Social Security (Miscellaneous Provisions) Act 1977

Other miscellaneous provisions U.K.

18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 E+W+S

Textual Amendments

F1 S. 18 repealed (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 3, 7(2), Sch.1

19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2 E+W+S

Textual Amendments

F2 S. 19 repealed (6.4.87) by Social Security Act 1986 (c. 50), Sch. 11

20

(1),(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(3),(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

Textual Amendments

F3 S. 20(1)(2) repealed (E.W.S.)(1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 3, 7(2), Sch. 1

F4 S. 20(3)(4) repealed (N.I.) (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 3, 7(2), Sch. 1

21 Calculation of guaranteed minimum pensions preserved under approved arrangements. E+W+S

(1) Where an occupational pension scheme ceases to be contracted-out and guaranteed minimum pension rights or accrued rights to guaranteed minimum pensions under the scheme are subject to approved arrangements (as defined in section 44 of the Pensions Act for the purposes of subsection (2) of that section) for their preservation, then, except in such circumstances as may be prescribed, section 35(5) of that Act shall [F5 in a case where one or more of the five tax years ending with the tax year in which the scheme ceases to be contracted-out is a relevant year in relation to the earner, have effect, . . . F6 , subject to the following provisions, that is to say—

[F7 (a) any earnings factor shall be taken to be that factor as increased by the last order under section 21 of the Pensions Act [F8 or section 148 of the Social Security Administration Act 1992] to come into force before those five tax years; and]

(b) any relevant earnings factor derived from contributions [F9 or earnings] in respect of any year (hereafter in this subsection referred to as “the relevant contributions year”) shall be treated as increased by 12 per cent. compound for each of those five tax years, other than any of those years which—

(i) constitutes or begins before the relevant contributions year, or

(ii) begins after the final relevant year in relation to the earner]

[F10 but this subsection shall not apply in any case where the application of those provisions would result in the amount of the guaranteed minimum being greater than it would have been apart from this subsection.]

(2) Regulations may provide that subsection (1) above shall have effect with prescribed modifications in relation to a scheme which, immediately before it ceased to be contracted-out, contained provisions authorised by section 35(7) of the Pensions Act.

[F11 (3) In this section—

• “earner” and “earnings” are to be construed in accordance with sections 3, 4 and 112 of the Social Security Contributions and Benefits Act 1992;

• “earnings factors” is to be construed in accordance with sections 22 and 23 of that Act;

• “tax year” means the 12 months beginning with 6th April in any year,

and expressions used in Part III of the Pensions Act have the same meanings as in that Part.]

Textual Amendments

F5 Words substituted by Social Security Act 1980 (c. 30), s. 3(4)

F6 Words repealed (1.10.89) by Social Security Act 1989 (c. 24), Sch. 6, para. 15(a) and Sch. 9

F7 S. 21(1)(a) substituted by Social Security Act 1985 (c. 53), s. 4, Sch. 3, paras. 6 and 7(1) with effect from 6.4.79

F8 Words in s. 21(1)(a) inserted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2, para. 44(1)

F9 Words inserted (6.4.87) by Social Security Act 1986 (c. 50), Sch. 8, para. 11

F10 Words added (1.10.89) by Social Security Act 1989 (c. 24), Sch. 6, para. 15(b)

F11 S. 21(3) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2, para. 44(2)

Modifications etc. (not altering text)

C1 S. 21(1) modified by S.I. 1984/380, reg. 48.

22 Other miscellaneous amendments. E+W+S

(1)—(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13

(7) In sections 35(7) and 45(1) of the Pensions Act (which relate to a person whose service in contracted-out employment ceases before he attains the relevant scheme’s normal pension age), for the words “the scheme’s normal pension age” there shall be substituted the words “pensionable age”.

(8) In section 40(3) of the Pensions Act, after the words “the rule has taken effect” there shall be inserted the words “except that the rule may also accord priority, on a winding up occurring after an earner has attained normal pension age, to liabilities of the scheme in respect of pensions and other benefits to which he will be entitled on ceasing to be in employment or to which the earner’s widow or widower or any dependant of the earner’s will be entitled on the earner’s death.”

(9)—(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15

(13) Regulations may provide that [F16 section 44(6) of the Pensions Act] shall have effect with prescribed modifications in relation to a scheme which has ceased to be contracted-out and, immediately before it so ceased, contained provisions authorised by section 35(7) of the Pensions Act (which, as amended by subsection (7) of this section, relates to a person whose service in a contracted-out employment ceases before he attains pensionable age).

(14) In section 47 of the Pensions Act, in subsections (1)(b) and (8)(b), for the words “state scheme premium” there shall be substituted the words “contributions equivalent premium”.

(15) In subsection (3) of section 7 of the Tribunals and Inquiries Act 1971 (which specifies the tribunals mentioned in certain paragraphs of Schedule 1 to that Act of which the chairman are to be selected from a panel of persons appointed by the Lord Chancellor but does not include among those paragraphs paragraph 30A(a) or (c) which relate to certain local and medical tribunals constituted in pursuance of the principal Act), after the word “28(a)” where it first occurs there shall be inserted the words “30A(a) or (c)”.

(16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17

(17) The M1 Social Security Benefit (Computation of Earnings) Regulations 1974 (which were made in exercise of powers which included the powers conferred by section 99(14) of the M2 Social Security Act 1973) shall have effect as if made in exercise of the powers conferred by section 3(2) of the principal Act (which corresponds to the said section 99(14)).

Textual Amendments

F12 S. 22(1)–(5) repealed (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 3, 7(2), Sch. 1

F13 S. 22(6) repealed (26.5.88) by Employment Act 1988 (c. 19), Sch. 4

F14 S. 22(9)–(11) repealed by the Social Security Act 1985 (c. 53), Sch. 6

F15 S. 22(12) repealed by the Social Security Act 1980 (c. 30), Sch. 5, Pt. I

F16 Words substituted by Social Security Act 1980 (c. 30), Sch. 4, para. 12

F17 S. 22(16) repealed (11.4.88) by Social Security Act 1986 (c. 50), Sch. 11

Modifications etc. (not altering text)

C2 The text of s. 22(7)(8) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

C3 In s. 22(13) “the said section 44(6)” means Social Security Pensions Act 1975 (c. 60), s. 44(6)

C4 The text of s. 22(14)(15) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Marginal Citations

M1 S.I. 1974 No. 2008.

M2 1973 c. 38.