Pensions Act 2014

Section 11

SCHEDULE 6 Reduced rate elections: effect on rate of section 4 pension

Introduction

1 This Schedule modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period (and expressions used in this paragraph have the same meaning as in section 11).

Increased transitional rate for woman married to person over pensionable age etc

2 (1) This paragraph applies to the woman if on reaching pensionable age—

(a) she is married to a person who has reached pensionable age, or

(b) she is in a civil partnership with a person who has reached that age.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman’s pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the basic Category B amount.

(4) “The basic Category B amount” is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on 6 April 2016.

(5) To find out what happens if the marriage or civil partnership comes to an end, see paragraph 4.

Increased transitional rate for widows or divorcees etc

3 (1) This paragraph applies to the woman if on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before.

(2) The transitional rate of the state pension for the woman is—

(a) the rate determined for her under section 5, or

(b) if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3) The modified amount for the woman’s pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the full amount of the basic pension.

(4) “The full amount of the basic pension” is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on 6 April 2016.

Recalculation of transitional rate where circumstances change

4 If the woman is married or in a civil partnership on reaching pensionable age but the marriage or civil partnership comes to an end (because of the death of her spouse or civil partner or otherwise)—

(a) her transitional rate is to be recalculated applying paragraph 3(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman’s transitional rate on the day on which she reached pensionable age.

5 (1) If neither of paragraphs 2 and 3 apply to the woman but she subsequently comes within paragraph (a) or (b) of paragraph 2(1)—

(a) her transitional rate is to be recalculated applying paragraph 2(2), and

(b) Schedule 2 (up-rating) applies as if the recalculated rate had been the woman’s transitional rate on the day on which she reached pensionable age.

(2) But the woman’s rate is not to be recalculated under sub-paragraph (1) if it has already been recalculated under paragraph 4.

6 Nothing in paragraph 4 or 5 affects—

(a) the amount of state pension to which a woman is entitled for periods before that paragraph applies to her, or

(b) the amount of any increase under section 17 in a case where the period for which the woman’s state pension is deferred has ended before that paragraph applies to her.