 2020, The Coronavirus Act 2020 has temporarily suspended some of the regulations governing the administration of NHS pensions, including the temporary suspension of:

  • the 16-hour rule
  • abatement for special class status holders in the 1995 Section
  • draw down abatement in the 2008 Section and 2015 Scheme

These temporary suspensions will end on 24 March 2022.

The measures set out in the Act are designed to be time limited. Following a review in Parliament in October 2021, the Act has been extended to the 24 March 2022.

The temporary suspensions are expected to end on the 24 March 2022 and we will return to normal arrangements from the 25 March 2022. This is when the 16-hour rule in the 1995 Section, abatement for special class status holders in the 1995 Section and draw down abatement in the 2008 Section and 2015 Scheme will come back into force.

Updates on what we’re doing to support you

We have written to all affected pensioners to explain the re-instatement of the rules and have confirmed to them that we will write again early in the New Year with their earnings margin so that they can re-negotiate their hours should they wish to. In some cases we will need to contact employers to request earnings.  An early response to this would be very much appreciated.

In the meantime, please ask your pensioners not to contact us to request their earnings margin, as this could delay our calculations and further communications.

For the reinstatement of the regulations, we can confirm that the temporary suspension of the 16-hour rule will continue to apply to re-employments which begin on or before 24 March 2022, whilst the Act is still in force. This means that pensions will not be suspended under the 16-hour rule if the member:

  • has a last day of service on 22 March 2022 or earlier; and
  • takes a minimum 24-hour retirement on 23 March 2022 or earlier; and
  • re-enters NHS employment on 24 March 2022 or earlier

The 16-hour rule will then apply as normal to all re-employments beginning on 25 March 2022 or later.