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Pensions Act 2014

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Pensions Act 2014. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Background

    1. State pension reform

    2. Option to boost old retirement pensions

    3. Pensionable age

    4. State pension credit

    5. Bereavement benefits

    6. Automatic transfers

    7. Charges and requirements in pension schemes

    8. Pensions Regulator’s objective

  3. Summary

  4. Overview of the Structure of the Act

    1. Part 1 – State pension

    2. Part 2 – Option to boost old retirement pensions

    3. Part 3 – Pensionable age

    4. Part 4 – State pension credit

    5. Part 5 – Bereavement support payment

    6. Part 6 – Private pensions

    7. Part 7 – Final provisions

  5. Territorial Extent

  6. Commentary on Sections

    1. Part 1 – State Pension

      1. Section 1: State pension

        Section 2: Entitlement to state pension at full or reduced rate

        Section 3: Full and reduced rates of state pension

      2. Section 4: Entitlement to state pension at transitional rate

        Section 5: Transitional rate of state pension

        Section 6: Recalculation and backdating of transitional rate in special cases

        Schedule 1: Transitional rate of state pension: calculating the amount

        Schedule 2: Transitional rate of state pension: up-rating

      3. Section 7: Survivor’s pension based on inheritance of additional old state pension

        Schedule 3: Survivor’s pension under section 7: inherited amount

        Schedule 4: Survivor’s pension under section 7: up-rating

      4. Section 8: Choice of lump sum or survivor’s pension under section 9 in certain cases

        Section 9: Survivor’s pension based on inheritance of deferred old state pension

        Section 10: Inheritance of graduated retirement benefit

        Schedule 5: Survivor’s pension under section 9: inherited deferral amount

      5. Section 11: Reduced rate elections: effect on section 4 pensions

        Section 12: Reduced rate elections: pension for women with no section 4 pension

        Schedule 6: Reduced rate elections: effect on rate of section 4 pension

        Schedule 7: Reduced rate elections: basic amount of state pension under section 12

      6. Section 13: Shared state pension on divorce

        Section 14: Pension sharing: reduction in the sharer’s section 4 pension

        Section 15: Pension sharing: amendments

        Schedule 8: Pension sharing: appropriate weekly rate under section 13

        Schedule 9: Pension sharing: up-rating state pension under section 13

        Schedule 10: Pension sharing: appropriate weekly reduction under section 14

        Schedule 11: Pension sharing: amendments

      7. Section 16: Pensioner’s option to suspend state pension

        Section 17: Effect of pensioner postponing or suspending state pension

        Section 18: Section 17 supplementary: calculating weeks, overseas residents,

      8. Section 19: Prisoners

        Section 20: Overseas residents

      9. Section 23: Amendments

        Schedule 12: State pension: amendments

      10. Section 24: Abolition of contracting-out for salary related schemes

        Schedule 13: Abolition of contracting-out for salary related schemes

        Schedule 14: Power to amend schemes to reflect abolition of contracting-out

    2. Part 2 – Option to Boost Old Retirement Pensions

      1. Section 25: Option to boost old retirement pensions

        Schedule 15: Option to boost old retirement pensions

    3. Part 3 – Pensionable Age

      1. Section 26: Increase in pensionable age to 67

      2. Section 27: Periodic review of rules about pensionable age

    4. Part 4 – State Pension Credit

      1. Section 28: State pension credit: phasing out assessed income periods

      2. Section 29: Preserving indefinite status of certain assessed income periods

    5. Part 5 – Bereavement Support Payment

      1. Section 30: Bereavement support payment

        Section 31: Bereavement support payment: contribution condition and amendments

        Section 32: Bereavement support payment: prisoners

        Schedule 16: Bereavement support payment: amendments

    6. Part 6 – Private Pensions

      1. Section 33: Automatic transfer of pension benefits

        Schedule 17: Automatic transfer of pension benefits

      2. Section 34: Power to prohibit offer of incentives to transfer pension rights

        Section 35: Expiry of power in Section 34

      3. Section 36: Short service benefit for scheme member with money purchase benefits

      4. Section 37: Automatic re-enrolment: exceptions where automatic enrolment deferred

      5. Section 38: Automatic enrolment: powers to create general exceptions

      6. Section 39: Alternative quality requirements for UK defined benefits schemes

      7. Section 40: Automatic enrolment: transitional period for hybrid schemes

      8. Section 41: Penalty notices under sections 40 and 41 of the Pensions Act 2008

      9. Section 42: Unpaid scheme contributions

      10. Section 43: Power to restrict charges or impose requirements in relation to schemes

        Schedule 18: Power to restrict charges or impose requirements in relation to schemes

      11. Section 44: Disclosure of information about transaction costs to members

      12. Section 45: Power to require pension levies to be paid in respect of past periods

      13. Section 46: Prohibition and suspension orders: directors of corporate trustees

        Schedule 19: Prohibition orders: consequential amendments

      14. Section 47: Preparation of guidance for pensions illustrations

      15. Section 48: Pensions Regulator’s objectives

      16. Section 49: Maximum period between scheme returns to be 5 years for micro schemes

      17. Section 50: Pension Protection Fund: increased compensation cap for long service

        Schedule 20: Pension Protection Fund: increased compensation cap for long service

      18. Section 51: Pension Protection Fund: compensation cap to apply separately to certain benefits

      19. Section 52: Public service pension schemes: transitional arrangements

    7. Part 7 – Final Provisions

      1. Section 55: Extent

  7. Commencement Dates

  8. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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