Social Security Contributions and Benefits Act 1992 (c. 4)

SCHEDULES

SCHEDULE 5 E+W+S [F1 PENSION INCREASE OR LUMP SUM WHERE ENTITLEMENT TO RETIREMENT PENSION IS DEFERRED]

Textual Amendments

F1 Sch. 5 heading substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 3

Modifications etc. (not altering text)

C1 Sch. 5 modified (6.4.2005) by The Social Security (Retirement Pensions etc.) (Transitional Provisions) Regulations 2005 (S.I. 2005/469), regs. 1(1), 2

C2 Sch. 5: sums amended (coming into force in accordance with arts. 1(4)(5), 7 of the amending S.I.) by The Social Security Benefits Up-rating Order 2023 (S.I. 2023/316), arts. 1(3)(c), 4(3)

[F2 Calculation of lump sum E+W+S

Textual Amendments

F2 Sch. 5 paras. 3A, 3B and cross-headings inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 8

3B (1) The lump sum is the accrued amount for the last accrual period beginning during the period of deferment. E+W+S

(2) In this paragraph—

• ‘accrued amount’ means the amount calculated in accordance with sub-paragraph (3);

• ‘accrual period’ means any period of seven days beginning with a prescribed day of the week, where that day falls within the period of deferment.

(3) The accrued amount for an accrual period for a person is—

where—

• A is the accrued amount for the previous accrual period (or, in the case of the first accrual period beginning during the period of deferment, zero);

• P is the amount of the Category A or Category B retirement pension to which the person would have been entitled for the accrual period if his entitlement had not been deferred;

• R is—

  (a)

  a percentage rate two per cent. higher than the Bank of England base rate, or

  (b)

  if regulations so provide, such higher rate as may be prescribed.

(4) For the purposes of sub-paragraph (3), any change in the Bank of England base rate is to be treated as taking effect—

(a) at the beginning of the accrual period immediately following the accrual period during which the change took effect, or

(b) if regulations so provide, at such other time as may be prescribed.

(5) For the purposes of the calculation of the lump sum, the amount of Category A or Category B retirement pension to which the person would have been entitled for an accrual period—

(a) includes any increase under section 47(1) and any increase under paragraph 4 of this Schedule, but

(b) does not include—

(i) any increase under section 83A or 85 or [F3 paragraphs 5 to 6A] of this Schedule,

(ii) any graduated retirement benefit, or

(iii) in prescribed circumstances, such other amount of Category A or Category B retirement pension as may be prescribed.

(6) The reference in sub-paragraph (5)(a) to any increase under subsection (1) of section 47 shall be taken as a reference to any increase that would take place under that subsection if subsection (2) of that section and section 46(5) of the Pensions Act were disregarded.]

Textual Amendments

F3 Words in Sch. 5 para. 3B(5)(b)(i) substituted (5.12.2005) by The Civil Partnership (Pensions and Benefit Payments) (Consequential, etc. Provisions) Order 2005 (S.I. 2005/2053), art. 1(3), Sch. para. 5(5)