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Part IVPension sharing

Chapter ISharing of rights under pension arrangements

Indexation

39Public service pension schemes

(1)The [1971 c. 56.] Pensions (Increase) Act 1971 shall be amended as follows.

(2)In section 3 (qualifying conditions), after subsection (2) there shall be inserted—

(2A)A pension attributable to the pensioner having become entitled to a pension credit shall not be increased unless the pensioner has attained the age of fifty-five years.

(3)In section 8, in subsection (1) (definition of “pension”), in paragraph (a), the words from “(either” to “person)” shall be omitted.

(4)In that section, in subsection (2) (when pension deemed for purposes of the Act to begin), after “pension”, in the first place, there shall be inserted “which is not attributable to a pension credit”, and after that subsection there shall be inserted—

(2A)A pension which is attributable to a pension credit shall be deemed for purposes of this Act to begin on the day on which the order or provision on which the credit depends takes effect.

(5)In section 17(1) (interpretation)—

(a)for the definitions of “derivative pension” and “principal pension” there shall be substituted—

“derivative pension” means a pension which—

(a)is not payable in respect of the pensioner’s own services, and

(b)is not attributable to the pensioner having become entitled to a pension credit;,

(b)after the definition of “pension” there shall be inserted—

“pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or under corresponding Northern Ireland legislation;

“principal pension” means a pension which—

(a)is payable in respect of the pensioner’s own services, or

(b)is attributable to the pensioner having become entitled to a pension credit;, and

(c)for the definition of “widow’s pension” there shall be substituted—

“widow’s pension” means a pension payable—

(a)in respect of the services of the pensioner’s deceased husband, or

(b)by virtue of the pensioner’s deceased husband having become entitled to a pension credit.