Part IV E+W+S Pension sharing

Modifications etc. (not altering text)

C1 Pts. I-IV modified (6.4.2006) by Pensions Act 2004 (c. 35), ss. 254(3)(c), 322(1) (with s. 313); S.I. 2006/560, art. 2(3), Sch. Pt. 3

C2 Pts. I-IV: power to modify conferred (6.4.2006) by Pensions Act 2004 (c. 35), ss. 321(1)(d), 322(1); S.I. 2006/560, art. 2(3), Sch. Pt. 3

C3 Pts. I-IV: power to modify conferred (26.11.2008) by Pensions Act 2008 (c. 30), ss. 146(2)(c), 149(2)

Chapter II E+W+S Sharing of state scheme rights

47 Shareable state scheme rights. E+W+S

(1) Pension sharing is available under this Chapter in relation to a person’s shareable state scheme rights.

(2) For the purposes of this Chapter, a person’s shareable state scheme rights are—

(a) his entitlement, or prospective entitlement, to a Category A retirement pension by virtue of section 44(3)(b) of the Contributions and Benefits Act (earnings-related additional pension), and

(b) his entitlement, or prospective entitlement, to a pension under section 55A of that Act (shared additional pension).

Commencement Information

I1 S. 47 wholly in force at 1.12.2000; s. 47 in force for certain purposes at Royal Assent see s. 89(1); s. 47 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

48 Activation of benefit sharing. E+W+S

(1) Section 49 applies on the taking effect of any of the following relating to a person’s shareable state scheme rights—

(a) a pension sharing order under the M1 Matrimonial Causes Act 1973,

[F1 (aa) a pension sharing order under Schedule 5 to the Civil Partnership Act 2004,]

(b) provision which corresponds to the provision which may be made by such an order and which—

(i) is contained in a qualifying agreement between the parties to a marriage, and

(ii) takes effect on the dissolution of the marriage under the M2 Family Law Act 1996,

(c) provision which corresponds to the provision which may be made by such an order and which—

(i) is contained in a qualifying agreement between the parties to a marriage or former marriage, and

(ii) takes effect after the dissolution of the marriage under the M3 Family Law Act 1996,

(d) an order under Part III of the M4 Matrimonial and Family Proceedings Act 1984 (financial relief in England and Wales in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (a),

[F2 (da) an order under Schedule 7 to the 2004 Act (financial relief in England and Wales after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (aa), ]

(e) a pension sharing order under the M5 Family Law (Scotland) Act 1985,

(f) provision which corresponds to the provision which may be made by such an order and which—

(i) is contained in a qualifying agreement between the parties to a marriage [F3 or between persons who are civil partners of each other],

(ii) is in such form as the Secretary of State may prescribe by regulations, and

(iii) takes effect on the grant, in relation to the marriage, of decree of divorce under the M6 Divorce (Scotland) Act 1976 or of declarator of nullity [F4 or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity],

(g) an order under Part IV of the M7 Matrimonial and Family Proceedings Act 1984 (financial relief in Scotland in relation to overseas divorce etc.) [F5 or under Schedule 11 to the 2004 Act (financial provision in Scotland after overseas proceedings)] corresponding to such an order as is mentioned in paragraph (e),

(h) a pension sharing order under [F6 the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)),]

(i) an order under Part IV of the M8 Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (h).

[F7 (j) a pension sharing order under Schedule 15 to the 2004 Act, and

(k) an order under Schedule 17 to the 2004 Act (financial relief in Northern Ireland after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (j). ]

(2) For the purposes of subsection (1)(b) and (c), a qualifying agreement is one which—

(a) has been entered into in such circumstances as the Lord Chancellor may prescribe by regulations, and

(b) satisfies such requirements as the Lord Chancellor may so prescribe.

(3) For the purposes of subsection (1)(f), a qualifying agreement is one which—

(a) has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and

(b) is registered in the Books of Council and Session.

(4) Subsection (1)(b) does not apply if the provision relates to rights which are the subject of a pension sharing order under the M9 Matrimonial Causes Act 1973 in relation to the marriage.

(5) Subsection (1)(c) does not apply if—

(a) the marriage was dissolved by an order under section 3 of the M10 Family Law Act 1996 (divorce not preceded by separation) and the satisfaction of the requirements of section 9(2) of that Act (settlement of future financial arrangements) was a precondition to the making of the order,

(b) the provision relates to rights which are the subject of a pension sharing order under the M11 Matrimonial Causes Act 1973 in relation to the marriage, or

(c) shareable state scheme rights have already been the subject of pension sharing between the parties.

(6) For the purposes of this section, an order or provision falling within subsection (1)(e), (f) or (g) shall be deemed never to have taken effect if the Secretary of State does not receive before the end of the period of 2 months beginning with the relevant date—

(a) copies of the relevant F8 ... documents, and

(b) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 34(1)(b)(ii).

(7) The relevant date for the purposes of subsection (6) is—

(a) in the case of an order or provision falling within subsection (1)(e) or (f), the date of the extract of the decree or declarator responsible for the divorce[F9 , dissolution] or annulment to which the order or provision relates, and

(b) in the case of an order falling within subsection (1)(g), the date of disposal of the application under section 28 of the M12 Matrimonial and Family Proceedings Act 1984 [F10 or, where the order is under Schedule 11 to the 2004 Act, the date of disposal of the application under paragraph 2 of that Schedule].

(8) The reference in subsection (6)(a) to the relevant F11 ... documents is—

(a) in the case of an order falling within subsection (1)(e) or (g), to copies of the order and the order, decree or declarator responsible for the divorce[F12 , dissolution] or annulment to which it relates, and

(b) in the case of provision falling within subsection (1)(f), to—

(i) copies of the provision and the order, decree or declarator responsible for the divorce[F13 , dissolution] or annulment to which it relates, and

(ii) documentary evidence that the agreement containing the provision is one to which subsection (3)(a) applies.

(9) [F14 The Court of Session or the sheriff] may, on the application of any person having an interest, make an order—

(a) extending the period of 2 months referred to in subsection (6), and

(b) if that period has already expired, providing that, if the Secretary of State receives the documents and information concerned before the end of the period specified in the order, subsection (6) is to be treated as never having applied.

Textual Amendments

F1 S. 48(1)(aa) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(2); S.I. 2005/3175, art. 2(2)

F2 S. 48(1)(da) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(3); S.I. 2005/3175, art. 2(2)

F3 Words in s. 48(1)(f)(i) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(4)(a); S.I. 2005/3175, art. 2(2)

F4 Words in s. 48(1)(f)(iii) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(4)(b); S.I. 2005/3175, art. 2(2)

F5 Words in s. 48(1)(g) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(5); S.I. 2005/3175, art. 2(2)

F6 Words in s. 48(1)(h) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(6); S.I. 2005/3175, art. 2(2)

F7 S. 48(1)(j)(k) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(7); S.I. 2005/3175, art. 2(2)

F8 Word in s. 48(6)(a) repealed (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(8), Sch. 30; S.I. 2005/3175, art. 2(2)(6)

F9 Word in s. 48(7)(a) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(9)(a); S.I. 2005/3175, art. 2(2)

F10 Words in s. 48(7)(b) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(9)(b); S.I. 2005/3175, art. 2(2)

F11 Word in s. 48(8) repealed (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(10)(a), Sch. 30; S.I. 2005/3175, art. 2(2)(6)

F12 Word in s. 48(8)(a) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(10)(b); S.I. 2005/3175, art. 2(2)

F13 Word in s. 48(8)(b)(i) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(10)(b), Sch. 27 para. 161(10)(b); S.I. 2005/3175, art. 2(2)

F14 Words in s. 48(9) substituted (26.1.2009) by Pensions Act 2008 (c. 30), ss. 128(3), 149(1); S.I. 2009/82, art. 2(1)(b)

Commencement Information

I2 S. 48 wholly in force at 1.12.2000; s. 48 in force for certain purposes at Royal Assent see s. 89(1); s. 48 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

Marginal Citations

M1 1973 c. 18.

M2 1996 c. 27.

M3 1996 c. 27.

M4 1984 c. 42.

M5 1985 c. 37.

M6 1976 c. 39.

M7 1984 c. 42.

M8 S.I. 1989/677 (N.I. 4).

M9 1973 c. 18.

M10 1996 c. 27.

M11 1973 c. 18.

M12 1984 c. 42.

49 Creation of state scheme pension debits and credits. E+W+S

(1) On the application of this section—

(a) the transferor becomes subject, for the purposes of Part II of the Contributions and Benefits Act (contributory benefits), to a debit of the appropriate amount, and

(b) the transferee becomes entitled, for those purposes, to a credit of that amount.

(2) Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of subsection (1) is the specified percentage of the cash equivalent on the transfer day of the transferor’s shareable state scheme rights immediately before that day.

(3) Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of subsection (1) is the lesser of—

(a) the specified amount, and

(b) the cash equivalent on the transfer day of the transferor’s relevant state scheme rights immediately before that day.

[F15 (4)The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.

(4A) The power conferred by subsection (4) above includes power to provide—

(a) for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b) for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.]

(5) In determining prospective entitlement to a Category A retirement pension for the purposes of this section, only tax years before that in which the transfer day falls shall be taken into account.

(6) In this section—

• “relevant order or provision” means the order or provision by virtue of which this section applies;

• “transfer day” means the day on which the relevant order or provision takes effect;

• “transferor” means the person to whose rights the relevant order or provision relates;

• “transferee” means the person for whose benefit the relevant order or provision is made.

Textual Amendments

F15 S. 49(4)(4A) substituted (29.9.2000) for s. 49(4) by 2000 c. 19, s. 41(1) (with s. 83(6)); S.I. 2000/2666, art. 2(1)

Commencement Information

I3 S. 49 wholly in force at 1.12.2000; s. 49 in force for certain purposes at Royal Assent see s. 89(1); s. 49 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

50 Effect of state scheme pension debits and credits. E+W+S

(1) Schedule 6 (which amends the Contributions and Benefits Act for the purpose of giving effect to debits and credits under section 49(1)) shall have effect.

F16 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 S. 50(2) repealed (18.11.2004) by Pensions Act 2004 (c. 35), s. 322(2)(e), Sch. 11 para. 24, Sch. 13

Commencement Information

I4 S. 50 wholly in force at 1.12.2000; s. 50 in force for certain purposes at Royal Assent see s. 89(1); s. 50 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

51 Interpretation of Chapter II. E+W+S

In this Chapter—

• “shareable state scheme rights” has the meaning given by section 47(2); and

• “tax year” has the meaning given by section 122(1) of the Contributions and Benefits Act.

Commencement Information

I5 S. 51 wholly in force at 1.12.2000; s. 51 in force for certain purposes at Royal Assent see s. 89(1); s. 51 in force at 1.12.2000 insofar as not already in force by S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV