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PART IVPROVISIONS FOR THE TRANSSITION TO INCAPACITY BENEFIT FROM INVALIDITY BENEFIT

Rate of long-term incapacity benefit in transitional cases

18.—(1) Subject to paragraph (7), in transitional cases, the weekly rate long-term incapacity benefit shall consist of—

(a)a basic rate of an amount equal to the rate of long-term incapacity benefit specified in paragraph 2A of Part I of Schedule 4(1);

(b)where an additional pension was paid or payable with Invalidity Benefit immediately before the appointed day, an additional rate of an amount equal to the rate paid or payable as an additional pension with invalidity benefit immediately before the appointed day; and that amount shall be referred to as the additional rate;

(c)where an invalidity allowance was payable by virtue of section 34(2) immediately before the appointed day, an amount equal to the appropriate rate specified in paragraph (2); and that amount shall be referred to as a transitional invalidity allowance.

(2) The appropriate rate referred to in paragraph (1)(c) is—

(a)where the higher rate of invalidity allowance was payable immediately before the appointed day, £12.15;

(b)where the middle rate of invalidity allowance was payable immediately before the appointed day, £7.60;

(c)where the lower rate of invalidity allowance was payable immediately before the appointed day, £3.80.

(3) In a transitional case, where for any period a person is entitled to an award of long-term incapacity benefit which includes the additional rate and a transitional invalidity allowance, for that period the relevant amount shall be deducted from the appropriate weekly rate of the transitional invalidity allowance and he shall be entitled to the transitional invalidity allowance only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it.

(4) In paragraph (3) “the relevant amount” means an amount equal to the additional rate reduced by the amount of any reduction in the weekly rate of incapacity benefit made by virtue of regulation 22.

(5) Where the rate of long-term incapacity benefit includes a transitional invalidity allowance no increase shall become payable by virtue of regulations made under section 30B(7).

(6) In a transitional case where a person attained pensionable age before the appointed day and is not more than 5 years over that age, he shall continue to be entitled to long-term incapacity benefit payable at the rate at which the basic pension referred to in section 44(4)(3) is payable until he reaches 5 years over pensionable age.

(7) In determining the rate of long-term incapacity benefit in a transitional case where paragraph (6) applies, any increase of the following descriptions shall be disregarded—

(a)if he is also entitled to a transitional invalidity allowance under paragraph (1)(c), any increase under section 47(1)(4) (increase of Category A retirement pension for invalidity) or 50(2)(5) (rate of Category B retirement pension for women);

(b)any increase (for married women) under section 53(2) or (for deferred retirement) under Schedule 5;

(c)any increase (for dependents) under section 80 (children), 83 (wife) or 85 (person with care of children)(6); and

(d)any increase (for Category A or Category B pensioners) under section 132 of the Administration Act (annual up-rating) of the sums mentioned in subsection (3) of that section.

(8) For the purposes of Part IV, a transitional case means a case where a person is entitled to—

(a)a transitional award of long-term incapacity

(b)an award of long-term incapacity benefit on the basis that a day of incapacity for work on or after the appointed day forms part of a period of incapacity for work beginning before the appointed day.

(1)

Paragraph 2A is inserted by Article 4(2) of the Social Security (Incapacity for Work) (Northern Ireland) Order 1994

(2)

Section 34 is repealed by Schedule 2 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994

(3)

Section 44(4) is amended by paragraph 11 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994; See also Article 4(3) of S.R. 1994 No. 74

(4)

Section 47(1) is amended by paragraph 13 of Schedule 1 to the Social Security (Incapacity for Work) (Northern Ireland) Order 1994

(5)

Section 50(2) is amended by paragraph 34 of Schedule 7 to the Pension Schemes (Northern Ireland)Act 1993

(6)

Section 80 is amended by Article 4(3) of, and sections 83 and 85 are amended by Schedule 2 to, the Social Security (Incapacity for Work) (Northern Ireland) Order 1994