Social Security Act 1989

8 (1) In section 50A of that Act (sickness benefit in respect of industrial injury) in subsection (3)(b) for the words “but has not retired from regular employment” there shall be substituted the words “but who is not for the time being entitled to a Category A or Category B retirement pension.”

(2) In section 59B of that Act (retirement allowance etc) in subsection (1)—

(a) in paragraph (b), for the words from the beginning to “from” there shall be substituted the words “gives up”;

(b) in paragraph (c), for the words “retired or is deemed to have retired” there shall be substituted the words “gave up such employment”; and

(c) in the words following that paragraph, for the words from “retires” onwards there shall be substituted the words “gives up regular employment and may become entitled to it again only if he returns to regular employment.”

(3) In subsection (3) of that section (duration of entitlement) for the words “Unless he makes an election in accordance with regulations under section 30(3) above” there shall be substituted the words “Unless he returns to regular employment”.

(4) For subsection (4) of that section there shall be substituted—

“(4) If he returns to regular employment, his entitlement to retirement allowance shall cease on the day on which he does so; but he may again become entitled to reduced earnings allowance or, if he again gives up regular employment, retirement allowance.”

(5) In subsection (5) of that section (rate of benefit) for paragraph (a) there shall be substituted—

“(a) 25 per cent. of the weekly rate at which he was last entitled to reduced earnings allowance; or”.

(6) After subsection (6) of that section there shall be inserted—

“(7) Regulations may—

(a) make provision with respect to the meaning of “regular employment” for the purposes of this section; and

(b) prescribe circumstances in which, and periods for which, a person is or is not to be regarded for those purposes as having given up, or returned to, such employment.

(8) Regulations under subsection (7) above may, in particular—

(a) provide for a person to be regarded—

(i) as having given up, or as not having returned to, regular employment, notwithstanding that he is or intends to be an earner; or

(ii) as having returned to, or as not having given up, regular employment, notwithstanding that he has or may have one or more days of interruption of employment; and

(b) prescribe circumstances in which a person is or is not to be regarded as having given up, or returned to, regular employment by reference to—

(i) the level or frequency of his earnings during a prescribed period; or

(ii) the number of hours for which he works during a prescribed period calculated in a prescribed manner.”

(7) In section 2 of the [1988 c. 7.] Social Security Act 1988, for subsection (8) (which provides that no retired person over pensionable age shall be entitled to reduced earnings allowance except under subsection (4) of that section) there shall be substituted—

“(8) Subsection (4) above shall, in prescribed circumstances, cease to apply in the case of a person who is engaged in regular employment; and, subject to regulations, any subsequent entitlement of his to reduced earnings allowance or retirement allowance shall be determined as if that subsection had never been enacted.

(8A) In subsection (8) above, “regular employment” has the same meaning as it has in section 59B of the Social Security Act 1975 (retirement allowance) and regulations may prescribe circumstances in which a person is or is not to be regarded as engaged in such employment.”

(8) Subsection (9) of that section (definitions relating to retirement) shall cease to have effect.