Explanatory Notes

Pensions Act 2014

2014 CHAPTER 19

14 May 2014

Commentary on Sections

Part 1 – State Pension

Section 23: AmendmentsSchedule 12: State pension: amendments

99.Schedule 12 provides for a number of amendments to other legislation relating to the introduction of the new state pension.

100.Schedule 12, Part 1 contains amendments that are related to the new state pension. For example, Schedule 12, paragraphs 17 to 22 amend the general revaluation and up-rating provisions in the SSAA 1992.

101.Part 2 contains amendments to do with the old retirement pension.

102.The amendments limit the old retirement pension to those reaching pensionable age before 6 April 2016.

103.The amendments also provide that where such a person is entitled to an old retirement pension based on the contributions of a spouse or civil partner who reaches pensionable age on or after the start of the new state pension, that retirement pension will be based only on contributions the spouse or civil partner made for the period before the new state pension was introduced.

104.Part 2 also removes several aspects of the old retirement pension for those reaching pensionable age after the start date of the new state pension:

105.Part 3 of Schedule 12 provides that the savings credit element of state pension credit is only payable (from the savings credit qualifying age) to those who have reached pensionable age before the start date of the new state pension.

106.An individual who does not meet these criteria could still qualify if he or she is a member of a mixed age couple where the other member reached pensionable age before the start date of the new state pension. However, a power is given to the Secretary of State to specify the circumstances in which entitlement is restricted for these mixed age couples. For clarity, an example is given of how the power might be used in regulations.

107.Part 4 contains miscellaneous amendments regarding the introduction of the new state pension. These include repealing provisions in the PA 2008 for consolidating the additional pension which are not required as a result of the introduction of the new state pension.