Social Security Act 1973

Reserve scheme pensions

80 Reserve scheme personal pension.

(1) Subject to the provisions of this Act, an earner in respect of whose earnings any reserve scheme contributions or premiums have at any time been paid, shall be entitled when he attains pensionable age to a reserve scheme personal pension.

(2) The weekly rate of such a pension shall be ascertained, in accordance with Schedule 20 to this Act, by reference to the factors specified in paragraph 1 of that Schedule; but the rate shall be subject to increase, in accordance with section 82 of this Act, by reference to the normal and interim bonuses declared from time to time by the Reserve Pension Board.

(3) Subject to and in accordance with regulations, a person with entitlement or prospective entitlement to a reserve scheme pension may, at any time before the pension comes into payment, elect for payment of the pension to be postponed for any period (whether determinate or not), but not beyond the age of 70 in the case of a man, or 65 in the case of a woman; and where a person so elects, the rate of pension shall be subject to adjustment in the prescribed manner, so as to take into account any period between pensionable age and the time when the pension comes into payment.

81 Reserve scheme widow's pension.

(1) Subject to the provisions of this Act, on the death of a man ("the deceased contributor") in respect of whose earnings there have at any time been paid reserve scheme contributions or reserve scheme premiums, there shall, if he was married at the time of his death, be payable to his widow a reserve scheme widow's pension.

(2) The basic weekly rate of such a pension—

(a) if the deceased contributor was at the date of his death under pensionable age, shall be one half the rate of the reserve scheme personal pension to which he would himself have been entitled on attaining that age; and

(b) in any other case, shall be one half the rate of the reserve scheme personal pension to which the deceased contributor was himself entitled immediately before his death;

but the rate shall be subject to increase, in accordance with section 82 of this Act, by reference to the normal and interim bonuses declared from time to time by the Reserve Pension Board.

(3) For the purpose of ascertaining, under subsection (2)(a) above, the rate of pension to which the deceased contributor would have been entitled—

(a) there shall be taken into account under Schedule 20 to this Act all such contributions and premiums as became due from or in respect of him up to the date of his death and have been actually paid (whether before or after that date) or are treated as actually paid by regulations under section 77(5) or under Schedule 1 to this Act as applied by section 77(4);

(b) no assumption shall be made as to contributions or premiums which might have become payable in respect of him had he not died; and

(c) there shall be disregarded any normal or interim bonus declared by the Reserve Pension Board, under section 82 of this Act, with an effective date which is that of, or follows, the date of the contributor's death.

(4) Regulations shall make provision modifying this section in relation to cases where the deceased contributor had made an election for the purposes of section 80(3) of this Act.

82 Declaration of bonuses by Reserve Pension Board.

(1) So soon as is practicable after they have received and considered a report of the Government Actuary made to them under section 75(6) of this Act, the Reserve Pension Board shall, if they think it right to do so having regard to the Actuary's report on the condition of the Reserve Pension Fund, declare a normal bonus, which shall (subject to subsection (8) below) be a uniform percentage increase, effective from such date as may be specified in the declaration as the effective date of the bonus, of the current rate of all reserve scheme pensions qualifying for normal bonus.

(2) The pensions qualifying for normal bonus are those—

(a) in respect of which entitlement has arisen at the effective date of the bonus; or

(b) in respect of which entitlement has not arisen at that date but whose rate, when entitlement arises, will be arrived at wholly or partly by reference to reserve scheme contributions and premiums paid before the end of the last year before the beginning of the Government Actuary's review.

(3) For the purposes of subsection (1) above, the current rate of a pension qualifying for normal bonus is its rate computed—

(a) in case (a) of subsection (2) above, as at the effective date of the bonus; and

(b) in case (b) of that subsection, as at the end of the last year before the beginning of the Government Actuary's review,

with (in either case) any increase derived from a previous normal bonus, but disregarding any interim bonus.

(4) Without prejudice to subsection (1) above, the Board may, without any report being made to them by the Government Actuary, declare an interim bonus, which shall (subject to subsection (8) below) be a uniform percentage increase, effective from such date as may be specified in the declaration as the effective date of the bonus, of the current rate of all reserve scheme pensions qualifying for interim bonus.

(5) The pensions qualifying for interim bonus are those—

(a) in respect of which entitlement has arisen at the effective date of the bonus; or

(b) in respect of which entitlement will arise in the period beginning with the effective date and ending with whatever may be the effective date of the next normal bonus.

(6) For the purposes of subsection (4) above, the current rate of a pension qualifying for interim bonus is its rate computed—

(a) in case (a) of subsection (5) above, as at the effective date of the interim bonus ; and

(b) in case (b) of that subsection, as at the time when entitlement arises,

with (in either case) any increase derived from a previous normal bonus, but disregarding any interim bonus.

(7) Where a normal bonus is declared, any resultant pension increase shall take effect in substitution for, and to the exclusion of, increases derived from any previous interim bonus.

(8) When declaring a bonus, the Board may, in so far as they think it equitable to do so—

(a) specify for particular categories of pensioners (present or future) a rate of increase greater or less than the uniform rate; and

(b) deal differently as between categories of pensions, or as between different parts of a pension of any category, either by specifying different increases, or by excluding any category or part from the application of any increase, by reference to when the contributions or premiums going to the rate of a pension were paid, or to the part of a pension which derives from any previous bonus.

(9) Regulations may make such provision as the Secretary of State thinks expedient—

(a) with respect to the amounts by which reserve scheme pensions are to be increased by reference to any bonus declared by the Board ;

(b) as to the application of any normal or interim bonus to pensions in respect of which elections have been made for the purposes of section 80(3) of this Act; and

(c) for enabling any relevant figures to be adjusted so as to admit of tabulation, and so as to avoid fractional amounts or otherwise facilitate computation.

(10) The Board shall furnish to the Secretary of State particulars—

(a) of any determination made by them for the purposes of subsection (1) above (whether a determination to declare a normal bonus, or not to declare one), these particulars being accompanied by a copy of the relevant report of the Government Actuary, in any case where the Secretary of State has not previously been furnished with a copy of that report; and

(b) of any determination by the Board under subsection (4) above to declare an interim bonus ;

and in either case the Secretary of State shall lay a copy of the particulars before each House of Parliament, together with (where relevant) a copy of the report of the Government Actuary.

83 Supplementary provisions as to reserve scheme pensions.

(1) A reserve scheme personal or widow's pension shall be payable for life, subject to regulations providing for it to be suspended or forfeited in prescribed circumstances, or making provision as to the time when it is to be treated as terminated when a pensioner dies:

Provided that a widow's pension shall not be payable for any period after the widow's death or remarriage, or for any prescribed period dining which she is cohabiting with a man as his wife.

(2) Regulations may permit a pension to be commuted, when its weekly rate is less than such rate as may be prescribed, in exchange for payment of a lump sum provided from the Reserve Pension Fund; and a commutation effected in accordance with such regulations shall be treated as extinguishing any further entitlement to a reserve scheme pension in the case of the person effecting it, including any reserve scheme pension for his widow on his death.

(3) Subject to subsection (2) above, every assignment of, or charge on, a reserve scheme pension, and every agreement to assign or charge such a pension, shall be void and, on the bankruptcy of any person actually or prospectively entitled to such a pension, his entitlement shall not pass to any trustee or other person acting on behalf of his creditors.

In the application of this subsection to Scotland—

(a) the reference to the assignment of a pension shall be read as a reference to its assignation, " assign " being construed accordingly;

(b) the reference to a person's bankruptcy shall be read as a reference to the sequestration of his estate or the appointment on his estate of a judicial factor under section 14 of the [1913 c. 20.] Bankruptcy (Scotland) Act 1913 or section 15 of the [1958 c. 28.] Solicitors (Scotland) Act 1958,

and in its application to Northern Ireland, the reference to a person's bankruptcy includes the vesting of a person's estate and effects in the official assignee under section 349 of the [1857 c. 60.] Irish Bankrupt and Insolvent Act 1857.

(4) Paragraphs 2(6) and (7) and 8(1), (2)(a) and (3) of Schedule 10 to this Act as they apply to Great Britain shall, for the whole of the United Kingdom, have effect in relation to reserve scheme pensions as they have effect in relation to basic scheme benefits, but in paragraph 2(6) of the Schedule as applied by this subsection the Reserve Pension Board shall be substituted for the Secretary of State.