Social Security Pensions Act 1975

29 Contracted-out rates of benefit. E+W+S

(1) Where for any period a person is entitled both—

(a) to a Category A or Category B retirement pension, a widowed mother’s allowance [F1 , a widow’s pension or a widower’s invalidity pension under [F2 section 41 of the Contributions and Benefits Act]]; and

(b) to one or more guaranteed minimum pensions,

the weekly rate of the benefit mentioned in paragraph (a) above shall for that period be reduced by an amount equal to its [F3 additional pension] or, if less, an amount equal to the weekly rate or aggregate weekly rates of the pension or pensions mentioned in paragraph (b) above.

(2) For the purposes of this section [F4 and sections [F5 29A, 29B and 29C below]] a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled—

[F6 (a)] if a lump sum had not been paid instead of that pension under provisions included in a scheme by virtue of section 39 below or

[F6 (b)] if that pension had not been forfeited under any such provisions [F7 or

[F6 (c)] if as a result of a transfer payment or transfer under regulations made by virtue of section 38 below he is no longer entitled to guaranteed minimum pensions under the scheme by which the transfer payment or transfer is made and has not as a result of the transfer payment or transfer become entitled to guaranteed minimum pensions under the scheme to which the transfer payment or transfer is made][F6 or

(d) if its commencement had not been postponed, as mentioned in section 33(3) below.]

[F8 (2A) Subject to subsection (2B) below, where for any period minimum payments have been made in respect of an earner to an occupational pension scheme which, in relation to the earner’s employment is a money purchase contracted-out scheme, then, for the purposes of this section and sections [F9 29A, 29B and 29C below]—

(a) the earner shall be treated, as from the date on which he reaches pensionable age, as if he were entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period in that employment; and

(b) in prescribed circumstances, in relation to any widow or widower of the earner—

(i) if the earner died after reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a rate equal to one-half of the rate prescribed under paragraph (a) above; and

(ii) if the earner died before reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period.

(2B) Where the earner is a married woman or widow, subsection (2A) above shall not have effect in relation to any period during which an election that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate is operative.

(2C) The power to prescribe a rate conferred by subsection (2A)(a) above includes power to prescribe a nil rate.]

(3) References in this section [F10 and in sections 29A, 29B and 29C below] to the weekly rate of a guaranteed minimum pension are references to that rate without any increase under section 35(6) below.

Textual Amendments

F1 Words substituted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 10, para. 14(a)

F2 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2, para. 23(1)

F3 Words substituted (with effect from 6.4.1987) by Social Security Act 1986 (c. 50), s. 18(1).

F4 Words inserted (with effect from 1.5.1987) by Social Security Act 1986 (c. 50), Sch. 10, para. 14(b)(i).

F5 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2 para. 23(2)

F6 Reference letters (a), (b) and (c), word “or” and paragraph (d) inserted (1.10.1989) by Social Security Act 1989 (c. 24), Sch. 1, para. 11.

F7 Words added (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 10, para. 14(b)(ii).

F8 S. 29(2A)–(2C) inserted (with effect from 6.4.1988) by Social Security Act 1986 (c. 50), Sch. 2, para. 3.

F9 Words substituted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2 para. 23(2)

F10 Words inserted (with effect from 1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), Sch. 2 para. 23(3).

Modifications etc. (not altering text)

C1 Where minimum contributions have been paid to a personal pension scheme, subsections (1) and (2) above are modified (4.1.1988) by the Social Security Act 1986 (c. 50), s. 4 and by S.I. 1987/1113, regs. 2 and 3. Where minimum payments have been made to a money purchase contracted-out scheme, s. 29 is modified (6.4.1988) by S.I. 1987/1113, regs. 4 and 5, under the powers in s. 29(2A) above.

C2 S. 29(1) modified, in relation to certain persons entitled to widower's invalidity pension, by Social Security Act 1986 (c. 50), s. 9(5).

C3 S. 29(2) modified, for transfer payments to present-and some past-salary related contracted-out schemes, by reg. 4(3) of S.I. 1987/1118 with effect from 27.7.1987.for personal pension schemes and 6.4.1988 otherwise

C4 S. 29(2) modified, where a personal pension protected rights premium is paid, by Social Security Act 1986 (c. 50), S. 5(9)(b).

C5 S. 29(2A) is modified, where a personal pension protected rights scheme is paid, by Social Security Act 1986 (c. 50), s. 5(9)(b).