(This note is not part of the Order)
This is the fifth Commencement Order made under the Pensions Act 2014 (c.19) (“the Act”). This Order brings into force certain provisions of the Act on the day after it is made, and on 12th October 2015 and 6th April 2016.
Article 2(1) commences provisions in paragraphs 24 and 25 of Schedule 13 to the Act, for the purposes of making regulations in connection with the abolition of contracting-out for salary related schemes. Article 2(2) commences regulation making powers in section 28(3) of, and paragraph 90 of Part 3 of Schedule 12 to, the Act relating to changes to state pension credit which will result in the phasing out of assessed income periods and the limiting of savings credit for certain mixed-age couples. Article 2(2) also commences an amendment in paragraph 25 of Schedule 12 to an order in council making power in relation to reciprocal agreements with countries outside the United Kingdom so that the power applies to state pension under Part 1 of the Act.
Article 3 commences section 25 and paragraphs 1 to 10 and 12 to 14 of Schedule 15 to the Act so far as those provisions are not already in force. This allows the class 3A voluntary National Insurance contributions/State Pension top-up scheme to come fully into force on 12th October 2015, so that from that date an eligible person in Great Britain may pay a class 3A contribution in return for a unit of additional pension.
Article 4 commences section 28(1) and (2) of the Act which amends the State Pension Credit Act 2002 (c.16) in connection with the abolition of assessed income periods.
An impact assessment has not been produced for this Order as it has no impact on business or civil society organisations. An impact assessment for the changes made by the Act is available from the Better Regulation Unit, Department for Work and Pensions, Caxton House, 6 – 12 Tothill Street, London SW1H 9NA or
https://www.gov.uk/government/publications/pensions-act-2014-impact-assessments-may-2014