The Pensions Act 2014 (Commencement No.10) Order 2017

EXPLANATORY NOTE

(This note is not part of the Order)

This is the tenth Commencement Order made under the Pensions Act 2014 (c.19).

Article 2 brings into force section 50 of, and Schedule 20 to, the Pensions Act 2014. Those provisions relate to the Pension Protection Fund, which pays compensation to members of eligible occupational pension schemes when the employer becomes insolvent. The pension compensation is subject to a maximum cap – the compensation cap. Together, section 50 and Schedule 20 provide for a revised (increased) compensation cap dependent on a person’s age and length of service when the person first becomes entitled to compensation. Article 2 provides that the day appointed for the coming into force of paragraphs 6(3) and 22 of Schedule 20 (which relate to the power to make subordinate legislation) is the day after the day on which this Order is made. It commences the remaining provisions of Schedule 20 on 6th April 2017.

Articles 3 to 5 bring into force Part 5 of the Pensions Act 2014, which creates a new social security benefit called Bereavement Support Payment. It is for people whose spouse or civil partner died on or after 6th April 2017 and is payable to a person who has made sufficient National Insurance contributions. The new benefit replaces existing benefits called Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance.

Article 3(1) brings into force the main provisions for Bereavement Support Payment on 6th April 2017. It also brings into force enabling powers before that date for the purposes of making the Bereavement Support Payment Regulations 2017.

Articles 3(2), 4 and 5 make commencements relating to Bereavement Allowance and Bereavement Payment. Those existing benefits continue to be payable for people whose spouse or civil partner died before 6th April 2017 (provided they continue to meet the entitlement conditions). Article 4 commences repeals to the legislation relating to Bereavement Allowance and Bereavement Payment on the date those benefits are no longer payable for such a person. Article 5 makes similar commencements for people whose first spouse or civil partner dies before 6th April 2017 and second spouse or civil partner dies on or after 6th April 2017 within 12 months of the death of their first spouse.

An impact assessment has not been produced for this Order as it has no impact on business or civil society organisations. An assessment has been made of the impact of the introduction of the Pension Protection Fund increased cap for long service. A copy may be obtained from the Legislation Team of the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA or from the GOV.UK website at: https//www.gov.uk/government/publications/pensions-act-2013-impact-assessments-may-2014 (annex J contains the assessment for the cap). An assessment has also been made of the impact of the introduction of Bereavement Support Payment. A copy may be obtained from the same address or from the GOV.UK website at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/311316/pensions-act-ia-annex-a-single-tier-state-pension.pdf. (Annex A contains the assessment for Bereavement Support Payment.)