Pensions Act 2014
This Part creates a benefit called state pension.
A person who reaches pensionable age before 6 April 2016 is not entitled to benefits under this Part (but may be entitled to similar benefits under Part 2 of the Contributions and Benefits Act).
A person is entitled to a state pension payable at the full rate if—
the person has reached pensionable age, and
the person has 35 or more qualifying years.
A person is entitled to a state pension payable at the reduced rate if—
the person has reached pensionable age, and
the person has at least the minimum number of qualifying years but fewer than 35 qualifying years.
The minimum number of qualifying years for a state pension payable at the reduced rate is to be specified in regulations and may not be more than 10.
In this Part “qualifying year” means a tax year, during a person's working life, in which the person's earnings factor (or the sum of the person's earnings factors) is equal to or greater than the qualifying earnings factor for the year.
For earnings factors, see sections 22 and 23 of the Contributions and Benefits Act.
For transitional cases in which a person may be entitled to a different state pension (instead of a state pension under this section), see sections 4 and 12.
There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.
The full rate of the state pension is the weekly rate for the time being specified in regulations.
The reduced rate of the state pension for a person is the following proportion of the full rate—
Once the full rate has been specified, the power to make regulations under subsection (1) may not be re-exercised so as to reduce the rate.
A person is entitled to a state pension payable at the transitional rate if—
the person has reached pensionable age,
the person has at least the minimum number of qualifying years, and
the person has at least one pre-commencement qualifying year.
The minimum number of qualifying years for a state pension payable at the transitional rate is to be specified in regulations and may not be more than 10.
A person entitled to a state pension payable at the transitional rate is not entitled to a state pension under section 2.
In this Part—
“post-commencement qualifying year” means a qualifying year beginning on or after 6 April 2016;
“post-commencement qualifying year” means a qualifying year beginning on or after 6 April 2016;
“new state scheme pension credit” means a credit under section 49A(2)(b) of the Welfare Reform and Pensions Act 1999;
In section 2 of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament), in subsection (4)(a), after “paragraphs” insert “(za),”.
The Pensions Act 2008 is amended as follows.
This Schedule applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes. Accordingly, references in this Schedule to a person in the person’s capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity. This Schedule applies to persons employed by or under the Crown as it applies to persons employed by a private person.
For section 21 substitute—
In section 22 (test scheme standard), for subsection (2) substitute—
The rate of the person’s state pension under section 7 is to be increased under this paragraph if— If at any time the full rate of the state pension is increased, the rate of the person’s state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time. If at any time an order under section 151A of the Administration Act comes into force, the rate of the person’s state pension under section 7 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force. In this paragraph—
A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if— The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount. For the purposes of calculating the amount of that increase, paragraph 4(1A) of Schedule 5 to the Contributions and Benefits Act has effect as if after the words “apart from” (in each place) there were inserted “this paragraph and”.
When determining entitlement to, or calculating, an inherited deferral amount under this Schedule based on entitlement to an old state pension ignore—
any requirement to make a claim for that pension;
any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.
This Schedule sets out the appropriate weekly reduction in the rate of a person’s state pension for the purposes of section 14.
Regulations may make provision about the calculation and verification of notional rates under paragraph 2. The regulations may, in particular, provide—
This Schedule is about the power under section 24(2) to amend an occupational pension scheme in relation to some or all of its members.
The power may be used only if an actuary has certified that the proposed amendments would comply with such of the requirements imposed by or under this Schedule as are specified in regulations under this paragraph. “Actuary” means—
Regulations may modify section 24(2) to (7) or this Schedule as it applies in relation to— “Multi-employer scheme” means a scheme in relation to which there is more than one employer.
When working out the annual rate of a person’s periodic compensation under paragraph 4(3), 13(3) or 18(3) of Schedule 7 to the Pensions Act 2004, take into account any effect that paragraph 8 would have had on the dead person’s rate if it were not for the death.
Section 162(2) of the Pensions Act 2004 is to be treated as including a reference to this Part of this Schedule among “the pension compensation provisions”.
“post-commencement qualifying year” has the meaning given by section 4(4);
The Administration Act is amended as follows.
The power may not be used to amend a scheme in relation to a member of a description specified in regulations under this paragraph.
The Social Security Administration Act 1992 is amended as follows.
This paragraph applies in relation to an eligible scheme that is undergoing assessment on the commencement date. For the purposes of the following, ignore any effect that this Schedule has on the compensation which would be payable if the Board assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004— For the purposes of section 138(2) of the Pensions Act 2004 take into account any effect that this Schedule has on the compensation which would be payable if the Board assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of that Act on the assessment date.
Section 126(4) of the Pensions Act 2004 (list of provisions in relation to which regulations may provide that a scheme remains an “eligible scheme”) is to be treated as including a reference to this Part of this Schedule.
In section 150 (annual up-rating of benefits), in subsection (10A), for “the abolition date, as defined by section 181(1) of the Pensions Act,” substitute “6 April 2012 (the date appointed for the commencement of section 15(1) of the Pensions Act 2007)”.
Section 1 (entitlement to benefit dependent on claim) is amended as follows. For subsection (2) substitute— In subsection (4), after paragraph (zb) (inserted by Schedule 12 to this Act) insert—.
In section 191 (interpretation - general)—
in the definition of “money purchase contracted-out scheme”, for “section 181A” substitute “section 7B”;
in the definition of “personal pension scheme” etc, for “section 181A(6)” substitute “section 7B(6)”.
In section 2A (claim or full entitlement to certain benefits conditional on work-focused interview), in subsection (2)(d), omit “(other than a bereavement payment)”.
Section 3 (late claims for bereavement benefit where death is difficult to establish) is amended as follows. Subsection (3) is repealed. After subsection (4) insert—
In section 5 (regulations about claims for and payments of benefits), in subsection (2), after paragraph (zb) (inserted by Schedule 12 to this Act) insert—.
In section 71 (overpayments - general), in subsection (11), after paragraph (ad) insert—.
In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hl) (inserted by Schedule 12 to this Act) insert—.
In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “, section 30 of that Act”.
In section 124 (age, death and marriage), in subsection (1), after paragraph (af) (inserted by Schedule 12 to this Act) insert—.
In section 125 (regulations as to notification of deaths), in subsection (1), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “, section 30 of that Act”.
In section 150 (annual up-rating of benefits), in subsection (1), after paragraph (p) (inserted by Schedule 12 to this Act) insert—
Section 163 (general financial arrangements) is amended as follows. In subsection (1), after paragraph (za) (inserted by Schedule 12 to this Act) insert—. In subsection (2)(a), after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “, section 30 of that Act”. In subsection (3)(b), after “or Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “or section 30 of that Act”.
In section 170 (Social Security Advisory Committee), in subsection (5)—
section 30 of the Pensions Act 2014;
any provisions in Northern Ireland which correspond to section 30 of the Pensions Act 2014;
Section 179 (reciprocal agreements) is amended as follows. In subsection (3)(a), after “Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “, Part 5 of that Act”. In subsection (4), after paragraph (ai) (inserted by Schedule 12 to this Act) insert—. In subsection (5)—
In section 187 (inalienability), in subsection (1), after paragraph (ad) insert—.
In section 191 (interpretation), in the definition of “benefit”, for “and personal independence payment” substitute “, personal independence payment and bereavement support payment under section 30 of the Pensions Act 2014”.
A reckonable year mentioned in paragraph (b) of the definition of “pre-commencement qualifying year” counts towards the minimum number of qualifying years required by subsection (1)(b) (even though it does not come within the definition of “qualifying year” for the purposes of this Part).
For earnings factors, see sections 22 and 23 of the Contributions and Benefits Act.
There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.
The transitional rate of the state pension for a person is a weekly rate equal to—
the sum of the amounts calculated under Schedule 1 for the person's pre-commencement and post-commencement qualifying years capped at the full rate of the state pension on the day on which the person reaches pensionable age, or
if higher, the amount for the person's pre-commencement qualifying years alone.
The transitional rate of the state pension for a person is to be increased from time to time in accordance with the applicable paragraph of Schedule 2.
Section 6 requires the transitional rate of the state pension for a person to be recalculated in certain circumstances.
There are special rules about the transitional rate for certain women: see section 11 (reduced rate elections).
This section modifies the transitional rate of the state pension for a person if, after the person has reached pensionable age, a determination is made under section 48A(2) of the Pension Schemes Act 1993 (contracting-out: reinstatement in state scheme following payment of contributions equivalent premium).
The person's transitional rate is to be recalculated (taking the determination into account under paragraph 3(8) of Schedule 1).
The recalculated rate has effect as from the day on which the person reached pensionable age (and the other provisions of this Part apply accordingly).
A person is entitled to a state pension under this section if—
the person has reached pensionable age,
the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other, and
the person is entitled to an inherited amount under Schedule 3.
A state pension under this section is payable at a weekly rate equal to the inherited amount.
The rate of the state pension for a person under this section is to be increased from time to time in accordance with the applicable paragraph of Schedule 4.
Regulations may provide that if at any time the sum of the relevant state pensions for a person exceeds an amount provided for by regulations, the rate of any state pension payable to the person under this section is to be reduced by the amount of the excess.
The “sum of the relevant state pensions” for a person is the sum of—
the rate of any state pension payable to the person under this section (ignoring any reduction under subsection (4)), and
the rate of any state pension payable to the person under section 2, 4 or 12.
In subsections (4) and (5) a reference to the rate of a person's state pension is to the rate—
taking into account any reduction under section 14 (in the case of a state pension under section 4), but
ignoring any increase under section 17.
There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.
A person is entitled to a choice under this section if—
the person has reached pensionable age,
the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other,
the spouse or civil partner's entitlement to an old state pension was deferred at the time of death and throughout the period of 12 months ending with the day before the death,
either: (i) the person was under pensionable age when the spouse or civil partner died and did not marry or form a civil partnership after the death and before reaching pensionable age, or (ii) the person was over pensionable age when the spouse or civil partner died, and
the person would, on reaching pensionable age or on the death of the spouse or civil partner, have been entitled to an old state pension if in the relevant provisions of the Contributions and Benefits Act: (i) the words “before 6 April 2016” were omitted, and (ii) any reference to a bereavement allowance included a reference to bereavement support payment under section 30 of this Act.
The person may choose—
to be paid a lump sum under this section, or
to be paid a state pension under section 9.
Regulations are to set out the manner in which, and the period within which, that choice is to be made.
A person who chooses to be paid a lump sum under this section, or who fails to choose within that period, is entitled to a “widowed person's or surviving civil partner's lump sum” calculated under paragraph 7B of Schedule 5 to the Contributions and Benefits Act.
In that paragraph as it applies for the purposes of this section—
read the references to “W” as references to the person,
read sub-paragraph (5) as if it required increases under paragraph 4 of the Schedule to be excluded, and
read the reference in sub-paragraph (7)(a) to the date on which W becomes entitled to a Category A or Category B retirement pension as a reference to the date on which the person becomes entitled to make a choice under this section.
There are provisions elsewhere that affect a person's entitlement to a lump sum under this section.
Regulations may allow a person, in specified circumstances—
to alter his or her choice under this section;
to make a late choice.
Regulations under subsection (7) may, for the purpose of avoiding the duplication of payment—
enable recovery of an amount paid to the person, or
reduce the amount of a lump sum to be paid to the person.
For the purposes of this section—
“deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act,
“the relevant provisions” of the Contributions and Benefits Act are— section 44(1)(a); section 48(1); section 48A(1) and (3); section 48B(1), (1A), (4) and (4A); section 48BB(1) and (3), and
in determining whether a person would have been entitled to an old state pension as mentioned in subsection (1)(e) ignore any requirement to make a claim.
A person is entitled to a state pension under this section if—
the person has reached pensionable age,
the person's spouse died while they were married or the person's civil partner died while they were civil partners of each other,
either: (i) the person was under pensionable age when the spouse or civil partner died and did not marry or form a civil partnership after the death and before reaching pensionable age, or (ii) the person was over pensionable age when the spouse or civil partner died,
the person is entitled to an inherited deferral amount under Schedule 5, and
in the case of a person entitled to a choice under section 8, the person has chosen to be paid a state pension under this section.
A state pension under this section is payable at a weekly rate equal to the inherited deferral amount.
But if at any time an order under section 151A of the Administration Act comes into force, the rate of the person's state pension under this section is increased (at that time) by the percentage specified in the order.
A person may be entitled to more than one state pension under this section.
There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.
Regulations may make provision corresponding or similar to any provision of sections 7 to 9 and Schedules 3 to 5 for the purpose of conferring benefits on a person whose dead spouse or civil partner paid graduated contributions as an insured person.
The regulations may—
include provision corresponding or similar to any provision that may be made by regulations under section 7 or 8;
amend or otherwise modify this Act or any other enactment (whenever passed or made).
In this section “graduated contributions” and “insured person” have the meanings given by section 36(8) of the National Insurance Act 1965.
Section 4(1)(b) (minimum number of qualifying years for state pension at the transitional rate) does not apply to a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period.
Schedule 6 modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period.
In this section—
“working life” has the meaning given by section 122(1) of the Contributions and Benefits Act.
The Administration Act is amended as follows.
The Social Security Act 1998 is amended as follows.
any provision of Part 1 of the Pensions Act 2014 or any corresponding provision under the law of Northern Ireland,
The Contributions and Benefits Act is amended as follows.
In section 150(2) of the Contributions and Benefits Act (Christmas bonus: interpretation), for the definition of “retirement pension” substitute—
Regulations may require the trustees or managers of an occupational pension scheme to provide information requested by an employer in connection with the powers given by section 24(2). The regulations may provide for section 10 of the Pensions Act 1995 (civil penalties) to apply to a person who fails to comply with a requirement. In this paragraph “managers”, in relation to a pension scheme (other than a scheme established under a trust), means the persons responsible for the management of the scheme.
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.
The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.
“old state scheme pension credit” means a credit under section 49(1)(b) of that Act.
In section 96 of the Welfare Reform Act 2012 (benefit cap), in subsection (11), before paragraph (a) insert—.
The Secretary of State must make regulations with a view to ensuring that, where a qualifying member of an automatic transfer scheme has transferable benefits under another pension scheme, the cash equivalent of the transferable benefits— In this Schedule “automatic transfer scheme” means— In this Schedule “qualifying member”, in relation to an automatic transfer scheme, means an active member of the scheme of a prescribed description. For the purposes of this Schedule a person has transferable benefits under a pension scheme if— In this Schedule “transferable benefits scheme” means— In sub-paragraph (4)—
If the regulations do not include the condition mentioned in paragraph 3(3), they must ensure that where the duty to give a transfer notice has arisen in relation to transferable benefits of a qualifying member of an automatic transfer scheme, the member can opt out of the transfer in accordance with the regulations. The regulations must provide that, where the member does opt out—
The regulations must require the trustees or managers of an automatic transfer scheme to whom the cash equivalent of a person’s transferable benefits is transferred to use the cash equivalent to provide rights for the person under the scheme. The regulations may make provision about how that is to be done and in particular about—
The regulations may make provision with a view to ensuring compliance with any provision of the regulations. For this purpose the regulations may in particular— The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention. But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—
The regulations must require the Secretary of State to review from time to time the amount for the time being prescribed under paragraph 1(4)(f). The regulations must provide— The regulations must require the Secretary of State, in conducting a review, to have regard to— The regulations must authorise the Secretary of State to estimate the general level of prices or earnings for the purposes of the review in the manner the Secretary of State thinks fit.
In section 1 (entitlement to benefit dependent on claim), in subsection (4), after paragraph (za) insert—.
In section 2 (use of computers), in subsection (2)—
in paragraph (k), omit the final “or”;
after paragraph (l) insert—.
In section 63(f)(i) (descriptions of non-contributory benefits), for the words from “payable” to “widows” substitute “payable in certain cases to a widow whose husband was over pensionable age on 5 July 1948 or to a woman whose marriage to a husband who was over pensionable age on that date was terminated otherwise than by his death”.
Section 1 (outline of contributory system) is amended as follows. In subsection (2)— In subsection (4)(a), for “and 3” substitute “, 3 and 3A”.
In section 660 (taxable benefits: UK benefits - Table A), in the table in subsection (1), in the entry relating to bereavement allowance, omit the words “SSCBA 1992 Section 39B” (in the second column).
In section 5 (regulations about claims for and payments of benefits), in subsection (2), after paragraph (za) insert—.
In section 8 (decisions by Secretary of State)—
in subsection (3), after paragraph (aa) insert—;
in subsection (4), for “or Part 4 of that Act” substitute “, Part 4 of that Act or Part 1 of the Pensions Act 2014”.
Section 78 (Category C retirement pensions etc) is amended as follows. Omit subsections (1), (2) and (5). In subsections (7) and (8), omit “Category C or”.
After section 14 insert—
In section 677 (UK social security benefits wholly exempt from tax), in Part 1 of Table B in subsection (1), in the entry relating to bereavement payments, omit the words “SSCBA 1992 Section 36” (in the second column).
In section 71 (overpayments - general), in subsection (11), before paragraph (a) insert—.
In section 11 (regulations with respect to decisions), in subsection (3), in the definition of “the current legislation”, for “and Part 4 of that Act” substitute “, Part 4 of that Act and Part 1 of the Pensions Act 2014”.
In Part 3 of Schedule 4 —
omit paragraph 6 (rate of Category C retirement pension);
in paragraph 7 (rate of Category D retirement pension), for the text in the second column substitute the amount specified in paragraph 6 as the higher rate for a Category C retirement pension immediately before 6 April 2016.
If paragraph 17 comes into force before the new state pension commencement date for Northern Ireland, section 14A(2) as inserted by that paragraph has effect as if the reference to entitlement included the prospective entitlement of a person who— In this paragraph “the new state pension commencement date for Northern Ireland” means the date on which legislation in Northern Ireland corresponding to section 2 of this Act comes fully into force.
In section 73 (overlapping benefits - general)—
in subsection (1), after “adjusting” insert “state pension under Part 1 of the Pensions Act 2014 or”;
in subsection (4), before paragraph (a) insert—.
state pension or a lump sum under Part 1 of the Pensions Act 2014.
In section 150A of the Administration Act (annual up-rating), in subsection (10), in the definition of “the specified amounts in the case of Category B, C or D retirement pensions”—
in paragraph (a), omit the final “and”;
in paragraph (b), for “amounts specified in paragraphs 6 and 7” substitute “amount specified in paragraph 7”;
any amount specified in regulations under section 78(9) of the Contributions and Benefits Act for a Category C retirement pension;
In section 121 (interpretation), in subsection (1), at the appropriate place insert—.
In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hk) insert—.
In section 28 (correction of errors in decisions etc), in subsection (3)—
in paragraph (h), omit the final “or”;
after paragraph (i) insert or
In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions) omit paragraph 11 and the heading above it.
In section 172 (procedure for regulations etc), in subsection (11A), after “11(3)” insert “, 14A”.
In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “Part 4 of that Act” insert “, Part 1 of the Pensions Act 2014”.
In Schedule 3 (decisions against which an appeal lies), after paragraph 6B insert—
In the heading to Schedule 1, for “and 3” substitute “, 3 and 3A”.
In section 124 (age, death and marriage), in subsection (1), after paragraph (ae) insert—.
In section 125 (regulations as to notification of deaths), in subsection (1), after “Part 4 of that Act” insert “, Part 1 of the Pensions Act 2014”.
After section 148AB insert—
In section 150 (annual up-rating of benefits), in subsection (1), after paragraph (o) insert—.
In section 150A (annual up-rating), in subsection (1), before paragraph (a) insert—.
In section 151 (up-rating: supplementary), in subsection (2)—
for “(dza) or (e)” substitute “(dza), (e) or (p)”;
after “order and” insert —;
at the end insert , and
After section 151 insert—
Section 155A (power to anticipate pensions up-rating order) is amended as follows. In subsection (1)(a)— In subsection (2), after “an award is made of” insert “a state pension,”.
Section 163 (general financial arrangements) is amended as follows. In subsection (1), before paragraph (a) insert—. In subsection (2)(a), after “Contributions and Benefits Act” insert “, Part 1 of the Pensions Act 2014”. In subsection (3)(b), after “that Act” insert “or Part 1 of the Pensions Act 2014”.
In section 170 (Social Security Advisory Committee), in subsection (5)—
the provisions of Part 1 of the Pensions Act 2014;
any provisions in Northern Ireland which correspond to the provisions of Part 1 of the Pensions Act 2014;
Section 179 (reciprocal agreements) is amended as follows. In subsection (3)(a), after “Part 4 of that Act” insert “, Part 1 of the Pensions Act 2014”. In subsection (4), after paragraph (ah) insert—. In subsection (5)—
In section 187 (inalienability), in subsection (1), after paragraph (za) insert—.
In section 190 (parliamentary control of orders and regulations), in subsection (1)(a) after “150A,” insert “151A,”.
In section 191 (interpretation), in the definition of “benefit”, after “universal credit,” insert “state pension under Part 1 of the Pensions Act 2014,”.
a levy under regulations made under section 174 of that Act (initial levy), or
The Contributions and Benefits Act is amended as follows.
In Schedule 4 to the Pensions Act 1995 (pensionable age), in paragraph 1, for “and Part 1 of the Welfare Reform Act 2007” substitute “, Part 1 of the Welfare Reform Act 2007 and the Pensions Act 2014”.
The Social Security Fraud Act 2001 is amended as follows.
The Gender Recognition Act 2004 is amended as follows.
In section 47 of the Welfare Reform and Pensions Act 1999 (shareable state scheme rights), in subsection (2)(a), omit “earnings-related”.
The Secretary of State may by regulations impose requirements relating to the administration or governance of a relevant scheme that must be satisfied in relation to the scheme. The regulations— The regulations may impose duties on the trustees or managers of a relevant scheme or others. The regulations may provide that a scheme is not a qualifying scheme in relation to a jobholder for the purposes of Part 1 of the Pensions Act 2008 if a provision of the regulations— In this paragraph “relevant scheme” means a pension scheme of a description specified in the regulations.
This Schedule applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes. Accordingly, a reference in this Schedule to a person in the person’s capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity. This Schedule applies to persons employed by or under the Crown as it applies to persons employed by a private person.
In section 1 (outline of contributory system), in subsection (1)(a), after “this Act” insert “or any other Act”.
In section 6A (definitions), in subsection (1)—
state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;
state pension or a lump sum under Part 1 of the Pensions Act 2014;
In section 23 of that Act (power to modify statutory provisions) “enactment” includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.
In section 13 (Class 3 contributions), in subsection (2), omit “contribution”.
In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (be) insert—.
Schedule 5 (benefits and pensions) is amended as follows. After paragraph 6 insert— In paragraph 7, in sub-paragraph (1), at the end insert “(but this is subject to sub-paragraph (3))”. In paragraph 10, in sub-paragraph (1), before paragraph (a) insert—.
After section 19A insert—
Section 22 (earnings factors) is amended as follows. In subsection (2)— After subsection (5) insert—
(For the meaning of “benefit” in Part 1, see also section 19B)
A woman is entitled to a state pension under this section if—
she has reached pensionable age,
a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period,
she does not have any pre-commencement qualifying years, and
she is entitled to a basic amount under Schedule 7.
A state pension under this section is payable at a weekly rate equal to the basic amount.
But if at any time the full rate of the state pension is increased, the rate of the woman's state pension under this section is increased (at that time) by the same percentage as the increase in the full rate.
In subsection (3) the reference to the rate of the woman's state pension is to the rate ignoring any increase under section 17.
A woman is not entitled to a state pension under this section and section 2 at the same time: she is only entitled to the one with the higher rate.
There are provisions elsewhere that affect a woman's entitlement to a state pension under this section or the rate at which it is payable.
In this section—
“relevant 35-year period” means the 35-year period ending with the tax year before the one in which the woman reached pensionable age.
A person is entitled to a state pension under this section if—
the person has reached pensionable age, and
the person is entitled to a state scheme pension credit.
A state pension under this section is payable at the appropriate weekly rate set out in Schedule 8.
The rate of the state pension for a person under this section is to be increased from time to time in accordance with the applicable paragraph of Schedule 9.
A person may be entitled to more than one state pension under this section.
There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.
In this Part—
“pension levy” means—
The Child Support, Pensions and Social Security Act 2000 is amended as follows.
The Companies Act 2006 is amended as follows.
Section 142 of the Social Security Administration (Northern Ireland) Act 1992 (destination of contributions) is amended as follows. In subsection (5)(e), after “those contributions;” insert—. In subsection (8)(c), for “or (e)” substitute “, (e) or (ea)”.
In section 2 of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament), in subsection (4)(a), after “(za),” (inserted by Schedule 12 to this Act) insert “(zb),”.
Regulations under this Schedule may provide that specified provisions override any provision of an automatic transfer scheme or transferable benefits scheme to the extent that it conflicts with them. A “specified provision” is a provision of regulations under this Schedule specified in the regulations for the purposes of this paragraph.
a levy under regulations made under section 117 of the Pensions Act 2004 (administration levy),
“qualifying earnings factor” has the meaning given by section 122(1) of the Contributions and Benefits Act;
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the pensioner reached pensionable age if any element of the rate attributable to the basic pension were ignored.
This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of an old state scheme pension credit. If the person became entitled to the old state scheme pension credit in or after the final relevant year, the appropriate weekly rate is a weekly rate equal to the person’s notional rate. If the person became entitled to the old state scheme pension credit before the final relevant year, the appropriate weekly rate is a weekly rate equal to the person’s notional rate multiplied by the appropriate revaluation percentage. For the purposes of sub-paragraphs (2) and (3), a person’s “notional rate” is the weekly rate of a notional pension under section 13 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension credit. For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of— The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became entitled to the old state scheme pension credit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year. In this paragraph—
The rate of the person’s state pension under section 13 is to be increased under this paragraph if— If at any time the full rate of the state pension is increased, the rate of the person’s state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the shortfall immediately before that time. If at any time an order under section 151A of the Administration Act comes into force, the rate of the person’s state pension under section 13 is increased (at that time) by an amount equal to the appropriate percentage of the excess immediately before the order comes into force. In this paragraph—
This paragraph sets out the appropriate weekly reduction if the person is subject to an old state scheme pension debit. If the person became subject to the old state scheme pension debit in or after the final relevant year, the appropriate weekly reduction is an amount equal to the person’s notional rate. If the person became subject to the old state scheme pension debit before the final relevant year, the appropriate weekly reduction is an amount equal to the person’s notional rate multiplied by the appropriate revaluation percentage. For the purposes of sub-paragraphs (2) and (3), a person’s “notional rate” is the weekly rate of a notional pension under section 4 the cash equivalent of which would, on the valuation day, have been equal to the amount of the old state scheme pension debit. For the purposes of sub-paragraph (4) assume that the notional pension becomes payable on the later of— The “appropriate revaluation percentage” is the percentage specified, in relation to earnings factors for the tax year in which the person became subject to the old state scheme pension debit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year. In this paragraph—
The State Pension Credit Act 2002 is amended as follows.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the pensioner reached pensionable age if section 48BB(8) and (9) of the Contributions and Benefits Act were ignored.
In section 7 (fixing of claimant’s retirement provision for assessed income period), in subsection (6)(a), after “benefit under” insert “Part 1 of the Pensions Act 2014 or”.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is equal to the weekly rate at which that Category B retirement pension would have been payable on the day on which the spouse or civil partner died if any element of the rate attributable to the basic pension were ignored.
In section 16 (meaning of “retirement pension income”), in subsection (1), before paragraph (a) insert—.
Section 42 (disclosure of state pension information) is amended as follows. In subsection (3)(d), omit “which is not contracted-out employment”. In subsection (11), omit the definition of “contracted-out employment”.
In section 140 (interests to be disregarded: employer’s rights of recovery under pension scheme or employee’s share scheme), in subsection (2), omit “section 61 of the Pension Schemes Act 1993 or”.
Part 2 of Schedule 5 (alternative to anti-franking rules) is repealed.
In section 673 (interests to be disregarded in determining whether company has beneficial interest: employer’s charges and other rights of recovery), in subsection (1)(b), omit sub-paragraph (i).
The rate of a person's state pension under section 4 is reduced under this section if the person is subject to a state scheme pension debit.
The amount by which the rate is reduced is the amount of the appropriate weekly reduction set out in Schedule 10.
A person's state pension may be reduced more than once under this section.
In this Part—
“specified” means specified by the Secretary of State.
a new state scheme pension debit, or
In section 78(3) of the Contributions and Benefits Act (entitlement to a Category D retirement pension), for “and satisfies” substitute “, who reached pensionable age before 6 April 2016 and who satisfies”.
If marriage of same sex couples is not lawful under the law of Scotland when the amendments made by this Part of this Schedule come into force then, under the law of Scotland, references in the amendments to a married person do not include a person married to someone of the same sex; and related expressions (such as “spouse”) are to be read accordingly. See also Part 1 of Schedule 2 to the Marriage (Same Sex Couples) Act 2013 (power to provide for English and Welsh marriages of same sex couples to be treated in Scotland as civil partnerships).
In the Pensions Act 2008, the following are repealed—
sections 102 and 103 (consolidation of additional pension);
Schedule 3 (consolidation of additional pension);
in Schedule 4 (minor and consequential amendments)— paragraph 4(2)(b) and (3)(b); paragraph 6(3); paragraph 7(a); paragraph 8(a); paragraph 9(2)(c); paragraph 10; paragraphs 13 to 22.
A person's amount for pre-commencement qualifying years is calculated as follows. Step 1 - calculate the person's pension under the old system Calculate the weekly rate based on the old state pension and graduated retirement benefit (see paragraph 3 for more about this). Step 2 - calculate a pension based on the new system Calculate the weekly rate based on the new state pension (see paragraph 4 for more about this). Step 3 - take whichever rate is higher (the foundation amount) Take whichever of the rates found under Steps 1 and 2 is higher. Step 4 - revalue to date when the person reached pensionable age Revalue the amount of that rate in accordance with paragraph 6. The amount for the person's pre-commencement qualifying years is the amount as revalued under Step 4.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner exceeded the full rate of the state pension immediately before the death.
Part 1 of the Pensions Act 2014,
a levy under section 175 of that Act (pension protection levies).
In section 15 of the Employment Act 2002 (use of information by HMRC), in subsection (2)(c), for “(certification of pension schemes etc)” substitute “(schemes that were contracted-out etc)”.
Section 162 of the Social Security Administration Act 1992 (destination of contributions) is amended as follows. In subsection (5)(e), after “those contributions;” insert—. In subsection (8)(c), for “or (e)” substitute “, (e) or (ea)”.
The Pensions Act 2004 is amended as follows.
In section 10 (functions exercisable by the Determinations Panel), in subsection (6), after paragraph (e) insert—.
In section 66 (register of prohibited trustees), in subsection (1), for the words from “of all” to the end substitute “(“the prohibition register”) of—
In section 96 (Pensions Regulator’s regulatory functions: standard procedure), in subsection (6), after paragraph (i) insert—.
In section 97 (Pensions Regulator’s regulatory functions: special procedure), in subsection (5), after paragraph (j) insert—.
Schedule 2 (Pensions Regulator’s reserved regulatory functions) is amended as follows. After paragraph 5 insert— In paragraph 9(a), after “orders)” insert “or by section 3A”.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had been alive on the day on which the pensioner reached pensionable age.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the day of the death.
A pensioner whose spouse or civil partner has died is entitled to an inherited amount under this paragraph if— The inherited amount is half of the amount by which the transitional rate of the state pension for the spouse or civil partner would have exceeded the full rate of the state pension if he or she had reached pensionable age on the same day as the pensioner.
“relevant 35-year period” means the 35-year period ending with the tax year before the one in which the woman reached pensionable age.
This Schedule sets out how to up-rate the rate of a person's state pension under section 7.
The rate of the person’s state pension under section 7 is to be increased under this paragraph if the amount of any state pension that has priority is equal to or higher than the full rate of the state pension. If at any time an order under section 151A of the Administration Act comes into force, the rate of the person’s state pension under section 7 is increased (at that time) by the percentage specified in the order.
This Schedule sets out the appropriate weekly rate of a person’s state pension under section 13.
Regulations may make provision about the calculation and verification of notional rates under paragraph 2. The regulations may, in particular, provide—
The power may be used— But the power may not be used in a way that would— Regulations are to define what is meant by— The regulations may make provision about the calculation of those amounts, including provision requiring them to be calculated in accordance with specified methods or assumptions. Where the effect of using the power to increase employee contributions of the relevant members would be to increase the contributions that the employer is required to pay, the power may be used to make other amendments needed to ensure that only the employee contributions are increased because of the use of the power. Where the effect of using the power to alter the future accrual of benefits for or in respect of the relevant members would be to decrease the contributions that any members are required to pay, the power may be used to make other amendments needed to ensure that the contributions of those members are not decreased because of the use of the power.
The power may be used before or after the repeal of section 41 of the Pension Schemes Act 1993 comes into force (but amendments made under it must not be framed so as to take effect before the repeal comes into force).
An amendment under section 24 and this Schedule may be made in relation to any member, and has effect, despite anything in any other enactment to the contrary.
In this Schedule—
The Secretary of State may by regulations make provision— “Specified” means specified in the regulations. The regulations— The regulations may impose duties on the trustees or managers of a relevant scheme or others. The regulations may provide that a scheme is not a qualifying scheme in relation to a jobholder for the purposes of Part 1 of the Pensions Act 2008 if a provision of the regulations— In this paragraph—
Expressions used in this Schedule and in Schedule 17 have the same meaning in this Schedule as in that Schedule (see paragraph 15 of that Schedule). In this Schedule “relevant scheme” is to be construed in accordance with paragraphs 1(5) and 2(5).
The Secretary of State may by regulations amend or otherwise modify any enactment (whenever passed or made) in connection with any provision made by regulations under the preceding provisions of this Schedule. In this paragraph “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.
This paragraph applies in relation to a person if— The protected pension rate for the person is to be recalculated as if the amendments made by Part 1 of this Schedule had always been in force and the recalculated protected pension rate has effect for the person as from the commencement date. For the purposes of that recalculation, paragraph 26A(7) of Schedule 7 to the Pensions Act 2004 (inserted by Part 1 of this Schedule) has effect as if— In this paragraph— Nothing in this paragraph affects increases already accrued under paragraph 28 of Schedule 7 to the Pensions Act 2004 in relation to periods before the commencement date.
Nothing in this Schedule affects the amount of—
an actuarial reduction under paragraph 25 of Schedule 7 to the Pensions Act 2004 in a case where a person became entitled to periodic compensation or lump sum compensation before the commencement date, or
an actuarial increase under paragraph 25A of that Schedule in a case where the commencement of periodic compensation or the payment of lump sum compensation was postponed before the commencement date (even if it continues to be postponed on or after that date).
For the purposes of this Part of this Schedule an eligible scheme is “undergoing assessment” if an assessment period has begun in relation to the scheme but has not yet ended.
In this Schedule a reference to the rate of a person's state pension is to the rate—
ignoring any reduction under section 7(4) (in the case of a state pension under section 7),
taking into account any reduction under section 14 (in the case of a state pension under section 4), and
ignoring any increase under section 17.
The power may not be used in a way that would or might adversely affect the subsisting rights of— “Subsisting right” and “survivor” have the meanings given by section 67A of the Pensions Act 1995.
An amendment made before the repeal of section 41 of the Pension Schemes Act 1993 comes into force does not take effect in relation to any relevant members who have ceased to be in contracted-out employment by reference to the scheme before the repeal comes into force.
Before making any regulations under this Schedule, the Secretary of State must consult such persons as the Secretary of State considers appropriate.
In this Schedule a reference to “the amount of any state pension that has priority” means the rate of any state pension to which the person is entitled under section 2, 4 or 12.
Regulations may impose further restrictions on the use of the power.
Schedule 11 contains amendments to do with pension sharing.
A person who has become entitled to a state pension under this Part may opt to suspend his or her entitlement in accordance with regulations.
A person is not entitled to any state pension under this Part for the period for which the person has opted to suspend his or her entitlement.
For other effects of a person exercising the option, see section 17.
A person may not opt to suspend his or her entitlement to a state pension under this Part on more than one occasion.
Regulations may specify other circumstances in which a person may not opt to suspend his or her entitlement to a state pension under this Part.
Regulations may allow a person who has opted to suspend his or her entitlement to a state pension under this Part to cancel the exercise of that option (in whole or in part) in relation to a past period.
If a person's entitlement to a state pension under this Part has been deferred for a period, the weekly rate of the person's state pension is increased by an amount equal to the sum of the increments to which the person is entitled.
But the weekly rate is not to be increased under subsection (1) if the increase would be less than 1% of the person's weekly rate ignoring that subsection.
A person is entitled to one increment for each whole week in the period during which the person's entitlement to a state pension was deferred.
The amount of an increment is equal to a specified percentage of the weekly rate of the state pension to which the person would have been entitled immediately before the end of that period if the person's entitlement had not been deferred.
In subsection (4) “specified” means specified in regulations.
The amount of an increase under this section is itself to be increased from time to time in accordance with any order made under section 150 of the Administration Act (annual up-rating of benefits).
For the purposes of this section and section 18 a person's entitlement to a state pension under this Part is deferred for a period if the person has opted under section 16 to suspend his or her entitlement for that period.
For the purposes of this section and section 18 a person's entitlement to a state pension under this Part is also deferred for a period if the person is not entitled to it for that period by reason only of—
not satisfying the conditions in section 1 of the Administration Act (entitlement dependent on claim etc), or
subsection (9) below.
A person is not entitled to a state pension under this Part for any period during which his or her entitlement to any other state pension under this Part is deferred.
Regulations may—
provide for circumstances in which a part of a week is to be treated for the purposes of section 17(3) as a whole week, and
provide for circumstances in which a day does not count in determining a number of whole weeks for the purposes of section 17(3) (for example if the person is receiving other benefits).
Regulations may modify section 17(4) in cases where, at any time in the period during which a person's entitlement to a state pension is deferred, the rate for the person would have changed otherwise than because of an up-rating increase.
Regulations may modify section 17(4) in relation to a person who has been an overseas resident during any part of the period for which the person's entitlement to a state pension has been deferred.
In subsection (3) “overseas resident” means a person who is not ordinarily resident in Great Britain or any other territory specified in the regulations.
Regulations may amend the percentage specified in section 17(2).
Regulations may provide that a person is not to be paid a state pension under this Part for any period during which the person is a prisoner.
“Prisoner” means a person (in Great Britain or elsewhere) who is—
imprisoned or detained in legal custody, or
unlawfully at large.
In the case of a person remanded in custody for an offence, regulations under subsection (1) may be made so as to apply only if a sentence of a specified description is later imposed on the person for the offence.
Regulations may provide that an overseas resident who is entitled to a state pension under this Part is not entitled to up-rating increases.
In this section “overseas resident” means a person who is not ordinarily resident in Great Britain or any other territory specified in the regulations.
Regulations under this section do not affect the rate of an overseas resident's state pension for any period during which he or she is in Great Britain or a territory specified in the regulations (but once the overseas resident ceases to be in Great Britain or a specified territory the rate reverts to what it would have been had he or she not been in Great Britain or a specified territory).
Regulations under this section do not affect the rate of a person's state pension once the person stops being an overseas resident.
In this Part “old state pension” means a Category A retirement pension or a Category B retirement pension.
A reference in this Part to the rate of an old state pension (however expressed) does not include—
graduated retirement benefit under the National Insurance Act 1965, or
any increase in the rate because of Schedule 5 to the Contributions and Benefits Act (deferral increases).
In this Part—
“full rate” means the rate mentioned in section 3(1);
Section 46A of the Pension Schemes Act 1993 (retirement in tax year after 5 April 2020) is repealed.
In this Schedule “the commencement date” means the date on which it comes fully into force.
Other expressions used in this Schedule have the same meaning as in Part 2 of the Pensions Act 2004.
For the purposes of any other provision of this Part two people are to be treated as if they are not married to each other in relation to times when either of them is married to a third person.
In Schedule 12— Part 1 contains amendments to do with state pensions under this Part; Part 2 contains key amendments to do with the old state pension system; Part 3 contains amendments to do with state pension credit; Part 4 contains other amendments to do with this Part.
Schedule 13 contains amendments to abolish contracting-out for salary related schemes.
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to make amendments that apply to a member who is a protected person in relation to a scheme, or
to amend a public service pension scheme or a scheme of a description specified in regulations under this paragraph.
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For the purposes of Step 1 of the calculation in paragraph 2, the weekly rate based on the old state pension and graduated retirement benefit is— The following rules apply for the purposes of calculating that rate. Calculate the rate that would have had effect on 6 April 2016 (but see sub-paragraph (6)). Ignore— Read the reference in section 45(4)(b) of the Contributions and Benefits Act (additional pension) to a person's working life as a reference to the period— If an order under section 150 or 150A of the Administration Act (up-rating) is made before 6 April 2016 and it provides for an increase to come into force after that date, it is to be treated for the purposes of calculating the rate under this paragraph as having already come into force. Where regulations under section 22(5ZA) of the Contributions and Benefits Act have the effect that a person is credited, on or after 6 April 2016, with earnings or contributions for a tax year starting before that date, the earnings or contributions are to be treated for the purposes of calculating the rate under this paragraph as having been credited before 6 April 2016. A determination under section 48A(2) of the Pension Schemes Act 1993 (contracting-out: reinstatement in state scheme following payment of contributions equivalent premium) made on or after 6 April 2016 is to be treated for the purposes of calculating the rate under this paragraph as having been made before 6 April 2016.
This paragraph sets out the appropriate weekly rate if the person is entitled to a state pension under section 13 because of a new state scheme pension credit. If the person was over pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit. If the person was under pensionable age when he or she became entitled to the new state scheme pension credit, the appropriate weekly rate is a weekly rate equal to the amount of the credit multiplied by the appropriate revaluation percentage. The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became entitled to the new state scheme pension credit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.
Section 42 of the Child Support, Pensions and Social Security Act 2000 (disclosure of state pension information) is amended as follows. In subsection (7), after paragraph (a) insert—. In subsection (11), in the definition of “lump sum”, after “under” insert “section 8 of the Pensions Act 2014 or”.
The Finance (No. 2) Act 2005 is amended as follows.
The Contributions and Benefits Act is amended as follows.
section 30 of that Act,
The Social Security Fraud Act 2001 is amended as follows.
The Pension Schemes Act 1993 is amended as follows. In section 94(2A) (right to cash equivalent)— In section 101AI(8) (rights to cash transfer sum and contribution refund: further provisions)—
Section 8 (meaning of “applicable year of assessment” in section 7) is amended as follows. In subsection (3), for “subsection (4)” substitute “subsections (4) and (4A)”. After subsection (4) insert—
In section 44(1) (Category A retirement pensions), for paragraph (a) substitute—.
bereavement support payment under section 30 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that section;
In section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), after “or paragraph 10 of Schedule 17 to the Pensions Act 2014” (inserted by Schedule 17 to this Act) insert “or paragraph 3 of Schedule 18 to that Act”.
section 8 of the Pensions Act 2014 or under any corresponding provision under the law of Northern Ireland,
Section 48 (use of former spouse’s contributions) is amended as follows. In subsection (1), after “person” insert “who attained pensionable age before 6 April 2016”. After subsection (2) insert—
In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (bf) (inserted by Schedule 12 to this Act) insert—.
Section 16 of the Pensions Act 2008 (automatic enrolment: qualifying schemes) is amended as follows. In subsection (3), omit paragraphs (a), (aa) and (ab). After subsection (3) insert— Omit subsections (4) and (5).
In consequence of the amendments made by paragraph 11, section 10 of the Pensions Act 2011 (qualifying schemes: administration charges) is repealed.
Subsections (2) to (7) and Schedule 14 are repealed at the end of the period of 5 years beginning with 6 April 2016.
The Secretary of State may by order amend subsection (8) to extend the period for the time being mentioned there.
In Schedule 15— Part 1 contains amendments to allow certain people to pay additional contributions to boost their retirement pensions; Part 2 contains amendments to allow corresponding legislation to be put in place for Northern Ireland.
Paragraph 1 of Schedule 4 to the Pensions Act 1995 is amended as follows.
In sub-paragraph (6) for “6th April 1968” substitute “ 6th April 1960 ”.
For sub-paragraph (7) and table 3 substitute—
In sub-paragraph (8) for “5th April 1969” substitute “ 5th March 1961 ”.
The Secretary of State must from time to time—
review whether the rules about pensionable age are appropriate, having regard to life expectancy and other factors that the Secretary of State considers relevant, and
prepare and publish a report on the outcome of the review.
The first report must be published before 7 May 2017.
Each subsequent report must be published before the end of the period of 6 years beginning with the day on which the previous report was published.
For the purposes of each review, the Secretary of State must require the Government Actuary or Deputy Government Actuary to prepare a report for the Secretary of State on—
whether the rules about pensionable age mean that, on average, a person who reaches pensionable age within a specified period can be expected to spend a specified proportion of his or her adult life in retirement, and
if not, ways in which the rules might be changed with a view to achieving that result.
The Secretary of State must, for the purposes of a review, appoint a person or persons to prepare a report for the Secretary of State on other specified factors relevant to the review.
The Secretary of State must lay before Parliament any report prepared under this section.
For the purposes of subsection (4)—
a person's adult life is the part of the person's life after he or she reaches the specified age;
the proportion of a person's adult life spent in retirement is the proportion of his or her adult life spent after reaching pensionable age.
In this section—
an increase in the rate of the state pension because of section 9(3), 12(3) or 17(6) or Schedule 2, 4 or 9; , or
This Schedule modifies the rules about the transitional rate of the state pension for a woman if a reduced rate election was in force in respect of her at the beginning of the relevant 35-year period (and expressions used in this paragraph have the same meaning as in section 11).
If the woman is married or in a civil partnership on reaching pensionable age but the marriage or civil partnership comes to an end (because of the death of her spouse or civil partner or otherwise)—
her transitional rate is to be recalculated applying paragraph 3(2), and
Schedule 2 (up-rating) applies as if the recalculated rate had been the woman’s transitional rate on the day on which she reached pensionable age.
In section 27 of the Family Law (Scotland) Act 1985 (interpretation), in subsection (1), in the definition of “relevant state scheme rights”—
shareable new state scheme rights, within the meaning given by section 47(3) of the Welfare Reform and Pensions Act 1999 or corresponding Northern Ireland legislation;
in paragraph (b) after “55A” insert “or 55AA”.
The Welfare Reform and Pensions Act 1999 is amended as follows.
The Pensions Act 2007 is amended as follows.
The Pension Schemes Act 1993 is amended as follows. In section 94(2A) (right to cash equivalent)— In section 101AI(8) (rights to cash transfer sum and contribution refund: further provisions)—
If neither of paragraphs 2 and 3 apply to the woman but she subsequently comes within paragraph (a) or (b) of paragraph 2(1)— But the woman’s rate is not to be recalculated under sub-paragraph (1) if it has already been recalculated under paragraph 4.
Section 47 (shareable state scheme rights) is amended as follows. After subsection (1) insert— In subsection (2)— After subsection (2) insert—
Section 15 (abolition of contracting-out for defined contribution pension schemes) is amended as follows. In subsection (1), for “the abolition date” substitute “6 April 2012”. In subsection (2), omit the definition of “the abolition date”. In subsection (4), for “the abolition date” (in each place) substitute “6 April 2012”.
In section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b)—
for “or section” substitute “, section”;
after “2008” insert “or paragraph 10 of Schedule 17 to the Pensions Act 2014”.
Nothing in paragraph 4 or 5 affects—
the amount of state pension to which a woman is entitled for periods before that paragraph applies to her, or
the amount of any increase under section 17 in a case where the period for which the woman’s state pension is deferred has ended before that paragraph applies to her.
In section 48 (activation of benefit sharing), in subsection (1), for the words from the beginning to “shareable state scheme rights” substitute “Section 49 or 49A applies where any of the following has taken effect in relation to a person’s shareable state scheme rights”.
In section 27 (consequential provision, repeals and revocations), in subsection (6), for “the abolition date (within the meaning of section 15)” substitute “6 April 2012”.
Section 49 (creation of state scheme pension debits and credits) is amended as follows. For subsection (1) substitute— In subsection (2), after “shareable” insert “old”. In subsection (3)(b), for “relevant” substitute “shareable old”. After subsection (5) insert— In subsection (6), at the appropriate place insert— At the end of the heading insert “: transferor in old state pension system or pension sharing activated before 6 April 2016”.
Schedule 4 (abolition of contracting-out for defined contribution pension schemes) is amended as follows. In paragraphs 61, 62(1), (2)(a) and (b)(i) and (3), 65 and 66(2) for “the abolition date” (in each place) substitute “6 April 2012”. In paragraph 67(1) omit the definition of “the abolition date”.
After section 49 insert—
Section 51 (interpretation) is amended as follows. The current text becomes subsection (1). In that subsection for the definition of “shareable state scheme rights” substitute—. After that subsection insert—
In section 6 of the State Pension Credit Act 2002 (duty to specify assessed income period), in subsection (1), after “subsection (3) or (4)” insert “ where the relevant decision takes effect before 6 April 2016 ”.
At the end of the heading to that section insert “ for pre-6 April 2016 awards ”.
Regulations under section 9(5) of the State Pension Credit Act 2002 may in particular be made for the purpose of phasing out, on or after 6 April 2016, any remaining assessed income period that is 5 years or shorter than 5 years.
If this section comes into force before 6 April 2014—
section 105(6) of the Pensions Act 2008 (which provides that section 9(6) of the State Pension Credit Act 2002 ceases to have effect on 6 April 2014) is repealed, and
in section 9(6)(a) of the State Pension Credit Act 2002 (duration of assessed income period for certain transitional cases to be treated as indefinite), after “brought to an end” insert “ , on or after 6 April 2009 but before 6 April 2014, ”.
If this section comes into force on or after 6 April 2014—
section 105(6) of the Pensions Act 2008 (which provides that section 9(6) of the State Pension Credit Act 2002 ceases to have effect on 6 April 2014) is repealed and is to be treated as never having had effect, and
in section 9(6)(a) of the State Pension Credit Act 2002 (duration of assessed income period for certain transitional cases to be treated as indefinite) as restored by this section, after “brought to an end” insert “ , on or after 6 April 2009 but before 6 April 2014, ”.
A person is entitled to a benefit called bereavement support payment if—
the person's spouse, civil partner or cohabiting partner dies,
the person is under pensionable age when the spouse, civil partner or cohabiting partner dies,
in the case of a person whose cohabiting partner dies, the person is pregnant or entitled to child benefit in circumstances specified under subsection (4) or, where no such circumstances are specified, in such circumstances as the Secretary of State may specify by regulations,
the person is ordinarily resident in Great Britain, or a specified territory, when the spouse, civil partner or cohabiting partner dies, and
the contribution condition is met (see section 31).
The Secretary of State must by regulations specify—
the rate of the benefit, and
the period for which it is payable.
Only one person is entitled to bereavement support payment in respect of one death.
The regulations may specify different rates for different periods.
Where, apart from subsection (1A), more than one person would be so entitled, entitlement is to be determined in accordance with subsections (1C) and (1D).
In the case of a person who is pregnant or entitled to child benefit in specified circumstances, the regulations may—
specify a higher rate;
provide for the allowance to be payable for a longer period.
Where only one of those persons is a member of the same household as the deceased, that person is entitled.
A person is not entitled to bereavement support payment for periods after the person has reached pensionable age.
Where there is more than one person who is a member of the same household as the deceased and would (apart from subsection (1A)) be entitled—
if one of those persons is the deceased’s spouse or civil partner and is pregnant or entitled to child benefit in circumstances specified under subsection (1)(aa) or (4), that person is entitled;
if there is no spouse or civil partner entitled under paragraph (a), the deceased’s cohabiting partner who is pregnant or entitled to child benefit in circumstances specified under subsection (1)(aa) or (4) is entitled (but this is subject to paragraphs (c) and (d));
if there is more than one cohabiting partner within paragraph (b), the cohabiting partner who has been a member of the same household as the deceased for longest is entitled;
if there is more than one cohabiting partner within paragraph (b) and each partner has been a member of the same household as the deceased for the same length of time, the Secretary of State must determine who is entitled.
A person is not entitled to bereavement support payment if the death occurred before this section came fully into force.
In this section—
For the purposes of this section, the Secretary of State may by regulations specify—
circumstances in which the fact that two persons are married to each other, or are civil partners or cohabiting partners of each other, is to be disregarded;
circumstances in which two persons are to be treated as if they were married to each other or were civil partners or cohabiting partners of each other;
circumstances in which people are to be treated as being, or as not being, members of the same household.
For the purposes of this section, two persons are cohabiting partners if they are not married to, or civil partners of, each other but are living together as if they were married or civil partners.
The Secretary of State must issue a statement of the Secretary of State’s policy with respect to making determinations under subsection (1D)(d).
For the purposes of section 30(1)(d) the contribution condition is that, for at least one tax year during the deceased's working life—
he or she actually paid Class 1 or Class 2 national insurance contributions, and
those contributions give rise to an earnings factor (or total earnings factors) equal to or greater than 25 times the lower earnings limit for the tax year.
For earnings factors, see sections 22 and 23 of the Social Security Contributions and Benefits Act 1992.
For the purposes of section 30(1)(d) the contribution condition is to be treated as met if the deceased was an employed earner and died as a result of—
a personal injury of the kind mentioned in section 94(1) of the Social Security Contributions and Benefits Act 1992, or
a disease or personal injury of the kind mentioned in section 108(1) of that Act.
In this section the following expressions have the meaning given by section 122(1) of the Social Security Contributions and Benefits Act 1992— “employed earner”, “lower earnings limit”, “tax year”, and “working life”.
“pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995;
This Schedule sets out how to up-rate the rate of a person’s state pension under section 13.
The rate of the person’s state pension under section 13 is to be increased under this paragraph if the total amount of any state pension that has priority is equal to or higher than the full rate of the state pension. If at any time an order under section 151A of the Administration Act comes into force, the rate of the person’s state pension under section 13 is increased (at that time) by the percentage specified in the order.
The Secretary of State may by regulations make provision with a view to ensuring compliance with a provision of regulations under paragraph 1 or 2. The regulations may in particular— The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention. But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—
The Secretary of State may by regulations provide that specified provisions override any provision of a relevant scheme to the extent that it conflicts with them. A “specified provision” is a provision of regulations under this Schedule specified in regulations made under sub-paragraph (1).
Nothing in this Schedule affects— In this paragraph—
This paragraph applies in relation to a person who is alive on the commencement date if— The terminal illness lump sum for the person is to be recalculated under Schedule 7 to the Pensions Act 2004 as if the amendments made by Part 1 of this Schedule had been in force at the time that the person became entitled to it. For the purposes of that recalculation, paragraph 26A(7) of Schedule 7 to the Pensions Act 2004 (inserted by Part 1 of this Schedule) has effect as if— In sub-paragraph (3)—
This paragraph applies in relation to an eligible scheme that is being wound up if the winding up began (or is treated as having begun) before the commencement date.
In this Schedule a reference to the rate of a person’s state pension is to the rate—
ignoring any reduction under section 7(4) (in the case of a state pension under section 7),
taking into account any reduction under section 14 (in the case of a state pension under section 4), and
ignoring any increase under section 17.
In this Schedule “the total amount of any state pension that has priority”, in relation to a person’s state pension under section 13, means the sum of— Where a person is entitled to two or more state pensions under section 13 because he or she has become entitled to two or more state scheme pension credits, a pension arising because of an earlier credit is an “earlier” state pension for the purposes of sub-paragraph (1)(c).
Schedule 16 contains amendments to do with bereavement support payment.
The Secretary of State may by regulations provide that a person is not to be paid bereavement support payment for any period during which the person is a prisoner.
“Prisoner” means a person (in Great Britain or elsewhere) who is—
imprisoned or detained in legal custody, or
unlawfully at large.
In the case of a person remanded in custody for an offence, regulations under subsection (1) may be made so as to apply only if a sentence of a specified description is later imposed on the person for the offence.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
requires the Secretary of State to make regulations under which, in certain circumstances, the cash equivalent of a person’s accrued rights to benefits under a pension scheme must be transferred to another scheme of which the person is an active member;
permits the Secretary of State to make regulations requiring accounts relating to a person’s accrued rights to benefits under a pension scheme to be merged in certain circumstances.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Secretary of State may by regulations make provision prohibiting a person from offering an incentive to another person with the intention of inducing a member of a salary related occupational pension scheme to—
exercise a right to require a pensions transfer, or
agree to a pensions transfer.
“Pensions transfer” means a transfer of sums or assets representing any of the member’s pension rights to be used for one or more of the following—
acquiring rights (whether to present or future benefit) for the member under the rules of another occupational pension scheme or a personal pension scheme;
purchasing one or more annuities for the member;
subscribing to other pension arrangements for the member.
“Pension right” means, at any time— and for this purpose “right” includes a pension credit right.
any right which at that time has accrued to or in respect of the member to future benefits under the scheme rules, or
any entitlement to the present payment of a pension or other benefit which the member has at that time, under the scheme rules;
Regulations under this section may in particular—
provide for the prohibition to apply whether the incentive offered is to be provided by the person making the offer or another person;
create exceptions to the prohibition;
provide for section 10 of the Pensions Act 1995 (civil penalties) to apply to a person who contravenes the regulations.
Regulations made by virtue of subsection (4)(c) may in particular provide that for the purposes of section 10 of the Pensions Act 1995 the offer of an incentive is to be regarded as a separate act in relation to each member of a scheme to whom the incentive relates.
Nothing in any regulations made under this section affects the validity of a pensions transfer (or of the exercise of a right to require a transfer or of an agreement to a transfer).
In this section—
This section binds the Crown.
If no regulations have been made under section 34 by the end of the period of 7 years beginning with the day on which it comes into force, that section is repealed at the end of that period.
Section 71 of the Pension Schemes Act 1993 (basic principle as to short service benefit) is amended as follows.
In subsection (1)(a), after “service,” insert—.
After subsection (9) insert—
In section 101AA of the 1993 Act (early leavers: cash transfer sums and contribution refunds), in subsection (4)(b), after “(a)” insert “ , (aa) ”.
The Pensions Act 2008 is amended as follows.
In section 5 (automatic re-enrolment), after subsection (3) insert—
In section 30(7) (transitional period for defined benefits and hybrid schemes), at the end insert—
In section 10 of the Pensions Act 2008 (information to be given to workers)—
in subsection (1)—
for “must” substitute “ may ”;
in paragraphs (a) and (b), omit “all”;
in subsection (2) for “must state” substitute “ may in particular make provision about ”.
In Chapter 8 of Part 1 of the Pensions Act 2008, before section 88 (and the heading “Workers” above it) insert—
In consequence of subsection (2), the following are repealed—
section 292A of the Pensions Act 2004;
section 5(4) of the Pensions Act 2008;
section 18 of the Pensions Act 2011.
The Pensions Act 2008 is amended as follows.
After section 23 insert—
In section 24 (quality requirement: UK hybrid schemes), in subsection (1)(b), for “23” substitute “ 23A ”.
In section 28 (certification that quality requirement or alternative requirement is satisfied)—
after subsection (3A) insert—;
in subsection (4), after paragraph (d) insert—
In section 29 (transitional periods for money purchase and personal pension schemes), in subsections (1) and (3) omit “for money purchase and personal pension schemes”.
Section 30 (transitional period for defined benefits and hybrid schemes) is amended as follows.
A reference in this subsection to a scheme does not include a scheme to which section 30(11)(a) or (b) applies.
In subsection (5), in the substituted subsection (2)—
in paragraph (a), after “defined benefits scheme” insert “ other than a scheme to which section 30(11)(a) applies ”;
in paragraph (aa) (inserted by section 40 of this Act), after “a hybrid scheme” insert “ other than a scheme to which section 30(11)(b) applies ”;
after paragraph (c) (inserted by section 40 of this Act), insert—
After subsection (10) (inserted by section 40 of this Act) insert—
Section 30 of the Pensions Act 2008 (transitional period for defined benefits and hybrid schemes) is amended as follows.
In subsection (2)(b) and (c), for “a hybrid scheme” substitute “ a defined benefits member of a hybrid scheme ”.
In subsection (3), in the substituted subsection (2)—
after “becomes” insert “ (a) ”;
for “or a hybrid scheme” substitute, or
In subsection (5), in the substituted subsection (2)—
in paragraph (a), for “or a hybrid scheme, or” substitute—;
after paragraph (b) insert—.
After subsection (9) insert—
Subsection (7) applies if—
an employer whose first enrolment date is before the date on which the amendments made by this section come into force (“the commencement date”) has given a jobholder notice under section 30(3) of the 2008 Act,
the conditions in section 30(2) of that Act have continued to be satisfied during the period beginning with the employer's first enrolment date and ending with the day before the commencement date, and
had the amendments made by this section come into force on 19 December 2012, the condition in section 30(2)(c) of that Act would not have been satisfied at a time during that period.
Section 30(5) to (7) of the 2008 Act (as amended by this section) applies in relation to the jobholder with the following modifications— and section 30(3) and (4) of that Act does not apply.
references in section 30(5) and (6) of that Act to the closure date are to be read as references to the commencement date, and
references in section 30(5) and (6) of that Act to the automatic enrolment date are to be read as references to—
19 December 2012, or
if later, the employer's first enrolment date;
Expressions used in this section and in section 30 of the 2008 Act have the same meaning in this section as in that section.
In sections 40(1)(d) and 41(1)(d) of the Pensions Act 2008 (fixed and escalating penalty notices), at the end insert “ , so far as relevant to the exercise of any of its functions under or by virtue of this Part ”.
In section 72 of the Pensions Act 2004 (powers to require information), in subsection (1A), for “Chapter 2 of Part 1 of the Pensions Act 2008 or section 51 of that Act” substitute “ or by virtue of Part 1 of the Pensions Act 2008 ”.
The Pension Schemes Act 1993 is amended as follows.
In section 123 (payment by Secretary of State of unpaid scheme contributions on employer insolvency: interpretation)—
“employer”, “employment”, “worker” and “worker's contract” and other expressions which are defined in the Employment Rights Act 1996 have the same meaning as in that Act (see further subsections (3A) and (3B));
in subsection (3), in paragraph (b) of the definition of “holiday pay”, for “the employee's contract of employment” substitute “ the worker's contract ”;
after subsection (3) insert—
In section 124 (Secretary of State's duty to pay unpaid contributions)—
for “an employee”, in each place, substitute “ a worker ”;
for “the employee”, in each place, substitute “ the worker ”;
for “the employee's” substitute “the worker's”;
for “employees”, in each place, substitute “ workers ”.
In section 161, for “contract of employment” substitute “ worker's contract ”.
In section 165(7)—
in paragraph (a), for “contract of employment the employee” substitute “ worker's contract the worker ”;
in paragraph (b), for “employee” substitute “ worker ”.
Schedule 18 permits the Secretary of State to make regulations—
restricting the charges that may be imposed on members of certain pension schemes;
imposing requirements relating to administration or governance that must be satisfied in relation to certain pension schemes.
In section 113 of the Pension Schemes Act 1993 (disclosure of information about schemes to members etc), after subsection (4) insert—
In the Financial Services and Markets Act 2000, after section 137F insert—
The Secretary of State may by regulations provide for the Pensions Act 2004, and regulations made under it, to have effect, so far as relating to the requirement to pay pension levy, as if the amendments made by the 2010 regulations had always had effect.
Regulations under this section may in particular—
modify the application of the Pensions Act 2004, or regulations made under it, in relation to amounts of pension levy required to be paid because of regulations under this section;
provide for interest to be charged at a specified rate on such amounts (including in respect of periods before the coming into force of regulations under this section).
In this section—
“the 2010 regulations” means—
In the Administration Act, after section 148AC (inserted by Schedule 12 to this Act) insert—
In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 9(1)(a) and (3), after “section 55A” insert “or 55AA”.
The regulations must require the trustees or managers of an automatic transfer scheme to give a transfer notice if— A “transfer notice” is a notice given to the trustees or managers of the other pension scheme requesting the transfer of the cash equivalent of the transferable benefits to the automatic transfer scheme. The conditions that may be prescribed because of sub-paragraph (1)(b) include a condition that the trustees or managers must not give a transfer notice unless the qualifying member consents in accordance with the regulations.
The regulations must require the trustees or managers of a pension scheme who receive a transfer notice requesting the transfer of the cash equivalent of a person’s transferable benefits to do what is needed to carry out the request. The regulations may in particular— The regulations may provide for circumstances in which the duty to carry out the request does not apply.
The regulations must make provision about disclosure of information. The regulations may in particular require a person to disclose information to another person— The regulations may require the Secretary of State or the Regulator to establish and operate a database containing information relating to people who have or had transferable benefits for the purposes of helping the trustees or managers of an automatic transfer scheme to comply with their duties under the regulations.
The regulations may—
impose or confer other functions on the trustees or managers of an automatic transfer scheme or transferable benefits scheme;
confer a discretion on a person.
The inclusion of Parts 3 and 4 of this Schedule does not prevent transitional provision being made by order under section 56(8).
This paragraph determines how the amount mentioned in Step 4 of the calculation in paragraph 2 is to be revalued for the purposes of that Step. If the amount is equal to or less than the full rate of the state pension on 6 April 2016, the amount is to be revalued in accordance with increases in the full rate of the state pension (see sub-paragraph (4)). If the amount is greater than the full rate of the state pension on 6 April 2016— For the purposes of sub-paragraphs (2) and (3)(a), an amount is revalued in accordance with increases in the full rate of the state pension by increasing it by the same percentage as any increase in the full rate of the state pension in the period— For the purposes of sub-paragraph (3)(b), an amount is revalued in accordance with increases in the general level of prices by adding—
When determining entitlement to, or calculating, an inherited amount under this Schedule based on entitlement to an old state pension or a state pension under this Part of this Act ignore—
any requirement to make a claim for that pension;
any provision suspending payment of, or disqualifying a person from receiving, any amount of that pension.
This Schedule—
sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited deferral amount for the purpose of section 9, and
determines that amount.
For the purposes of this Schedule “the relevant provisions” of the Contributions and Benefits Act are those mentioned in section 8(9)(b).
This paragraph applies to the woman if on reaching pensionable age— The transitional rate of the state pension for the woman is— The modified amount for the woman’s pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the basic Category B amount. “The basic Category B amount” is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on 6 April 2016. To find out what happens if the marriage or civil partnership comes to an end, see paragraph 4.
she is married to a person who has reached pensionable age, or
she is in a civil partnership with a person who has reached that age.
The rate of the person’s state pension under section 13 is to be increased under this paragraph if, when added to the total amount of any state pension that has priority, it is equal to or less than the full rate of the state pension. If at any time the full rate is increased, the rate of the person’s state pension under section 13 is increased (at that time) by the same percentage as the increase in the full rate.
This paragraph sets out the appropriate weekly reduction if the person is subject to a new state scheme pension debit. If the person was over pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit. If the person was under pensionable age when he or she became subject to the new state scheme pension debit, the appropriate weekly reduction is an amount equal to the amount of the debit multiplied by the appropriate revaluation percentage. The “appropriate revaluation percentage” is the percentage specified, in relation to the tax year in which the person became subject to the new state scheme pension debit, by the last order under section 148AD of the Administration Act to come into force before the person reached pensionable age.
The Contributions and Benefits Act is amended as follows.
The power may be used to amend a scheme in relation to the same members on more than one occasion. For the purposes of paragraph 2 as it applies in relation to the use of the power on the second or subsequent occasion, all of the amendments are to be treated as if they were being made on that occasion. Regulations may make further provision modifying section 24(2) to (7) or this Schedule (including paragraph 2) where the power is used to amend the scheme in relation to the same members on more than one occasion.
Regulations may impose procedural requirements about the use of the power and the manner in which any amendments must be made.
The Social Security Contributions and Benefits Act 1992 is amended as follows.
The Social Security Act 1998 is amended as follows.
The regulations must require the trustees or managers of an automatic transfer scheme to take steps to find out whether a qualifying member of the scheme has transferable benefits under another pension scheme. The regulations may make provision—
The regulations must require a prescribed person to give information to a qualifying member of an automatic transfer scheme who has transferable benefits under another scheme for the purpose of helping the member to decide whether (as applicable)— The information to be given—
The regulations may provide for the manner in which cash equivalents are to be calculated and verified. The regulations may in particular— Regulations made because of sub-paragraph (2)(a) may provide for a cash equivalent to be reduced to nil.
The regulations may require any person— The regulations may provide that section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with those requirements.
The Pensions Act 1995 is amended as follows.
In section 21 (contribution conditions), in subsection (1), after “section 55A” insert “or 55AA”.
Regulations under this Schedule may confer a discretion on a person.
Section 20 (descriptions of contributory benefits) is amended as follows. In subsection (1), for paragraph (ea) substitute—. In subsection (2), in the definition of “long-term benefit” omit paragraph (bb).
In section 2 (use of computers), in subsection (2), after paragraph (m) (inserted by Schedule 12 to this Act) insert or.
In section 6 (removal or suspension of trustees: consequences)—
in subsections (1) and (3), after “section 3” insert “or 3A”;
in subsection (4), after “section 3” insert “, 3A”.
In section 43 (persons entitled to more than one retirement pension), in subsection (6), after “section 55A” insert “or 55AA”.
Section 21 (contribution conditions) is amended as follows. In the table in subsection (2) omit the entries for bereavement payment and bereavement allowance. Omit subsection (4).
Section 8 (decisions by Secretary of State) is amended as follows. In subsection (3), after paragraph (ab) (inserted by Schedule 12 to this Act) insert—. In subsection (4), after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “or section 30 of that Act”.
In section 7 (appointment of trustees), in subsection (1), after “section 3,” insert “by section 3A”.
Section 55A (shared additional pension) is amended as follows. For subsection (1) substitute— In subsections (2) and (3), after “shared additional pension” insert “under this section”. In subsections (3), (4), (5) and (7) before “state scheme pension credit” (in each place) insert “old”. At the end of the heading insert “because of an old state scheme pension credit”.
In section 22 (earnings factors), in subsection (2), after paragraph (c) (inserted by Schedule 12 to this Act) insert and
In section 11 (regulations with respect to decisions), in subsection (3), in the definition of “the current legislation”, after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “and section 30 of that Act”.
In section 9 (removal and appointment of trustees: property), after “a trustee” insert “or a trustee is removed under section 3A”.
After section 55A insert—
Section 23A (contributions credits for relevant parents and carers) is amended as follows. In subsection (1) omit paragraph (e). In subsection (6)(b) omit “or (e)”.
In section 27 (restriction on entitlement in cases of error), in subsection (7), in the definition of “benefit”—
after paragraph (df) insert—;
in paragraph (e), for “to (df)” substitute “to (dg)”.
Section 55B (reduction of additional pension in Category A retirement pension: pension sharing) is amended as follows. In subsection (1)(a), for “a” substitute “an old”. In subsection (5), for “55A above” substitute “55A or 55AA (as the case may be)”. In subsection (8), in the definition of “state scheme pension debit”, before “state” insert “old”.
For the italic heading above section 36 substitute “Bereavement benefits: deaths before the day on which section 30 of the Pensions Act 2014 comes into force”.
In section 28 (correction of errors in decisions etc), in subsection (3)(j), after “Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “or section 30 of that Act”.
Section 36 (bereavement payment) is repealed.
Section 36A (cases in which sections 37 to 41 apply) is repealed.
Section 37 (widowed mother’s allowance) is amended as follows. Before subsection (1) insert— At the end of the heading insert “: deaths before 9 April 2001”.
Section 38 (widow’s pension) is amended as follows. Before subsection (1) insert— At the end of the heading insert “: deaths before 9 April 2001”.
In section 39A (widowed parent’s allowance), for subsection (1) substitute—
Section 39B (bereavement allowance where no dependent children) is repealed.
Section 39C (rate of widowed parent’s allowance and bereavement allowance) is amended as follows. Omit subsection (2). Omit subsection (5). In the heading omit “and bereavement allowance”.
In section 48B (Category B retirement pension for widows and widowers), in subsection (8), for “the appointed day (as defined by section 36A(3))” substitute “9 April 2001”.
In section 48BB (Category B retirement pension: entitlement by reference to benefits under section 39A or 39B), in subsection (3)(a)(i), after “bereavement allowance” insert “under section 39B (before that section was repealed)”.
Section 60 (complete or partial failure to satisfy contribution condition) is amended as follows. In subsection (1) omit paragraph (ab). In subsection (3) omit paragraphs (a) and (bb).
Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows. Omit paragraph 4 and the italic heading above it. Omit paragraphs 7 and 9.
In Schedule 4 (rates of benefits etc) omit Part 2.
In relation to a case involving multiple benefits, transitional provision made by order under section 56(8) may, in particular— For these purposes, “a case involving multiple benefits” means a case mentioned in paragraph 26(9) of Schedule 7 to the Pensions Act 2004.
Transitional provision made by order under section 56(8) may, in particular, make provision in relation to compensation payable under Chapter 1 of Part 3 of the Pensions Act 2008 (compensation sharing on divorce etc) that is similar to any provision of Part 3 of this Schedule. Regulations under paragraph 18 of Schedule 5 to the Pensions Act 2008 which restrict an amount payable to a person in any period by reference to a modified version of the compensation cap in paragraph 26A of Schedule 7 to the Pensions Act 2004 (inserted by Part 1 of this Schedule) may also make provision similar to any provision of Part 3 of this Schedule.
The Pensions Act 1995 is amended as follows.
After section 3 insert—
Section 4 (Pensions Regulator's power to suspend trustee of occupational pension scheme) is amended as follows.
In subsection (1)(f), after “paragraph” insert “ (aa), ”.
In subsection (2)(a), after “or (aa)” insert “ or, in a case where the Authority would have power to suspend a director or partner under paragraph (aa), by virtue of paragraph (f) ”.
Schedule 19 contains consequential amendments.
In section 16 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 (grants to bodies concerned with accounting standards etc), in subsection (2), after paragraph (o) insert—.
In section 5(1) of the Pensions Act 2004, after paragraph (c) insert—.
Section 63 of the Pensions Act 2004 is amended as follows.
After subsection (3) insert—
After subsection (4) insert—
See Schedule 20 for amendments increasing the Pension Protection Fund compensation cap for people with long pensionable service.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paragraph 26 of Schedule 7 to the Pensions Act 2004 (Pension Protection Fund: compensation cap) is amended as follows.
In sub-paragraph (1)(b), for “sub-paragraph (2)(a) or (b)” substitute “sub-paragraph (2)(a), (b) or (c)”.
In sub-paragraph (2)(a)(ii), for “paragraph (b)(i) does not apply” substitute “neither of paragraphs (b) and (c) applies”.
In sub-paragraph (2)(b)—
before paragraph (i) insert—;
in paragraph (i), after “one or more other benefits” insert “that are attributable to his pensionable service”.
In sub-paragraph (2), after paragraph (b) insert, and
In sub-paragraph (5), after “sub-paragraph (2)(b)” insert “or (c)”.
The amendments made by this section are to be treated as always having had effect.
Regulations under paragraph 26(9) of Schedule 7 to the Pensions Act 2004 (modifications for cases where compensation becomes payable on different occasions) made in consequence of this section may be made with retrospective effect.
Section 18 of the Public Service Pensions Act 2013 (restriction of existing pension schemes) is amended as follows.
After subsection (5) insert—
In each of subsections (6) and (8), after “(5)” insert “ or (5A) ”.
The Secretary of State or the Treasury may by order make consequential, incidental or supplementary provision in connection with any provision made by this Act.
An order under this section may amend, repeal, revoke or otherwise modify any enactment (whenever passed or made).
“Enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.
Regulations and orders under this Act are to be made by statutory instrument.
A statutory instrument containing (whether alone or with other provisions)— may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
regulations under section 3, 17, 18(3) or (5), 19, 20, 30, 32 or 34,
the first regulations under section 10,
an order under section 53 that amends or repeals a provision of an Act,
regulations under Schedule 17,
regulations under paragraph 2 of Schedule 18 or regulations under paragraph 7 of that Schedule that amend a provision of an Act, ...
the first regulations under paragraph 1 or 3 of that Schedule, or
the first regulations under paragraph 1 or 3 of that Schedule that make provision in relation to collective money purchase schemes within the meaning of Part 1 of the Pension Schemes Act 2021 (see section 1 of that Act).
Any other statutory instrument containing regulations or an order under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.
Subsection (3) does not apply to a statutory instrument containing an order under section 56(1), (6) or (8) only.
A power to make regulations or an order under this Act may be used—
to make different provision for different purposes;
in relation to all or only some of the purposes for which it may be used.
Regulations or orders under this Act may include incidental, supplementary, consequential, transitional, transitory or saving provision.
This Act extends to England and Wales and Scotland only, subject to the following provisions of this section.
Any amendment or repeal made by this Act has the same extent as the enactment to which it relates.
This Part extends also to Northern Ireland.
This Act comes into force on such day or days as the Secretary of State may by order appoint, subject as follows.
The following come into force on the day on which this Act is passed—
section 29;
section 51;
this Part.
The following come into force at the end of the period of 2 months beginning with the day on which this Act is passed—
Part 3 ;
sections 34 and 35;
section 41;
sections 47 and 48;
paragraph 30(2) of Schedule 13.
Part 1 comes into force on 6 April 2016, so far as not brought into force earlier by an order under subsection (1).
The Secretary of State may by order—
amend subsection (4) so as to replace the reference to 6 April 2016 with a later date, and
make corresponding amendments in Part 1 or any enactment amended by it.
Section 52 comes into force on such day or days as the Treasury may by order appoint.
An order under subsection (1) or (6) may appoint different days for different purposes.
The Secretary of State may by order make transitional, transitory or saving provision in connection with the coming into force of any provision of this Act.
This Act may be cited as the Pensions Act 2014.
Section 5
This Schedule sets out how to calculate the amounts used to work out the transitional rate of a person's state pension. Part 2 of the Schedule sets out how to calculate the amount for a person's pre-commencement qualifying years. Part 3 of the Schedule sets out how to calculate the amount for a person's post-commencement qualifying years (if any).
For the purposes of Step 2 of the calculation in paragraph 2, the weekly rate based on the new state pension is as follows. If the person has 35 or more pre-commencement qualifying years, the rate is equal to— If the person has fewer than 35 pre-commencement qualifying years, the rate is equal to— The “appropriate proportion”, in relation to a person, is—
The Contributions and Benefits Act is amended as follows.
In the Pensions Act 2011, the following are repealed—
section 2(5) to (9) and Schedule 2 (abolition of certain additions to the state pension);
section 3 and Schedule 3 (consolidation of additional pension).
The Contributions and Benefits Act is amended as follows.
The Employment Rights Act 1996 is amended as follows.
In section 258 of the Pensions Act 2004 (pension protection on transfer of employment), in subsection (2)(c), for sub-paragraphs (i) and (ii) substitute “complies with prescribed requirements”.
The Social Security Contributions and Benefits Act 1992 is amended as follows.
In paragraph 4(2) and (3) references to an “amount to reflect contracting out under the old system” are to an amount equal to any difference between— “Contracted-out employment” means employment qualifying a person for a pension provided by a salary related contracted-out scheme, a money purchase contracted-out scheme or an appropriate personal pension scheme (and expressions used in this definition have the same meaning as in the Pension Schemes Act 1993).
Section 39C (rate of widowed parent’s allowance and bereavement allowance) is amended as follows. In subsection (1), for the words from “45AA” to “as they apply” substitute “45AA and Schedules 4A and 4B below as they apply”. In subsection (3), for the words from “45AA” to “by virtue of subsection (1) above” substitute “45AA and Schedules 4A and 4B below by virtue of subsection (1) above”. In subsection (4), for the words from “45AA” to “below” substitute “45AA and Schedules 4A and 4B below”.
In section 1 (outline of contributory system), in subsection (3), omit the words after paragraph (b).
In section 3 (note to be included in statement of initial employment particulars), omit subsection (5).
Section 1 (outline of contributory system) is amended as follows. In subsection (2)— In subsection (4)(a), for “and 3” substitute “, 3 and 3A”.
Schedule 5 (pension increase or lump sum where entitlement to retirement pension is deferred) is amended as follows. In the following provisions omit “(as those provisions have effect by virtue of section 2(7) of the Pensions Act 2011)”— paragraph 4(1A)(a), (b) and (c); paragraph 7B(5)(b)(i). After paragraph 7 insert—
In section 4C (power to make provision in consequence of provision made by virtue of section 4B(2) etc), in subsection (5), in each of paragraphs (a) and (b) omit the words from “, including” to the end.
In section 11 (references to employment tribunals), in subsection (3), omit paragraph (a) (including the “and” at the end of it).
After section 14 insert—
In section 8 (calculation of primary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.
If paragraph 3 comes into force before the day mentioned in section 56(4) of this Act, section 14A(2) as inserted by that paragraph has effect as if the reference to entitlement included the prospective entitlement of a person who—
has not yet reached pensionable age, but
will reach pensionable age before that day (assuming that the person lives until pensionable age).
In section 9 (calculation of secondary Class 1 contributions), in subsection (3), omit paragraph (c) and the “and” before it.
In section 43 (persons entitled to more than one retirement pension), in subsection (1), after “subsection (2) below” insert “and section 61ZC below (which deals with unusual cases involving units of additional pension)”.
In section 20 (descriptions of contributory benefits), in subsection (3), for “(reduction in state scheme contributions and benefits for members of certified schemes)” substitute “(reduction in benefits for members of schemes that were contracted-out)”.
In section 44 (Category A retirement pension), in subsection (3)—
in paragraph (b), at the end insert “or where the pensioner has one or more units of additional pension”;
For units of additional pension, see section 14A.
In Schedule 1 (supplementary provisions relating to national insurance contributions), in paragraph 1, omit sub-paragraphs (2), (3), (6) and (9) to (11).
Section 45 (rate of additional pension in a Category A retirement pension) is amended as follows. In subsection (1)— In subsection (2), at the end of paragraph (d) insert ; and After subsection (2) insert—
In section 52 (special provision for surviving spouses), after subsection (3) insert—
After section 61 insert—
In section 122 (interpretation), in subsection (1), at the appropriate place insert—.
section 14A; section 45(2A);
In the heading to Schedule 1, for “and 3” substitute “, 3 and 3A”.
A person's amount for post-commencement qualifying years (if any) is calculated as follows. If the person has 35 or more post-commencement qualifying years, the amount is equal to the full rate of the state pension on the day on which the person reached pensionable age. If the person has fewer than 35 post-commencement qualifying years, the amount is equal to the following proportion of the full rate of the state pension on the day on which the person reached pensionable age—
Section 5
This Schedule sets out how to up-rate the transitional rate of a person's state pension.
In this Schedule a reference to the transitional rate of a person's state pension is to the rate—
taking into account any reduction under section 14, but
ignoring any increase under section 17.
The transitional rate of a person's state pension is to be increased under this paragraph if it is equal to or less than the full rate. If at any time the full rate of the state pension is increased, the person's transitional rate is increased (at that time) by the same percentage as the increase in the full rate.
The transitional rate of a person's state pension is to be increased under this paragraph if it exceeds the full rate. If at any time the full rate of the state pension is increased, the person's transitional rate is increased (at that time) by the same amount as the amount by which the full rate is increased. If at any time an order under section 151A of the Administration Act comes into force, the person's transitional rate is increased (at that time) by an amount equal to the appropriate percentage of the excess. In sub-paragraph (3)—
Section 7
“state scheme pension debit” means—
This Schedule—
sets out the circumstances in which a person (the “pensioner”) is entitled to an inherited amount for the purpose of section 7, and
determines that amount.
The rate of the person’s state pension under section 7 is to be increased under this paragraph if, when added to the amount of any state pension that has priority, it is equal to or less than the full rate of the state pension. If at any time the full rate is increased, the rate of the person’s state pension under section 7 is increased (at that time) by the same percentage as the increase in the full rate.
A pensioner whose spouse or civil partner has died is entitled to an inherited deferral amount under this paragraph if— The inherited deferral amount is equal to the amount by which the weekly rate of the old state pension for the pensioner would have been increased under paragraph 4 of Schedule 5 to the Contributions and Benefits Act on the day on which the pensioner became entitled to the inherited deferral amount. For the purposes of calculating the amount of that increase— In this paragraph “deferred” has the meaning given by section 55(3) of the Contributions and Benefits Act.
This paragraph applies to the woman if on reaching pensionable age she is not married or in a civil partnership but she has been married or in a civil partnership before. The transitional rate of the state pension for the woman is— The modified amount for the woman’s pre-commencement qualifying years alone is the amount that would be calculated under Schedule 1 for her pre-commencement qualifying years alone if the basic pension in any Category A retirement pension calculated for her for the purposes of paragraph 3 of that Schedule were equal to the full amount of the basic pension. “The full amount of the basic pension” is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on 6 April 2016.
In section 16 of the State Pension Credit Act 2002 (meaning of “retirement pension income”), in subsection (1), for paragraph (b) substitute—.
Section 36 of the National Insurance Act 1965 (graduated retirement benefit), so far as continuing in force, is amended as follows. In subsection (7), for “has attained pensionable age” substitute “attained pensionable age before 6 April 2016”. In subsection (8), in the definition of “retirement pension”, after “any category” insert “under the Social Security Contributions and Benefits Act 1992”.
The Pensions Act 1995 is amended as follows.
In this Schedule— The Secretary of State may by regulations make provision about when contributions to a pension scheme are to be regarded as having ceased for the purposes of paragraph 1(4)(c) or 14(4).
Regulations under this Schedule may amend or otherwise modify any enactment (whenever passed or made). Regulations made because of sub-paragraph (1) may in particular amend section 175(1) of the Pension Schemes Act 1993 (levies towards certain expenditure) so as to include expenditure of the Secretary of State or the Commissioners for Her Majesty’s Revenue and Customs under the regulations. In this paragraph “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.
Section 51 (annual increase in rate of pension) is amended as follows. For “the appointed day” (in each place) substitute “6 April 1997”. For subsection (8) substitute—
Before making any regulations under this Schedule, the Secretary of State must consult such persons as the Secretary of State considers appropriate.
In section 54 (sections 51 to 53: supplementary), in subsection (3), omit the definition of “the appointed day”.
For section 69 substitute—
In section 70 (section 69: supplementary), omit subsection (3).
In section 71 (effect of orders under section 69), in subsection (1)—
for “paragraph (a)” substitute “paragraph (b)”;
for “paragraph (b)” substitute “paragraph (a)”.
In section 72 (modification of public service pension schemes), in subsection (1), for “section 69(1)(b)” substitute “section 69(1)(a)”.
Sections 136(1), (3) and (5), 137(3) and (4) and 148 (amendments to do with contracting-out) are repealed.
Section 7
Section 9
Section 11
Section 12
This Schedule—
sets out the circumstances in which a woman is entitled to a basic amount for the purpose of section 12, and
determines that basic amount.
A woman is entitled to a basic amount under this paragraph if she has reached pensionable age and— The basic amount is the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.
A woman is entitled to a basic amount under this paragraph if— The basic amount is the amount of the basic pension specified in section 44(4) of the Contributions and Benefits Act on the day on which the woman became entitled under this paragraph.
A woman who is entitled to a basic amount under paragraph 3 is not entitled to a basic amount under paragraph 2.
Section 13
Section 13
Section 14
Section 15
Section 23
The Contributions and Benefits Act is amended as follows.
In sections 63(g) and 79(1) of the Contributions and Benefits Act (age addition), after “retirement pension of any category” insert “under this Act”.
In section 23A (contributions credits for relevant parents and carers), in subsection (1)(b), after “section 48A” insert “or 48AA”.
In section 46 (modification of section 45 for calculating additional pension in certain benefits), in subsection (2), omit “48A(4) or” (in both places).
For section 48A substitute—
Section 48B (Category B retirement pension for widows and widowers) is amended as follows. For subsections (1) to (1A) substitute— After subsection (3) insert— For subsection (4) substitute— In subsection (6), after “subsection (4)” insert “or (4A)”. In subsection (7), for “(4)” substitute “(4A)”. After subsection (8) insert—
Section 48BB (Category B retirement pension: entitlement by reference to widowed parent’s allowance or bereavement allowance where no dependent children) is amended as follows. In subsection (1), for “who has attained pensionable age” substitute “who attained pensionable age before 6 April 2016”. In subsection (3), for “who has attained pensionable age” substitute “who attained pensionable age before 6 April 2016”.
Section 48C (Category B retirement pension: general) is amended as follows. In subsection (3), for “sections 48A(4)(b) and” substitute “section”. In subsection (4), omit “48A(4),”.
For section 51 substitute—
After section 51 insert—
In section 52(3) (special provision for surviving spouses) for “prescribed maximum” substitute “maximum amount specified in regulations”.
Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows. This paragraph sets out the contribution conditions for— In paragraph 5A(1), for paragraphs (b) and (c) substitute—
In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for “section 48A(3)” substitute “section 48A(4) or 48AA(4)”.
In Schedule 4A (additional pension: accrual rates for purposes of section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).
In section 150 of the Administration Act (annual up-rating of benefits), in subsection (1), after paragraph (ab) insert—.
In section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits), in subsection (6)(b)(iii), omit “48A,”.
In section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses), in subsection (6), omit “48A,”.
In Schedule 4 to the Pensions Act 1995 (equalisation of, and increase in, pensionable age for men and women), omit paragraph 3(2) and (3).
In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United Kingdom social security pensions), in the definition of “state pension” in subsection (2)—
in paragraph (a), after “48A,” insert “48AA,”;
in paragraph (b), after “1992” insert “or any provision under the law of Northern Ireland that corresponds to section 48AA of SSCBA 1992”.
In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 25(6) and 28(6).
In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in paragraph 8(1)(a) and (3), after “48A,” insert “48AA,”.
In Schedule 4 to the Marriage (Same Sex Couples) Act 2013, omit paragraphs 11, 12, 13 and 16.
The State Pension Credit Act 2002 is amended as follows.
In section 3 (savings credit), for subsection (1) substitute—
After that section insert—
In Schedule 1 to the Pensions Act 2007, omit paragraph 44.
Section 24
The Pension Schemes Act 1993 is amended as follows.
For “the abolition date” (in each place) substitute “the first abolition date”.
In the heading for Part 3 of the Act—
for “Certification of pension schemes” substitute “Schemes that were contracted-out etc”;
omit “and duties”.
For the heading to Chapter 1 of Part 3 substitute “Schemes that were contracted-out: guaranteed minimum pensions and alteration of scheme rules etc”.
Section 7 (issue of contracting-out certificates) is repealed (and accordingly, any certificates in force under that section immediately before this paragraph comes into force cease to have effect).
After section 7 insert—
Section 8 (meaning of “contracted-out employment”, “guaranteed minimum pension” and “minimum payment”) is amended as follows. For subsection (1) substitute— After subsection (1A) insert— In subsection (2), in the definition of “guaranteed minimum pension”, for “by an occupational pension scheme” substitute “, by a scheme that was a salary related contracted-out scheme,”. For subsection (4) substitute—
The italic heading above section 9 is repealed.
Sections 9 and 11 (requirements for certification of schemes: general) are repealed.
The italic heading above section 12A is repealed.
Sections 12A to 12D (requirements for certification applying to employment from 6 April 1997) are repealed.
For the italic heading above section 13 substitute “Guaranteed minimum pensions”.
Before section 13 insert— For the purposes of section 12E it does not matter whether the scheme ceased to be contracted-out when the amendment made by paragraph 5 of this Schedule came into force or before that time. But section 12E does not treat a scheme as having included any provision before this paragraph comes into force.
In section 13 (minimum pensions for earners), in subsection (2)—
for “is a married woman or widow who is liable” substitute “was a married woman or widow who was liable”;
after “Act 1992” insert “at a time during a relevant year when she was in contracted-out employment by reference to the scheme”;
at the end of that subsection insert—
Section 14 (earner’s guaranteed minimum) is amended as follows. For subsection (1) substitute— In subsection (2), for “earnings such as are mentioned in subsection (1)” substitute “excess earnings mentioned in subsection (1)(b)”.
In section 16 (revaluation of earnings factors for the purposes of section 14: early leavers etc), for subsection (2) substitute—
Section 17 (minimum pensions for widows, widowers and surviving civil partners) is amended as follows. In subsection (4A), after paragraph (a) insert—. After subsection (9) insert—
In section 20 (transfer of accrued rights), in subsection (1)(a)—
in sub-paragraph (i), after “under a” insert “scheme that was a”;
in sub-paragraph (ii)—
omit “which is not contracted-out,”;
after “under a” insert “scheme that was a”.
In section 23 (securing of benefits), in subsection (2), omit paragraph (d).
In section 24A—
the existing text becomes subsection (1), and
after that subsection insert—
In section 25 (power for HMRC to impose conditions as to investments and resources), in subsection (2), after “A” insert “scheme that was a”.
Sections 34 to 36 (cancellation, variation, surrender and refusal of certificates) are repealed.
In the italic heading above section 37, for “scheme rules after certification” substitute “rules by former salary related contracted-out schemes”.
In section 37 (alteration of rules of contracted-out schemes) for subsections (1) to (3) substitute—
After section 37 insert—
For the heading to Chapter 2 of Part 3 substitute “Reduction in social security benefits for members of schemes that were contracted-out”.
In section 40 (scope of Chapter 2)—
omit paragraph (a);
in paragraph (c) for “such schemes” substitute “schemes that were contracted-out pension schemes”.
The italic heading above section 41 is repealed.
Section 41 (reduced rates of Class 1 contributions) is repealed.
Section 42 (review and alteration of reduced rates of Class 1 contributions) is repealed. There is no duty, before the repeal of section 42 comes into force, to lay before Parliament any reports under that section.
In section 48A (additional pension and other benefits), in subsection (1), for the words from the beginning to the end of paragraph (b) substitute In relation to—.
Section 49 (women, married women and widows) is repealed.
Section 50 (powers of HMRC to approve arrangements for scheme ceasing to be certified) is repealed.
In section 51 (calculation of guaranteed minimum pensions under approved arrangements), in subsection (1)(b), for “ceases” substitute “ceased”.
For section 52 substitute—
In section 53 (supervision: former contracted-out schemes), omit subsection (3).
Sections 55 to 68 (state scheme premiums) are repealed.
In section 87 (general protection principle), in subsection (1)(a), for sub-paragraph (i) substitute—.
In section 96 (further provisions concerning exercise of option to take cash equivalent in a particular way), in subsection (2), in paragraph (a)(i) omit “which is not a contracted-out scheme”.
In section 109 (annual increase of guaranteed minimum pensions), in subsection (3A)(b), omit “for the purposes of Part 3 of the Pensions Act 1995”.
In section 171 (questions arising in proceedings), in subsection (1), omit paragraph (b) and the “or” before it.
In section 178 (trustees and managers of schemes), in paragraph (a)—
after “1985” insert “or”;
omit “or Part II of Schedule 5 to the Child Support, Pensions and Social Security Act 2000”.
Section 181(1) (general interpretation) is amended as follows. In the appropriate places insert— Omit the definition of “abolition date”. In the definition of “appropriate scheme” and “appropriate scheme certificate”, for “section 181A” substitute “section 7B”. In the definition of “contracting-out certificate”, for “section 7 and section 181A” substitute “section 7B”. In the definition of “contributions equivalent premium”, for “has the meaning given in” substitute “means a premium that was paid under”. In the definition of “earner” and “earnings”, after “in accordance with” insert “section 8(1B) of this Act and”. In the definition of “money purchase contracted-out scheme”, for “section 181A” substitute “section 7B”.
Section 181A (interpretation of references to money purchase contracted-out schemes or appropriate schemes after first abolition date) is repealed.
In section 185 (consultation about other regulations), omit subsection (9).
Schedule 2 (certification regulations) is amended as follows. Omit paragraphs 1 to 4. In paragraph 5(3A), for “a contracted-out occupational pension scheme which is being wound up,” substitute “a scheme which was a contracted-out occupational pension scheme and which was being wound up before the second abolition date”. Omit paragraphs 6 to 8.
Schedule 4 (priority in bankruptcy) is amended as follows. In paragraph 2— In paragraph 3— Omit paragraph 4(2).
Section 24
Section 25
Section 31
Section 33
The Secretary of State may by regulations make provision for the purposes of requiring dormant pension accounts of a qualifying member of an automatic transfer scheme to be merged into a current pension account of the member. The regulations may not require a dormant pension account to be merged unless the accrued rights to benefits to which the account relates would be transferable benefits of the member if— The regulations may in particular— In this paragraph “pension account”, in relation to a member of a scheme, means an account relating to the member’s accrued rights to benefits in respect of a particular period of employment; and a pension account— In this paragraph—
Section 43
Section 46
Section 50
Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is amended as follows.
In paragraph 26 (the compensation cap), for the definition of “the compensation cap” in sub-paragraph (7) substitute—.
After paragraph 26 insert—
The Pensions Act 2004 is amended as follows.
In section 316(2)(s), for “paragraph 26(7)” substitute “paragraph 26A(7)”.
Schedule 7 is amended as follows. In paragraph 24(2), at the end insert “of the periodic compensation at that time”. In paragraph 26(9), after “this paragraph” insert “and paragraph 26A”. In paragraph 27(2), for “sub-paragraph (7) of paragraph 26” substitute “sub-paragraph (7) of paragraph 26A”.
In paragraph 18(2) of Schedule 5 to the Pensions Act 2008, for “the compensation cap” to the end substitute “a modified version of the compensation cap in paragraph 26A of Schedule 7 to the Pensions Act 2004”.