Pensions Act 2014

Welfare Reform and Pensions Act 1999 (c. 30)

12 (1) Section 49 (creation of state scheme pension debits and credits) is amended as follows.

(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”.