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Pensions Act 2014

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U.K.

Pensions Act 2014

2014 CHAPTER 19

An Act to make provision about pensions and about benefits payable to people in connection with bereavement; and for connected purposes.

[14th May 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Modifications etc. (not altering text)

C1Act applied (with modifications) (27.11.2016 for specified purposes, 6.4.2017 in so far as not already in force) by The Social Security (Northern Ireland Reciprocal Arrangements) (Amendment) Regulations 2016 (S.I. 2016/1050), reg. 2(2)

Part 1E+W+SState pension

IntroductionE+W+S

1State pensionE+W+S

(1)This Part creates a benefit called state pension.

(2)A person who reaches pensionable age before 6 April 2016 is not entitled to benefits under this Part (but may be entitled to similar benefits under Part 2 of the Contributions and Benefits Act).

Commencement Information

I1S. 1 in force at 6.4.2016, see s. 56(1)(4)

State pension at the full or reduced rateE+W+S

2Entitlement to state pension at full or reduced rateE+W+S

(1)A person is entitled to a state pension payable at the full rate if—

(a)the person has reached pensionable age, and

(b)the person has 35 or more qualifying years.

(2)A person is entitled to a state pension payable at the reduced rate if—

(a)the person has reached pensionable age, and

(b)the person has at least the minimum number of qualifying years but fewer than 35 qualifying years.

(3)The minimum number of qualifying years for a state pension payable at the reduced rate is to be specified in regulations and may not be more than 10.

(4)In this Part “qualifying year” means a tax year, during a person's working life, in which the person's earnings factor (or the sum of the person's earnings factors) is equal to or greater than the qualifying earnings factor for the year.

(5)For earnings factors, see sections 22 and 23 of the Contributions and Benefits Act.

(6)For transitional cases in which a person may be entitled to a different state pension (instead of a state pension under this section), see sections 4 and 12.

(7)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

Commencement Information

I2S. 2 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I3S. 2(3) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(a)

3Full and reduced rates of state pensionE+W+S

(1)The full rate of the state pension is the weekly rate for the time being specified in regulations.

(2)The reduced rate of the state pension for a person is the following proportion of the full rate—

(3)Once the full rate has been specified, the power to make regulations under subsection (1) may not be re-exercised so as to reduce the rate.

Commencement Information

I4S. 3 in force at 6.4.2016, see s. 56(1)(4)

State pension at the transitional rateE+W+S

4Entitlement to state pension at transitional rateE+W+S

(1)A person is entitled to a state pension payable at the transitional rate if—

(a)the person has reached pensionable age,

(b)the person has at least the minimum number of qualifying years, and

(c)the person has at least one pre-commencement qualifying year.

(2)The minimum number of qualifying years for a state pension payable at the transitional rate is to be specified in regulations and may not be more than 10.

(3)A person entitled to a state pension payable at the transitional rate is not entitled to a state pension under section 2.

(4)In this Part—

  • post-commencement qualifying year” means a qualifying year beginning on or after 6 April 2016;

  • pre-commencement qualifying year” means—

    (a)

    a qualifying year beginning on or after 6 April 1978 and ending before 6 April 2016, or

    (b)

    a reckonable year that would have been treated under regulation 13(1) of the Social Security (Widow's Benefit, Retirement Pensions and Other Benefits) (Transitional) Regulations 1979 (S.I. 1979/643) as a qualifying year for the purposes of determining the person's entitlement to an old state pension that is a Category A retirement pension.

(5)A reckonable year mentioned in paragraph (b) of the definition of “pre-commencement qualifying year” counts towards the minimum number of qualifying years required by subsection (1)(b) (even though it does not come within the definition of “qualifying year” for the purposes of this Part).

(6)For earnings factors, see sections 22 and 23 of the Contributions and Benefits Act.

(7)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

Commencement Information

I5S. 4 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I6S. 4(2) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(b)

5Transitional rate of state pensionE+W+S

(1)The transitional rate of the state pension for a person is a weekly rate equal to—

(a)the sum of the amounts calculated under Schedule 1 for the person's pre-commencement and post-commencement qualifying years capped at the full rate of the state pension on the day on which the person reaches pensionable age, or

(b)if higher, the amount for the person's pre-commencement qualifying years alone.

(2)The transitional rate of the state pension for a person is to be increased from time to time in accordance with the applicable paragraph of Schedule 2.

(3)Section 6 requires the transitional rate of the state pension for a person to be recalculated in certain circumstances.

(4)There are special rules about the transitional rate for certain women: see section 11 (reduced rate elections).

Commencement Information

I7S. 5 in force at 6.4.2016, see s. 56(1)(4)

6Recalculation and backdating of transitional rate in special casesE+W+S

(1)This section modifies the transitional rate of the state pension for a person if, after the person has reached pensionable age, a determination is made under section 48A(2) of the Pension Schemes Act 1993 (contracting-out: reinstatement in state scheme following payment of contributions equivalent premium).

(2)The person's transitional rate is to be recalculated (taking the determination into account under paragraph 3(8) of Schedule 1).

(3)The recalculated rate has effect as from the day on which the person reached pensionable age (and the other provisions of this Part apply accordingly).

Commencement Information

I8S. 6 in force at 6.4.2016, see s. 56(1)(4)

Transitional entitlement based on contributions of othersE+W+S

7Survivor's pension based on inheritance of additional old state pensionE+W+S

(1)A person is entitled to a state pension under this section if—

(a)the person has reached pensionable age,

(b)the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other, and

(c)the person is entitled to an inherited amount under Schedule 3.

(2)A state pension under this section is payable at a weekly rate equal to the inherited amount.

(3)The rate of the state pension for a person under this section is to be increased from time to time in accordance with the applicable paragraph of Schedule 4.

(4)Regulations may provide that if at any time the sum of the relevant state pensions for a person exceeds an amount provided for by regulations, the rate of any state pension payable to the person under this section is to be reduced by the amount of the excess.

(5)The “sum of the relevant state pensions” for a person is the sum of—

(a)the rate of any state pension payable to the person under this section (ignoring any reduction under subsection (4)), and

(b)the rate of any state pension payable to the person under section 2, 4 or 12.

(6)In subsections (4) and (5) a reference to the rate of a person's state pension is to the rate—

(a)taking into account any reduction under section 14 (in the case of a state pension under section 4), but

(b)ignoring any increase under section 17.

(7)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

Commencement Information

I9S. 7 in force at 6.4.2016, see s. 56(1)(4)

8Choice of lump sum or survivor's pension under section 9 in certain casesE+W+S

(1)A person is entitled to a choice under this section if—

(a)the person has reached pensionable age,

(b)the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other,

(c)the spouse or civil partner's entitlement to an old state pension was deferred at the time of death and throughout the period of 12 months ending with the day before the death,

(d)either: (i) the person was under pensionable age when the spouse or civil partner died and did not marry or form a civil partnership after the death and before reaching pensionable age, or (ii) the person was over pensionable age when the spouse or civil partner died, and

(e)the person would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.

(2)The person may choose—

(a)to be paid a lump sum under this section, or

(b)to be paid a state pension under section 9.

(3)Regulations are to set out the manner in which, and the period within which, that choice is to be made.

(4)A person who chooses to be paid a lump sum under this section, or who fails to choose within that period, is entitled to a “widowed person's or surviving civil partner's lump sum” calculated under paragraph 7B of Schedule 5 to the Contributions and Benefits Act.

(5)In that paragraph as it applies for the purposes of this section—

(a)read the references to “W” as references to the person,

(b)read sub-paragraph (5) as if it required increases under paragraph 4 of the Schedule to be excluded, and

(c)read the reference in sub-paragraph (7)(a) to the date on which W becomes entitled to a Category A or Category B retirement pension as a reference to the date on which the person becomes entitled to make a choice under this section.

(6)There are provisions elsewhere that affect a person's entitlement to a lump sum under this section.

(7)Regulations may allow a person, in specified circumstances—

(a)to alter his or her choice under this section;

(b)to make a late choice.

(8)Regulations under subsection (7) may, for the purpose of avoiding the duplication of payment—

(a)enable recovery of an amount paid to the person, or

(b)reduce the amount of a lump sum to be paid to the person.

(9)For the purposes of this section—

(a)deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act,

(b)“the relevant provisions” of the Contributions and Benefits Act are—

  • section 44(1)(a);

  • section 48(1);

  • section 48A(1) and (3);

  • section 48B(1), (1A), (4) and (4A);

  • section 48BB(1) and (3), and

(c)in determining whether a person would have been entitled to an old state pension as mentioned in subsection (1)(e) ignore any requirement to make a claim.

Commencement Information

I10S. 8 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I11S. 8(3)(7)(8) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(c)

9Survivor's pension based on inheritance of deferred old state pensionE+W+S

(1)A person is entitled to a state pension under this section if—

(a)the person has reached pensionable age,

(b)the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other,

(c)either: (i) the person was under pensionable age when the spouse or civil partner died and did not marry or form a civil partnership after the death and before reaching pensionable age, or (ii) the person was over pensionable age when the spouse or civil partner died,

(d)the person is entitled to an inherited deferral amount under Schedule 5, and

(e)in the case of a person entitled to a choice under section 8, the person has chosen to be paid a state pension under this section.

(2)A state pension under this section is payable at a weekly rate equal to the inherited deferral amount.

(3)But if at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under this section is increased (at that time) by the percentage specified in the order.

(4)A person may be entitled to more than one state pension under this section.

(5)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

Modifications etc. (not altering text)

C6S. 9 sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(a)

C7S. 9 sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(a)

C8S. 9 sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(a)

Commencement Information

I12S. 9 in force at 6.4.2016, see s. 56(1)(4)

10Inheritance of graduated retirement benefitE+W+S

(1)Regulations may make provision corresponding or similar to any provision of sections 7 to 9 and Schedules 3 to 5 for the purpose of conferring benefits on a person whose dead spouse or civil partner paid graduated contributions as an insured person.

(2)The regulations may—

(a)include provision corresponding or similar to any provision that may be made by regulations under section 7 or 8;

(b)amend or otherwise modify this Act or any other enactment (whenever passed or made).

(3)In this section “graduated contributions” and “insured person” have the meanings given by section 36(8) of the National Insurance Act 1965.

Commencement Information

I13S. 10 in force at 6.4.2016, see s. 56(1)(4)

Transition: women who have had a reduced rate electionE+W+S

11Reduced rate elections: effect on section 4 pensionsE+W+S

(1)Section 4(1)(b) (minimum number of qualifying years for state pension at the transitional rate) does not apply to a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period.

(2)Schedule 6 modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period.

(3)In this section—

  • reduced rate election” means an election made, or treated as having been made, under regulations under section 19(4) of the Contributions and Benefits Act;

  • relevant 35-year period” means the 35-year period ending with the tax year before the one in which the woman reached pensionable age.

Commencement Information

I14S. 11 in force at 6.4.2016, see s. 56(1)(4)

12Reduced rate elections: pension for women with no section 4 pensionE+W+S

(1)A woman is entitled to a state pension under this section if—

(a)she has reached pensionable age,

(b)a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period,

(c)she does not have any pre-commencement qualifying years, and

(d)she is entitled to a basic amount under Schedule 7.

(2)A state pension under this section is payable at a weekly rate equal to the basic amount.

(3)But if at any time the full rate of the state pension is increased, the rate of the woman's state pension under this section is increased (at that time) by the same percentage as the increase in the full rate.

(4)In subsection (3) the reference to the rate of the woman's state pension is to the rate ignoring any increase under section 17.

(5)A woman is not entitled to a state pension under this section and section 2 at the same time: she is only entitled to the one with the higher rate.

(6)There are provisions elsewhere that affect a woman's entitlement to a state pension under this section or the rate at which it is payable.

(7)In this section—

  • reduced rate election” means an election made, or treated as having been made, under regulations under section 19(4) of the Contributions and Benefits Act;

  • relevant 35-year period” means the 35-year period ending with the tax year before the one in which the woman reached pensionable age.

Commencement Information

I15S. 12 in force at 6.4.2016, see s. 56(1)(4)

Transition: pension sharing on divorce etcE+W+S

13Shared state pension on divorce etcE+W+S

(1)A person is entitled to a state pension under this section if—

(a)the person has reached pensionable age, and

(b)the person is entitled to a state scheme pension credit.

(2)A state pension under this section is payable at the appropriate weekly rate set out in Schedule 8.

(3)The rate of the state pension for a person under this section is to be increased from time to time in accordance with the applicable paragraph of Schedule 9.

(4)A person may be entitled to more than one state pension under this section.

(5)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

(6)In this Part—

  • state scheme pension credit” means—

    (a)

    a new state scheme pension credit, or

    (b)

    an old state scheme pension credit;

  • new state scheme pension credit” means a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999;

  • old state scheme pension credit” means a credit under section 49(1)(b) of that Act.

Commencement Information

I16S. 13 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I17S. 13(2) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(i)

14Pension sharing: reduction in the sharer's section 4 pensionE+W+S

(1)The rate of a person's state pension under section 4 is reduced under this section if the person is subject to a state scheme pension debit.

(2)The amount by which the rate is reduced is the amount of the appropriate weekly reduction set out in Schedule 10.

(3)A person's state pension may be reduced more than once under this section.

(4)In this Part—

  • state scheme pension debit” means—

    (a)

    a new state scheme pension debit, or

    (b)

    an old state scheme pension debit;

  • new state scheme pension debit” means a debit under section 49A(2)(a) of the Welfare Reform and Pensions Act 1999;

  • old state scheme pension debit” means a debit under section 49(1)(a) of that Act.

Commencement Information

I18S. 14 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I19S. 14(2) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(j)

15Pension sharing: amendmentsE+W+S

Schedule 11 contains amendments to do with pension sharing.

Commencement Information

I20S. 15 in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(k)

I21S. 15 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

Postponing or suspending state pensionE+W+S

16Pensioner's option to suspend state pensionE+W+S

(1)A person who has become entitled to a state pension under this Part may opt to suspend his or her entitlement in accordance with regulations.

(2)A person is not entitled to any state pension under this Part for the period for which the person has opted to suspend his or her entitlement.

(3)For other effects of a person exercising the option, see section 17.

(4)A person may not opt to suspend his or her entitlement to a state pension under this Part on more than one occasion.

(5)Regulations may specify other circumstances in which a person may not opt to suspend his or her entitlement to a state pension under this Part.

(6)Regulations may allow a person who has opted to suspend his or her entitlement to a state pension under this Part to cancel the exercise of that option (in whole or in part) in relation to a past period.

Commencement Information

I22S. 16 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I23S. 16(1)(6) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(d)

17Effect of pensioner postponing or suspending state pensionE+W+S

(1)If a person's entitlement to a state pension under this Part has been deferred for a period, the weekly rate of the person's state pension is increased by an amount equal to the sum of the increments to which the person is entitled.

(2)But the weekly rate is not to be increased under subsection (1) if the increase would be less than 1% of the person's weekly rate ignoring that subsection.

(3)A person is entitled to one increment for each whole week in the period during which the person's entitlement to a state pension was deferred.

(4)The amount of an increment is equal to a specified percentage of the weekly rate of the state pension to which the person would have been entitled immediately before the end of that period if the person's entitlement had not been deferred.

(5)In subsection (4) “specified” means specified in regulations.

(6)The amount of an increase under this section is itself to be increased from time to time in accordance with any order made under section 150 of the Administration Act (annual up-rating of benefits).

(7)For the purposes of this section and section 18 a person's entitlement to a state pension under this Part is deferred for a period if the person has opted under section 16 to suspend his or her entitlement for that period.

(8)For the purposes of this section and section 18 a person's entitlement to a state pension under this Part is also deferred for a period if the person is not entitled to it for that period by reason only of—

(a)not satisfying the conditions in section 1 of the Administration Act (entitlement dependent on claim etc), or

(b)subsection (9) below.

(9)A person is not entitled to a state pension under this Part for any period during which his or her entitlement to any other state pension under this Part is deferred.

Modifications etc. (not altering text)

C9S. 17 sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(3)

C10S. 17 sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(3)

C11S. 17 sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(3)

C12S. 17(4) modified by S.I. 2015/173, regs. 12A, 22, 23 (as inserted 6.4.2016) by The State Pension and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/199), regs. 1(4), 3, 4 (with reg. 1(5)))

Commencement Information

I24S. 17 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I25S. 17(4)(5) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(e)

18Section 17 supplementary: calculating weeks, overseas residents, etcE+W+S

(1)Regulations may—

(a)provide for circumstances in which a part of a week is to be treated for the purposes of section 17(3) as a whole week, and

(b)provide for circumstances in which a day does not count in determining a number of whole weeks for the purposes of section 17(3) (for example if the person is receiving other benefits).

(2)Regulations may modify section 17(4) in cases where, at any time in the period during which a person's entitlement to a state pension is deferred, the rate for the person would have changed otherwise than because of an up-rating increase.

(3)Regulations may modify section 17(4) in relation to a person who has been an overseas resident during any part of the period for which the person's entitlement to a state pension has been deferred.

(4)In subsection (3) “overseas resident” means a person who is not ordinarily resident in Great Britain or any other territory specified in the regulations.

(5)Regulations may amend the percentage specified in section 17(2).

Commencement Information

I26S. 18 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I27S. 18(1) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(f)

Prisoners and overseas residentsE+W+S

19PrisonersE+W+S

(1)Regulations may provide that a person is not to be paid a state pension under this Part for any period during which the person is a prisoner.

(2)Prisoner” means a person (in Great Britain or elsewhere) who is—

(a)imprisoned or detained in legal custody, or

(b)unlawfully at large.

(3)In the case of a person remanded in custody for an offence, regulations under subsection (1) may be made so as to apply only if a sentence of a specified description is later imposed on the person for the offence.

Commencement Information

I28S. 19 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I29S. 19(1)(3) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(g)

20Overseas residentsE+W+S

(1)Regulations may provide that an overseas resident who is entitled to a state pension under this Part is not entitled to up-rating increases.

(2)In this section “overseas resident” means a person who is not ordinarily resident in Great Britain or any other territory specified in the regulations.

(3)Regulations under this section do not affect the rate of an overseas resident's state pension for any period during which he or she is in Great Britain or a territory specified in the regulations (but once the overseas resident ceases to be in Great Britain or a specified territory the rate reverts to what it would have been had he or she not been in Great Britain or a specified territory).

(4)Regulations under this section do not affect the rate of a person's state pension once the person stops being an overseas resident.

Commencement Information

I30S. 20 in force at 6.4.2016, see s. 56(1)(4)

DefinitionsE+W+S

21“Old state pension”E+W+S

(1)In this Part “old state pension” means a Category A retirement pension or a Category B retirement pension.

(2)A reference in this Part to the rate of an old state pension (however expressed) does not include—

(a)graduated retirement benefit under the National Insurance Act 1965, or

(b)any increase in the rate because of Schedule 5 to the Contributions and Benefits Act (deferral increases).

Commencement Information

I31S. 21 in force at 6.4.2016, see s. 56(1)(4)

22General definitions etcE+W+S

(1)In this Part—

  • the Administration Act” means the Social Security Administration Act 1992;

  • Category A retirement pension” means a Category A retirement pension under Part 2 of the Contributions and Benefits Act;

  • Category B retirement pension” means a Category B retirement pension under Part 2 of the Contributions and Benefits Act;

  • the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992;

  • enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978;

  • full rate” means the rate mentioned in section 3(1);

  • old state pension” has the meaning given by section 21 (and references to the rate of an old state pension are to be read in accordance with that section);

  • pensionable age” has the meaning given by section 122(1) of the Contributions and Benefits Act; and a person is “over” pensionable age if the person has reached that age (and is otherwise “under” that age);

  • post-commencement qualifying year” has the meaning given by section 4(4);

  • pre-commencement qualifying year” is to be read in accordance with section 4(4) and (5);

  • qualifying earnings factor” has the meaning given by section 122(1) of the Contributions and Benefits Act;

  • qualifying year” has the meaning given by section 2(4);

  • reduced rate” means the rate mentioned in section 3(2);

  • regulations” means regulations made by the Secretary of State;

  • “state scheme pension credit”, and related expressions, have the meaning given by section 13;

  • “state scheme pension debit”, and related expressions, have the meaning given by section 14;

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

  • transitional rate” means the rate mentioned in section 5;

  • up-rating increase”, in relation to a state pension under this Part, means—

    (a)

    an increase in the rate of the state pension because of an increase in the amount specified in regulations under section 3(1), F1...

    (b)

    an increase in the rate of the state pension because of section 9(3), 12(3) or 17(6) or Schedule 2, 4 or 9;

    [F2, or

    (c)

    an increase in the rate of the state pension because of regulations under section 10 which make provision corresponding or similar to section 9(3) or Schedule 4;]

  • working life” has the meaning given by section 122(1) of the Contributions and Benefits Act.

(2)For the purposes of any other provision of this Part two people are to be treated as if they are not married to each other in relation to times when either of them is married to a third person.

Textual Amendments

Commencement Information

I32S. 22 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I33S. 22(1) in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(h)

Consequential and other amendmentsE+W+S

23AmendmentsE+W+S

In Schedule 12—

  • Part 1 contains amendments to do with state pensions under this Part;

  • Part 2 contains key amendments to do with the old state pension system;

  • Part 3 contains amendments to do with state pension credit;

  • Part 4 contains other amendments to do with this Part.

Commencement Information

I34S. 23 in force at 1.10.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(ii)(3)(a)

I35S. 23 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(2)(a)

I36S. 23 in force at 15.1.2016 for specified purposes by S.I. 2015/2058, art. 2(a)

I37S. 23 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

24Abolition of contracting-out for salary related schemes etcE+W+S

(1)Schedule 13 contains amendments to abolish contracting-out for salary related schemes.

(2)An employer may amend an occupational pension scheme in relation to some or all of its members to take account of increases in the employer's national insurance contributions in respect of some or all of the members to whom the amendments apply because of the repeal of section 41 of the Pension Schemes Act 1993 (by Schedule 13 to this Act).

(3)The power may be used to make amendments that will apply in relation to future members and correspond to the amendments being made in relation to current members.

(4)The power may not be used—

(a)to make amendments that apply to a member who is a protected person in relation to a scheme, or

(b)to amend a public service pension scheme or a scheme of a description specified in regulations under this paragraph.

(5)Regulations must define what is meant by a protected person in relation to a scheme for the purposes of subsection (4)(a).

(6)Schedule 14 contains more detail about the power.

(7)In this section and Schedule 14—

  • current member”, in relation to a scheme, means a person who is a member of the scheme at the time that the power is used (and “future member” is to be read accordingly);

  • employer”, in relation to a scheme, means the employer of persons in the description of employment to which the scheme relates;

  • member” has the meaning given by section 124(1) of the Pensions Act 1995;

  • national insurance contributions”, in relation to an employer, means secondary Class 1 national insurance contributions payable by the employer;

  • occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;

  • public service pension scheme” has the meaning given by that section.

(8)Subsections (2) to (7) and Schedule 14 are repealed at the end of the period of 5 years beginning with 6 April 2016.

(9)The Secretary of State may by order amend subsection (8) to extend the period for the time being mentioned there.

Modifications etc. (not altering text)

Commencement Information

I38S. 24 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I39S. 24(1) in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(1)(a)

I40S. 24(2)-(9) in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Part 2 E+W+SOption to boost old retirement pensions

25Option to boost old retirement pensionsE+W+S

In Schedule 15—

  • Part 1 contains amendments to allow certain people to pay additional contributions to boost their retirement pensions;

  • Part 2 contains amendments to allow corresponding legislation to be put in place for Northern Ireland.

Commencement Information

I41S. 25 in force at 1.10.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(ii)(3)(b)

I42S. 25 in force at 12.10.2015 for specified purposes by S.I. 2015/1475, art. 3(a)

I43S. 25 in force at 12.10.2015 for specified purposes by S.I. 2015/1670, art. 2(a)

Part 3 E+W+SPensionable age

26Increase in pensionable age to 67E+W+S

(1)Paragraph 1 of Schedule 4 to the Pensions Act 1995 is amended as follows.

(2)In sub-paragraph (6) for “6th April 1968” substitute “ 6th April 1960 ”.

(3)For sub-paragraph (7) and table 3 substitute—

(7)A person born on any day in a period mentioned in column 1 of table 3 attains pensionable age when the person attains the age shown against that period in column 2.

TABLE 3

(1)(2)
Period within which birthday fallsAge pensionable age attained
6th April 1960 to 5th May 196066 years and 1 month
6th May 1960 to 5th June 196066 years and 2 months
6th June 1960 to 5th July 196066 years and 3 months
6th July 1960 to 5th August 196066 years and 4 months
6th August 1960 to 5th September 196066 years and 5 months
6th September 1960 to 5th October 196066 years and 6 months
6th October 1960 to 5th November 196066 years and 7 months
6th November 1960 to 5th December 196066 years and 8 months
6th December 1960 to 5th January 196166 years and 9 months
6th January 1961 to 5th February 196166 years and 10 months
6th February 1961 to 5th March 196166 years and 11 months

(7A)For the purposes of table 3—

(a)a person born on 31st July 1960 is to be taken to attain the age of 66 years and 4 months at the commencement of 30th November 2026;

(b)a person born on 31st December 1960 is to be taken to attain the age of 66 years and 9 months at the commencement of 30th September 2027;

(c)a person born on 31st January 1961 is to be taken to attain the age of 66 years and 10 months at the commencement of 30th November 2027.

(4)In sub-paragraph (8) for “5th April 1969” substitute “ 5th March 1961 ”.

27Periodic review of rules about pensionable ageE+W+S

(1)The Secretary of State must from time to time—

(a)review whether the rules about pensionable age are appropriate, having regard to life expectancy and other factors that the Secretary of State considers relevant, and

(b)prepare and publish a report on the outcome of the review.

(2)The first report must be published before 7 May 2017.

(3)Each subsequent report must be published before the end of the period of 6 years beginning with the day on which the previous report was published.

(4)For the purposes of each review, the Secretary of State must require the Government Actuary or Deputy Government Actuary to prepare a report for the Secretary of State on—

(a)whether the rules about pensionable age mean that, on average, a person who reaches pensionable age within a specified period can be expected to spend a specified proportion of his or her adult life in retirement, and

(b)if not, ways in which the rules might be changed with a view to achieving that result.

(5)The Secretary of State must, for the purposes of a review, appoint a person or persons to prepare a report for the Secretary of State on other specified factors relevant to the review.

(6)The Secretary of State must lay before Parliament any report prepared under this section.

(7)For the purposes of subsection (4)—

(a)a person's adult life is the part of the person's life after he or she reaches the specified age;

(b)the proportion of a person's adult life spent in retirement is the proportion of his or her adult life spent after reaching pensionable age.

(8)In this section—

  • pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (and “the rules about pensionable age” means those rules);

  • specified” means specified by the Secretary of State.

Part 4 E+W+SState pension credit

28State pension credit: phasing out assessed income periodsE+W+S

(1)In section 6 of the State Pension Credit Act 2002 (duty to specify assessed income period), in subsection (1), after “subsection (3) or (4)” insert “ where the relevant decision takes effect before 6 April 2016 ”.

(2)At the end of the heading to that section insert “ for pre-6 April 2016 awards ”.

(3)Regulations under section 9(5) of the State Pension Credit Act 2002 may in particular be made for the purpose of phasing out, on or after 6 April 2016, any remaining assessed income period that is 5 years or shorter than 5 years.

Commencement Information

I44S. 28(1)(2) in force at 6.4.2016 by S.I. 2015/1475, art. 4

I45S. 28(3) in force at 7.7.2015 by S.I. 2015/1475, art. 2(2)(b)

29Preserving indefinite status of certain existing assessed income periodsE+W+S

(1)If this section comes into force before 6 April 2014—

(a)section 105(6) of the Pensions Act 2008 (which provides that section 9(6) of the State Pension Credit Act 2002 ceases to have effect on 6 April 2014) is repealed, and

(b)in section 9(6)(a) of the State Pension Credit Act 2002 (duration of assessed income period for certain transitional cases to be treated as indefinite), after “brought to an end” insert “ , on or after 6 April 2009 but before 6 April 2014, ”.

(2)If this section comes into force on or after 6 April 2014—

(a)section 105(6) of the Pensions Act 2008 (which provides that section 9(6) of the State Pension Credit Act 2002 ceases to have effect on 6 April 2014) is repealed and is to be treated as never having had effect, and

(b)in section 9(6)(a) of the State Pension Credit Act 2002 (duration of assessed income period for certain transitional cases to be treated as indefinite) as restored by this section, after “brought to an end” insert “ , on or after 6 April 2009 but before 6 April 2014, ”.

Part 5E+W+SBereavement support payment

Modifications etc. (not altering text)

30Bereavement support paymentE+W+S

(1)A person is entitled to a benefit called bereavement support payment if—

(a)the person's spouse or civil partner dies,

(b)the person is under pensionable age when the spouse or civil partner dies,

(c)the person is ordinarily resident in Great Britain, or a specified territory, when the spouse or civil partner dies, and

(d)the contribution condition is met (see section 31).

(2)The Secretary of State must by regulations specify—

(a)the rate of the benefit, and

(b)the period for which it is payable.

(3)The regulations may specify different rates for different periods.

(4)In the case of a person who is pregnant or entitled to child benefit in specified circumstances, the regulations may—

(a)specify a higher rate;

(b)provide for the allowance to be payable for a longer period.

(5)A person is not entitled to bereavement support payment for periods after the person has reached pensionable age.

(6)A person is not entitled to bereavement support payment if the death occurred before this section came fully into force.

(7)In this section—

  • pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995;

  • specified territory” means a territory specified in regulations made by the Secretary of State.

Commencement Information

I46S. 30 in force at 8.3.2017 for specified purposes by S.I. 2017/297, art. 3(1)(a)

I47S. 30 in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 3(1)(b)

31Bereavement support payment: contribution condition and amendmentsE+W+S

(1)For the purposes of section 30(1)(d) the contribution condition is that, for at least one tax year during the deceased's working life—

(a)he or she actually paid Class 1 or Class 2 national insurance contributions, and

(b)those contributions give rise to an earnings factor (or total earnings factors) equal to or greater than 25 times the lower earnings limit for the tax year.

(2)For earnings factors, see sections 22 and 23 of the Social Security Contributions and Benefits Act 1992.

(3)For the purposes of section 30(1)(d) the contribution condition is to be treated as met if the deceased was an employed earner and died as a result of—

(a)a personal injury of the kind mentioned in section 94(1) of the Social Security Contributions and Benefits Act 1992, or

(b)a disease or personal injury of the kind mentioned in section 108(1) of that Act.

(4)In this section the following expressions have the meaning given by section 122(1) of the Social Security Contributions and Benefits Act 1992—

  • “employed earner”,

  • “lower earnings limit”,

  • “tax year”, and

  • “working life”.

(5)Schedule 16 contains amendments to do with bereavement support payment.

Commencement Information

I48S. 31(1)-(4) in force at 8.3.2017 for specified purposes by S.I. 2017/297, art. 3(1)(a)

I49S. 31(1)-(4) in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 3(1)(b)

I50S. 31(5) in force at 8.2.2017 for specified purposes by S.I. 2017/111, reg. 5(a)

I51S. 31(5) in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

32Bereavement support payment: prisonersE+W+S

(1)The Secretary of State may by regulations provide that a person is not to be paid bereavement support payment for any period during which the person is a prisoner.

(2)Prisoner” means a person (in Great Britain or elsewhere) who is—

(a)imprisoned or detained in legal custody, or

(b)unlawfully at large.

(3)In the case of a person remanded in custody for an offence, regulations under subsection (1) may be made so as to apply only if a sentence of a specified description is later imposed on the person for the offence.

Commencement Information

I52S. 32 in force at 8.3.2017 for specified purposes by S.I. 2017/297, art. 3(1)(a)

I53S. 32 in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 3(1)(b)

Part 6 E+W+SPrivate pensions

Transfer of pension benefitsE+W+S

33Automatic transfer of pension benefits etcE+W+S

Schedule 17—

(a)requires the Secretary of State to make regulations under which, in certain circumstances, the cash equivalent of a person's accrued rights to benefits under a pension scheme must be transferred to another scheme of which the person is an active member;

(b)permits the Secretary of State to make regulations requiring accounts relating to a person's accrued rights to benefits under a pension scheme to be merged in certain circumstances.

Commencement Information

I54S. 33 in force at 11.9.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(i)(2)(a)

34Power to prohibit offer of incentives to transfer pension rightsE+W+S

(1)The Secretary of State may by regulations make provision prohibiting a person from offering an incentive to another person with the intention of inducing a member of a salary related occupational pension scheme to—

(a)exercise a right to require a pensions transfer, or

(b)agree to a pensions transfer.

(2)Pensions transfer” means a transfer of sums or assets representing any of the member's pension rights to be used for one or more of the following—

(a)acquiring rights (whether to present or future benefit) for the member under the rules of another occupational pension scheme or a personal pension scheme;

(b)purchasing one or more annuities for the member;

(c)subscribing to other pension arrangements for the member.

(3)Pension right” means, at any time—

(a)any right which at that time has accrued to or in respect of the member to future benefits under the scheme rules, or

(b)any entitlement to the present payment of a pension or other benefit which the member has at that time, under the scheme rules;

and for this purpose “right” includes a pension credit right.

(4)Regulations under this section may in particular—

(a)provide for the prohibition to apply whether the incentive offered is to be provided by the person making the offer or another person;

(b)create exceptions to the prohibition;

(c)provide for section 10 of the Pensions Act 1995 (civil penalties) to apply to a person who contravenes the regulations.

(5)Regulations made by virtue of subsection (4)(c) may in particular provide that for the purposes of section 10 of the Pensions Act 1995 the offer of an incentive is to be regarded as a separate act in relation to each member of a scheme to whom the incentive relates.

(6)Nothing in any regulations made under this section affects the validity of a pensions transfer (or of the exercise of a right to require a transfer or of an agreement to a transfer).

(7)In this section—

  • incentive” means a financial or other advantage;

  • member” has the meaning given by section 124(1) of the Pensions Act 1995;

  • “occupational pension scheme” and “personal pension scheme” have the meanings given by section 1 of the Pension Schemes Act 1993;

  • pension credit right” has the meaning given by section 124(1) of the Pensions Act 1995;

  • salary related occupational pension scheme” has the meaning given by [F3section 100D] of the Pension Schemes Act 1993;

  • scheme rules” has the meaning given by section 67A(8) of the Pensions Act 1995.

(8)This section binds the Crown.

Textual Amendments

F3Words in s. 34(7) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 45 (with s. 87)

35Expiry of power in section 34E+W+S

If no regulations have been made under section 34 by the end of the period of 7 years beginning with the day on which it comes into force, that section is repealed at the end of that period.

36Short service benefit for scheme member with money purchase benefitsE+W+S

(1)Section 71 of the Pension Schemes Act 1993 (basic principle as to short service benefit) is amended as follows.

(2)In subsection (1)(a), after “service,” insert—

(aa)he has at least 30 days' qualifying service and, if he were entitled to benefit because of this paragraph, all of it would necessarily be money purchase benefit,.

(3)After subsection (9) insert—

(10)Subsections (7) to (9) apply, with the substitution for references to 2 years of references to 30 days, for determining whether a person has at least 30 days' qualifying service for the purposes of subsection (1).

(11)Subsection (1)(aa) does not apply in relation to a person's membership of a scheme if any period of relevant service began before the day on which section 36 of the Pensions Act 2014 came into force (whether or not it also ended before that date).

Relevant service” means service that counts towards the 30 days' qualifying service for the purposes of subsection (1).

(4)In section 101AA of the 1993 Act (early leavers: cash transfer sums and contribution refunds), in subsection (4)(b), after “(a)” insert “ , (aa) ”.

Commencement Information

I55S. 36 in force at 1.10.2015 by S.I. 2015/134, art. 2(3)

Automatic enrolmentE+W+S

37Automatic re-enrolment: exceptions where automatic enrolment deferredE+W+S

(1)The Pensions Act 2008 is amended as follows.

(2)In section 5 (automatic re-enrolment), after subsection (3) insert—

(3A)Subsection (2) does not apply if the jobholder's automatic enrolment date is deferred under section 4 from a date before the automatic re-enrolment date to a date after the automatic re-enrolment date.

(3)In section 30(7) (transitional period for defined benefits and hybrid schemes), at the end insert—

(c)section 5(2) does not apply in relation to an automatic re-enrolment date that falls before the day with effect from which arrangements would by virtue of this section fall to be made in respect of the jobholder.

Commencement Information

I56S. 37 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(b)

38Automatic enrolment: powers to create general exceptionsE+W+S

(1)In section 10 of the Pensions Act 2008 (information to be given to workers)—

(a)in subsection (1)—

(i)for “must” substitute “ may ”;

(ii)in paragraphs (a) and (b), omit “all”;

(b)in subsection (2) for “must state” substitute “ may in particular make provision about ”.

(2)In Chapter 8 of Part 1 of the Pensions Act 2008, before section 88 (and the heading “Workers” above it) insert—

ExceptionsE+W+S
87APower to create exceptions from the employer duties etc

(1)The Secretary of State may by regulations provide for exceptions to the employer duties; and an exception may in particular—

(a)turn an employer duty into a power;

(b)be framed by reference to a description of worker, particular circumstances or in some other way.

(2)But the regulations may not provide for an exception for employers of a particular size.

(3)Regulations which make provision under subsection (1)(a) may make provision modifying this Part or regulations made under it in connection with that provision.

(4)The regulations may make provision in connection with the coming to an end of the state of affairs that caused an exception to apply, including provision—

(a)modifying this Part or regulations made under it in relation to a person;

(b)for the purpose of putting a person, wholly or partly, in the position he or she would have been in if the exception had never applied.

(5)In this section “employer duties” means any duty of an employer under any provision of sections 2 to 11 and 54 or of regulations made under those sections.

(3)In consequence of subsection (2), the following are repealed—

(a)section 292A of the Pensions Act 2004;

(b)section 5(4) of the Pensions Act 2008;

(c)section 18 of the Pensions Act 2011.

Commencement Information

I57S. 38 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(c)

39Alternative quality requirements for UK defined benefits schemesE+W+S

(1)The Pensions Act 2008 is amended as follows.

(2)After section 23 insert—

23AAlternative quality requirements for UK defined benefits schemes

(1)The Secretary of State may by regulations provide that a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if any one or more of the following is satisfied—

(a)the scheme is of a prescribed description and satisfies the quality requirement under section 20 in relation to that jobholder;

(b)the cost of providing the benefits accruing for or in respect of the relevant members over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the members' total relevant earnings over that period;

(c)in the case of each of at least 90% of the relevant members, the cost of providing the benefits accruing for or in respect of the member over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the member's total relevant earnings over that period.

(2)For this purpose—

  • contributions” means contributions to the scheme by, or on behalf or in respect of, a relevant member;

  • relevant earnings” means earnings of a prescribed description;

  • relevant members” means members of the scheme of a prescribed description;

  • relevant period” means a period specified in or determined in accordance with the regulations.

(3)A percentage prescribed under subsection (1)(b) or (c) must be at least 8%.

(4)Regulations under subsection (1)(b) or (c) may make provision—

(a)about how to calculate whether the requirement is satisfied, including provision requiring the calculation to be made in accordance with prescribed methods or assumptions;

(b)requiring benefits of a prescribed description to be disregarded in determining whether the requirement is satisfied;

(c)that a scheme only satisfies the requirement if the scheme actuary certifies that it does; and for this purpose “scheme actuary” has the prescribed meaning.

(5)Section 13(3) (meaning of “earnings”) applies for the purposes of this section as it applies for the purposes of that section.

(6)The Secretary of State must from time to time review any regulations in force under subsection (1).

(7)A review must be carried out—

(a)during 2017, and

(b)after that, no more than three years after the completion of the previous review.

(3)In section 24 (quality requirement: UK hybrid schemes), in subsection (1)(b), for “23” substitute “ 23A ”.

(4)In section 28 (certification that quality requirement or alternative requirement is satisfied)—

(a)after subsection (3A) insert—

(3B)This section also applies to a defined benefits scheme that has its main administration in the United Kingdom and is of a description prescribed under section 23A(1)(a).;

(b)in subsection (4), after paragraph (d) insert—

(e)for a scheme within subsection (3B), means the quality requirement under section 23A(1)(a).

(5)In section 29 (transitional periods for money purchase and personal pension schemes), in subsections (1) and (3) omit “for money purchase and personal pension schemes”.

(6)Section 30 (transitional period for defined benefits and hybrid schemes) is amended as follows.

(7)In subsection (3), at the end of the substituted subsection (2) insert—

A reference in this subsection to a scheme does not include a scheme to which section 30(11)(a) or (b) applies.

(8)In subsection (5), in the substituted subsection (2)—

(a)in paragraph (a), after “defined benefits scheme” insert “ other than a scheme to which section 30(11)(a) applies ”;

(b)in paragraph (aa) (inserted by section 40 of this Act), after “a hybrid scheme” insert “ other than a scheme to which section 30(11)(b) applies ”;

(c)after paragraph (c) (inserted by section 40 of this Act), insert—

(d)becomes an active member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a defined benefits scheme to which section 30(11)(a) applies, or

(e)becomes a defined benefits member , with effect from the automatic enrolment date, of an automatic enrolment scheme which is a hybrid scheme to which section 30(11)(b) applies.

(9)After subsection (10) (inserted by section 40 of this Act) insert—

(11)In subsection (2) references to a scheme do not include—

(a)a defined benefits scheme that satisfies the quality requirement in relation to the jobholder by reason only of section 23A(1)(a), or

(b)a hybrid scheme if—

(i)the appropriate paragraph of section 24(1) for any provisions of the scheme is paragraph (b) (those provisions are referred to below as “the defined benefits section”),

(ii)the defined benefits section satisfies section 23A(1)(a) as applied by section 24(1)(b), and

(iii)the defined benefits section does not satisfy any of the other requirements mentioned in section 24(1)(b).

Commencement Information

I58S. 39 in force at 12.9.2014 by S.I. 2014/2377, art. 2(1)(b)

40Automatic enrolment: transitional period for hybrid schemesE+W+S

(1)Section 30 of the Pensions Act 2008 (transitional period for defined benefits and hybrid schemes) is amended as follows.

(2)In subsection (2)(b) and (c), for “a hybrid scheme” substitute “ a defined benefits member of a hybrid scheme ”.

(3)In subsection (3), in the substituted subsection (2)—

(a)after “becomes” insert “ (a) ”;

(b)for “or a hybrid scheme” substitute , or

(b)a defined benefits member, with effect from the end of that period, of an automatic enrolment scheme which is a hybrid scheme.

(4)In subsection (5), in the substituted subsection (2)—

(a)in paragraph (a), for “or a hybrid scheme, or” substitute—

(aa)becomes a defined benefits member, with effect from the closure date, of an automatic enrolment scheme which is a hybrid scheme,;

(b)after paragraph (b) insert—

(c)becomes a money purchase member, with effect from the automatic enrolment date, of an automatic enrolment scheme which is a hybrid scheme,.

(5)After subsection (9) insert—

(10)For the purposes of this section—

(a)a person is a “money purchase member” of a hybrid scheme if—

(i)the person is an active member of the scheme, and

(ii)all the benefits accruing in respect of his or her membership are money purchase benefits, and

(b)a person is a “defined benefits member” of a hybrid scheme if the person is an active member of the scheme other than a money purchase member.

(6)Subsection (7) applies if—

(a)an employer whose first enrolment date is before the date on which the amendments made by this section come into force (“the commencement date”) has given a jobholder notice under section 30(3) of the 2008 Act,

(b)the conditions in section 30(2) of that Act have continued to be satisfied during the period beginning with the employer's first enrolment date and ending with the day before the commencement date, and

(c)had the amendments made by this section come into force on 19 December 2012, the condition in section 30(2)(c) of that Act would not have been satisfied at a time during that period.

(7)Section 30(5) to (7) of the 2008 Act (as amended by this section) applies in relation to the jobholder with the following modifications—

(a)references in section 30(5) and (6) of that Act to the closure date are to be read as references to the commencement date, and

(b)references in section 30(5) and (6) of that Act to the automatic enrolment date are to be read as references to—

(i)19 December 2012, or

(ii)if later, the employer's first enrolment date;

and section 30(3) and (4) of that Act does not apply.

(8)Expressions used in this section and in section 30 of the 2008 Act have the same meaning in this section as in that section.

Commencement Information

I59S. 40 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(d)

41Penalty notices under sections 40 and 41 of the Pensions Act 2008 etcE+W+S

(1)In sections 40(1)(d) and 41(1)(d) of the Pensions Act 2008 (fixed and escalating penalty notices), at the end insert “ , so far as relevant to the exercise of any of its functions under or by virtue of this Part ”.

(2)In section 72 of the Pensions Act 2004 (powers to require information), in subsection (1A), for “Chapter 2 of Part 1 of the Pensions Act 2008 or section 51 of that Act” substitute “ or by virtue of Part 1 of the Pensions Act 2008 ”.

42Unpaid scheme contributionsE+W+S

(1)The Pension Schemes Act 1993 is amended as follows.

(2)In section 123 (payment by Secretary of State of unpaid scheme contributions on employer insolvency: interpretation)—

(a)in subsection (3), for the definition of “contract of employment” and related expressions substitute—

“employer”, “employment”, “worker” and “worker's contract” and other expressions which are defined in the Employment Rights Act 1996 have the same meaning as in that Act (see further subsections (3A) and (3B));;

(b)in subsection (3), in paragraph (b) of the definition of “holiday pay”, for “the employee's contract of employment” substitute “ the worker's contract ”;

(c)after subsection (3) insert—

(3A)Section 89 of the Pensions Act 2008 (agency workers) applies for the purposes of this Chapter as it applies for the purposes of Part 1 of that Act.

(3B)References in this Chapter to a worker include references to an individual to whom Part 1 of the Pensions Act 2008 applies as if the individual were a worker because of regulations made under section 98 of that Act; and related expressions are to be read accordingly.

(3)In section 124 (Secretary of State's duty to pay unpaid contributions)—

(a)for “an employee”, in each place, substitute “ a worker ”;

(b)for “the employee”, in each place, substitute “ the worker ”;

(c)for “the employee's” substitute “the worker's”;

(d)for “employees”, in each place, substitute “ workers ”.

(4)In section 161, for “contract of employment” substitute “ worker's contract ”.

(5)In section 165(7)—

(a)in paragraph (a), for “contract of employment the employee” substitute “ worker's contract the worker ”;

(b)in paragraph (b), for “employee” substitute “ worker ”.

Commencement Information

I60S. 42 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(e)

OtherE+W+S

43Power to restrict charges or impose requirements in relation to schemesE+W+S

Schedule 18 permits the Secretary of State to make regulations—

(a)restricting the charges that may be imposed on members of certain pension schemes;

(b)imposing requirements relating to administration or governance that must be satisfied in relation to certain pension schemes.

Commencement Information

I61S. 43 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(f)

44Disclosure of information about transaction costs to members etcE+W+S

(1)In section 113 of the Pension Schemes Act 1993 (disclosure of information about schemes to members etc), after subsection (4) insert—

(5)The Secretary of State must make regulations under subsection (1) requiring information about some or all of the transaction costs of a relevant scheme to be given to some or all of the persons mentioned in subsection (2).

(6)The Secretary of State must by regulations make provision requiring the publication of information about—

(a)some or all of the transaction costs of a relevant scheme, and

(b)some or all of the administration charges imposed on members of a relevant scheme.

(7)Regulations under subsection (6) may require other relevant information to be published along with information about transaction costs or administration charges in relation to a scheme.

(8)Other relevant information” means other information which would or may assist in making comparisons between those costs or charges and costs or charges in relation to other schemes.

(9)Before making regulations by virtue of subsection (5) or (6), the Secretary of State must consult—

(a)the Financial Conduct Authority, and

(b)the Treasury;

(in addition to any other persons consulted in accordance with section 185(1)).

(10)In this section—

  • administration charge” has the meaning given by paragraph 1(5) of Schedule 18 to the Pensions Act 2014;

  • relevant scheme” means a money purchase scheme that is an occupational pension scheme.

(2)In the Financial Services and Markets Act 2000, after section 137F insert—

137FAFCA general rules: disclosure of information about pension scheme transaction costs etc

(1)The FCA must make general rules requiring information about some or all of the transaction costs of a relevant scheme to be given to some or all of the persons mentioned in subsection (2).

(2)Those persons are—

(a)members of the scheme,

(b)spouses or civil partners of members, and

(c)persons within the application of the scheme and qualifying or prospectively qualifying for its benefits.

(3)The FCA must make general rules requiring the publication of information about—

(a)some or all of the transaction costs of a relevant scheme, and

(b)some or all of the administration charges imposed on members of a relevant scheme.

(4)Rules made by virtue of subsection (3) may require other relevant information to be published along with information about transaction costs or administration charges in relation to a scheme.

(5)Other relevant information” means other information which would or may assist in making comparisons between those costs or charges and costs or charges in relation to other schemes.

(6)Before the FCA publishes a draft of any rules to be made by virtue of this section, it must consult—

(a)the Secretary of State, and

(b)the Treasury.

(7)In determining what provision to include in the rules, the FCA must have regard to any regulations about the disclosure or publication of transaction costs or administration charges that are for the time being in force under section 113 of the Pension Schemes Act 1993.

(8)In this section—

  • administration charge” has the meaning given by paragraph 1(5) of Schedule 18 to the Pensions Act 2014;

  • money purchase scheme” has the meaning given by section 181(1) of the Pension Schemes Act 1993;

  • personal pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;

  • relevant scheme” means a money purchase scheme that is—

    (a)

    a personal pension scheme where direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993) exist in respect of one or more members of the scheme who are workers, or

    (b)

    a personal pension scheme which is or has been registered under section 2 of the Welfare Reform and Pensions Act 1999 (stakeholder pension schemes);

  • worker” means a person—

    (a)

    who is a worker for the purposes of Part 1 of the Pensions Act 2008, or

    (b)

    to whom a provision of Part 1 of that Act applies as if the person were a worker because of a provision of Chapter 8 of that Part;

    but for the purposes of paragraph (b), ignore section 92 of that Act.

Commencement Information

I62S. 44 in force at 18.9.2017 by S.I. 2017/916, reg. 2(1) (with reg. 2(2))

45Power to require pension levies to be paid in respect of past periodsE+W+S

(1)The Secretary of State may by regulations provide for the Pensions Act 2004, and regulations made under it, to have effect, so far as relating to the requirement to pay pension levy, as if the amendments made by the 2010 regulations had always had effect.

(2)Regulations under this section may in particular—

(a)modify the application of the Pensions Act 2004, or regulations made under it, in relation to amounts of pension levy required to be paid because of regulations under this section;

(b)provide for interest to be charged at a specified rate on such amounts (including in respect of periods before the coming into force of regulations under this section).

(3)In this section—

  • the 2010 regulations” means—

    (a)

    regulations 2, 3 and 8 of the Pension Protection Fund and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/196), and

    (b)

    regulation 2 of the Occupational Pension Schemes (Levies) (Amendment) Regulations 2010 (S.I. 2010/1930);

  • pension levy” means—

    (a)

    a levy under regulations made under section 117 of the Pensions Act 2004 (administration levy),

    (b)

    a levy under regulations made under section 174 of that Act (initial levy), or

    (c)

    a levy under section 175 of that Act (pension protection levies).

Commencement Information

I63S. 45 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(g)

46Prohibition and suspension orders: directors of corporate trusteesE+W+S

(1)The Pensions Act 1995 is amended as follows.

(2)After section 3 insert—

3AProhibition orders: directors of corporate trustees etc

(1)A company or Scottish partnership is prohibited from being a trustee of a trust scheme at any time when an individual who is a director of the company or a partner in the partnership is prohibited from being a trustee of the scheme by an order under section 3.

(2)Where a company or partnership which is a trustee of a trust scheme becomes prohibited under subsection (1) in relation to the scheme, that subsection has the effect of removing the company or partnership as a trustee.

(3)The Authority may, on the application of a company or Scottish partnership, give notice in writing to the applicant waiving the prohibition under subsection (1)—

(a)in relation to an individual against whom an order under section 3 has been made, and

(b)either generally or in relation to a particular scheme or particular description of schemes.

(4)A notice may be given under subsection (3) only if the Authority is satisfied that the applicant would be a fit and proper person to be a trustee of the scheme or schemes to which the notice relates despite the individual being, or even if the individual were to become, a director of or partner in the applicant.

(5)A notice given at any time under subsection (3) cannot affect anything done before that time.

(6)An application under subsection (3) may not be made—

(a)during the period within which the determination to exercise the power to make the order against the individual may be referred to the Tribunal under section 96(3) or 99(7) of the Pensions Act 2004 (whether by a company or partnership which became prohibited under subsection (1) on the making of the order or by another person), and

(b)if the determination is so referred, until the reference, and any appeal against the Tribunal's determination, has been finally disposed of.

(7)The Authority must prepare and publish a statement of the policies they intend to adopt in relation to the exercise of their powers under this section.

(8)The Authority may revise any statement published under subsection (7) and must publish any revised statement.

(9)References in this section to an order under section 3 are to an order under that section made on or after the date on which section 46(2) of the Pensions Act 2014 comes fully into force.

(3)Section 4 (Pensions Regulator's power to suspend trustee of occupational pension scheme) is amended as follows.

(4)In subsection (1)(f), after “paragraph” insert “ (aa), ”.

(5)In subsection (2)(a), after “or (aa)” insert “ or, in a case where the Authority would have power to suspend a director or partner under paragraph (aa), by virtue of paragraph (f) ”.

(6)Schedule 19 contains consequential amendments.

Commencement Information

I64S. 46 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(h)

47Preparation of guidance for pensions illustrationsE+W+S

In section 16 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (grants to bodies concerned with accounting standards etc), in subsection (2), after paragraph (o) insert—

(oa)exercising functions under regulations made under section 113(3A) of the Pension Schemes Act 1993 or section 109(3A) of the Pension Schemes (Northern Ireland) Act 1993 (preparing guidance for pensions illustrations);.

48Pensions Regulator's objectivesE+W+S

In section 5(1) of the Pensions Act 2004, after paragraph (c) insert—

(cza)in relation to the exercise of its functions under Part 3 only, to minimise any adverse impact on the sustainable growth of an employer,.

49Maximum period between scheme returns to be 5 years for micro schemesE+W+S

(1)Section 63 of the Pensions Act 2004 is amended as follows.

(2)After subsection (3) insert—

(3A)But subsection (3)(a) has effect as if the reference to three years were a reference to five years if—

(a)the trustees or managers have complied with paragraph (b) of section 62(2),

(b)the information they provided under that paragraph included the number of members of the scheme, and

(c)that number was no more than 4.

(3)After subsection (4) insert—

(4A)But subsection (4)(a) has effect as if the reference to three years were a reference to five years if—

(a)on the date on which the previous scheme return notice was issued, the number of members of the scheme was recorded in the register, and

(b)that number was no more than 4.

Commencement Information

I65S. 49 in force at 11.9.2014 by S.I. 2014/2377, art. 2(1)(a)(i)(2)(i)

50Pension Protection Fund: increased compensation cap for long serviceE+W+S

See Schedule 20 for amendments increasing the Pension Protection Fund compensation cap for people with long pensionable service.

Commencement Information

I66S. 50 in force at 7.3.2017 for specified purposes by S.I. 2017/297, art. 2(a)

I67S. 50 in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 2(b)

51Pension Protection Fund: compensation cap to apply separately to certain benefitsE+W+S

(1)Paragraph 26 of Schedule 7 to the Pensions Act 2004 (Pension Protection Fund: compensation cap) is amended as follows.

(2)In sub-paragraph (1)(b), for “sub-paragraph (2)(a) or (b)” substitute “ sub-paragraph (2)(a), (b) or (c) ”.

(3)In sub-paragraph (2)(a)(ii), for “paragraph (b)(i) does not apply” substitute “ neither of paragraphs (b) and (c) applies ”.

(4)In sub-paragraph (2)(b)—

(a)before paragraph (i) insert—

(zi)benefit A is attributable to the person's pensionable service,;

(b)in paragraph (i), after “one or more other benefits” insert “ that are attributable to his pensionable service ”.

(5)In sub-paragraph (2), after paragraph (b) insert , and

(c)this paragraph applies if—

(i)benefit A is attributable to a pension credit from a transferor,

(ii)at the same time as the person becomes entitled to relevant compensation in respect of benefit A he also becomes entitled to relevant compensation in respect of one or more other benefits that are—

(iia)under the scheme or a connected occupational pension scheme, and

(iib)attributable to a pension credit from the same transferor,

(“benefit or benefits B”), and

(iii)the aggregate of the annual values of benefit A and benefit or benefits B exceeds the compensation cap.

(6)In sub-paragraph (5), after “sub-paragraph (2)(b)” insert “ or (c) ”.

(7)The amendments made by this section are to be treated as always having had effect.

(8)Regulations under paragraph 26(9) of Schedule 7 to the Pensions Act 2004 (modifications for cases where compensation becomes payable on different occasions) made in consequence of this section may be made with retrospective effect.

52Public service pension schemes: transitional arrangementsE+W+S

(1)Section 18 of the Public Service Pensions Act 2013 (restriction of existing pension schemes) is amended as follows.

(2)After subsection (5) insert—

(5A)Scheme regulations may also provide for exceptions to subsection (1) in the case of—

(a)persons who were members of a public body pension scheme specified in the regulations, or who were eligible to be members of such a scheme, immediately before 1 April 2012, and

(b)such other persons as the regulations may specify, being persons who before that date had ceased to be members of a scheme referred to in paragraph (a) or to be eligible for membership of such a scheme.

(3)In each of subsections (6) and (8), after “(5)” insert “ or (5A) ”.

Commencement Information

I68S. 52 in force at 23.7.2014 by S.I. 2014/1965, art. 2

Part 7 U.K.Final provisions

53Power to make consequential amendments etcU.K.

(1)The Secretary of State or the Treasury may by order make consequential, incidental or supplementary provision in connection with any provision made by this Act.

(2)An order under this section may amend, repeal, revoke or otherwise modify any enactment (whenever passed or made).

(3)Enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.

54Regulations and ordersU.K.

(1)Regulations and orders under this Act are to be made by statutory instrument.

(2)A statutory instrument containing (whether alone or with other provisions)—

(a)regulations under section 3, 17, 18(3) or (5), 19, 20, 30, 32 or 34,

(b)the first regulations under section 10,

(c)an order under section 53 that amends or repeals a provision of an Act,

(d)regulations under Schedule 17,

(e)regulations under paragraph 2 of Schedule 18 or regulations under paragraph 7 of that Schedule that amend a provision of an Act, or

(f)the first regulations under paragraph 1 or 3 of that Schedule,

may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(3)Any other statutory instrument containing regulations or an order under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.

(4)Subsection (3) does not apply to a statutory instrument containing an order under section 56(1), (6) or (8) only.

(5)A power to make regulations or an order under this Act may be used—

(a)to make different provision for different purposes;

(b)in relation to all or only some of the purposes for which it may be used.

(6)Regulations or orders under this Act may include incidental, supplementary, consequential, transitional, transitory or saving provision.

55ExtentU.K.

(1)This Act extends to England and Wales and Scotland only, subject to the following provisions of this section.

(2)Any amendment or repeal made by this Act has the same extent as the enactment to which it relates.

(3)This Part extends also to Northern Ireland.

56CommencementU.K.

(1)This Act comes into force on such day or days as the Secretary of State may by order appoint, subject as follows.

(2)The following come into force on the day on which this Act is passed—

(a)section 29;

(b)section 51;

(c)this Part.

(3)The following come into force at the end of the period of 2 months beginning with the day on which this Act is passed—

(a)Part 3 ;

(b)sections 34 and 35;

(c)section 41;

(d)sections 47 and 48;

(e)paragraph 30(2) of Schedule 13.

(4)Part 1 comes into force on 6 April 2016, so far as not brought into force earlier by an order under subsection (1).

(5)The Secretary of State may by order—

(a)amend subsection (4) so as to replace the reference to 6 April 2016 with a later date, and

(b)make corresponding amendments in Part 1 or any enactment amended by it.

(6)Section 52 comes into force on such day or days as the Treasury may by order appoint.

(7)An order under subsection (1) or (6) may appoint different days for different purposes.

(8)The Secretary of State may by order make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act.

57Short titleU.K.

This Act may be cited as the Pensions Act 2014.

SCHEDULES

Section 5

SCHEDULE 1E+W+STransitional rate of state pension: calculating the amount

Part 1 E+W+SIntroduction

1(1)This Schedule sets out how to calculate the amounts used to work out the transitional rate of a person's state pension.E+W+S

(2)Part 2 of the Schedule sets out how to calculate the amount for a person's pre-commencement qualifying years.

(3)Part 3 of the Schedule sets out how to calculate the amount for a person's post-commencement qualifying years (if any).

Commencement Information

I69Sch. 1 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Part 2 E+W+SAmount for pre-commencement qualifying years

How to calculate the amount for pre-commencement qualifying yearsE+W+S

2A person's amount for pre-commencement qualifying years is calculated as follows.

  • Step 1 - calculate the person's pension under the old system Calculate the weekly rate based on the old state pension and graduated retirement benefit (see paragraph 3 for more about this).

  • Step 2 - calculate a pension based on the new system Calculate the weekly rate based on the new state pension (see paragraph 4 for more about this).

  • Step 3 - take whichever rate is higher (the foundation amount) Take whichever of the rates found under Steps 1 and 2 is higher.

  • Step 4 - revalue to date when the person reached pensionable age Revalue the amount of that rate in accordance with paragraph 6.

The amount for the person's pre-commencement qualifying years is the amount as revalued under Step 4.

Commencement Information

I70Sch. 1 para. 2 in force at 6.4.2016, see s. 56(1)(4)

Step 1: calculation of the person's pension under the old systemE+W+S

3(1)For the purposes of Step 1 of the calculation in paragraph 2, the weekly rate based on the old state pension and graduated retirement benefit is—E+W+S

(a)the rate of any Category A retirement pension and graduated retirement benefit to which the person would have been entitled if the person had reached pensionable age on 6 April 2016, or

(b)the rate of any graduated retirement benefit to which the person would have been entitled under section 36(7) of the National Insurance Act 1965 (persons not entitled to retirement pension) if the person had reached pensionable age on that date.

(2)The following rules apply for the purposes of calculating that rate.

(3)Calculate the rate that would have had effect on 6 April 2016 (but see sub-paragraph (6)).

(4)Ignore—

(a)the amendments made by paragraphs 53 and 55 of Schedule 12 (which limit Category A retirement pensions and graduated retirement benefit to people who reach pensionable age before 6 April 2016);

(b)any requirement to make a claim;

(c)any provision suspending payment of, or disqualifying a person from receiving, any amount;

(d)section 45B of the Contributions and Benefits Act (reduction of additional pension because of pension sharing);

(e)section 37 of the National Insurance Act 1965 (graduated retirement benefit for widows etc).

(5)Read the reference in section 45(4)(b) of the Contributions and Benefits Act (additional pension) to a person's working life as a reference to the period—

(a)beginning with the tax year in which the person reached 16, and

(b)ending with the tax year before the one in which the person actually reached pensionable age.

(6)If an order under section 150 or 150A of the Administration Act (up-rating) is made before 6 April 2016 and it provides for an increase to come into force after that date, it is to be treated for the purposes of calculating the rate under this paragraph as having already come into force.

(7)Where regulations under section 22(5ZA) of the Contributions and Benefits Act have the effect that a person is credited, on or after 6 April 2016, with earnings or contributions for a tax year starting before that date, the earnings or contributions are to be treated for the purposes of calculating the rate under this paragraph as having been credited before 6 April 2016.

(8)A determination under section 48A(2) of the Pension Schemes Act 1993 (contracting-out: reinstatement in state scheme following payment of contributions equivalent premium) made on or after 6 April 2016 is to be treated for the purposes of calculating the rate under this paragraph as having been made before 6 April 2016.

Commencement Information

I71Sch. 1 para. 3 in force at 6.4.216, see s. 56(1)(4)

Step 2: calculation of a pension based on the new systemE+W+S

4(1)For the purposes of Step 2 of the calculation in paragraph 2, the weekly rate based on the new state pension is as follows.E+W+S

(2)If the person has 35 or more pre-commencement qualifying years, the rate is equal to—

(a)the full rate of the state pension on 6 April 2016, less

(b)any amount to reflect contracting out under the old system (see paragraph 5).

(3)If the person has fewer than 35 pre-commencement qualifying years, the rate is equal to—

(a)the appropriate proportion of the full rate of the state pension on 6 April 2016, less

(b)any amount to reflect contracting out under the old system (see paragraph 5).

(4)The “appropriate proportion”, in relation to a person, is—

Commencement Information

I72Sch. 1 para. 4 in force at 6.4.216, see s. 56(1)(4)

5(1)In paragraph 4(2) and (3) references to an “amount to reflect contracting out under the old system” are to an amount equal to any difference between—E+W+S

(a)the amount of any additional pension included in the Category A retirement pension calculated for the purposes of Step 1 of the calculation in paragraph 2, and

(b)the amount of any additional pension that would have been included if—

(i)sections 46 and 48A of the Pension Schemes Act 1993 were ignored, and

(ii)for the purposes of calculating the amounts referred to in section 45(2)(c) and (d) of the Contributions and Benefits Act any earnings paid to or for the benefit of the person in respect of contracted-out employment were treated as if they were not in respect of contracted-out employment.

(2)Contracted-out employment” means employment qualifying a person for a pension provided by a salary related contracted-out scheme, a money purchase contracted-out scheme or an appropriate personal pension scheme (and expressions used in this definition have the same meaning as in the Pension Schemes Act 1993).

Commencement Information

I73Sch. 1 para. 5 in force at 6.4.216, see s. 56(1)(4)

Step 4: revaluationE+W+S

6(1)This paragraph determines how the amount mentioned in Step 4 of the calculation in paragraph 2 is to be revalued for the purposes of that Step.E+W+S

(2)If the amount is equal to or less than the full rate of the state pension on 6 April 2016, the amount is to be revalued in accordance with increases in the full rate of the state pension (see sub-paragraph (4)).

(3)If the amount is greater than the full rate of the state pension on 6 April 2016—

(a)so much of the amount as is equal to the full rate of the state pension on 6 April 2016 is to be revalued in accordance with increases in the full rate of the state pension (see sub-paragraph (4)), and

(b)so much of the amount as exceeds the full rate of the state pension on that date is to be revalued in accordance with increases in the general level of prices (see sub-paragraph (5)).

(4)For the purposes of sub-paragraphs (2) and (3)(a), an amount is revalued in accordance with increases in the full rate of the state pension by increasing it by the same percentage as any increase in the full rate of the state pension in the period—

(a)beginning with 6 April 2016, and

(b)ending with the day on which the person reached pensionable age.

(5)For the purposes of sub-paragraph (3)(b), an amount is revalued in accordance with increases in the general level of prices by adding—

(a)the amount, and

(b)the amount multiplied by the revaluing percentage specified in the last order under section 148AC(3) of the Administration Act to come into force before the person reached pensionable age.

Commencement Information

I74Sch. 1 para. 6 in force at 6.4.216, see s. 56(1)(4)

Part 3 E+W+SAmount for post-commencement qualifying years

7(1)A person's amount for post-commencement qualifying years (if any) is calculated as follows.E+W+S

(2)If the person has 35 or more post-commencement qualifying years, the amount is equal to the full rate of the state pension on the day on which the person reached pensionable age.

(3)If the person has fewer than 35 post-commencement qualifying years, the amount is equal to the following proportion of the full rate of the state pension on the day on which the person reached pensionable age—

Commencement Information

I75Sch. 1 para. 7 in force at 6.4.216, see s. 56(1)(4)

Section 5

SCHEDULE 2E+W+STransitional rate of state pension: up-rating

1This Schedule sets out how to up-rate the transitional rate of a person's state pension.

Commencement Information

I76Sch. 2 para. 1 in force at 6.4.2016, see s. 56(1)(4)

2In this Schedule a reference to the transitional rate of a person's state pension is to the rate—

(a)taking into account any reduction under section 14, but

(b)ignoring any increase under section 17.

Commencement Information

I77Sch. 2 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3(1)The transitional rate of a person's state pension is to be increased under this paragraph if it is equal to or less than the full rate.E+W+S

(2)If at any time the full rate of the state pension is increased, the person's transitional rate is increased (at that time) by the same percentage as the increase in the full rate.

Commencement Information

I78Sch. 2 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4(1)The transitional rate of a person's state pension is to be increased under this paragraph if it exceeds the full rate.E+W+S

(2)If at any time the full rate of the state pension is increased, the person's transitional rate is increased (at that time) by the same amount as the amount by which the full rate is increased.

(3)If at any time an order under section 151A of the Administration Act comes into force, the person's transitional rate is increased (at that time) by an amount equal to the appropriate percentage of the excess.

(4)In sub-paragraph (3)—

  • the appropriate percentage” means the percentage specified in the order, and

  • the excess” means the amount by which the transitional rate exceeded the full rate immediately before the order came into force.

Modifications etc. (not altering text)

C15Sch. 2 para. 4(3) sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(b)

C16Sch. 2 para. 4(3) sums amended (with effect in accordance with art. 1(3)(4) 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(b)

C17Sch. 2 para. 4(3) sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(b)

Commencement Information

I79Sch. 2 para. 4 in force at 6.4.2016, see s. 56(1)(4)

Section 7

SCHEDULE 3E+W+SSurvivor's pension under section 7: inherited amount

IntroductionE+W+S

1This Schedule—

(a)sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited amount for the purpose of section 7, and

(b)determines that amount.

Commencement Information

I80Sch. 3 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Dead spouse or civil partner in old state pension system etcE+W+S

2(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the spouse or civil partner died before 6 April 2016,

(c)the pensioner was under pensionable age when the spouse or civil partner died, and

(d)the pensioner would, on reaching pensionable age, have been entitled to a Category B retirement pension under section 48B(4) or (4A) or 48BB of the Contributions and Benefits Act if the words “before 6 April 2016” were omitted.

(2)The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the pensioner reached pensionable age if any element of the rate attributable to the basic pension were ignored.

Commencement Information

I81Sch. 3 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the spouse or civil partner reached pensionable age before 6 April 2016 but died on or after that date,

(c)the pensioner was under pensionable age when the spouse or civil partner died, and

(d)the pensioner would, on reaching pensionable age, have been entitled to a Category B retirement pension under section 48BB of the Contributions and Benefits Act if in subsection (3) of that section: (i) the words “before 6 April 2016” were omitted, and (ii) the reference to a bereavement allowance were a reference to bereavement support payment under section 30 of this Act.

(2)The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the pensioner reached pensionable age if section 48BB(8) and (9) of the Contributions and Benefits Act were ignored.

Commencement Information

I82Sch. 3 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the spouse or civil partner reached pensionable age before 6 April 2016 but died on or after that date,

(c)the pensioner was over pensionable age when the spouse or civil partner died, and

(d)the pensioner would, when the spouse or civil partner died, have been entitled to a Category B retirement pension under section 48B(1) or (1A) of the Contributions and Benefits Act if the words “before 6 April 2016” were omitted.

(2)The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the spouse or civil partner died if any element of the rate attributable to the basic pension were ignored.

Commencement Information

I83Sch. 3 para. 4 in force at 6.4.2016, see s. 56(1)(4)

Dead spouse or civil partner in new state pension systemE+W+S

5(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the pensioner was over pensionable age when the spouse or civil partner died,

(c)the spouse or civil partner was, immediately before his or her death, entitled to a state pension payable at the transitional rate, and

(d)that transitional rate exceeded the full rate of the state pension.

(2)The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner exceeded the full rate of the state pension immediately before the death.

Commencement Information

I84Sch. 3 para. 5 in force at 6.4.2016, see s. 56(1)(4)

6(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the pensioner was under pensionable age when the spouse or civil partner died,

(c)the spouse or civil partner was, immediately before his or her death, entitled to a state pension payable at the transitional rate,

(d)that transitional rate exceeded the full rate of the state pension, and

(e)the pensioner did not marry or form a civil partnership after the death and before reaching pensionable age.

(2)The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had been alive on the day on which the pensioner reached pensionable age.

Commencement Information

I85Sch. 3 para. 6 in force at 6.4.2016, see s. 56(1)(4)

7(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the pensioner was over pensionable age when the spouse or civil partner died,

(c)the spouse or civil partner was under pensionable age when he or she died but would have been entitled to a state pension payable at the transitional rate if he or she had reached pensionable age on the day of the death, and

(d)that transitional rate would have exceeded the full rate of the state pension.

(2)The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the day of the death.

Commencement Information

I86Sch. 3 para. 7 in force at 6.4.2016, see s. 56(1)(4)

8(1)A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if—E+W+S

(a)the marriage took place or the civil partnership was formed before 6 April 2016,

(b)the pensioner was under pensionable age when the spouse or civil partner died,

(c)the spouse or civil partner died on or after 6 April 2016,

(d)the spouse or civil partner was under pensionable age when he or she died,

(e)the spouse or civil partner would have been entitled to a state pension payable at the transitional rate if he or she had reached pensionable age on the same day as the pensioner,

(f)that transitional rate would have exceeded the full rate of the state pension, and

(g)the pensioner did not marry or form a civil partnership after the death and before reaching pensionable age.

(2)The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the same day as the pensioner.

Commencement Information

I87Sch. 3 para. 8 in force at 6.4.2016, see s. 56(1)(4)

SupplementaryE+W+S

9When determining entitlement to, or calculating, an inherited amount under this Schedule based on entitlement to an old state pension or a state pension under this Part of this Act ignore—

(a)any requirement to make a claim for that pension;

(b)any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.

Commencement Information

I88Sch. 3 para. 9 in force at 6.4.2016, see s. 56(1)(4)

Section 7

SCHEDULE 4E+W+SSurvivor's pension under section 7: up-rating

IntroductionE+W+S

1This Schedule sets out how to up-rate the rate of a person's state pension under section 7.

Commencement Information

I89Sch. 4 para. 1 in force at 6.4.2016, see s. 56(1)(4)

2In this Schedule a reference to the rate of a person's state pension is to the rate—

(a)ignoring any reduction under section 7(4) (in the case of a state pension under section 7),

(b)taking into account any reduction under section 14 (in the case of a state pension under section 4), and

(c)ignoring any increase under section 17.

Commencement Information

I90Sch. 4 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3In this Schedule a reference to “the amount of any state pension that has priority” means the rate of any state pension to which the person is entitled under section 2, 4 or 12.

Commencement Information

I91Sch. 4 para. 3 in force at 6.4.2016, see s. 56(1)(4)

Rate of section 7 pension, when added to any priority pension, is less than the full rateE+W+S

4(1)The rate of the person's state pension under section 7 is to be increased under this paragraph if, when added to the amount of any state pension that has priority, it is equal to or less than the full rate of the state pension.E+W+S

(2)If at any time the full rate is increased, the rate of the person's state pension under section 7 is increased (at that time) by the same percentage as the increase in the full rate.

Commencement Information

I92Sch. 4 para. 4 in force at 6.4.2016, see s. 56(1)(4)

Rate of section 7 pension, when added to any priority pension, straddles the full rateE+W+S

5(1)The rate of the person's state pension under section 7 is to be increased under this paragraph if—E+W+S

(a)the amount of any state pension that has priority is less than the full rate of the state pension, but

(b)the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate.

(2)If at any time the full rate of the state pension is increased, the rate of the person's state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3)If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force.

(4)In this paragraph—

  • “the appropriate percentage”—

    (a)

    in sub-paragraph (2), means the percentage by which the full rate is increased;

    (b)

    in sub-paragraph (3), means the percentage specified in the order;

  • the excess” means the amount by which the rate of the state pension under section 7, when added to the amount of any state pension that has priority, exceeds the full rate;

  • the shortfall” means the amount by which the amount of any state pension that has priority is less than the full rate.

Modifications etc. (not altering text)

C18Sch. 4 para. 5(3) sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(c)

C19Sch. 4 para. 5(3) sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(c)

C20Sch. 4 para. 5(3) sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(c)

Commencement Information

I93Sch. 4 para. 5 in force at 6.4.2016, see s. 56(1)(4)

Prospective

Priority pension alone is equal to or higher than the full rateE+W+S

6(1)The rate of the person's state pension under section 7 is to be increased under this paragraph if the amount of any state pension that has priority is equal to or higher than the full rate of the state pension.E+W+S

(2)If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 7 is increased (at that time) by the percentage specified in the order.

Modifications etc. (not altering text)

C21Sch. 4 para. 6 sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(c)

C22Sch. 4 para. 6 sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(c)

C23Sch. 4 para. 6 sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(c)

Section 9

SCHEDULE 5E+W+SSurvivor's pension under section 9: inherited deferral amount

IntroductionE+W+S

1This Schedule—

(a)sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited deferral amount for the purpose of section 9, and

(b)determines that amount.

Commencement Information

I94Sch. 5 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Dead spouse or civil partner entitled to old state pension with deferral increaseE+W+S

2(1)A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—E+W+S

(a)the spouse or civil partner was entitled to an old state pension with an increase under paragraph 1 or 2A of Schedule 5 to the Contributions and Benefits Act, and

(b)the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.

(2)The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3)For the purposes of calculating the amount of that increase, paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

Commencement Information

I95Sch. 5 para. 2 in force at 6.4.2016, see s. 56(1)(4)

Dead spouse or civil partner's entitlement to old state pension deferred at time of deathE+W+S

3(1)A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if—E+W+S

(a)the spouse or civil partner's entitlement to an old state pension was deferred when he or she died, and

(b)the pensioner would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.

(2)The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount.

(3)For the purposes of calculating the amount of that increase—

(a)a pensioner who is not entitled to a choice under section 8 is to be treated as having met the condition in paragraph 4(1)(c) of Schedule 5 to the Contributions and Benefits Act,

(b)a pensioner who has chosen under section 8 to be paid a state pension under section 9 is to be treated as having met the condition in paragraph 4(1)(b) of Schedule 5 to the Contributions and Benefits Act, and

(c)paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “ this paragraph and ”.

(4)In this paragraph “deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act.

Commencement Information

I96Sch. 5 para. 3 in force at 6.4.2016, see s. 56(1)(4)

“The relevant provisions” of the Contributions and Benefits ActE+W+S

4For the purposes of this Schedule “the relevant provisions” of the Contributions and Benefits Act are those mentioned in section 8(9)(b).

Commencement Information

I97Sch. 5 para. 4 in force at 6.4.2016, see s. 56(1)(4)

SupplementaryE+W+S

5When determining entitlement to, or calculating, an inherited deferral amount under this Schedule based on entitlement to an old state pension ignore—

(a)any requirement to make a claim for that pension;

(b)any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.

Commencement Information

I98Sch. 5 para. 5 in force at 6.4.2016, see s. 56(1)(4)

Section 11

SCHEDULE 6E+W+SReduced rate elections: effect on rate of section 4 pension

IntroductionE+W+S

1This Schedule modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period (and expressions used in this paragraph have the same meaning as in section 11).

Commencement Information

I99Sch. 6 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Increased transitional rate for woman married to person over pensionable age etcE+W+S

2(1)This paragraph applies to the woman if on reaching pensionable age—E+W+S

(a)she is married to a person who has reached pensionable age, or

(b)she is in a civil partnership with a person who has reached that age.

(2)The transitional rate of the state pension for the woman is—

(a)the rate determined for her under section 5, or

(b)if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3)The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the basic Category B amount.

(4)“The basic Category B amount” is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on 6 April 2016.

(5)To find out what happens if the marriage or civil partnership comes to an end, see paragraph 4.

Commencement Information

I100Sch. 6 para. 2 in force at 6.4.2016, see s. 56(1)(4)

Increased transitional rate for widows or divorcees etcE+W+S

3(1)This paragraph applies to the woman if on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before.E+W+S

(2)The transitional rate of the state pension for the woman is—

(a)the rate determined for her under section 5, or

(b)if higher, a weekly rate equal to the modified amount for her pre-commencement qualifying years alone.

(3)The modified amount for the woman's pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the full amount of the basic pension.

(4)“The full amount of the basic pension” is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on 6 April 2016.

Commencement Information

I101Sch. 6 para. 3 in force at 6.4.2016, see s. 56(1)(4)

Recalculation of transitional rate where circumstances changeE+W+S

4If the woman is married or in a civil partnership on reaching pensionable age but the marriage or civil partnership comes to an end (because of the death of her spouse or civil partner or otherwise)—

(a)her transitional rate is to be recalculated applying paragraph 3(2), and

(b)Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

Commencement Information

I102Sch. 6 para. 4 in force at 6.4.2016, see s. 56(1)(4)

5(1)If neither of paragraphs 2 and 3 apply to the woman but she subsequently comes within paragraph (a) or (b) of paragraph 2(1)—E+W+S

(a)her transitional rate is to be recalculated applying paragraph 2(2), and

(b)Schedule 2 (up-rating) applies as if the recalculated rate had been the woman's transitional rate on the day on which she reached pensionable age.

(2)But the woman's rate is not to be recalculated under sub-paragraph (1) if it has already been recalculated under paragraph 4.

Commencement Information

I103Sch. 6 para. 5 in force at 6.4.2016, see s. 56(1)(4)

6Nothing in paragraph 4 or 5 affects—

(a)the amount of state pension to which a woman is entitled for periods before that paragraph applies to her, or

(b)the amount of any increase under section 17 in a case where the period for which the woman's state pension is deferred has ended before that paragraph applies to her.

Commencement Information

I104Sch. 6 para. 6 in force at 6.4.2016, see s. 56(1)(4)

Section 12

SCHEDULE 7E+W+SReduced rate elections: basic amount of state pension under section 12

1This Schedule—

(a)sets out the circumstances in which a woman is entitled to a basic amount for the purpose of section 12, and

(b)determines that basic amount.

Commencement Information

I105Sch. 7 para. 1 in force at 6.4.2016, see s. 56(1)(4)

2(1)A woman is entitled to a basic amount under this paragraph if she has reached pensionable age and—E+W+S

(a)she is married to a person who has reached pensionable age, or

(b)she is in a civil partnership with a person who has reached that age.

(2)The basic amount is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

Commencement Information

I106Sch. 7 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3(1)A woman is entitled to a basic amount under this paragraph if—E+W+S

(a)on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before, or

(b)on reaching pensionable age she was married or in a civil partnership and the marriage or civil partnership has come to an end (because of the death of her spouse or civil partner or otherwise).

(2)The basic amount is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.

Commencement Information

I107Sch. 7 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4A woman who is entitled to a basic amount under paragraph 3 is not entitled to a basic amount under paragraph 2.

Commencement Information

I108Sch. 7 para. 4 in force at 6.4.2016, see s. 56(1)(4)

Section 13

SCHEDULE 8E+W+SPension sharing: appropriate weekly rate under section 13

IntroductionE+W+S

1This Schedule sets out the appropriate weekly rate of a person's state pension under section 13.

Commencement Information

I109Sch. 8 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Appropriate weekly rate for pensioner with old state scheme pension creditE+W+S

2(1)This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of an old state scheme pension credit.E+W+S

(2)If the person became entitled to the old state scheme pension credit in or after the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate.

(3)If the person became entitled to the old state scheme pension credit before the final relevant year, the appropriate weekly rate is a weekly rate equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4)For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 13 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension credit.

(5)For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a)the day on which the person reaches pensionable age, and

(b)the valuation day.

(6)The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became entitled to the old state scheme pension credit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

(7)In this paragraph—

  • final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

  • valuation day” means the day on which the person became entitled to the old state scheme pension credit.

Commencement Information

I110Sch. 8 para. 2 in force at 6.4.2016, see s. 56(1)(4)

Appropriate weekly rate for pensioner with new state scheme pension creditE+W+S

3(1)This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of a new state scheme pension credit.E+W+S

(2)If the person was over pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit.

(3)If the person was under pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit multiplied by the appropriate revaluation percentage.

(4)The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became entitled to the new state scheme pension credit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.

Commencement Information

I111Sch. 8 para. 3 in force at 6.4.2016, see s. 56(1)(4)

SupplementaryE+W+S

4(1)Regulations may make provision about the calculation and verification of notional rates under paragraph 2.E+W+S

(2)The regulations may, in particular, provide—

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

(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 specified in the regulations.

Commencement Information

I112Sch. 8 para. 4 in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(i)

I113Sch. 8 para. 4 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

Section 13

SCHEDULE 9E+W+SPension sharing: up-rating state pension under section 13

IntroductionE+W+S

1This Schedule sets out how to up-rate the rate of a person's state pension under section 13.

Commencement Information

I114Sch. 9 para. 1 in force at 6.4.2016, see s. 56(1)(4)

2In this Schedule a reference to the rate of a person's state pension is to the rate—

(a)ignoring any reduction under section 7(4) (in the case of a state pension under section 7),

(b)taking into account any reduction under section 14 (in the case of a state pension under section 4), and

(c)ignoring any increase under section 17.

Commencement Information

I115Sch. 9 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3(1)In this Schedule “the total amount of any state pension that has priority”, in relation to a person's state pension under section 13, means the sum of—E+W+S

(a)the rate of any state pension to which the person is entitled under section 2, 4 or 12,

(b)the rate of any state pension to which the person is entitled under section 7, F4...

[F5(ba)the rate of any state pension to which the person is entitled under regulations made under section 10 which make provision corresponding or similar to section 7 and Schedules 3 and 4, and]

(c)the rate of any earlier state pension to which the person is entitled under section 13 (see sub-paragraph (2)).

(2)Where a person is entitled to two or more state pensions under section 13 because he or she has become entitled to two or more state scheme pension credits, a pension arising because of an earlier credit is an “earlier” state pension for the purposes of sub-paragraph (1)(c).

Textual Amendments

Commencement Information

I116Sch. 9 para. 3 in force at 6.4.2016, see s. 56(1)(4)

Rate of section 13 pension, when added to any priority pension, is less than the full rateE+W+S

4(1)The rate of the person's state pension under section 13 is to be increased under this paragraph if, when added to the total amount of any state pension that has priority, it is equal to or less than the full rate of the state pension.E+W+S

(2)If at any time the full rate is increased, the rate of the person's state pension under section 13 is increased (at that time) by the same percentage as the increase in the full rate.

Commencement Information

I117Sch. 9 para. 4 in force at 6.4.2016, see s. 56(1)(4)

Rate of section 13 pension, when added to any priority pension, straddles the full rateE+W+S

5(1)The rate of the person's state pension under section 13 is to be increased under this paragraph if—E+W+S

(a)the total amount of any state pension that has priority is less than the full rate of the state pension, but

(b)the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate.

(2)If at any time the full rate of the state pension is increased, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time.

(3)If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force.

(4)In this paragraph—

  • “the appropriate percentage”—

    (a)

    in sub-paragraph (2), means the percentage by which the full rate is increased;

    (b)

    in sub-paragraph (3), means the percentage specified in the order;

  • the excess” means the amount by which the rate of the state pension under section 13, when added to the total amount of any state pension that has priority, exceeds the full rate;

  • the shortfall” means the amount by which the total amount of any state pension that has priority is less than the full rate.

Modifications etc. (not altering text)

C24Sch. 9 para. 5(3) sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(d)

C25Sch. 9 para. 5(3) sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(d)

C26Sch. 9 para. 5(3) sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(d)

Commencement Information

I118Sch. 9 para. 5 in force at 6.4.2016, see s. 56(1)(4)

Priority pension alone is equal to or higher than the full rateE+W+S

6(1)The rate of the person's state pension under section 13 is to be increased under this paragraph if the total amount of any state pension that has priority is equal to or higher than the full rate of the state pension.E+W+S

(2)If at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under section 13 is increased (at that time) by the percentage specified in the order.

Modifications etc. (not altering text)

C27Sch. 9 para. 6 sums amended (with effect in accordance with arts. 1(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2017 (S.I. 2017/260), arts. 1(2)(c), 6(4)(d)

C28Sch. 9 para. 6 sums amended (with effect in accordance with arts. 1(3)(4), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2018 (S.I. 2018/281), arts. 1(2)(c), 6(4)(d)

C29Sch. 9 para. 6 sums amended (with effect in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2019 (S.I. 2019/480), arts. 1(3)(c), 6(4)(d)

Commencement Information

I119Sch. 9 para. 6 in force at 6.4.2016, see s. 56(1)(4)

Section 14

SCHEDULE 10E+W+SPension sharing: appropriate weekly reduction under section 14

IntroductionE+W+S

1This Schedule sets out the appropriate weekly reduction in the rate of a person's state pension for the purposes of section 14.

Commencement Information

I120Sch. 10 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Appropriate weekly reduction for person subject to old state scheme pension debitE+W+S

2(1)This paragraph sets out the appropriate weekly reduction if the person is subject to an old state scheme pension debit.E+W+S

(2)If the person became subject to the old state scheme pension debit in or after the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate.

(3)If the person became subject to the old state scheme pension debit before the final relevant year, the appropriate weekly reduction is an amount equal to the person's notional rate multiplied by the appropriate revaluation percentage.

(4)For the purposes of sub-paragraphs (2) and (3), a person's “notional rate” is the weekly rate of a notional pension under section 4 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension debit.

(5)For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of—

(a)the day on which the person reaches pensionable age, and

(b)the valuation day.

(6)The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became subject to the old state scheme pension debit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year.

(7)In this paragraph—

  • final relevant year” means the tax year immediately before that in which the person reaches pensionable age;

  • valuation day” means the day on which the person became subject to the old state scheme pension debit.

Commencement Information

I121Sch. 10 para. 2 in force at 6.4.2016, see s. 56(1)(4)

Appropriate weekly reduction for person subject to new state scheme pension debitE+W+S

3(1)This paragraph sets out the appropriate weekly reduction if the person is subject to a new state scheme pension debit.E+W+S

(2)If the person was over pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit.

(3)If the person was under pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit multiplied by the appropriate revaluation percentage.

(4)The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became subject to the new state scheme pension debit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.

Commencement Information

I122Sch. 10 para. 3 in force at 6.4.2016, see s. 56(1)(4)

SupplementaryE+W+S

4(1)Regulations may make provision about the calculation and verification of notional rates under paragraph 2.E+W+S

(2)The regulations may, in particular, provide—

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

(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 specified in the regulations.

Commencement Information

I123Sch. 10 para. 4 in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(j)

I124Sch. 10 para. 4 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

Section 15

SCHEDULE 11E+W+SPension sharing: amendments

Family Law (Scotland) Act 1985 (c. 37)E+W+S

1In section 27 of the Family Law (Scotland) Act 1985 (interpretation), in subsection (1), in the definition of “relevant state scheme rights”—

(a)before paragraph (a) insert—

(za)shareable new state scheme rights, within the meaning given by section 47(3) of the Welfare Reform and Pensions Act 1999 or corresponding Northern Ireland legislation;;

(b)in paragraph (b) after “55A” insert “ or 55AA ”.

Commencement Information

I125Sch. 11 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

2The Contributions and Benefits Act is amended as follows.

Commencement Information

I126Sch. 11 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3In section 21 (contribution conditions), in subsection (1), after “section 55A” insert “ or 55AA ”.

Commencement Information

I127Sch. 11 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4In section 43 (persons entitled to more than one retirement pension), in subsection (6), after “section 55A” insert “ or 55AA ”.

Commencement Information

I128Sch. 11 para. 4 in force at 6.4.2016, see s. 56(1)(4)

5(1)Section 55A (shared additional pension) is amended as follows.E+W+S

(2)For subsection (1) substitute—

(1)A person is entitled to a shared additional pension under this section if—

(a)the person attained pensionable age before 6 April 2016, and

(b)the person is entitled to an old state scheme pension credit.

(3)In subsections (2) and (3), after “shared additional pension” insert “ under this section ”.

(4)In subsections (3), (4), (5) and (7) before “state scheme pension credit” (in each place) insert “ old ”.

(5)At the end of the heading insert “ because of an old state scheme pension credit ”.

Commencement Information

I129Sch. 11 para. 5 in force at 6.4.2016, see s. 56(1)(4)

6After section 55A insert—

55AAShared additional pension because of a new state scheme pension credit

(1)A person is entitled to a shared additional pension under this section if—

(a)the person reached pensionable age before 6 April 2016, and

(b)the person is entitled to a new state scheme pension credit.

(2)A person's entitlement to a shared additional pension under this section continues throughout his or her life.

(3)The weekly rate of a shared additional pension under this section is equal to the amount of the new state scheme pension credit.

(4)In this section “new state scheme pension credit” means a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999.

Commencement Information

I130Sch. 11 para. 6 in force at 6.4.2016, see s. 56(1)(4)

7(1)Section 55B (reduction of additional pension in Category A retirement pension: pension sharing) is amended as follows.E+W+S

(2)In subsection (1)(a), for “a” substitute “ an old ”.

(3)In subsection (5), for “55A above” substitute “ 55A or 55AA (as the case may be) ”.

(4)In subsection (8), in the definition of “state scheme pension debit”, before “state” insert “ old ”.

Commencement Information

I131Sch. 11 para. 7 in force at 6.4.2016, see s. 56(1)(4)

Social Security Administration Act 1992 (c. 5)E+W+S

8In the Administration Act, after section 148AC (inserted by Schedule 12 to this Act) insert—

148ADRevaluation of new state scheme pension debits and credits

(1)The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place.

(2)The Secretary of State must make an order under this section if on a review it appears to the Secretary of State that, having regard to earlier orders under this section, relevant debits or credits have not, during the review period, maintained their value in relation to the general level of prices.

(3)An order under this section is an order directing that, for the purposes of paragraph 3 of each of Schedules 8 and 10 to the Pensions Act 2014, the amount of the relevant debits or credits are to be increased by such percentage of their amount, apart from earlier orders under this section, as the Secretary of State thinks necessary to make up the fall in their value during the review period together with other falls in their value which had been made up by earlier orders under this section.

(4)This section does not require the Secretary of State to direct an increase if it appears to the Secretary of State that the increase would be inconsiderable.

(5)If on a review the Secretary of State determines that no order under this section is required, the Secretary of State must lay before Parliament a report explaining the reasons for arriving at that determination.

(6)For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit.

(7)In this section “relevant debits or credits” means—

(a)a debit under section 49A(2)(a) of the Welfare Reform and Pensions Act 1999 to which a person became subject before the tax year to which the review relates, or

(b)a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999 to which a person became entitled before the tax year to which the review relates.

Commencement Information

I132Sch. 11 para. 8 in force at 6.4.2016, see s. 56(1)(4)

Welfare Reform and Pensions Act 1999 (c. 30)E+W+S

9The Welfare Reform and Pensions Act 1999 is amended as follows.

Commencement Information

I133Sch. 11 para. 9 in force at 6.4.2016, see s. 56(1)(4)

10(1)Section 47 (shareable state scheme rights) is amended as follows.E+W+S

(2)After subsection (1) insert—

(1A)For the purposes of this Chapter, a person's shareable state scheme rights are—

(a)the person's shareable old state scheme rights;

(b)the person's shareable new state scheme rights.

(3)In subsection (2)—

(a)after “shareable” insert “ old ”;

(b)in paragraph (b), after “55A” insert “ or 55AA ”.

(4)After subsection (2) insert—

(3)For the purposes of this Chapter, a person's shareable new state scheme rights are the person's entitlement, or prospective entitlement, to the excess amount in a state pension under section 4 of the Pensions Act 2014.

(4)The excess amount”, in relation to a state pension under section 4 of the Pensions Act 2014, means any amount by which the rate of the pension exceeds the full rate of the state pension (see section 3 of that Act).

(5)In determining the rate of a state pension under section 4 of the Pensions Act 2014 for the purposes of this Chapter, ignore Schedule 6 to that Act (reduced rate elections: effect on rate of section 4 pension).

Commencement Information

I134Sch. 11 para. 10 in force at 6.4.2016, see s. 56(1)(4)

11In section 48 (activation of benefit sharing), in subsection (1), for the words from the beginning to “shareable state scheme rights” substitute “ Section 49 or 49A applies where any of the following has taken effect in relation to a person's shareable state scheme rights ”.

Commencement Information

I135Sch. 11 para. 11 in force at 5.2.2015 for specified purposes by S.I. 2015/134, art. 2(1)(4)(k)

I136Sch. 11 para. 11 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

12(1)Section 49 (creation of state scheme pension debits and credits) is amended as follows.E+W+S

(2)For subsection (1) substitute—

(A1)This section applies if—

(a)the transferor is in the old state pension system, or

(b)the transferor is in the new state pension system but the transfer day was before 6 April 2016.

(1)Where this section applies because of a relevant order or provision—

(a)the transferor is subject, for the purposes of the relevant state pension legislation, to a debit of the appropriate amount, and

(b)the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of that amount.

(3)In subsection (2), after “shareable” insert “ old ”.

(4)In subsection (3)(b), for “relevant” substitute “ shareable old ”.

(5)After subsection (5) insert—

(5A)The fact that a person who reaches pensionable age on or after 6 April 2016 is not entitled to a pension of the kind mentioned in section 47(2)(a) or (b) does not affect the calculation under this section of the appropriate amount by reference to the transferor's prospective entitlement, immediately before the transfer day, to a pension of that kind.

(6)In subsection (6), at the appropriate place insert—

“the relevant state pension legislation”—

(a)in relation to a transferor or transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and

(b)in relation to a transferor or transferee in the new state pension system, means Part 1 of the Pensions Act 2014.

(7)At the end of the heading insert “ : transferor in old state pension system or pension sharing activated before 6 April 2016 ”.

Commencement Information

I137Sch. 11 para. 12 in force at 6.4.2016, see s. 56(1)(4)

13After section 49 insert—

49ACreation of debits and credits: transferor in new state pension system and sharing activated on or after 6 April 2016

(1)This section applies if—

(a)the transferor is in the new state pension system, and

(b)the transfer day is 6 April 2016 or any later date.

(2)Where this section applies because of a relevant order or provision—

(a)the transferor is subject, for the purposes of section 14 of the Pensions Act 2014, to a debit of the shared weekly amount, and

(b)the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of the shared weekly amount.

(3)The shared weekly amount is the specified percentage of the excess amount of the transferor's state pension under section 4 of the Pensions Act 2014 as at the transfer day.

(4)For the purposes of calculating the shared weekly amount—

(a)a transferor who is under pensionable age on the transfer day is to be treated as having reached pensionable age and to have become entitled to the state pension under section 4 of the Pensions Act 2014 on the transfer day;

(b)a transferor who has reached pensionable age on the transfer day but who has not yet become entitled to the state pension under section 4 of the Pensions Act 2014 is to be treated as having become entitled to the pension on that day.

(5)In this section—

  • the excess amount” has the meaning given by section 47(4);

  • relevant order or provision” means the order or provision by virtue of which this section applies (see section 48);

  • “the relevant state pension legislation”—

    (a)

    in relation to a transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and

    (b)

    in relation to a transferee in the new state pension system, means Part 1 of the Pensions Act 2014;

  • specified percentage” means the percentage specified in the relevant order or provision for the purposes of subsection (3);

  • 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.

Commencement Information

I138Sch. 11 para. 13 in force at 6.4.2016, see s. 56(1)(4)

14(1)Section 51 (interpretation) is amended as follows.E+W+S

(2)The current text becomes subsection (1).

(3)In that subsection for the definition of “shareable state scheme rights” substitute—

“shareable state scheme rights”, and related expressions, have the meaning given by section 47;.

(4)After that subsection insert—

(2)For the purposes of this Chapter—

(a)a person is in the old state pension system if the person reached pensionable age before 6 April 2016 (or would have done so if the person had lived until pensionable age), and

(b)a person is in the new state pension system if the person reached pensionable age on or after 6 April 2016 (or will do so if the person lives until pensionable age).

Commencement Information

I139Sch. 11 para. 14 in force at 6.4.2016, see s. 56(1)(4)

State Pension Credit Act 2002 (c. 16)E+W+S

15In section 16 of the State Pension Credit Act 2002 (meaning of “retirement pension income”), in subsection (1), for paragraph (b) substitute—

(b)a shared additional pension payable under—

(i)section 55A of either of those Acts, or

(ii)section 55AA of the Contributions and Benefits Act or any corresponding provision under the law of Northern Ireland;.

Commencement Information

I140Sch. 11 para. 15 in force at 6.4.2016, see s. 56(1)(4)

Gender Recognition Act 2004 (c. 7)E+W+S

16In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 9(1)(a) and (3), after “section 55A” insert “ or 55AA ”.

Commencement Information

I141Sch. 11 para. 16 in force at 6.4.2016, see s. 56(1)(4)

Section 23

SCHEDULE 12E+W+SState pension: amendments

Part 1 E+W+SAmendments to do with new state pension system

Forfeiture Act 1982 (c. 34)E+W+S

1In section 4 of the Forfeiture Act 1982 (Upper Tribunal to decide whether forfeiture rule applies to social security benefits), in the definition of “relevant enactment” in subsection (5), after the entry relating to the Pension Schemes Act 1993 insert— “ Part 1 of the Pensions Act 2014, ”.

Commencement Information

I142Sch. 12 para. 1 in force at 6.4.2016, see s. 56(1)(4)

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

2The Contributions and Benefits Act is amended as follows.

Commencement Information

I143Sch. 12 para. 2 in force at 15.1.2016 for specified purposes by S.I. 2015/2058, art. 2(a)

I144Sch. 12 para. 2 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

3In section 1 (outline of contributory system), in subsection (1)(a), after “this Act” insert “ or any other Act ”.

Commencement Information

I145Sch. 12 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4In section 13 (Class 3 contributions), in subsection (2), omit “contribution”.

Commencement Information

I146Sch. 12 para. 4 in force at 6.4.2016, see s. 56(1)(4)

5After section 19A insert—

19BExtended meaning of “benefit” etc in Part 1

In this Part references to “benefit” or “contributory benefit” include benefit under Part 1 of the Pensions Act 2014.

Commencement Information

I147Sch. 12 para. 5 in force at 6.4.2016, see s. 56(1)(4)

6(1)Section 22 (earnings factors) is amended as follows.E+W+S

(2)In subsection (2)—

(a)in paragraph (a), omit the final “and”;

(b)after paragraph (b) insert ; and

(c)establishing entitlement to a state pension under Part 1 of the Pensions Act 2014 and, where relevant, calculating the rate of a state pension under that Part.

(3)After subsection (5) insert—

(5ZA)Regulations may provide for crediting—

(a)for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or

(b)for any earlier tax year, contributions of any class,

for the purpose of bringing an earnings factor for that tax year to a figure which will make that year a “qualifying year”, “pre-commencement qualifying year” or “post-commencement qualifying year” of a person for the purposes of Part 1 of the Pensions Act 2014 (see sections 2(4) and 4(4) of that Act).

(5ZB)Regulations under subsection (5ZA) must provide for crediting a person with such contributions as may be specified in respect of periods on or after 6 April 1975 during which the person was—

(a)a spouse or civil partner of a member of Her Majesty's forces,

(b)accompanying the member on an assignment outside the United Kingdom, and

(c)not of a description specified in the regulations.

Commencement Information

I148Sch. 12 para. 6 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

I149Sch. 12 para. 6(1) in force at 15.1.2016 for specified purposes by S.I. 2015/2058, art. 2(a)

I150Sch. 12 para. 6(3) in force at 15.1.2016 for specified purposes by S.I. 2015/2058, art. 2(b)

7In section 122(1) (interpretation), in the definition of “benefit”, after paragraph (c) insert— “ (For the meaning of “benefit” in Part 1, see also section 19B) ”.

Commencement Information

I151Sch. 12 para. 7 in force at 6.4.2016, see s. 56(1)(4)

Social Security Administration Act 1992 (c. 5)E+W+S

8The Administration Act is amended as follows.

Commencement Information

I152Sch. 12 para. 8 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(2)(a)

I153Sch. 12 para. 8 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

9In section 1 (entitlement to benefit dependent on claim), in subsection (4), after paragraph (za) insert—

(zb)state pension or a lump sum under Part 1 of the Pensions Act 2014;.

Commencement Information

I154Sch. 12 para. 9 in force at 6.4.2016, see s. 56(1)(4)

10In section 5 (regulations about claims for and payments of benefits), in subsection (2), after paragraph (za) insert—

(zb)state pension or a lump sum under Part 1 of the Pensions Act 2014;.

Commencement Information

I155Sch. 12 para. 10 in force at 6.4.2016, see s. 56(1)(4)

11In section 71 (overpayments - general), in subsection (11), before paragraph (a) insert—

(za)state pension or a lump sum under Part 1 of the Pensions Act 2014;.

Commencement Information

I156Sch. 12 para. 11 in force at 6.4.2016, see s. 56(1)(4)

12In section 73 (overlapping benefits - general)—

(a)in subsection (1), after “adjusting” insert “ state pension under Part 1 of the Pensions Act 2014 or ”;

(b)in subsection (4), before paragraph (a) insert—

(za)state pension under Part 1 of the Pensions Act 2014;.

Commencement Information

I157Sch. 12 para. 12 in force at 6.4.2016, see s. 56(1)(4)

13In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hk) insert—

(hl)Part 1 of the Pensions Act 2014;.

Commencement Information

I158Sch. 12 para. 13 in force at 6.4.2016, see s. 56(1)(4)

14In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

Commencement Information

I159Sch. 12 para. 14 in force at 6.4.2016, see s. 56(1)(4)

15In section 124 (age, death and marriage), in subsection (1), after paragraph (ae) insert—

(af)of the provisions of Part 1 of the Pensions Act 2014; and.

Commencement Information

I160Sch. 12 para. 15 in force at 6.4.2016, see s. 56(1)(4)

16In section 125 (regulations as to notification of deaths), in subsection (1), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

Commencement Information

I161Sch. 12 para. 16 in force at 6.4.2016, see s. 56(1)(4)

17After section 148AB insert—

148ACRevaluation for transitional pensions under Pensions Act 2014

(1)The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place during the review period.

(2)In this section “the review period” means the period since the beginning of 6 April 2016.

(3)If on a review it appears to the Secretary of State that the general level of prices has increased during the review period, the Secretary of State must make an order specifying the percentage of the increase.

(4)The percentage specified in the order is the “revaluing percentage” for the purposes of paragraph 6(5) of Schedule 1 to the Pensions Act 2014.

(5)Subsection (3) does not require the Secretary of State to make an order if it appears to the Secretary of State that the effect of the order on amounts calculated in accordance with paragraph 6 of Schedule 1 to the Pensions Act 2014 would be inconsiderable.

(6)If on a review the Secretary of State determines that no order under this section is required, the Secretary of State must lay before Parliament a report explaining the reasons for arriving at that determination.

(7)For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit.

Commencement Information

I162Sch. 12 para. 17 in force at 6.4.2016, see s. 56(1)(4)

18In section 150 (annual up-rating of benefits), in subsection (1), after paragraph (o) insert—

(p)which are the increases in the rates of state pensions under section 17 of the Pensions Act 2014;.

Commencement Information

I163Sch. 12 para. 18 in force at 6.4.2016, see s. 56(1)(4)

19In section 150A (annual up-rating), in subsection (1), before paragraph (a) insert—

(za)the amount specified in regulations under section 3(1) of the Pensions Act 2014 (full rate of state pension);.

Commencement Information

I164Sch. 12 para. 19 in force at 6.4.2016, see s. 56(1)(4)

20In section 151 (up-rating: supplementary), in subsection (2)—

(a)for “(dza) or (e)” substitute “ (dza), (e) or (p) ”;

(b)after “order and” insert

(a)”;

(c)at the end insert , and

(b)in the case of the sums mentioned in subsection (1)(p) of that section, shall apply only in relation to sums calculated under section 17 of the Pensions Act 2014 by reference to periods which have ended before the coming into force of the order.

Commencement Information

I165Sch. 12 para. 20 in force at 6.4.2016, see s. 56(1)(4)

21After section 151 insert—

151AUp-rating of transitional state pensions under Pensions Act 2014

(1)The Secretary of State must, in each tax year, review the general level of prices in Great Britain and any changes which have taken place.

(2)If on a review it appears to the Secretary of State that the general level of prices has increased during the review period, the Secretary of State must make an order specifying a percentage by which the amounts mentioned in the following provisions of the Pensions Act 2014 are to be increased—

(a)section 9;

(b)paragraph 4(3) of Schedule 2;

(c)paragraphs 5(3) and 6 of Schedule 4;

(d)paragraphs 5(3) and 6 of Schedule 9.

(3)The percentage specified in the order must not be less than the percentage by which the general level of prices has increased during the review period.

(4)This section does not require the Secretary of State to make an order if it appears to the Secretary of State that the effect of the order on the amounts referred to in subsection (2) would be inconsiderable.

(5)An order under this section must be framed so as to bring the increase in question into force in the week beginning with the first Monday in the tax year following that in which the order is made.

(6)The Secretary of State must lay with a draft order under this section a copy of a report by the Government Actuary or the Deputy Government Actuary giving that Actuary's opinion on the likely effect on the National Insurance Fund.

(7)If a draft order under this section is combined with a draft up-rating order under section 150 or 150A, the report required by virtue of subsection (6) may be combined with that required by virtue of section 150(8) or 150A(5).

(8)For the purposes of any review under this section the Secretary of State may estimate the general level of prices in such manner as the Secretary of State thinks fit.

Commencement Information

I166Sch. 12 para. 21 in force at 6.4.2016, see s. 56(1)(4)

22(1)Section 155A (power to anticipate pensions up-rating order) is amended as follows.E+W+S

(2)In subsection (1)(a)—

(a)for “150 or 150A” substitute “ 150, 150A or 151A ”;

(b)in sub-paragraph (i), after “by way of” insert “ state pension under the Pensions Act 2014, ”.

(3)In subsection (2), after “an award is made of” insert “ a state pension, ”.

Commencement Information

I167Sch. 12 para. 22 in force at 6.4.2016, see s. 56(1)(4)

23(1)Section 163 (general financial arrangements) is amended as follows.E+W+S

(2)In subsection (1), before paragraph (a) insert—

(za)state pension and lump sums under Part 1 of the Pensions Act 2014;.

(3)In subsection (2)(a), after “Contributions and Benefits Act” insert “ , Part 1 of the Pensions Act 2014 ”.

(4)In subsection (3)(b), after “that Act” insert “ or Part 1 of the Pensions Act 2014 ”.

Commencement Information

I168Sch. 12 para. 23 in force at 6.4.2016, see s. 56(1)(4)

24In section 170 (Social Security Advisory Committee), in subsection (5)—

(a)in the definition of “the relevant enactments”, after paragraph (al) insert—

(am)the provisions of Part 1 of the Pensions Act 2014;;

(b)in the definition of “the relevant Northern Ireland enactments”, after paragraph (al) insert—

(am)any provisions in Northern Ireland which correspond to the provisions of Part 1 of the Pensions Act 2014;.

Commencement Information

I169Sch. 12 para. 24 in force at 6.4.2016, see s. 56(1)(4)

25(1)Section 179 (reciprocal agreements) is amended as follows.E+W+S

(2)In subsection (3)(a), after “Part 4 of that Act” insert “ , Part 1 of the Pensions Act 2014 ”.

(3)In subsection (4), after paragraph (ah) insert—

(ai)to Part 1 of the Pensions Act 2014;.

(4)In subsection (5)—

(a)after “Act 2007” insert “ or Part 1 of the Pensions Act 2014 ”;

(b)after paragraph (ac) insert—

(ad)state pension under Part 1 of the Pensions Act 2014;.

Commencement Information

I170Sch. 12 para. 25 in force at 7.7.2015 by S.I. 2015/1475, art. 2(2)(c)

26In section 187 (inalienability), in subsection (1), after paragraph (za) insert—

(zb)state pension under Part 1 of the Pensions Act 2014;.

Commencement Information

I171Sch. 12 para. 26 in force at 6.4.2016, see s. 56(1)(4)

27In section 190 (parliamentary control of orders and regulations), in subsection (1)(a) after “150A,” insert “ 151A, ”.

Commencement Information

I172Sch. 12 para. 27 in force at 6.4.2016, see s. 56(1)(4)

28In section 191 (interpretation), in the definition of “benefit”, after “universal credit,” insert “ state pension under Part 1 of the Pensions Act 2014, ”.

Commencement Information

I173Sch. 12 para. 28 in force at 6.4.2016, see s. 56(1)(4)

Social Security Act 1993 (c. 3)E+W+S

29In section 2 of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament), in subsection (4)(a), after “paragraphs” insert “ (za), ”.

Commencement Information

I174Sch. 12 para. 29 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 1995 (c. 26)E+W+S

30In Schedule 4 to the Pensions Act 1995 (pensionable age), in paragraph 1, for “and Part 1 of the Welfare Reform Act 2007” substitute “ , Part 1 of the Welfare Reform Act 2007 and the Pensions Act 2014 ”.

Commencement Information

I175Sch. 12 para. 30 in force at 6.4.2016, see s. 56(1)(4)

Social Security Act 1998 (c. 14)E+W+S

31The Social Security Act 1998 is amended as follows.

Commencement Information

I176Sch. 12 para. 31 in force at 6.4.2016, see s. 56(1)(4)

32In section 2 (use of computers), in subsection (2)—

(a)in paragraph (k), omit the final “or”;

(b)after paragraph (l) insert—

(m)Part 1 of the Pensions Act 2014;.

Commencement Information

I177Sch. 12 para. 32 in force at 6.4.2016, see s. 56(1)(4)

33In section 8 (decisions by Secretary of State)—

(a)in subsection (3), after paragraph (aa) insert—

(ab)state pension or a lump sum under Part 1 of the Pensions Act 2014;;

(b)in subsection (4), for “or Part 4 of that Act” substitute “ , Part 4 of that Act or Part 1 of the Pensions Act 2014 ”.

Commencement Information

I178Sch. 12 para. 33 in force at 6.4.2016, see s. 56(1)(4)

34In section 11 (regulations with respect to decisions), in subsection (3), in the definition of “the current legislation”, for “and Part 4 of that Act” substitute “ , Part 4 of that Act and Part 1 of the Pensions Act 2014 ”.

Commencement Information

I179Sch. 12 para. 34 in force at 6.4.2016, see s. 56(1)(4)

35In section 27 (restrictions on entitlement to benefit in certain cases of error), in subsection (7), in the definition of “benefit”, after paragraph (f) insert—

(g)state pension or a lump sum under Part 1 of the Pensions Act 2014.

Commencement Information

I180Sch. 12 para. 35 in force at 6.4.2016, see s. 56(1)(4)

36In section 28 (correction of errors in decisions etc), in subsection (3)—

(a)in paragraph (h), omit the final “or”;

(b)after paragraph (i) insert or

(j)Part 1 of the Pensions Act 2014.

Commencement Information

I181Sch. 12 para. 36 in force at 6.4.2016, see s. 56(1)(4)

37In Schedule 3 (decisions against which an appeal lies), after paragraph 6B insert—

State pension: prisoners and overseas residentsE+W+S

6CA decision that a state pension under Part 1 of the Pensions Act 2014 is not payable by reason of regulations under section 19 of that Act (prisoners).

6DA decision that a person is not entitled to increases in the rate of a state pension under Part 1 of the Pensions Act 2014 by reason of regulations under section 20 of that Act (overseas residents).

Commencement Information

I182Sch. 12 para. 37 in force at 6.4.2016, see s. 56(1)(4)

Child Support, Pensions and Social Security Act 2000 (c. 19)E+W+S

38(1)Section 42 of the Child Support, Pensions and Social Security Act 2000 (disclosure of state pension information) is amended as follows.E+W+S

(2)In subsection (7), after paragraph (a) insert—

(aa)the amount of any state pension under Part 1 of the Pensions Act 2014 a present or future entitlement to which has already accrued to that individual;

(ab)a projection of the amount of any state pension under Part 1 of the Pensions Act 2014 to which that individual is likely to become entitled, or might become entitled in particular circumstances;.

(3)In subsection (11), in the definition of “lump sum”, after “under” insert “ section 8 of the Pensions Act 2014 or ”.

Commencement Information

I183Sch. 12 para. 38 in force at 6.4.2016, see s. 56(1)(4)

Social Security Fraud Act 2001 (c. 11)E+W+S

39The Social Security Fraud Act 2001 is amended as follows.

Commencement Information

I184Sch. 12 para. 39 in force at 6.4.2016, see s. 56(1)(4)

40In section 6A (definitions), in subsection (1)—

(a)in the definition of “disqualifying benefit”, after paragraph (za) insert—

(zb)state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;;

(b)in the definition of “sanctionable benefit”, before paragraph (b) insert—

(aa)state pension or a lump sum under Part 1 of the Pensions Act 2014;.

Commencement Information

I185Sch. 12 para. 40 in force at 6.4.2016, see s. 56(1)(4)

41In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (be) insert—

(bf)state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;.

Commencement Information

I186Sch. 12 para. 41 in force at 6.4.2016, see s. 56(1)(4)

State Pension Credit Act 2002 (c. 16)E+W+S

42The State Pension Credit Act 2002 is amended as follows.

Commencement Information

I187Sch. 12 para. 42 in force at 6.4.2016, see s. 56(1)(4)

43In section 7 (fixing of claimant's retirement provision for assessed income period), in subsection (6)(a), after “benefit under” insert “ Part 1 of the Pensions Act 2014 or ”.

Commencement Information

I188Sch. 12 para. 43 in force at 6.4.2016, see s. 56(1)(4)

44In section 16 (meaning of “retirement pension income”), in subsection (1), before paragraph (a) insert—

(za)a state pension under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;.

Commencement Information

I189Sch. 12 para. 44 in force at 6.4.2016, see s. 56(1)(4)

Income Tax (Earnings and Pensions) Act 2003 (c. 1)E+W+S

45In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United Kingdom social security pensions), in the definition of “state pension” in subsection (2), before paragraph (a) insert—

(za)any provision of Part 1 of the Pensions Act 2014 or any corresponding provision under the law of Northern Ireland,.

Commencement Information

I190Sch. 12 para. 45 in force at 6.4.2016, see s. 56(1)(4)

Gender Recognition Act 2004 (c. 7)E+W+S

46The Gender Recognition Act 2004 is amended as follows.

Commencement Information

I191Sch. 12 para. 46 in force at 6.4.2016, see s. 56(1)(4)

47In section 23 of that Act (power to modify statutory provisions) “enactment” includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

Commencement Information

I192Sch. 12 para. 47 in force at 6.4.2016, see s. 56(1)(4)

48(1)Schedule 5 (benefits and pensions) is amended as follows.E+W+S

(2)After paragraph 6 insert—

Pension under Part 1 of the Pensions Act 2014E+W+S

6A(1)Any question—

(a)whether the person is entitled to a state pension under Part 1 of the Pensions Act 2014 for any period after the certificate is issued, and

(b)(if so) the rate at which the person is so entitled for the period,

is to be decided as if the person's gender were the acquired gender.

(2)Accordingly, if (immediately before the certificate is issued) the person—

(a)is a woman entitled to a state pension under Part 1 of the Pensions Act 2014, but

(b)has not attained the age of 65,

the person ceases to be so entitled when it is issued.

(3)And, conversely, if (immediately before the certificate is issued) the person—

(a)is a man who has attained the age at which a woman of the same age attains pensionable age, but

(b)has not attained the age of 65,

the person is to be treated for the purposes of Part 1 of the Pensions Act 2014 as attaining pensionable age when it is issued.

(4)But sub-paragraph (1) does not apply if and to the extent that the decision of any question to which it refers is affected by the payment or crediting of contributions, or the crediting of earnings, in respect of a period ending before the certificate is issued.

(5)If the person's acquired gender is the male gender, sections 11 and 12 of, and Schedules 6 and 7 to, the Pensions Act 2014 (effect of reduced rate elections) apply in relation to the person as they apply in relation to a woman (but only once the person has reached pensionable age for a man).

(6)Paragraph 10 makes provision about deferment of state pensions under Part 1 of the Pensions Act 2014.

(3)In paragraph 7, in sub-paragraph (1), at the end insert “ (but this is subject to sub-paragraph (3)) ”.

(4)In paragraph 10, in sub-paragraph (1), before paragraph (a) insert—

(za)a state pension under Part 1 of the Pensions Act 2014,.

Commencement Information

I193Sch. 12 para. 48 in force at 6.4.2016, see s. 56(1)(4)

Finance (No. 2) Act 2005 (c. 22)E+W+S

49The Finance (No. 2) Act 2005 is amended as follows.

Commencement Information

I194Sch. 12 para. 49 in force at 6.4.2016, see s. 56(1)(4)

50(1)Section 8 (meaning of “applicable year of assessment” in section 7) is amended as follows.E+W+S

(2)In subsection (3), for “subsection (4)” substitute “ subsections (4) and (4A) ”.

(3)After subsection (4) insert—

(4A)In a case where the social security pension lump sum is a lump sum under section 8 of the Pensions Act 2014 or under any corresponding provision under the law of Northern Ireland, “the first benefit payment day” for the purposes of subsection (2) is the day as from which the lump sum becomes payable.

Commencement Information

I195Sch. 12 para. 50 in force at 6.4.2016, see s. 56(1)(4)

51In section 9 (interpretation), in the definition of “state pension lump sum” in subsection (2), before paragraph (a) insert—

(za)section 8 of the Pensions Act 2014 or under any corresponding provision under the law of Northern Ireland,.

Commencement Information

I196Sch. 12 para. 51 in force at 6.4.2016, see s. 56(1)(4)

Welfare Reform Act 2012 (c. 5)E+W+S

F652. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6Sch. 12 para. 52 omitted (16.3.2016 for specified purposes, 7.11.2016 in so far as not already in force) by virtue of Welfare Reform and Work Act 2016 (c. 7), ss. 8(7), 36(3); S.I. 2016/910, reg. 2(1) (with reg. 2(2)(3))

Commencement Information

I197Sch. 12 para. 52 in force at 6.4.2016, see s. 56(1)(4)

Part 2 E+W+SAmendments to do with old state pension system

Graduated retirement benefitE+W+S

53(1)Section 36 of the National Insurance Act 1965 (graduated retirement benefit), so far as continuing in force, is amended as follows.E+W+S

(2)In subsection (7), for “has attained pensionable age” substitute “ attained pensionable age before 6 April 2016 ”.

(3)In subsection (8), in the definition of “retirement pension”, after “any category” insert “ under the Social Security Contributions and Benefits Act 1992 ”.

Commencement Information

I198Sch. 12 para. 53 in force at 6.4.2016, see s. 56(1)(4)

Category A retirement pensionsE+W+S

54The Contributions and Benefits Act is amended as follows.

Commencement Information

I199Sch. 12 para. 54 in force at 6.4.2016, see s. 56(1)(4)

55In section 44(1) (Category A retirement pensions), for paragraph (a) substitute—

(a)the person attained pensionable age before 6 April 2016,.

Commencement Information

I200Sch. 12 para. 55 in force at 6.4.2016, see s. 56(1)(4)

56(1)Section 48 (use of former spouse's contributions) is amended as follows.E+W+S

(2)In subsection (1), after “person” insert “ who attained pensionable age before 6 April 2016 ”.

(3)After subsection (2) insert—

(2A)Regulations under subsection (1) may not provide for contributions of a person in respect of times on or after 6 April 2016 to be treated as contributions of another person.

Commencement Information

I201Sch. 12 para. 56 in force at 6.4.2016, see s. 56(1)(4)

Category B retirement pensionsE+W+S

57The Contributions and Benefits Act is amended as follows.

Commencement Information

I202Sch. 12 para. 57 in force at 6.4.2016, see s. 56(1)(4)

58In section 23A (contributions credits for relevant parents and carers), in subsection (1)(b), after “section 48A” insert “ or 48AA ”.

Commencement Information

I203Sch. 12 para. 58 in force at 6.4.2016, see s. 56(1)(4)

59In section 46 (modification of section 45 for calculating additional pension in certain benefits), in subsection (2), omit “48A(4) or” (in both places).

Commencement Information

I204Sch. 12 para. 59 in force at 6.4.2016, see s. 56(1)(4)

60For section 48A substitute—

48ACategory B retirement pension for married person or civil partner

(1)A married person is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if—

(a)the person attained pensionable age before 6 April 2016, and

(b)the spouse—

(i)has attained pensionable age, and

(ii)satisfies the relevant contribution condition.

(2)But subsection (1) does not confer a right to a Category B retirement pension on—

(a)a man whose spouse was born before 6 April 1950, or

(b)a woman whose wife was born before 6 April 1950.

(3)A person who is a civil partner is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner (“the contributing civil partner”) if—

(a)the person attained pensionable age before 6 April 2016, and

(b)the contributing civil partner—

(i)was born on or after 6 April 1950,

(ii)has attained pensionable age, and

(iii)satisfies the condition in paragraph 5A of Schedule 3.

(4)A Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4.

(5)A person ceases to be entitled to a Category B retirement pension under this section if—

(a)the person's spouse or civil partner dies (but see sections 48B and 51), or

(b)the person otherwise ceases to be married or in the civil partnership (but see section 48AA).

(6)In subsection (1)(b)(ii) “the relevant contribution condition” means—

(a)in a case where the spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3;

(b)in any other case, the condition in paragraph 5A of Schedule 3.

(7)For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or contributing civil partner for the tax year beginning with 6 April 2016 or any later tax year.

(8)Section 51ZA contains special rules for cases involving changes in gender.

48BAACategory B retirement pension for divorcee or former civil partner

(1)A person who has been in a marriage that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former spouse if—

(a)the person attained pensionable age—

(i)before 6 April 2016, and

(ii)before the marriage was dissolved, and

(b)the former spouse—

(i)attained pensionable age before the marriage was dissolved, and

(ii)satisfied the relevant contribution condition.

(2)But subsection (1) does not confer a right to a Category B retirement pension on—

(a)a man whose former spouse was born before 6 April 1950, or

(b)a woman whose former wife was born before 6 April 1950.

(3)A person who has been in a civil partnership that has been dissolved is entitled to a Category B retirement pension by virtue of the contributions of his or her former civil partner if—

(a)the person attained pensionable age—

(i)before 6 April 2016, and

(ii)before the civil partnership was dissolved, and

(b)the former civil partner—

(i)was born on or after 6 April 1950,

(ii)attained pensionable age before the civil partnership was dissolved, and

(iii)satisfied the condition in paragraph 5A of Schedule 3.

(4)During any period when the person's former spouse or civil partner is alive, a Category B retirement pension payable under this section is payable at the weekly rate specified in paragraph 5 of Part 1 of Schedule 4.

(5)During any period after the person's former spouse or civil partner is dead, a Category B retirement pension payable under this section is payable at the weekly rate of the basic pension specified in section 44(4).

(6)In subsection (1)(b)(ii) “the relevant contribution condition” means—

(a)in a case where the former spouse was born before 6 April 1945, the conditions in paragraph 5 of Schedule 3;

(b)in any other case, the condition in paragraph 5A of Schedule 3.

(7)For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the former spouse or civil partner for the tax year beginning with 6 April 2016 or any later tax year.

(8)A voidable marriage or civil partnership which has been annulled is to be treated for the purposes of this section as if it had been a valid marriage or civil partnership which was dissolved at the date of annulment.

(9)Section 51ZA contains special rules for cases involving changes in gender.

Commencement Information

I205Sch. 12 para. 60 in force at 6.4.2016, see s. 56(1)(4)

61(1)Section 48B (Category B retirement pension for widows and widowers) is amended as follows.E+W+S

(2)For subsections (1) to (1A) substitute—

(1)A person (“the pensioner”) whose spouse died while they were married is entitled to a Category B retirement pension by virtue of the contributions of his or her spouse if—

(a)the pensioner attained pensionable age—

(i)before 6 April 2016, and

(ii)before the spouse died, and

(b)the spouse satisfied the relevant contribution condition.

(1ZA)But subsection (1) does not confer a right to a Category B retirement pension on—

(a)a man who attained pensionable age before 6 April 2010, or

(b)a woman who attained pensionable age before 6 April 2010 and whose spouse was a woman.

(1ZB)In subsection (1)(b) “the relevant contribution condition” means—

(a)in a case where the spouse—

(i)died before 6 April 2010, or

(ii)died on or after that date having attained pensionable age before that date,

the conditions in paragraph 5 of Schedule 3, and

(b)in any other case, the condition in paragraph 5A of Schedule 3.

(1A)A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension by virtue of the contributions of his or her civil partner if—

(a)the pensioner attained pensionable age—

(i)on or after 6 April 2010 but before 6 April 2016, and

(ii)before the civil partner died, and

(b)the civil partner satisfied the relevant contribution condition.

(1B)In subsection (1A)(b) “the relevant contribution condition” means—

(a)in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and

(b)in any other case, the condition in paragraph 5A of Schedule 3.

(3)After subsection (3) insert—

(3A)For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the deceased for the tax year beginning with 6 April 2016 or any later tax year.

(4)For subsection (4) substitute—

(4)A woman (“the pensioner”) whose husband died before she attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of her husband if—

(a)she attained pensionable age before 6 April 2016, and

(b)the condition in subsection (5) is satisfied.

(4A)A man (“the pensioner”) whose wife died before he attained pensionable age is entitled to a Category B retirement pension by virtue of the contributions of his wife if—

(a)he attained pensionable age on or after 6 April 2010 but before 6 April 2016, and

(b)the condition in subsection (5) would have been satisfied on the assumption mentioned in subsection (7).

(5)In subsection (6), after “subsection (4)” insert “ or (4A) ”.

(6)In subsection (7), for “(4)” substitute “ (4A) ”.

(7)After subsection (8) insert—

(9)Section 51ZA contains special rules for cases involving changes in gender.

Commencement Information

I206Sch. 12 para. 61 in force at 6.4.2016, see s. 56(1)(4)

62(1)Section 48BB (Category B retirement pension: entitlement by reference to widowed parent's allowance or bereavement allowance where no dependent children) is amended as follows.E+W+S

(2)In subsection (1), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

(3)In subsection (3), for “who has attained pensionable age” substitute “ who attained pensionable age before 6 April 2016 ”.

Commencement Information

I207Sch. 12 para. 62 in force at 6.4.2016, see s. 56(1)(4)

63(1)Section 48C (Category B retirement pension: general) is amended as follows.E+W+S

(2)In subsection (3), for “sections 48A(4)(b) and” substitute “ section ”.

(3)In subsection (4), omit “48A(4),”.

Commencement Information

I208Sch. 12 para. 63 in force at 6.4.2016, see s. 56(1)(4)

64For section 51 substitute—

51Category B retirement pension for widows, widowers and surviving civil partners who attained pensionable age before 6 April 2010

(1)A person (“the pensioner”) whose spouse died while they were married is entitled to a Category B retirement pension if—

(a)they were both over pensionable age at the time of the death,

(b)the pensioner attained pensionable age before 6 April 2010, and

(c)the spouse satisfied the relevant contribution condition.

(2)But subsection (1) does not confer a right to a Category B retirement pension on—

(a)a woman whose husband has died, or

(b)a man whose wife died before 6 April 1979.

(3)In subsection (1)(c) “the relevant contribution condition” means—

(a)in a case where the spouse attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and

(b)in a case where the spouse attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3.

(4)A person (“the pensioner”) whose civil partner died while they were civil partners of each other is entitled to a Category B retirement pension if—

(a)they were both over pensionable age at the time of the death,

(b)the pensioner attained pensionable age before 6 April 2010, and

(c)the deceased civil partner satisfied the relevant contribution condition.

(5)In subsection (4)(c) “the relevant contribution condition” means—

(a)in a case where the deceased civil partner attained pensionable age before 6 April 2010, the conditions in paragraph 5 of Schedule 3, and

(b)in a case where the deceased civil partner attained pensionable age on or after 6 April 2010, the condition in paragraph 5A of Schedule 3.

(6)The weekly rate of a person's Category B retirement pension under this section is to be determined in accordance with sections 44 to 45AA and Schedule 4A as they apply in the case of a Category A retirement pension taking references in those sections to the pensioner as references to the spouse or deceased civil partner.

(7)But in the case of—

(a)a man whose wife dies after 5 October 2002,

(b)a surviving party to a marriage of a same sex couple, or

(c)a surviving civil partner,

any amount of additional pension falling to be calculated under subsection (6) is to be halved.

(8)For the purposes of any provision of this Act as it applies in relation to this section, no account is to be taken of any earnings factors of the spouse or deceased civil partner for the tax year beginning with 6 April 2016 or any later tax year.

(9)Subject to the provisions of this Act, a person becomes entitled to a Category B retirement pension under this section on the day on which the conditions of entitlement become satisfied and the entitlement continues throughout the person's life.

(10)Section 51ZA contains special rules for cases involving changes in gender.

Commencement Information

I209Sch. 12 para. 64 in force at 6.4.2016, see s. 56(1)(4)

65After section 51 insert—

51ZASpecial provision for married person whose spouse changed gender

(1)Section 48A(2)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where—

(a)her spouse is a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage subsisted before the time when that certificate was issued.

(2)Section 48AA(2)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where—

(a)her former spouse was, at the time the marriage was dissolved, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage subsisted before the time when that certificate was issued.

(3)Section 48B(1ZA)(b) does not prevent a woman from being entitled to a Category B retirement pension under that section in a case where—

(a)her dead spouse was, at the time of death, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage subsisted before the time when that certificate was issued,

and in such a case the reference in section 48B(1ZB)(a)(ii) to the spouse having attained pensionable age before 6 April 2010 is to be read as a reference to the spouse having been born before 6 April 1945.

(4)Section 51(1) does not confer a right to a Category B retirement pension on a woman if—

(a)her dead spouse was, at the time of death, a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b)the marriage subsisted before the time when that certificate was issued.

Commencement Information

I210Sch. 12 para. 65 in force at 6.4.2016, see s. 56(1)(4)

66In section 52(3) (special provision for surviving spouses) for “prescribed maximum” substitute “ maximum amount specified in regulations ”.

Commencement Information

I211Sch. 12 para. 66 in force at 6.4.2016, see s. 56(1)(4)

67(1)Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.E+W+S

(2)In paragraph 5, for sub-paragraph (1) substitute—

(1)This paragraph sets out the contribution conditions for—

(a)a widowed mother's allowance, a widowed parent's allowance or a widow's pension;

(b)a Category A retirement pension (other than one in relation to which paragraph 5A applies);

(c)a Category B retirement pension in the cases provided for by any of sections 48A to 51ZA.

(3)In paragraph 5A(1), for paragraphs (b) and (c) substitute—

(b)a Category B retirement pension in the cases provided for by any of sections 48A to 51ZA.

Commencement Information

I212Sch. 12 para. 67 in force at 6.4.2016, see s. 56(1)(4)

68In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for “section 48A(3)” substitute “ section 48A(4) or 48AA(4) ”.

Commencement Information

I213Sch. 12 para. 68 in force at 6.4.2016, see s. 56(1)(4)

69In Schedule 4A (additional pension: accrual rates for purposes of section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).

Commencement Information

I214Sch. 12 para. 69 in force at 6.4.2016, see s. 56(1)(4)

70In section 150 of the Administration Act (annual up-rating of benefits), in subsection (1), after paragraph (ab) insert—

(ac)specified in regulations under section 52(3) of that Act;.

Commencement Information

I215Sch. 12 para. 70 in force at 6.4.2016, see s. 56(1)(4)

71In section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits), in subsection (6)(b)(iii), omit “48A,”.

Commencement Information

I216Sch. 12 para. 71 in force at 6.4.2016, see s. 56(1)(4)

72In section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses), in subsection (6), omit “48A,”.

Commencement Information

I217Sch. 12 para. 72 in force at 6.4.2016, see s. 56(1)(4)

73In Schedule 4 to the Pensions Act 1995 (equalisation of, and increase in, pensionable age for men and women), omit paragraph 3(2) and (3).

Commencement Information

I218Sch. 12 para. 73 in force at 6.4.2016, see s. 56(1)(4)

74In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United Kingdom social security pensions), in the definition of “state pension” in subsection (2)—

(a)in paragraph (a), after “48A,” insert “ 48AA, ”;

(b)in paragraph (b), after “1992” insert “ or any provision under the law of Northern Ireland that corresponds to section 48AA of SSCBA 1992 ”.

Commencement Information

I219Sch. 12 para. 74 in force at 6.4.2016, see s. 56(1)(4)

75In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 25(6) and 28(6).

Commencement Information

I220Sch. 12 para. 75 in force at 6.4.2016, see s. 56(1)(4)

76In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 8(1)(a) and (3), after “48A,” insert “ 48AA, ”.

Commencement Information

I221Sch. 12 para. 76 in force at 6.4.2016, see s. 56(1)(4)

77In Schedule 4 to the Marriage (Same Sex Couples) Act 2013, omit paragraphs 11, 12, 13 and 16.

Commencement Information

I222Sch. 12 para. 77 in force at 6.4.2016, see s. 56(1)(4)

Category C retirement pensions: repeal of spent provisionsE+W+S

78The Contributions and Benefits Act is amended as follows.

Commencement Information

I223Sch. 12 para. 78 in force at 6.4.2016, see s. 56(1)(4)

79In section 63(f)(i) (descriptions of non-contributory benefits), for the words from “payable” to “widows” substitute “ payable in certain cases to a widow whose husband was over pensionable age on 5 July 1948 or to a woman whose marriage to a husband who was over pensionable age on that date was terminated otherwise than by his death ”.

Commencement Information

I224Sch. 12 para. 79 in force at 6.4.2016, see s. 56(1)(4)

80(1)Section 78 (Category C retirement pensions etc) is amended as follows.E+W+S

(2)Omit subsections (1), (2) and (5).

(3)In subsections (7) and (8), omit “Category C or”.

Commencement Information

I225Sch. 12 para. 80 in force at 6.4.2016, see s. 56(1)(4)

81In Part 3 of Schedule 4 —

(a)omit paragraph 6 (rate of Category C retirement pension);

(b)in paragraph 7 (rate of Category D retirement pension), for the text in the second column substitute the amount specified in paragraph 6 as the higher rate for a Category C retirement pension immediately before 6 April 2016.

Commencement Information

I226Sch. 12 para. 81 in force at 6.4.2016, see s. 56(1)(4)

82In section 150A of the Administration Act (annual up-rating), in subsection (10), in the definition of “the specified amounts in the case of Category B, C or D retirement pensions”—

(a)in paragraph (a), omit the final “and”;

(b)in paragraph (b), for “amounts specified in paragraphs 6 and 7” substitute “ amount specified in paragraph 7 ”;

(c)at the end of paragraph (b) insert , and

(c)any amount specified in regulations under section 78(9) of the Contributions and Benefits Act for a Category C retirement pension;.

Commencement Information

I227Sch. 12 para. 82 in force at 6.4.2016, see s. 56(1)(4)

83In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions) omit paragraph 11 and the heading above it.

Commencement Information

I228Sch. 12 para. 83 in force at 6.4.2016, see s. 56(1)(4)

Category D retirement pensionsE+W+S

84In section 78(3) of the Contributions and Benefits Act (entitlement to a Category D retirement pension), for “and satisfies” substitute “ , who reached pensionable age before 6 April 2016 and who satisfies ”.

Commencement Information

I229Sch. 12 para. 84 in force at 6.4.2016, see s. 56(1)(4)

Age additionE+W+S

85In sections 63(g) and 79(1) of the Contributions and Benefits Act (age addition), after “retirement pension of any category” insert “ under this Act ”.

Commencement Information

I230Sch. 12 para. 85 in force at 6.4.2016, see s. 56(1)(4)

Christmas bonusE+W+S

86In section 150(2) of the Contributions and Benefits Act (Christmas bonus: interpretation), for the definition of “retirement pension” substitute—

retirement pension” means—

(a)a state pension under Part 1 of the Pensions Act 2014,

(b)a retirement pension under this Act, or

(c)graduated retirement benefit.

Commencement Information

I231Sch. 12 para. 86 in force at 6.4.2016, see s. 56(1)(4)

Transition: same sex marriagesE+W+S

87(1)If marriage of same sex couples is not lawful under the law of Scotland when the amendments made by this Part of this Schedule come into force then, under the law of Scotland, references in the amendments to a married person do not include a person married to someone of the same sex; and related expressions (such as “spouse”) are to be read accordingly.E+W+S

(2)See also Part 1 of Schedule 2 to the Marriage (Same Sex Couples) Act 2013 (power to provide for English and Welsh marriages of same sex couples to be treated in Scotland as civil partnerships).

Commencement Information

I232Sch. 12 para. 87 in force at 6.4.2016, see s. 56(1)(4)

Part 3 E+W+SAmendments to do with state pension credit

88The State Pension Credit Act 2002 is amended as follows.

Commencement Information

I233Sch. 12 para. 88 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(2)(a)

I234Sch. 12 para. 88 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

89In section 3 (savings credit), for subsection (1) substitute—

(1)The first of the conditions mentioned in section 1(2)(c)(ii) is that the claimant—

(a)has attained pensionable age before 6 April 2016 and has attained the age of 65 (before, on or after that date), or

(b)is a member of a couple, the other member of which falls within paragraph (a).

Commencement Information

I235Sch. 12 para. 89 in force at 6.4.2016, see s. 56(1)(4)

90After that section insert—

3ZAPower to limit savings credit for certain mixed-age couples

(1)Regulations may provide that, in prescribed cases, a person who is a member of a mixed-age couple is not entitled to a savings credit.

(2)For example, the regulations could provide that a member of a mixed-age couple is not entitled to a savings credit unless—

(a)the person has been awarded a savings credit with effect from a day before 6 April 2016 and was entitled to a savings credit immediately before that date, and

(b)the person remained entitled to state pension credit at all times since the beginning of 6 April 2016.

(3)In this section “mixed-age couple” means a couple (whenever formed) one member of which had attained pensionable age before 6 April 2016 and the other had not.

Commencement Information

I236Sch. 12 para. 90 in force at 7.7.2015 by S.I. 2015/1475, art. 2(2)(d)

91In Schedule 1 to the Pensions Act 2007, omit paragraph 44.

Commencement Information

I237Sch. 12 para. 91 in force at 6.4.2016, see s. 56(1)(4)

Part 4 E+W+SOther amendments to do with Part 1

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

92The Contributions and Benefits Act is amended as follows.

Commencement Information

I238Sch. 12 para. 92 in force at 6.4.2016, see s. 56(1)(4)

93(1)Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows.E+W+S

(2)In subsection (1), for the words from “45AA” to “as they apply” substitute “ 45AA and Schedules 4A and 4B below as they apply ”.

(3)In subsection (3), for the words from “45AA” to “by virtue of subsection (1) above” substitute “ 45AA and Schedules 4A and 4B below by virtue of subsection (1) above ”.

(4)In subsection (4), for the words from “45AA” to “below” substitute “ 45AA and Schedules 4A and 4B below ”.

Commencement Information

I239Sch. 12 para. 93 in force at 6.4.2016, see s. 56(1)(4)

94(1)Schedule 5 (pension increase or lump sum where entitlement to retirement pension is deferred) is amended as follows.E+W+S

(2)In the following provisions omit “(as those provisions have effect by virtue of section 2(7) of the Pensions Act 2011)”—

  • paragraph 4(1A)(a), (b) and (c);

  • paragraph 7B(5)(b)(i).

(3)After paragraph 7 insert—

7ZA(1)This paragraph modifies paragraphs 5A to 6A in cases where—

(a)W became entitled to a Category A or Category B retirement pension before 6 April 2012, and

(b)S died before 6 April 2012.

(“W” and “S” have the same meaning as in paragraph 5.)

(2)Paragraph 5A applies as if—

(a)in sub-paragraph (2), after paragraph (a), there were inserted—

(b)the appropriate amount; and;

(b)in sub-paragraph (3), after “following—”, there were inserted—

(a)one half of the appropriate amount; and.

(3)Paragraph 6 applies as if—

(a)in sub-paragraph (2), after paragraph (a), there were inserted—

(b)the appropriate amount; and;

(b)in sub-paragraph (3), after paragraph (b), there were inserted—

(c)the appropriate amount reduced by the amount of any increases under section 109 of the Pensions Act; and;

(c)in sub-paragraph (4), after paragraph (a), there were inserted—

(b)one half of the appropriate amount; and.

(4)Paragraph 6A applies as if in sub-paragraph (2), after paragraph (a), there were inserted—

(b)one half of the appropriate amount; and.

(5)In paragraphs 5A to 6A as modified by this paragraph, the “appropriate amount” means the greater of—

(a)the amount by which the deceased person's Category A or Category B retirement pension had been increased under section 150(1)(e) of the Administration Act; or

(b)the amount by which his or her Category A or Category B retirement pension would have been so increased had he or she died immediately before the surviving spouse or civil partner became entitled to a Category A or Category B retirement pension.

(6)In sub-paragraph (1)(a) the reference to becoming entitled to a pension before 6 April 2012 includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day.

Commencement Information

I240Sch. 12 para. 94 in force at 6.4.2016, see s. 56(1)(4)

Pension Schemes Act 1993 (c. 48)E+W+S

95Section 46A of the Pension Schemes Act 1993 (retirement in tax year after 5 April 2020) is repealed.

Commencement Information

I241Sch. 12 para. 95 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 2008 (c. 30)E+W+S

96In the Pensions Act 2008, the following are repealed—

(a)sections 102 and 103 (consolidation of additional pension);

(b)Schedule 3 (consolidation of additional pension);

(c)in Schedule 4 (minor and consequential amendments)—

  • paragraph 4(2)(b) and (3)(b);

  • paragraph 6(3);

  • paragraph 7(a);

  • paragraph 8(a);

  • paragraph 9(2)(c);

  • paragraph 10;

  • paragraphs 13 to 22.

Commencement Information

Pensions Act 2011 (c. 19)E+W+S

97In the Pensions Act 2011, the following are repealed—

(a)section 2(5) to (9) and Schedule 2 (abolition of certain additions to the state pension);

(b)section 3 and Schedule 3 (consolidation of additional pension).

Commencement Information

I243Sch. 12 para. 97 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

Section 24

SCHEDULE 13E+W+SAbolition of contracting-out for salary related schemes

Part 1 E+W+SPension Schemes Act 1993: amendments

1The Pension Schemes Act 1993 is amended as follows.

Commencement Information

I245Sch. 13 para. 1 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(1)(a)

I246Sch. 13 para. 1 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

2For “the abolition date” (in each place) substitute “ the first abolition date ”.

Commencement Information

I247Sch. 13 para. 2 in force at 6.4.2016, see s. 56(1)(4)

3In the heading for Part 3 of the Act—

(a)for “Certification of pension schemes” substitute “ Schemes that were contracted-out etc ”;

(b)omit “and duties”.

Commencement Information

I248Sch. 13 para. 3 in force at 6.4.2016, see s. 56(1)(4)

4For the heading to Chapter 1 of Part 3 substitute “ Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc ”.

Commencement Information

I249Sch. 13 para. 4 in force at 6.4.2016, see s. 56(1)(4)

5Section 7 (issue of contracting-out certificates) is repealed (and accordingly, any certificates in force under that section immediately before this paragraph comes into force cease to have effect).

Commencement Information

I250Sch. 13 para. 5 in force at 6.4.2016, see s. 56(1)(4)

6After section 7 insert—

7AMeaning of “the first abolition date” and “the second abolition date”

In this Act—

  • the first abolition date” means 6 April 2012 (the date appointed for the commencement of section 15(1) of the Pensions Act 2007 (abolition of contracting-out for defined contribution pension schemes));

  • the second abolition date” means 6 April 2016 (the date on which section 56(4) of the Pensions Act 2014 provides for the commencement of section 24(1) of that Act (abolition of contracting-out for salary related schemes)).

7BMeaning of “contracted-out scheme” and “appropriate scheme” etc.

(1)This section applies for the interpretation of this Act.

(2)An occupational pension scheme was “contracted-out” at a time if, at that time, there was in force a certificate under section 7 (as it then had effect) stating that the employment of an earner in employed earner's employment was contracted-out employment by reference to the scheme.

(3)Contracting-out certificate” means a certificate of the kind mentioned in subsection (2).

(4)An occupational pension scheme was a “salary related contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 9(2) (as it then had effect).

(5)An occupational pension scheme was a “money purchase contracted-out scheme” at a time if, at that time, the scheme was contracted-out by virtue of satisfying section 9(3) (as it then had effect).

(6)A personal pension scheme was an “appropriate scheme” at a time if, at that time, there was in force a certificate issued under section 7(1)(b) (as it then had effect) stating that the scheme was an appropriate scheme.

(7)Appropriate scheme certificate” means a certificate of the kind mentioned in subsection (6).

(8)An appropriate scheme certificate that was in force in relation to a scheme is to be taken as conclusive that the scheme was, at that time, an appropriate scheme.

Commencement Information

I251Sch. 13 para. 6 in force at 6.4.2016, see s. 56(1)(4)

7(1)Section 8 (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”) is amended as follows.E+W+S

(2)For subsection (1) substitute—

(1)In relation to any period before the second abolition date, the employment of an earner in employed earner's employment was “contracted-out employment” in relation to the earner during that period if—

(a)the earner was under pensionable age;

(b)the earner's service in the employment was service which qualified the earner for a pension provided by a salary related contracted-out scheme; and

(c)there was in force a contracting-out certificate issued in accordance with this Chapter (as it then had effect) stating that the employment was contracted-out employment by reference to the scheme.

(3)After subsection (1A) insert—

(1B)In the following provisions of this Act “earner”, in relation to a scheme, means a person who was an earner in contracted-out employment by reference to the scheme.

(4)In subsection (2), in the definition of “guaranteed minimum pension”, for “by an occupational pension scheme” substitute “ , by a scheme that was a salary related contracted-out scheme, ”.

(5)For subsection (4) substitute—

(4)A contracting-out certificate that was in force in respect of an employed earner's employment is to be taken as conclusive that the employment was, at that time, contracted-out employment.

Commencement Information

I252Sch. 13 para. 7 in force at 6.4.2016, see s. 56(1)(4)

8The italic heading above section 9 is repealed.

Commencement Information

I253Sch. 13 para. 8 in force at 6.4.2016, see s. 56(1)(4)

9Sections 9 and 11 (requirements for certification of schemes: general) are repealed.

Commencement Information

I254Sch. 13 para. 9 in force at 6.4.2016, see s. 56(1)(4)

10The italic heading above section 12A is repealed.

Commencement Information

I255Sch. 13 para. 10 in force at 6.4.2016, see s. 56(1)(4)

11Sections 12A to 12D (requirements for certification applying to employment from 6 April 1997) are repealed.

Commencement Information

I256Sch. 13 para. 11 in force at 6.4.2016, see s. 56(1)(4)

12For the italic heading above section 13 substitute “ Guaranteed minimum pensions ”.

Commencement Information

I257Sch. 13 para. 12 in force at 6.4.2016, see s. 56(1)(4)

13(1)Before section 13 insert—E+W+S

12EFormer salary related contracted-out schemes to comply with GMP requirements

(1)A scheme that was a salary related contracted-out scheme is to be treated as including whatever provision it needs to contain to comply with the GMP requirements.

(2)A scheme complies with the GMP requirements if, in relation to any earner's service before the principal appointed day, it complies in all respects with sections 13 to 24E.

(3)Where—

(a)a scheme is permitted by any of those sections to include provision subject to certain requirements, and

(b)the scheme includes the provision but not the requirements,

the scheme is to be treated by subsection (1) as including the requirements.

(4)This section overrides any provision of a scheme to the extent that the provision of the scheme conflicts with it.

(2)For the purposes of section 12E it does not matter whether the scheme ceased to be contracted-out when the amendment made by paragraph 5 of this Schedule came into force or before that time.

(3)But section 12E does not treat a scheme as having included any provision before this paragraph comes into force.

Commencement Information

I258Sch. 13 para. 13 in force at 6.4.2016, see s. 56(1)(4)

14In section 13 (minimum pensions for earners), in subsection (2)—

(a)for “is a married woman or widow who is liable” substitute “ was a married woman or widow who was liable ”;

(b)after “Act 1992” insert “ at a time during a relevant year when she was in contracted-out employment by reference to the scheme ”;

(c)at the end of that subsection insert—

Relevant year” has the meaning given by section 14(8).

Commencement Information

I259Sch. 13 para. 14 in force at 6.4.2016, see s. 56(1)(4)

15(1)Section 14 (earner's guaranteed minimum) is amended as follows.E+W+S

(2)For subsection (1) substitute—

(1)An earner has a guaranteed minimum in relation to the pension provided by a scheme that was a salary related contracted-out scheme if in any tax week in a relevant year—

(a)earnings were paid to or for the earner's benefit in respect of employment which was contracted-out by reference to the scheme; and

(b)those earnings were in excess of the lower earnings limit for that tax week (or the prescribed equivalent if the earner was paid otherwise than weekly).

(3)In subsection (2), for “earnings such as are mentioned in subsection (1)” substitute “ excess earnings mentioned in subsection (1)(b) ”.

Commencement Information

I260Sch. 13 para. 15 in force at 6.4.2016, see s. 56(1)(4)

16In section 16 (revaluation of earnings factors for the purposes of section 14: early leavers etc), for subsection (2) substitute—

(2)The scheme may provide that in a case where—

(a)an earner was, before the second abolition date, in contracted-out employment by reference to a scheme, and

(b)the earner ceases to be in pensionable service under the scheme before the final relevant year,

the earnings factors for that person shall be determined for the purposes of section 14(2) by reference to the last such order to come into force before the end of the tax year in which the earner ceases to be in pensionable service under the scheme (“the last service tax year”).

Commencement Information

I261Sch. 13 para. 16 in force at 6.4.2016, see s. 56(1)(4)

17(1)Section 17 (minimum pensions for widows, widowers and surviving civil partners) is amended as follows.E+W+S

(2)In subsection (4A), after paragraph (a) insert—

(aa)for life, in a case where—

(i)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date, and

(ii)the earner died on or after the date on which the widow, widower or surviving civil partner attained state pension age;

(ab)for any period after the widow, widower or surviving civil partner has attained state pension age, in a case where—

(i)the earner died before the widow, widower or surviving civil partner attained state pension age,

(ii)the widow, widower or surviving civil partner did not marry or form a civil partnership after the death and before attaining state pension age, and

(iii)the widow, widower or surviving civil partner attained state pension age on or after the second abolition date;.

(3)After subsection (9) insert—

(9A)For the purposes of subsection (4A)(aa) and (ab) a person attains state pension age when he or she attains pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995.

Commencement Information

I262Sch. 13 para. 17 in force at 6.4.2016, see s. 56(1)(4)

18In section 20 (transfer of accrued rights), in subsection (1)(a)—

(a)in sub-paragraph (i), after “under a” insert “ scheme that was a ”;

(b)in sub-paragraph (ii)—

(i)omit “which is not contracted-out,”;

(ii)after “under a” insert “ scheme that was a ”.

Commencement Information

I263Sch. 13 para. 18 in force at 6.4.2016, see s. 56(1)(4)

19In section 23 (securing of benefits), in subsection (2), omit paragraph (d).

Commencement Information

I264Sch. 13 para. 19 in force at 6.4.2016, see s. 56(1)(4)

20In section 24A—

(a)the existing text becomes subsection (1), and

(b)after that subsection insert—

(2)The Secretary of State must give such guidance (if any) as he or she thinks appropriate about GMP conversion.

Commencement Information

I265Sch. 13 para. 20 in force at 6.4.2016, see s. 56(1)(4)

21In section 25 (power for HMRC to impose conditions as to investments and resources), in subsection (2), after “A” insert “ scheme that was a ”.

Commencement Information

I266Sch. 13 para. 21 in force at 6.4.2016, see s. 56(1)(4)

22Sections 34 to 36 (cancellation, variation, surrender and refusal of certificates) are repealed.

Commencement Information

I267Sch. 13 para. 22 in force at 6.4.2016, see s. 56(1)(4)

23In the italic heading above section 37, for “scheme rules after certification” substitute “ rules by former salary related contracted-out schemes ”.

Commencement Information

I268Sch. 13 para. 23 in force at 6.4.2016, see s. 56(1)(4)

24In section 37 (alteration of rules of contracted-out schemes) for subsections (1) to (3) substitute—

(1)Except in prescribed cases, the rules of a scheme that was a salary related contracted-out scheme cannot be altered unless the alteration is of a prescribed description.

(2)Regulations made by virtue of subsection (1) may operate so as to validate with retrospective effect any alteration of the rules which would otherwise be void under this section.

(3)Subsection (1) does not apply to a scheme if no person is entitled to receive, or has accrued rights to, any benefits under the scheme attributable to a period when the scheme was contracted-out.

Commencement Information

I269Sch. 13 para. 24 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(1)(b)

I270Sch. 13 para. 24 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

25After section 37 insert—

37ATransfer of liabilities etc: schemes contracted-out on or after 6 April 1997

(1)Regulations may prohibit or restrict—

(a)the transfer of any liability—

(i)for the payment of pensions under a relevant scheme, or

(ii)in respect of accrued rights to such pensions,

(b)the discharge of any liability to provide pensions under a relevant scheme, or

(c)the payment of a lump sum instead of a pension payable under a relevant scheme,

except in prescribed circumstances or on prescribed conditions.

(2)In this section “relevant scheme” means a scheme that was a salary related contracted-out scheme by virtue of section 9(2B) and references to pensions and accrued rights under the scheme are to such pensions and rights so far as attributable to an earner's service on or after the principal appointed day (including, in a case where there has been a transfer payment, any pensions or rights deriving (directly or indirectly) from—

(a)an earner's service on or after the principal appointed day in employment that was contracted-out employment by reference to another scheme, or

(b)in a case where the transfer payment was made before the first abolition date, protected rights under another occupational pension scheme or under a personal pension scheme which derive from payments or contributions in respect of employment on or after the principal appointed day).

(3)Regulations under subsection (1) may provide that any provision of this Part shall have effect subject to such modifications as may be specified in the regulations.

Commencement Information

I271Sch. 13 para. 25 in force at 7.7.2015 for specified purposes by S.I. 2015/1475, art. 2(1)(c)

I272Sch. 13 para. 25 in force at 6.4.2016 so far as not brought into force earlier by an order, see s. 56(1)(4)

26For the heading to Chapter 2 of Part 3 substitute “ Reduction in social security benefits for members of schemes that were contracted-out ”.

Commencement Information

I273Sch. 13 para. 26 in force at 6.4.2016, see s. 56(1)(4)

27In section 40 (scope of Chapter 2)—

(a)omit paragraph (a);

(b)in paragraph (c) for “such schemes” substitute “ schemes that were contracted-out pension schemes ”.

Commencement Information

I274Sch. 13 para. 27 in force at 6.4.2016, see s. 56(1)(4)

28The italic heading above section 41 is repealed.

Commencement Information

I275Sch. 13 para. 28 in force at 6.4.2016, see s. 56(1)(4)

29Section 41 (reduced rates of Class 1 contributions) is repealed.

Commencement Information

I276Sch. 13 para. 29 in force at 6.4.2016, see s. 56(1)(4)

30(1)Section 42 (review and alteration of reduced rates of Class 1 contributions) is repealed.E+W+S

(2)There is no duty, before the repeal of section 42 comes into force, to lay before Parliament any reports under that section.

Commencement Information

I277Sch. 13 para. 30 in force at 6.4.2016, see s. 56(1)(4)

31In section 48A (additional pension and other benefits), in subsection (1), for the words from the beginning to the end of paragraph (b) substitute In relation to—

(a)any tax week falling before the first abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 42A of this Act (as it then had effect),

(b)any tax week falling before the second abolition date where the amount of a Class 1 contribution attributable to section 8(1)(a) of the Social Security Contributions and Benefits Act 1992 in respect of the earnings paid to or for the benefit of an earner in that week was reduced under section 41 of this Act (as it then had effect), or

(c)any tax week falling before the first abolition date where an amount was paid under section 45(1) of this Act (as it then had effect) in respect of the earnings paid to or for the benefit of an earner,.

Commencement Information

I278Sch. 13 para. 31 in force at 6.4.2016, see s. 56(1)(4)

32Section 49 (women, married women and widows) is repealed.

Commencement Information

I279Sch. 13 para. 32 in force at 6.4.2016, see s. 56(1)(4)

33Section 50 (powers of HMRC to approve arrangements for scheme ceasing to be certified) is repealed.

Commencement Information

I280Sch. 13 para. 33 in force at 6.4.2016, see s. 56(1)(4)

34In section 51 (calculation of guaranteed minimum pensions under approved arrangements), in subsection (1)(b), for “ceases” substitute “ ceased ”.

Commencement Information

I281Sch. 13 para. 34 in force at 6.4.2016, see s. 56(1)(4)

35For section 52 substitute—

52Supervision of former salary related contracted-out schemes

Section 53 shall apply for the purpose of making provision for securing the continued supervision of any scheme that was a salary related contracted-out scheme, other than a public service pension scheme, if any person is entitled to receive or has accrued rights to—

(a)a guaranteed minimum pension under the scheme, or

(b)a pension under the scheme attributable to service on or after the principal appointed day but before the scheme ceased to be contracted-out.

Commencement Information

I282Sch. 13 para. 35 in force at 6.4.2016, see s. 56(1)(4)

36In section 53 (supervision: former contracted-out schemes), omit subsection (3).

Commencement Information

I283Sch. 13 para. 36 in force at 6.4.2016, see s. 56(1)(4)

37Sections 55 to 68 (state scheme premiums) are repealed.

Commencement Information

I284Sch. 13 para. 37 in force at 6.4.2016, see s. 56(1)(4)

38In section 87 (general protection principle), in subsection (1)(a), for sub-paragraph (i) substitute—

(i)the date (“the cessation date”) which is the earlier of—

(a)the date on which an earner ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary related contracted-out scheme; and

(b)the date on which the earner attains pensionable age;.

Commencement Information

I285Sch. 13 para. 38 in force at 6.4.2016, see s. 56(1)(4)

39In section 96 (further provisions concerning exercise of option to take cash equivalent in a particular way), in subsection (2), in paragraph (a)(i) omit “which is not a contracted-out scheme”.

Commencement Information

I286Sch. 13 para. 39 in force at 6.4.2016, see s. 56(1)(4)

40In section 109 (annual increase of guaranteed minimum pensions), in subsection (3A)(b), omit “for the purposes of Part 3 of the Pensions Act 1995”.

Commencement Information

I287Sch. 13 para. 40 in force at 6.4.2016, see s. 56(1)(4)

41In section 171 (questions arising in proceedings), in subsection (1), omit paragraph (b) and the “or” before it.

Commencement Information

I288Sch. 13 para. 41 in force at 6.4.2016, see s. 56(1)(4)

42In section 178 (trustees and managers of schemes), in paragraph (a)—

(a)after “1985” insert “ or ”;

(b)omit “or Part II of Schedule 5 to the Child Support, Pensions and Social Security Act 2000”.

Commencement Information

I289Sch. 13 para. 42 in force at 6.4.2016, see s. 56(1)(4)

43(1)Section 181(1) (general interpretation) is amended as follows.E+W+S

(2)In the appropriate places insert—

the first abolition date” has the meaning given by section 7A;

the second abolition date” has the meaning given by section 7A;

the principal appointed day” means 6 April 1997 (which is the day designated as the principal appointed day for the purposes of Part 3 of the Pensions Act 1995);

salary related contracted-out scheme” is to be construed in accordance with section 7B;

(3)Omit the definition of “abolition date”.

(4)In the definition of “appropriate scheme” and “appropriate scheme certificate”, for “section 181A” substitute “ section 7B ”.

(5)In the definition of “contracting-out certificate”, for “section 7 and section 181A” substitute “ section 7B ”.

(6)In the definition of “contributions equivalent premium”, for “has the meaning given in” substitute “ means a premium that was paid under ”.

(7)In the definition of “earner” and “earnings”, after “in accordance with” insert “ section 8(1B) of this Act and ”.

(8)In the definition of “money purchase contracted-out scheme”, for “section 181A” substitute “ section 7B ”.

Commencement Information

I290Sch. 13 para. 43 in force at 6.4.2016, see s. 56(1)(4)

44Section 181A (interpretation of references to money purchase contracted-out schemes or appropriate schemes after first abolition date) is repealed.

Commencement Information

I291Sch. 13 para. 44 in force at 6.4.2016, see s. 56(1)(4)

45In section 185 (consultation about other regulations), omit subsection (9).

Commencement Information

I292Sch. 13 para. 45 in force at 6.4.2016, see s. 56(1)(4)

46(1)Schedule 2 (certification regulations) is amended as follows.E+W+S

(2)Omit paragraphs 1 to 4.

(3)In paragraph 5(3A), for “a contracted-out occupational pension scheme which is being wound up,” substitute “ a scheme which was a contracted-out occupational pension scheme and which was being wound up before the second abolition date ”.

(4)Omit paragraphs 6 to 8.

Commencement Information

I293Sch. 13 para. 46 in force at 6.4.2016, see s. 56(1)(4)

47(1)Schedule 4 (priority in bankruptcy) is amended as follows.E+W+S

(2)In paragraph 2—

(a)in sub-paragraph (1), after “contributions to a” insert “ Northern Ireland ”;

(b)in sub-paragraph (5), at the appropriate place insert—

Northern Ireland salary related contracted-out scheme” means a salary related contracted-out scheme within the meaning of the Pension Schemes (Northern Ireland) Act 1993 (and references to employment that is contracted-out by reference to a scheme are to be read accordingly);.

(3)In paragraph 3—

(a)in sub-paragraph (1), after “on account of a” insert “ Northern Ireland ”;

(b)after sub-paragraph (5) insert—

(6)In this paragraph “Northern Ireland contributions equivalent premium” means a contributions equivalent premium within the meaning of the Pension Schemes (Northern Ireland) Act 1993.

(4)Omit paragraph 4(2).

Commencement Information

I294Sch. 13 para. 47 in force at 6.4.2016, see s. 56(1)(4)

Part 2 E+W+SOther Acts: amendments

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

48The Contributions and Benefits Act is amended as follows.

Commencement Information

I295Sch. 13 para. 48 in force at 6.4.2016, see s. 56(1)(4)

49In section 1 (outline of contributory system), in subsection (3), omit the words after paragraph (b).

Commencement Information

I296Sch. 13 para. 49 in force at 6.4.2016, see s. 56(1)(4)

50In section 4C (power to make provision in consequence of provision made by virtue of section 4B(2) etc), in subsection (5), in each of paragraphs (a) and (b) omit the words from “, including” to the end.

Commencement Information

I297Sch. 13 para. 50 in force at 6.4.2016, see s. 56(1)(4)

51In section 8 (calculation of primary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.

Commencement Information

I298Sch. 13 para. 51 in force at 6.4.2016, see s. 56(1)(4)

52In section 9 (calculation of secondary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.

Commencement Information

I299Sch. 13 para. 52 in force at 6.4.2016, see s. 56(1)(4)

53In section 20 (descriptions of contributory benefits), in subsection (3), for “(reduction in state scheme contributions and benefits for members of certified schemes)” substitute “ (reduction in benefits for members of schemes that were contracted-out) ”.

Commencement Information

I300Sch. 13 para. 53 in force at 6.4.2016, see s. 56(1)(4)

54In Schedule 1 (supplementary provisions relating to national insurance contributions), in paragraph 1, omit sub-paragraphs (2), (3), (6) and (9) to (11).

Commencement Information

I301Sch. 13 para. 54 in force at 6.4.2016, see s. 56(1)(4)

Social Security Administration Act 1992 (c. 5)E+W+S

55The Administration Act is amended as follows.

Commencement Information

I302Sch. 13 para. 55 in force at 6.4.2016, see s. 56(1)(4)

56In section 150 (annual up-rating of benefits), in subsection (10A), for “the abolition date, as defined by section 181(1) of the Pensions Act,” substitute “ 6 April 2012 (the date appointed for the commencement of section 15(1) of the Pensions Act 2007) ”.

Commencement Information

I303Sch. 13 para. 56 in force at 6.4.2016, see s. 56(1)(4)

57In section 191 (interpretation - general)—

(a)in the definition of “money purchase contracted-out scheme”, for “section 181A” substitute “ section 7B ”;

(b)in the definition of “personal pension scheme” etc, for “section 181A(6)” substitute “ section 7B(6) ”.

Commencement Information

I304Sch. 13 para. 57 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 1995 (c. 26)E+W+S

58The Pensions Act 1995 is amended as follows.

Commencement Information

I305Sch. 13 para. 58 in force at 6.4.2016, see s. 56(1)(4)

59(1)Section 51 (annual increase in rate of pension) is amended as follows.E+W+S

(2)For “the appointed day” (in each place) substitute “ 6 April 1997 ”.

(3)For subsection (8) substitute—

(8)An occupational pension scheme is a “relevant occupational pension scheme” if—

(a)it has not, at any time on or after 6 April 1997, been a salary related contracted-out scheme (see section 7B of the Pension Schemes Act 1993), or

(b)it has, at any time on or after 6 April 1997, been a salary related contracted-out scheme but no person is entitled to receive, or has accrued rights to, benefits under the scheme attributable to a period on or after that day when it was such a scheme.

Commencement Information

I306Sch. 13 para. 59 in force at 6.4.2016, see s. 56(1)(4)

60In section 54 (sections 51 to 53: supplementary), in subsection (3), omit the definition of “the appointed day”.

Commencement Information

I307Sch. 13 para. 60 in force at 6.4.2016, see s. 56(1)(4)

61For section 69 substitute—

69Grounds for applying for modifications: winding up registered schemes

(1)The Authority may, on an application made to them by the trustees of a registered pension scheme which is being wound up, make an order—

(a)modifying the scheme for the purpose of enabling assets remaining after the liabilities of the scheme have been fully discharged to be distributed to the employer, or

(b)authorising the trustees to modify the scheme for that purpose.

(2)But the Authority may act under subsection (1) only if prescribed requirements in relation to the distribution are satisfied.

(3)Regulations may make provision requiring applications under subsection (1) to meet prescribed requirements.

(4)Regulations may provide that in prescribed circumstances this section does not apply to schemes falling within a prescribed class or description or applies to them with prescribed modifications.

(5)In this section “registered pension scheme” means an occupational pension scheme registered under section 153 of the Finance Act 2004 (other than a public service pension scheme).

Commencement Information

I308Sch. 13 para. 61 in force at 6.4.2016, see s. 56(1)(4)

62In section 70 (section 69: supplementary), omit subsection (3).

Commencement Information

I309Sch. 13 para. 62 in force at 6.4.2016, see s. 56(1)(4)

63In section 71 (effect of orders under section 69), in subsection (1)—

(a)for “paragraph (a)” substitute “ paragraph (b) ”;

(b)for “paragraph (b)” substitute “ paragraph (a) ”.

(64)In section 72 (modification of public service pension schemes), in subsection (1), for “section 69(1)(b)” substitute “ section 69(1)(a) ”.

Commencement Information

I310Sch. 13 para. 63 in force at 6.4.2016, see s. 56(1)(4)

65Sections 136(1), (3) and (5), 137(3) and (4) and 148 (amendments to do with contracting-out) are repealed.

Commencement Information

I311Sch. 13 para. 65 in force at 6.4.2016, see s. 56(1)(4)

Employment Rights Act 1996 (c. 18)E+W+S

66The Employment Rights Act 1996 is amended as follows.

Commencement Information

I312Sch. 13 para. 66 in force at 6.4.2016, see s. 56(1)(4)

67In section 3 (note to be included in statement of initial employment particulars), omit subsection (5).

Commencement Information

I313Sch. 13 para. 67 in force at 6.4.2016, see s. 56(1)(4)

68In section 11 (references to employment tribunals), in subsection (3), omit paragraph (a) (including the “and” at the end of it).

Commencement Information

I314Sch. 13 para. 68 in force at 6.4.2016, see s. 56(1)(4)

Child Support, Pensions and Social Security Act 2000 (c. 19)E+W+S

69The Child Support, Pensions and Social Security Act 2000 is amended as follows.

Commencement Information

I315Sch. 13 para. 69 in force at 6.4.2016, see s. 56(1)(4)

70(1)Section 42 (disclosure of state pension information) is amended as follows.E+W+S

(2)In subsection (3)(d), omit “which is not contracted-out employment”.

(3)In subsection (11), omit the definition of “contracted-out employment”.

Commencement Information

I316Sch. 13 para. 70 in force at 6.4.2016, see s. 56(1)(4)

71Part 2 of Schedule 5 (alternative to anti-franking rules) is repealed.

Commencement Information

I317Sch. 13 para. 71 in force at 6.4.2016, see s. 56(1)(4)

Employment Act 2002 (c. 22)E+W+S

72In section 15 of the Employment Act 2002 (use of information by HMRC), in subsection (2)(c), for “(certification of pension schemes etc)” substitute “ (schemes that were contracted-out etc) ”.

Commencement Information

I318Sch. 13 para. 72 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 2004 (c. 35)E+W+S

73In section 258 of the Pensions Act 2004 (pension protection on transfer of employment), in subsection (2)(c), for sub-paragraphs (i) and (ii) substitute “ complies with prescribed requirements ”.

Commencement Information

I319Sch. 13 para. 73 in force at 6.4.2016, see s. 56(1)(4)

Companies Act 2006 (c. 46)E+W+S

74The Companies Act 2006 is amended as follows.

Commencement Information

I320Sch. 13 para. 74 in force at 6.4.2016, see s. 56(1)(4)

75In section 140 (interests to be disregarded: employer's rights of recovery under pension scheme or employee's share scheme), in subsection (2), omit “section 61 of the Pension Schemes Act 1993 or”.

Commencement Information

I321Sch. 13 para. 75 in force at 6.4.2016, see s. 56(1)(4)

76In section 673 (interests to be disregarded in determining whether company has beneficial interest: employer's charges and other rights of recovery), in subsection (1)(b), omit sub-paragraph (i).

Commencement Information

I322Sch. 13 para. 76 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 2007 (c. 22)E+W+S

77The Pensions Act 2007 is amended as follows.

Commencement Information

I323Sch. 13 para. 77 in force at 6.4.2016, see s. 56(1)(4)

78(1)Section 15 (abolition of contracting-out for defined contribution pension schemes) is amended as follows.E+W+S

(2)In subsection (1), for “the abolition date” substitute “ 6 April 2012 ”.

(3)In subsection (2), omit the definition of “the abolition date”.

(4)In subsection (4), for “the abolition date” (in each place) substitute “ 6 April 2012 ”.

Commencement Information

I324Sch. 13 para. 78 in force at 6.4.2016, see s. 56(1)(4)

79In section 27 (consequential provision, repeals and revocations), in subsection (6), for “the abolition date (within the meaning of section 15)” substitute “ 6 April 2012 ”.

Commencement Information

I325Sch. 13 para. 79 in force at 6.4.2016, see s. 56(1)(4)

80(1)Schedule 4 (abolition of contracting-out for defined contribution pension schemes) is amended as follows.E+W+S

(2)In paragraphs 61, 62(1), (2)(a) and (b)(i) and (3), 65 and 66(2) for “the abolition date” (in each place) substitute “ 6 April 2012 ”.

(3)In paragraph 67(1) omit the definition of “the abolition date”.

Commencement Information

I326Sch. 13 para. 80 in force at 6.4.2016, see s. 56(1)(4)

Pensions Act 2008 (c. 30)E+W+S

81The Pensions Act 2008 is amended as follows.

Commencement Information

I327Sch. 13 para. 81 in force at 6.4.2016, see s. 56(1)(4)

82For section 21 substitute—

21Quality requirement: UK defined benefits schemes

A defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if it satisfies the test scheme standard in relation to that jobholder.

Commencement Information

I328Sch. 13 para. 82 in force at 6.4.2016, see s. 56(1)(4)

83In section 22 (test scheme standard), for subsection (2) substitute—

(2)Subject to subsection (3), the relevant members are J and all active members who are jobholders of the same employer as J.

Commencement Information

I329Sch. 13 para. 83 in force at 6.4.2016, see s. 56(1)(4)

Section 24

SCHEDULE 14E+W+SPower to amend schemes to reflect abolition of contracting-out

Modifications etc. (not altering text)

IntroductionE+W+S

1This Schedule is about the power under section 24(2) to amend an occupational pension scheme in relation to some or all of its members.

Commencement Information

I330Sch. 14 para. 1 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

What can the power be used to do?E+W+S

2(1)The power may be used—E+W+S

(a)to increase the employee contributions of the relevant members;

(b)to alter the future accrual of benefits for or in respect of them.

(2)But the power may not be used in a way that would—

(a)increase the amount of the total annual employee contributions of the relevant members by more than the annual increase in the employer's national insurance contributions in respect of them,

(b)reduce the amount of the scheme's liabilities in respect of the benefits that accrue annually for or in respect of the relevant members by more than the annual increase in the employer's national insurance contributions in respect of them, or

(c)result in the sum of the amount of any increase in the total annual employee contributions of the relevant members and the amount of any reduction in the scheme's liabilities in respect of the benefits that accrue annually for or in respect of the relevant members being more than the annual increase in the employer's national insurance contributions in respect of the relevant members.

(3)Regulations are to define what is meant by—

(a)the total annual employee contributions of the relevant members;

(b)the annual increase in an employer's national insurance contributions in respect of the relevant members;

(c)a scheme's liabilities in respect of the benefits that accrue annually for or in respect of the relevant members.

(4)The regulations may make provision about the calculation of those amounts, including provision requiring them to be calculated in accordance with specified methods or assumptions.

(5)Where the effect of using the power to increase employee contributions of the relevant members would be to increase the contributions that the employer is required to pay, the power may be used to make other amendments needed to ensure that only the employee contributions are increased because of the use of the power.

(6)Where the effect of using the power to alter the future accrual of benefits for or in respect of the relevant members would be to decrease the contributions that any members are required to pay, the power may be used to make other amendments needed to ensure that the contributions of those members are not decreased because of the use of the power.

Commencement Information

I331Sch. 14 para. 2 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

3(1)The power may not be used in a way that would or might adversely affect the subsisting rights of—E+W+S

(a)a member of the scheme, or

(b)a survivor of a member of the scheme.

(2)“Subsisting right” and “survivor” have the meanings given by section 67A of the Pensions Act 1995.

Commencement Information

I332Sch. 14 para. 3 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

4Regulations may impose further restrictions on the use of the power.

Commencement Information

I333Sch. 14 para. 4 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Creation of exceptionsE+W+S

5The power may not be used to amend a scheme in relation to a member of a description specified in regulations under this paragraph.

Commencement Information

I334Sch. 14 para. 5 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Requirement for actuary's certificateE+W+S

6(1)The power may be used only if an actuary has certified that the proposed amendments would comply with such of the requirements imposed by or under this Schedule as are specified in regulations under this paragraph.E+W+S

(2)Actuary” means—

(a)a person of a description specified in regulations, or

(b)a person approved by the Secretary of State.

Commencement Information

I335Sch. 14 para. 6 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

When can the power be used?E+W+S

7The power may be used before or after the repeal of section 41 of the Pension Schemes Act 1993 comes into force (but amendments made under it must not be framed so as to take effect before the repeal comes into force).

Commencement Information

I336Sch. 14 para. 7 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

8An amendment made before the repeal of section 41 of the Pension Schemes Act 1993 comes into force does not take effect in relation to any relevant members who have ceased to be in contracted-out employment by reference to the scheme before the repeal comes into force.

Commencement Information

I337Sch. 14 para. 8 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Can the power be used more than once?E+W+S

9(1)The power may be used to amend a scheme in relation to the same members on more than one occasion.E+W+S

(2)For the purposes of paragraph 2 as it applies in relation to the use of the power on the second or subsequent occasion, all of the amendments are to be treated as if they were being made on that occasion.

(3)Regulations may make further provision modifying section 24(2) to (7) or this Schedule (including paragraph 2) where the power is used to amend the scheme in relation to the same members on more than one occasion.

Commencement Information

I338Sch. 14 para. 9 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Modifications for multi-employer or sectionalised schemesE+W+S

10(1)Regulations may modify section 24(2) to (7) or this Schedule as it applies in relation to—E+W+S

(a)multi-employer schemes, or

(b)schemes that have different rules for different members.

(2)Multi-employer scheme” means a scheme in relation to which there is more than one employer.

Commencement Information

I339Sch. 14 para. 10 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

The power overrides other legislationE+W+S

11An amendment under section 24 and this Schedule may be made in relation to any member, and has effect, despite anything in any other enactment to the contrary.

Commencement Information

I340Sch. 14 para. 11 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Procedural requirements and supplementary mattersE+W+S

12Regulations may impose procedural requirements about the use of the power and the manner in which any amendments must be made.

Commencement Information

I341Sch. 14 para. 12 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

13Regulations under this Schedule may confer a discretion on a person.

Commencement Information

I342Sch. 14 para. 13 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

InformationE+W+S

14(1)Regulations may require the trustees or managers of an occupational pension scheme to provide information requested by an employer in connection with the powers given by section 24(2).E+W+S

(2)The regulations may provide for section 10 of the Pensions Act 1995 (civil penalties) to apply to a person who fails to comply with a requirement.

(3)In this paragraph “managers”, in relation to a pension scheme (other than a scheme established under a trust), means the persons responsible for the management of the scheme.

Commencement Information

I343Sch. 14 para. 14 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

DefinitionsE+W+S

15In this Schedule—

  • employee contributions” means, in relation to a member of a scheme, contributions made to the scheme by or on behalf of the member on his or her own account;

  • relevant member”, in relation to a scheme, means a current member in relation to whom the scheme has been or is to be amended under section 24(2).

Commencement Information

I344Sch. 14 para. 15 in force at 23.2.2015 by S.I. 2015/134, art. 2(2)

Section 25

SCHEDULE 15E+W+SOption to boost old retirement pensions

Part 1 E+W+SGreat Britain

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

1The Social Security Contributions and Benefits Act 1992 is amended as follows.

Commencement Information

I345Sch. 15 para. 1 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

2(1)Section 1 (outline of contributory system) is amended as follows.E+W+S

(2)In subsection (2)—

(a)omit “six”;

(b)in paragraph (d), after “making up entitlement;” insert—

(da)Class 3A, payable by eligible people voluntarily under section 14A with a view to obtaining units of additional pension;.

(3)In subsection (4)(a), for “and 3” substitute “ , 3 and 3A ”.

Commencement Information

I346Sch. 15 para. 2 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

3After section 14 insert—

Class 3A contributionsE+W+S
14AClass 3A contributions in return for units of additional pension

(1)An eligible person is entitled to pay a Class 3A contribution in return for a unit of additional pension.

(2)A person is eligible to pay a Class 3A contribution if the person—

(a)is entitled to a Category A, Category B or Category D retirement pension or graduated retirement benefit, or

(b)has deferred entitlement to a Category A or Category B retirement pension or graduated retirement benefit.

(3)The amount of a Class 3A contribution needed to obtain a unit of additional pension is to be determined in accordance with regulations made by the Treasury.

(4)Before making those regulations the Treasury must consult the Government Actuary or the Deputy Government Actuary.

(5)A person—

(a)may pay Class 3A contributions on more than one occasion, but

(b)may not obtain more than the maximum number of units of additional pension.

(6)The maximum number of units of additional pension that a person may obtain is to be specified by the Treasury in regulations.

(7)In this section “deferred”, in relation to graduated retirement benefit, has the meaning given by section 36(4A) of the National Insurance Act 1965.

(8)For the meaning of “deferred” in relation to a Category A or Category B retirement pension, see section 55(3) of this Act.

14BClass 3A contributions: repayment

(1)The Treasury may by regulations provide for a Class 3A contribution to be repaid in specified circumstances.

(2)Regulations under subsection (1) may, in particular, make provision about applications for repayments and other procedural matters.

(3)A person is to be treated as never having had a unit of additional pension if the Class 3A contribution paid in respect of it is repaid.

(4)Regulations under subsection (1) may provide for benefits paid to a person because of the unit of additional pension to be recovered by deducting them from the repayment.

14CClass 3A contributions: power to change eligibility or remove the option to pay

(1)The Treasury may by regulations change who is eligible to pay Class 3A contributions.

(2)The Treasury may by regulations remove the option for people to pay Class 3A contributions.

(3)Regulations under this section may, in particular, amend an Act.

Commencement Information

I347Sch. 15 para. 3 in force at 1.10.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(ii)(3)(d)(i)

I348Sch. 15 para. 3 in force at 12.10.2015 in so far as not already in force by S.I. 2015/1475, art. 3(b)

4If paragraph 3 comes into force before the day mentioned in section 56(4) of this Act, section 14A(2) as inserted by that paragraph has effect as if the reference to entitlement included the prospective entitlement of a person who—

(a)has not yet reached pensionable age, but

(b)will reach pensionable age before that day (assuming that the person lives until pensionable age).

Commencement Information

I349Sch. 15 para. 4 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

5In section 43 (persons entitled to more than one retirement pension), in subsection (1), after “subsection (2) below” insert “ and section 61ZC below (which deals with unusual cases involving units of additional pension) ”.

Commencement Information

I350Sch. 15 para. 5 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

6In section 44 (Category A retirement pension), in subsection (3)—

(a)in paragraph (b), at the end insert “ or where the pensioner has one or more units of additional pension ”;

(b)after paragraph (b) insert—

For units of additional pension, see section 14A.

Commencement Information

I351Sch. 15 para. 6 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

7(1)Section 45 (rate of additional pension in a Category A retirement pension) is amended as follows.E+W+S

(2)In subsection (1)—

(a)after “shall be” insert the sum of the following—

(a)in relation to any surpluses in the pensioner's earnings factors,;

(b)at the end insert ; and

(b)if the pensioner has one or more units of additional pension, a specified amount for each of those units.

(3)In subsection (2), at the end of paragraph (d) insert ; and

(e)if the pensioner has one or more units of additional pension, a specified amount for each of those units.

(4)After subsection (2) insert—

(2A)For the purposes of subsections (1)(b) and (2)(e) the “specified amount” is an amount to be specified by the Secretary of State in regulations.

Commencement Information

I352Sch. 15 para. 7 in force at 1.10.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(ii)(3)(d)(ii)

I353Sch. 15 para. 7 in force at 12.10.2015 in so far as not already in force by S.I. 2015/1475, art. 3(b)

8In section 52 (special provision for surviving spouses), after subsection (3) insert—

(3A)In subsection (3) the references to additional pension in a Category A or Category B retirement pension do not include any amount of additional pension attributable to units of additional pension.

(3B)If an amount of additional pension in the Category B retirement pension is attributable to units of additional pension, the additional pension in the Category A retirement pension is increased by that amount (in addition to any increase under subsection (3)).

Commencement Information

I354Sch. 15 para. 8 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

9After section 61 insert—

61ZAShortfall in contributions: people with units of additional pension

(1)This section applies to a person who has one or more units of additional pension if the person—

(a)is not entitled to a Category A retirement pension, but

(b)would be entitled to a Category A retirement pension if the relevant contribution conditions were satisfied.

(2)The relevant contribution conditions are to be taken to be satisfied for the purposes of the person's entitlement to a Category A retirement pension.

(3)But where a person is entitled to a Category A retirement pension because of this section, the only element of that pension to which the person is so entitled is the additional pension attributable to the units of additional pension.

(4)For units of additional pension, see section 14A.

61ZBShortfall in contributions: people whose dead spouse had units of additional pension

(1)This section applies to a person whose spouse or civil partner died with one or more units of additional pension if the person—

(a)is not entitled to a Category B retirement pension as a result of the death, but

(b)would be entitled to a Category B retirement pension as a result of the death if the relevant contribution conditions were satisfied.

(2)The relevant contribution conditions are to be taken to be satisfied for the purposes of the person's entitlement to that Category B retirement pension.

(3)But where a person is entitled to a Category B retirement pension because of this section, the only element of that pension to which the person is so entitled is the additional pension attributable to the units of additional pension.

(4)For units of additional pension, see section 14A.

61ZCEntitlement to more than one pension: sections 61ZA and 61ZB

(1)Section 43 does not prevent a person from being entitled for the same period to both—

(a)a Category A retirement pension because of section 61ZA, and

(b)one Category B retirement pension.

(2)Section 43 does not prevent a person from being entitled for the same period to both—

(a)a Category A retirement pension, and

(b)one Category B retirement pension because of section 61ZB (or, if there is more than one such Category B retirement pension, the most favourable of them).

(3)Accordingly—

(a)in section 43(2)(a) the reference to “a Category A or a Category B retirement pension”, in a case in which subsection (1) or (2) of this section applies, includes “a Category A and a Category B retirement pension”,

(b)in sections 43(3)(a) and (aa), 51A and 52 “Category A retirement pension” does not include a pension to which a person is entitled because of section 61ZA, and

(c)in sections 43(3)(a) and 52 “Category B retirement pension” does not include a pension to which a person is entitled because of section 61ZB.

Commencement Information

I355Sch. 15 para. 9 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

10In section 122 (interpretation), in subsection (1), at the appropriate place insert—

unit of additional pension” means a unit of additional pension for which a person has paid a Class 3A contribution under section 14A;.

Commencement Information

I356Sch. 15 para. 10 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

11In section 176 (parliamentary control), in subsection (1)(a), at the appropriate places insert— “ section 14A; ” “ section 45(2A); ”.

Commencement Information

I357Sch. 15 para. 11 in force at 13.10.2014 by S.I. 2014/2727, art. 2

12In the heading to Schedule 1, for “and 3” substitute “ , 3 and 3A ”.

Commencement Information

I358Sch. 15 para. 12 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

Social Security Administration Act 1992 (c. 5)E+W+S

13(1)Section 162 of the Social Security Administration Act 1992 (destination of contributions) is amended as follows.E+W+S

(2)In subsection (5)(e), after “those contributions;” insert—

(ea)in the case of Class 3A contributions, 15.5 per cent of the amount estimated to be the total of those contributions;.

(3)In subsection (8)(c), for “or (e)” substitute “ , (e) or (ea) ”.

Commencement Information

I359Sch. 15 para. 13 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

Welfare Reform and Pensions Act 1999 (c. 30)E+W+S

14In section 47 of the Welfare Reform and Pensions Act 1999 (shareable state scheme rights), in subsection (2)(a), omit “earnings-related”.

Commencement Information

I360Sch. 15 para. 14 in force at 12.10.2015 by S.I. 2015/1475, art. 3(b)

Part 2 E+W+SNorthern Ireland

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)E+W+S

15The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

Commencement Information

I361Sch. 15 para. 15 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

16(1)Section 1 (outline of contributory system) is amended as follows.E+W+S

(2)In subsection (2)—

(a)omit “six”;

(b)in paragraph (d), after “making up entitlement;” insert—

(da)Class 3A, payable by eligible people voluntarily under section 14A with a view to obtaining units of additional pension;.

(3)In subsection (4)(a), for “and 3” substitute “ , 3 and 3A ”.

Commencement Information

I362Sch. 15 para. 16 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

17After section 14 insert—

Class 3A contributionsE+W+S
14AClass 3A contributions in return for units of additional pension

(1)An eligible person is entitled to pay a Class 3A contribution in return for a unit of additional pension.

(2)A person is eligible to pay a Class 3A contribution if the person—

(a)is entitled to a Category A, Category B or Category D retirement pension or graduated retirement benefit, or

(b)has deferred entitlement to a Category A or Category B retirement pension or graduated retirement benefit.

(3)The amount of a Class 3A contribution needed to obtain a unit of additional pension is to be determined in accordance with regulations made by the Treasury.

(4)Before making those regulations the Treasury must consult the Government Actuary or the Deputy Government Actuary.

(5)A person—

(a)may pay Class 3A contributions on more than one occasion, but

(b)may not obtain more than the maximum number of units of additional pension.

(6)The maximum number of units of additional pension that a person may obtain is to be specified by the Treasury in regulations.

(7)In this section “deferred”, in relation to graduated retirement benefit, has the meaning given by section 35(4A) of the National Insurance Act (Northern Ireland) 1966.

(8)For the meaning of “deferred” in relation to a Category A or Category B retirement pension, see section 55(3) of this Act.

14BClass 3A contributions: repayment

(1)The Treasury may by regulations provide for a Class 3A contribution to be repaid in specified circumstances.

(2)Regulations under subsection (1) may, in particular, make provision about applications for repayments and other procedural matters.

(3)A person is to be treated as never having had a unit of additional pension if the Class 3A contribution paid in respect of it is repaid.

(4)Regulations under subsection (1) may provide for benefits paid to a person because of the unit of additional pension to be recovered by deducting them from the repayment.

14CClass 3A contributions: power to change eligibility or remove the option to pay

(1)The Treasury may by regulations change who is eligible to pay Class 3A contributions.

(2)The Treasury may by regulations remove the option for people to pay Class 3A contributions.

(3)Regulations under this section may, in particular, amend an Act.

Commencement Information

I363Sch. 15 para. 17 in force at 1.10.2014 for specified purposes by S.I. 2014/2377, art. 2(1)(a)(ii)(3)(d)(iii)

I364Sch. 15 para. 17 in force at 12.10.2015 in so far as not already in force by S.I. 2015/1670, art. 2(b)

18(1)If paragraph 17 comes into force before the new state pension commencement date for Northern Ireland, section 14A(2) as inserted by that paragraph has effect as if the reference to entitlement included the prospective entitlement of a person who—E+W+S

(a)has not yet reached pensionable age, but

(b)will reach pensionable age before that day (assuming that the person lives until pensionable age).

(2)In this paragraph “the new state pension commencement date for Northern Ireland” means the date on which legislation in Northern Ireland corresponding to section 2 of this Act comes fully into force.

Commencement Information

I365Sch. 15 para. 18 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

19In section 121 (interpretation), in subsection (1), at the appropriate place insert—

unit of additional pension” means a unit of additional pension for which a person has paid a Class 3A contribution under section 14A;.

Commencement Information

I366Sch. 15 para. 19 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

20In section 172 (procedure for regulations etc), in subsection (11A), after “11(3)” insert “ , 14A ”.

Commencement Information

I367Sch. 15 para. 20 in force at 13.10.2014 by S.I. 2014/2727, art. 2

21In the heading to Schedule 1, for “and 3” substitute “ , 3 and 3A ”.

Commencement Information

I368Sch. 15 para. 21 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

Social Security Administration (Northern Ireland) Act 1992 (c. 8)E+W+S

22(1)Section 142 of the Social Security Administration (Northern Ireland) Act 1992 (destination of contributions) is amended as follows.E+W+S

(2)In subsection (5)(e), after “those contributions;” insert—

(ea)in the case of Class 3A contributions, 15.5 per cent of the amount estimated to be the total of those contributions;.

(3)In subsection (8)(c), for “or (e)” substitute “ , (e) or (ea) ”.

Commencement Information

I369Sch. 15 para. 22 in force at 12.10.2015 by S.I. 2015/1670, art. 2(b)

Section 31

SCHEDULE 16E+W+SBereavement support payment: amendments

Forfeiture Act 1982 (c. 34)E+W+S

1In section 4 of the Forfeiture Act 1982 (Upper Tribunal to decide whether forfeiture rule applies to social security benefits), in the definition of “relevant enactment” in subsection (5), after the entry relating to Part 1 of this Act (inserted by Schedule 12 to this Act) insert— “ section 30 of that Act, ”.

Commencement Information

I370Sch. 16 para. 1 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Social Security Contributions and Benefits Act 1992 (c. 4)E+W+S

2The Social Security Contributions and Benefits Act 1992 is amended as follows.

Commencement Information

I371Sch. 16 para. 2 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

3(1)Section 20 (descriptions of contributory benefits) is amended as follows.E+W+S

(2)In subsection (1), for paragraph (ea) substitute—

(ea)widowed parent's allowance;.

(3)In subsection (2), in the definition of “long-term benefit” omit paragraph (bb).

Commencement Information

I372Sch. 16 para. 3 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

4(1)Section 21 (contribution conditions) is amended as follows.E+W+S

(2)In the table in subsection (2) omit the entries for bereavement payment and bereavement allowance.

(3)Omit subsection (4).

Commencement Information

I373Sch. 16 para. 4 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

5In section 22 (earnings factors), in subsection (2), after paragraph (c) (inserted by Schedule 12 to this Act) insert and

(d)establishing entitlement to bereavement support payment under section 30 of the Pensions Act 2014.

Commencement Information

I374Sch. 16 para. 5 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

6(1)Section 23A (contributions credits for relevant parents and carers) is amended as follows.E+W+S

(2)In subsection (1) omit paragraph (e).

(3)In subsection (6)(b) omit “or (e)”.

Commencement Information

I375Sch. 16 para. 6 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

7For the italic heading above section 36 substitute “ Bereavement benefits: deaths before the day on which section 30 of the Pensions Act 2014 comes into force ”.

Commencement Information

I376Sch. 16 para. 7 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

8Section 36 (bereavement payment) is repealed.

Commencement Information

I377Sch. 16 para. 8 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

9Section 36A (cases in which sections 37 to 41 apply) is repealed.

Commencement Information

I378Sch. 16 para. 9 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

10(1)Section 37 (widowed mother's allowance) is amended as follows.E+W+S

(2)Before subsection (1) insert—

(A1)This section applies only in cases where a woman's husband has died before 9 April 2001.

(3)At the end of the heading insert “ : deaths before 9 April 2001 ”.

Commencement Information

I379Sch. 16 para. 10 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

11(1)Section 38 (widow's pension) is amended as follows.E+W+S

(2)Before subsection (1) insert—

(A1)This section applies only in cases where a woman's husband has died before 9 April 2001.

(3)At the end of the heading insert “ : deaths before 9 April 2001 ”.

Commencement Information

I380Sch. 16 para. 11 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

12In section 39A (widowed parent's allowance), for subsection (1) substitute—

(1)This section applies where—

(a)a person's spouse or civil partner has died before the day on which section 30 of the Pensions Act 2014 comes into force (but see subsection (1A)),

(b)the person has not married or formed a civil partnership after the death but before that day, and

(c)the person is under pensionable age on that day.

(1A)This section does not apply in cases where a woman's husband has died before 9 April 2001.

Commencement Information

I381Sch. 16 para. 12 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

13Section 39B (bereavement allowance where no dependent children) is repealed.

Commencement Information

I382Sch. 16 para. 13 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

14(1)Section 39C (rate of widowed parent's allowance and bereavement allowance) is amended as follows.E+W+S

(2)Omit subsection (2).

(3)Omit subsection (5).

(4)In the heading omit “and bereavement allowance”.

Commencement Information

I383Sch. 16 para. 14 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

15In section 48B (Category B retirement pension for widows and widowers), in subsection (8), for “the appointed day (as defined by section 36A(3))” substitute “ 9 April 2001 ”.

Commencement Information

I384Sch. 16 para. 15 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

16In section 48BB (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B), in subsection (3)(a)(i), after “bereavement allowance” insert “ under section 39B (before that section was repealed) ”.

Commencement Information

I385Sch. 16 para. 16 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

17(1)Section 60 (complete or partial failure to satisfy contribution condition) is amended as follows.E+W+S

(2)In subsection (1) omit paragraph (ab).

(3)In subsection (3) omit paragraphs (a) and (bb).

Commencement Information

I386Sch. 16 para. 17 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

18(1)Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.E+W+S

(2)Omit paragraph 4 and the italic heading above it.

(3)Omit paragraphs 7 and 9.

Commencement Information

I387Sch. 16 para. 18 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

19In Schedule 4 (rates of benefits etc) omit Part 2.

Commencement Information

I388Sch. 16 para. 19 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Social Security Administration Act 1992 (c. 5)E+W+S

20The Social Security Administration Act 1992 is amended as follows.

Commencement Information

I389Sch. 16 para. 20 in force at 8.2.2017 for specified purposes by S.I. 2017/111, reg. 5(b)

I390Sch. 16 para. 20 in force at 6.4.2017 in so far as not already in force by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

21(1)Section 1 (entitlement to benefit dependent on claim) is amended as follows.E+W+S

(2)For subsection (2) substitute—

(2)Where under subsection (1) a person is required to make a claim or to be treated as making a claim for a benefit in order to be entitled to it, the person is not entitled to it in respect of any period more than 12 months before the date on which the claim is made or treated as made.

(2A)But subsection (2) does not apply—

(a)to disablement benefit or reduced earnings allowance, or

(b)in a case where a claim for the benefit is made or treated as made by virtue of section 3(2).

(3)In subsection (4), after paragraph (zb) (inserted by Schedule 12 to this Act) insert—

(zc)bereavement support payment under section 30 of the Pensions Act 2014;.

Commencement Information

I391Sch. 16 para. 21 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

22In section 2A (claim or full entitlement to certain benefits conditional on work-focused interview), in subsection (2)(d), omit “(other than a bereavement payment)”.

Commencement Information

I392Sch. 16 para. 22 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

23(1)Section 3 (late claims for bereavement benefit where death is difficult to establish) is amended as follows.E+W+S

(2)Subsection (3) is repealed.

(3)After subsection (4) insert—

(5)In subsection (2) “bereavement benefit” means—

(a)bereavement support payment, or

(b)widowed parent's allowance.

Commencement Information

I393Sch. 16 para. 23 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

24In section 5 (regulations about claims for and payments of benefits), in subsection (2), after paragraph (zb) (inserted by Schedule 12 to this Act) insert—

(zc)bereavement support payment under section 30 of the Pensions Act 2014;.

Commencement Information

I394Sch. 16 para. 24 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

25In section 71 (overpayments - general), in subsection (11), after paragraph (ad) insert—

(ae)bereavement support payment under section 30 of the Pensions Act 2014;.

Commencement Information

I395Sch. 16 para. 25 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

26In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hl) (inserted by Schedule 12 to this Act) insert—

(hm)Part 5 of the Pensions Act 2014;.

Commencement Information

I396Sch. 16 para. 26 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

27In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ , section 30 of that Act ”.

Commencement Information

I397Sch. 16 para. 27 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

28In section 124 (age, death and marriage), in subsection (1), after paragraph (af) (inserted by Schedule 12 to this Act) insert—

(ag)of section 30 of the Pensions Act 2014; and.

Commencement Information

I398Sch. 16 para. 28 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

29In section 125 (regulations as to notification of deaths), in subsection (1), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ , section 30 of that Act ”.

Commencement Information

I399Sch. 16 para. 29 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

30In section 150 (annual up-rating of benefits), in subsection (1), after paragraph (p) (inserted by Schedule 12 to this Act) insert—

(q)specified in regulations under section 30 of the Pensions Act 2014 (bereavement support payment).

Commencement Information

I400Sch. 16 para. 30 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

31(1)Section 163 (general financial arrangements) is amended as follows.E+W+S

(2)In subsection (1), after paragraph (za) (inserted by Schedule 12 to this Act) insert—

(zb)bereavement support payment under section 30 of the Pensions Act 2014;.

(3)In subsection (2)(a), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ , section 30 of that Act ”.

(4)In subsection (3)(b), after “or Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ or section 30 of that Act ”.

Commencement Information

I401Sch. 16 para. 31 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

32In section 170 (Social Security Advisory Committee), in subsection (5)—

(a)in the definition of “the relevant enactments”, after paragraph (am) (inserted by Schedule 12 to this Act) insert—

(an)section 30 of the Pensions Act 2014;;

(b)in the definition of “the relevant Northern Ireland enactments”, after paragraph (am) (inserted by Schedule 12 to this Act) insert—

(an)any provisions in Northern Ireland which correspond to section 30 of the Pensions Act 2014;.

Commencement Information

I402Sch. 16 para. 32 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

33(1)Section 179 (reciprocal agreements) is amended as follows.E+W+S

(2)In subsection (3)(a), after “Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ , Part 5 of that Act ”.

(3)In subsection (4), after paragraph (ai) (inserted by Schedule 12 to this Act) insert—

(aj)to Part 5 of the Pensions Act 2014;.

(4)In subsection (5)—

(a)after “Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ or section 30 of that Act ”;

(b)after paragraph (ad) (inserted by Schedule 12 to this Act) insert—

(ae)bereavement support payment;.

Commencement Information

I403Sch. 16 para. 33 in force at 8.2.2017 by S.I. 2017/111, reg. 5(c)

34In section 187 (inalienability), in subsection (1), after paragraph (ad) insert—

(ae)bereavement support payment under section 30 of the Pensions Act 2014;.

Commencement Information

I404Sch. 16 para. 34 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

35In section 191 (interpretation), in the definition of “benefit”, for “and personal independence payment” substitute “ , personal independence payment and bereavement support payment under section 30 of the Pensions Act 2014 ”.

Commencement Information

I405Sch. 16 para. 35 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Social Security Act 1993 (c. 3)E+W+S

36In section 2 of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament), in subsection (4)(a), after “(za),” (inserted by Schedule 12 to this Act) insert “ (zb), ”.

Commencement Information

I406Sch. 16 para. 36 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Social Security Act 1998 (c. 14)E+W+S

37The Social Security Act 1998 is amended as follows.

Commencement Information

I407Sch. 16 para. 37 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

38In section 2 (use of computers), in subsection (2), after paragraph (m) (inserted by Schedule 12 to this Act) insert or

(n)section 30 of the Pensions Act 2014;.

Commencement Information

I408Sch. 16 para. 38 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

39(1)Section 8 (decisions by Secretary of State) is amended as follows.E+W+S

(2)In subsection (3), after paragraph (ab) (inserted by Schedule 12 to this Act) insert—

(ac)bereavement support payment under section 30 of the Pensions Act 2014;.

(3)In subsection (4), after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ or section 30 of that Act ”.

Commencement Information

I409Sch. 16 para. 39 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

40In section 11 (regulations with respect to decisions), in subsection (3), in the definition of “the current legislation”, after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ and section 30 of that Act ”.

Commencement Information

I410Sch. 16 para. 40 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

41In section 27 (restriction on entitlement in cases of error), in subsection (7), in the definition of “benefit”—

(a)after paragraph (df) insert—

(dg)bereavement support payment under section 30 of the Pensions Act 2014;;

(b)in paragraph (e), for “to (df)” substitute “ to (dg) ”.

Commencement Information

I411Sch. 16 para. 41 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

42In section 28 (correction of errors in decisions etc), in subsection (3)(j), after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “ or section 30 of that Act ”.

Commencement Information

I412Sch. 16 para. 42 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Social Security Fraud Act 2001 (c. 11)E+W+S

43The Social Security Fraud Act 2001 is amended as follows.

Commencement Information

I413Sch. 16 para. 43 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

44In section 6A (definitions), in subsection (1), in the definition of “disqualifying benefit”, after paragraph (ca) insert—

(cb)bereavement support payment under section 30 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that section;.

Commencement Information

I414Sch. 16 para. 44 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

45In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (bf) (inserted by Schedule 12 to this Act) insert—

(bg)bereavement support payment under section 30 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that section;.

Commencement Information

I415Sch. 16 para. 45 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Income Tax (Earnings and Pensions) Act 2003 (c. 1)E+W+S

46The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

Commencement Information

I416Sch. 16 para. 46 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

47In section 660 (taxable benefits: UK benefits - Table A), in the table in subsection (1), in the entry relating to bereavement allowance, omit the words “SSCBA 1992 Section 39B” (in the second column).

Commencement Information

I417Sch. 16 para. 47 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

48In section 677 (UK social security benefits wholly exempt from tax), in Part 1 of Table B in subsection (1), in the entry relating to bereavement payments, omit the words “SSCBA 1992 Section 36” (in the second column).

Commencement Information

I418Sch. 16 para. 48 in force at 6.4.2017 by S.I. 2017/297, art. 3(2) (with arts. 4, 5)

Section 33

SCHEDULE 17E+W+SAutomatic transfer of pension benefits etc

Prospective

Part 1 E+W+SAutomatic transfer of pension benefits

Regulations providing for transfer of cash equivalent of transferable benefitsE+W+S

1(1)The Secretary of State must make regulations with a view to ensuring that, where a qualifying member of an automatic transfer scheme has transferable benefits under another pension scheme, the cash equivalent of the transferable benefits—E+W+S

(a)is transferred to the automatic transfer scheme, and

(b)is used to provide rights for the member under it.

(2)In this Schedule “automatic transfer scheme” means—

(a)a work-based pension scheme, other than a scheme of a prescribed description, which is registered under Chapter 2 of Part 4 of the Finance Act 2004 and is a money purchase scheme, or

(b)a pension scheme of a prescribed description.

(3)In this Schedule “qualifying member”, in relation to an automatic transfer scheme, means an active member of the scheme of a prescribed description.

(4)For the purposes of this Schedule a person has transferable benefits under a pension scheme if—

(a)the scheme is a transferable benefits scheme,

(b)the person is a member of the scheme,

(c)contributions to the scheme by, or on behalf or in respect of, the member have ceased,

(d)the member has accrued rights to benefits under the [F7scheme rules ] ,

(e)all of those rights accrued on or after the prescribed date (which may be a date before the coming into force of this paragraph),

(f)the cash equivalent of those benefits is less than the prescribed amount (but not nil), and

(g)any other prescribed conditions are met.

(5)In this Schedule “transferable benefits scheme” means—

(a)a work-based pension scheme, other than a scheme of a prescribed description, which is registered under Chapter 2 of Part 4 of the Finance Act 2004 and is a money purchase scheme, or

(b)a pension scheme of a prescribed description.

[F8(6)In sub-paragraph (4)—

(a)the reference to “scheme rules” is to be read in accordance with section 100B of the Pension Schemes Act 1993;

(b)benefits” means—

(i)money purchase benefits other than money purchase benefits of a prescribed description, or

(ii)benefits of a prescribed description.]

Automatic transfer scheme to find out whether members have transferable benefitsE+W+S

2(1)The regulations must require the trustees or managers of an automatic transfer scheme to take steps to find out whether a qualifying member of the scheme has transferable ben