Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Stakeholder pension schemes
A pension scheme is a stakeholder pension scheme for the purposes of this Part if it is registered as such a scheme under section 2 and each of the following is fulfilled, namely—
the conditions set out in subsections (2) to(9); and
such other conditions as may be prescribed.
The first condition is that the scheme is established under a trust or in such other way as may be prescribed.
The second condition is that the provisions made by the instruments establishing the scheme comply with such requirements as may be prescribed.
The third condition is that, subject to such exceptions as may be prescribed, the benefits provided by the scheme are money purchase benefits within the meaning given by section 181 of the Pension Schemes Act 1993 (“the 1993 Act”).
The fourth condition is that the scheme complies with such requirements as may be prescribed as regards the extent to which, and the circumstances in which—may be used to defray the administrative expenses of the scheme, to pay commission or in any other way which does not result in the provision of benefits for or in respect of members.
any payment made to the scheme by, or on behalf or in respect of, a member of the scheme,
any income or capital gain arising from the investment of such a payment, or
the value of rights under the scheme,
The fifth condition is that the scheme complies with such of the requirements of regulations under section 113 of the 1993 Act (disclosure of information about schemes to members etc.) as are applicable to it.
The sixth condition is that, subject to such minimum contribution levels and other restrictions as may be prescribed, members of the scheme may make such contributions to the scheme as they think appropriate.
The seventh condition is that... the scheme accepts transfer payments in respect of members’ rights under—
other pension schemes;
contracts and schemes that became registered pension schemes by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004 (pension schemes etc.: transitional provisions and savings)
annuities and insurance policies purchased or transferred for the purpose of giving effect to rights under pension schemes; and
annuities purchased or entered into for the purpose of discharging liability in respect of pension credits under section 29(1)(b) or under corresponding Northern Ireland legislation.
The eighth condition is that the scheme is a registered pension scheme under section 153 of the Finance Act 2004 (registration of pension schemes).
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The Authority shall keep a register of stakeholder pension schemes.
Subject to subsection (3), the Authority shall register a pension scheme under this section if the trustees of the scheme, or any person or persons prescribed in relation to the scheme—
make an application for the purpose and pay such fee as the Authority may determine; and
declare that each of the following is fulfilled in relation to the scheme, namely—
the conditions set out in subsections (2) to (9) of section 1; and
such other conditions as may be prescribed under subsection (1) of that section.
Where the Authority are satisfied on reasonable grounds that any of those conditions is not fulfilled in relation to a pension scheme, the Authority may by direction—
refuse to register the scheme; or
where the scheme is registered under this section, remove it from the register.
Section 10 of the Pensions Act 1995 (“the 1995 Act”) (civil penalties) applies to any trustee of a pension scheme which is or has been registered under this section, and to any person prescribed in relation to such a scheme, if—
he fails to take all such steps as are reasonable to secure that each of those conditions is fulfilled in relation to the scheme or (as the case may be) while the scheme was so registered he failed to take all such steps as were reasonable to secure that each of those conditions was so fulfilled; or
where the scheme was registered on his application, any of those conditions was not fulfilled in relation to the scheme at the time of the application.
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The Secretary of State may by regulations make provision—such persons, in such manner, at such times, on payment of such fees, and subject to such other terms and conditions, as may be prescribed.
for the register, or extracts from the register, or for copies of the register or of extracts from the register, to be open to inspection by, and
for copies of the register, or of extracts from it, to be supplied to,
Except in so far as regulations otherwise provide, it shall be the duty of an employer of relevant employees to comply with the requirement in subsection (5).
A relevant employee, in relation to an employer, is an employee of the employer who, on the relevant date, satisfies the conditions in subsection (1B).
The conditions are that—
the employee is a member of a stakeholder pension scheme;
the employee made a request under subsection (5) before the relevant date and that request has not been withdrawn;
the employee pays contributions (which are deducted in accordance with that request) to the scheme at regular intervals;
at least one deduction has been made before the relevant date in accordance with that request.
A person ceases to be a relevant employee—
on ceasing to be employed by the employer;
on withdrawing a request under subsection (5);
on ceasing to pay contributions at regular intervals.
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The ... requirement is that, subject to such exceptions and qualifications as may be prescribed, the employer shall, if he is requested to do so by a relevant employee ...—
deduct the employee’s contributions to the stakeholder pension scheme from his remuneration; and
pay them to the trustees or managers of the scheme or, if regulations so provide, to a prescribed person.
That requirement only applies in relation to a request to make deductions made before the relevant date (whether or not that request is varied after that date).
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Section 10 of the 1995 Act (civil penalties) applies to an employer who fails to comply with the requirement set out above.
An employer is not, while subject to the requirement in subsection (5), under any duty—
to make any enquiries, or act on any information, about the scheme for any purpose not connected with—
ascertaining whether the scheme is for the time being registered under section 2,
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in particular, to investigate or monitor, or make any judgment as to, the past, present or future performance of the scheme.
In this section—“employer” means any employer, whether or not resident or incorporated in any part of the United Kingdom;“relevant date” means the date on which section 87 of the Pensions Act 2008 comes into force.......
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Schedule 1 (application of the 1993 and 1995 Acts to registered schemes) shall have effect.
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In this Part—“the 1993 Act” means the Pension Schemes Act 1993;“the 1995 Act” means the Pensions Act 1995;“the Authority” means the Pensions Regulator;...“occupational pension scheme” and “personal pension scheme” have the meanings given by section 1 of the 1993 Act;“pension scheme” means an occupational pension scheme or a personal pension scheme;“prescribed” means prescribed by regulations made by the Secretary of State;“stakeholder pension scheme” shall be construed in accordance with section 1.
The Secretary of State may by regulations make provision for a stakeholder pension scheme which—to be treated for all purposes, or for such purposes as may be prescribed, as if it were a personal pension scheme and not an occupational pension scheme.
is prescribed or is of a prescribed description, and
would (apart from the regulations) be an occupational pension scheme,
This Part applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes; and, accordingly, references in this Part to a person in his capacity as a trustee or manager of, or person prescribed in relation to, a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.
This Part applies to persons employed by or under the Crown in like manner as if such persons were employed by a private person; and references in this Part to a person in his capacity as an employer include the Crown, or a person acting on behalf of the Crown, in that capacity.
Subsections (3) and (4) do not apply to any provision of this Part under or by virtue of which a person may be prosecuted for an offence; but such a provision applies to persons in the public service of the Crown as it applies to other persons.
Nothing in this Part applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).
Pensions: general
Payments by employers to pension schemes
In Part VI of the Pension Schemes Act 1993 (further requirements for protection of scheme members), after section 111 there shall be inserted—
For section 49(8) of the Pensions Act 1995 (offence where deduction from earnings not paid in timely fashion to occupational pension scheme) there shall be substituted—
In section 88(3) of that Act (civil penalty where contributions by or on behalf of employer to occupational pension scheme not paid by due date), after “by or on behalf of the employer” there shall be inserted “ on the employer’s own account ”.
Pensions and bankruptcy
Where a bankruptcy order is made against a person on a bankruptcy application made or petition presented after the coming into force of this section, any rights of his under an approved pension arrangement are excluded from his estate.
In this section “approved pension arrangement” means—
a pension scheme registered under section 153 of the Finance Act 2004;
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an occupational pension scheme set up by a government outside the United Kingdom for the benefit, or primarily for the benefit, of its employees;
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an annuity purchased for the purpose of giving effect to rights under a scheme falling within paragraph (a), including an annuity in payment before 6th April 2006, giving effect to rights under any scheme approved—
before that date under Chapters 1, 3 or 4 of Part 14 of the Taxes Act; or
any relevant statutory scheme, as defined in section 611 of that Act;
any pension arrangements of any description which may be prescribed by regulations made by the Secretary of State.
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Subsection (5) applies if—
at the time when a bankruptcy order is made against a person, an appeal against a decision not to register a pension scheme has been made under section 156 of the Finance Act 2004, and
the decision of the tribunal(see section 156(3) of that Act) is to uphold the decision of Her Majesty’s Revenue and Customs not to register the scheme.
Any rights of that person under the scheme shall (without any conveyance, assignment or transfer) vest in his trustee in bankruptcy, as part of his estate, immediately on—
the tribunal’s decision being made, or
(if later) the trustee’s appointment taking effect or, in the case of the official receiver, his becoming trustee.
Subsection (7) applies if, at any time after a bankruptcy order is made against a person Her Majesty’s Revenue and Customs—
give notice withdrawing registration of the pension scheme under section 157 of the Finance Act 2004, and
the date specified as being that from which de-registration occurs under sub-section (4) of that section (“the de-registration date”) is the date from which the scheme ceases to be a registered pension scheme.
Any rights of that person under the scheme or arising by virtue of the arrangements, and any rights of his under any related annuity, shall (without any conveyance, assignment or transfer) vest in his trustee in bankruptcy, as part of his estate, immediately on—
the giving of the notice, or
(if later) the trustee’s appointment taking effect or, in the case of the official receiver, his becoming trustee.
In subsection (7) “related annuity” means an annuity purchased on or after the de-registration date for the purpose of giving effect to rights under the scheme or (as the case may be) to rights arising by virtue of the arrangements.
Where under subsection (5) or (7) any rights vest in a person’s trustee in bankruptcy, the trustee’s title to them has relation back to the commencement of the person’s bankruptcy; but where any transaction is entered into by the trustees or managers of the scheme in question—the trustee in bankruptcy is not in respect of that transaction entitled by virtue of this subsection to any remedy against them or any person whose title to any property derives from them.
in good faith, and
without notice of the making of the decision mentioned in subsection (4)(b) or (as the case may be) the giving of the notice mentioned in subsection (6),
Without prejudice to section 83, regulations under subsection (2)(h) may, in the case of any description of arrangements prescribed by the regulations, make provision corresponding to any provision made by subsections (4) to (9).
In this section—
“occupational pension scheme” has the meaning given in section 150(5) of the Finance Act 2004;
“estate”, in relation to a person against whom a bankruptcy order is made, means his estate for the purposes of Parts VIII to XI of the Insolvency Act 1986;
“the Taxes Act” means the Income and Corporation Taxes Act 1988.
For the purposes of this section a person shall be treated as having a right under an approved pension arrangement where—
he is entitled to a credit under section 29(1)(b) as against the person responsible for the arrangement (within the meaning of Chapter I of Part IV), and
the person so responsible has not discharged his liability in respect of the credit.
The Secretary of State may by regulations make provision for or in connection with enabling rights of a person under an unapproved pension arrangement to be excluded, in the event of a bankruptcy order being made against that person, from his estate for the purposes of Parts VIII to XI of the Insolvency Act 1986.
Regulations under this section may, in particular, make provision—
for rights under an unapproved pension arrangement to be excluded from a person’s estate—
by an order made on his application by a prescribed court, or
in accordance with a qualifying agreement made between him and his trustee in bankruptcy;
for the court’s decision whether to make such an order in relation to a person to be made by reference to—
future likely needs of him and his family, and
whether any benefits (by way of a pension or otherwise) are likely to be received by virtue of rights of his under other pension arrangements and (if so) the extent to which they appear likely to be adequate for meeting any such needs;
for the prescribed persons in the case of any pension arrangement to provide a person or his trustee in bankruptcy on request with information reasonably required by that person or trustee for or in connection with the making of such applications and agreements as are mentioned in paragraph (a).
In this section—“prescribed” means prescribed by regulations under this section;“qualifying agreement” means an agreement entered into in such circumstances, and satisfying such requirements, as may be prescribed;“unapproved pension arrangement” means a pension arrangement which—is not an approved pension arrangement within the meaning of section 11, and is of a prescribed description.
For the purposes of this section a person shall be treated as having a right under an unapproved pension arrangement where—
he is entitled to a credit under section 29(1)(b) as against the person responsible for the arrangement (within the meaning of Chapter I of Part IV), and
the person so responsible has not discharged his liability in respect of the credit.
A reference to—
the making of a bankruptcy order against a person is a reference to the award of sequestration on his estate or the making of the appointment on his estate of a judicial factor under section 41 of the Solicitors (Scotland) Act 1980;
the estate of a person is a reference to his estate for the purposes of the Bankruptcy (Scotland) Act 1985 2016 or of the Solicitors (Scotland) Act 1980, as the case may be;
assignment is a reference to assignation;
a person’s trustee in bankruptcy is a reference to his permanent trustee trustee or interim trustee in a sequestration under the Bankruptcy (Scotland) Act 2016 or judicial factor, as the case may be;
the commencement of a person’s bankruptcy is a reference to the date of sequestration (within the meaning of section 12(4) of the Bankruptcy (Scotland) Act 1985 22(7) of the Bankruptcy (Scotland) Act 2016 ) or of the judicial factor’s appointment taking effect, as the case may be.
For paragraph (b) of each of subsections (5) and (7) of section 11 there shall be substituted—
In the Pension Schemes Act 1993, after section 159 there shall be inserted—
In section 159(6) of that Act (application of section 159 to Scotland), after “this section” there shall be inserted “ and section 159A ”.
In section 92(2) of the Pensions Act 1995 (exceptions to the rule preventing forfeiture of rights under occupational pension schemes), paragraph (b) (which allows forfeiture of such rights by reference to a scheme member’s bankruptcy) shall cease to have effect.
For sections 342A to 342C of the Insolvency Act 1986 there shall be substituted—
For sections 36A to 36C of the Bankruptcy (Scotland) Act 1985 there shall be substituted—
Miscellaneous
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Schedule 2 (which contains amendments of the law relating to pensions) shall have effect.
Pensions on divorce etc.
Pension sharing orders
Schedule 3 (which amends the Matrimonial Causes Act 1973 for the purpose of enabling the court to make pension sharing orders in connection with proceedings in England and Wales for divorce or nullity of marriage, and for supplementary purposes) shall have effect.
The Family Law (Scotland) Act 1985 shall be amended as follows.
In section 8(1) (orders for financial provision), after paragraph (b) there shall be inserted—
In section 27 (interpretation), in subsection (1), there shall be inserted at the appropriate place—.
In that section, after subsection (1) there shall be inserted—
Sections 25B to 25D of the Matrimonial Causes Act 1973
Part III of the Matrimonial and Family Proceedings Act 1984 (financial relief in England and Wales after overseas divorce etc.) shall be amended as follows.
In section 18 (matters to which the court is to have regard in exercising its powers to make orders for financial relief), after subsection (3) there shall be inserted—
In that section, at the end there shall be added—
In section 21 (application of provisions of Part II of the Matrimonial Causes Act 1973), the existing provision shall become subsection (1) and, in that subsection, after paragraph (b) there shall be inserted—.
In that section, after subsection (1) there shall be inserted—
Miscellaneous
The Secretary of State may by regulations—
make provision imposing on the person responsible for a pension arrangement, or on the Secretary of State, requirements with respect to the supply of information relevant to any power with respect to—
financial relief under Part II of the Matrimonial Causes Act 1973 or Part III of the Matrimonial and Family Proceedings Act 1984 (England and Wales powers in relation to domestic and overseas divorce etc.),
financial relief under Schedule 5 or 7 to the Civil Partnership Act 2004 (England and Wales powers in relation to domestic and overseas dissolution of civil partnerships etc.),
financial provision under the Family Law (Scotland) Act 1985 or Part IV of the Matrimonial and Family Proceedings Act 1984 or Schedule 11 to the 2004 Act (corresponding Scottish powers), ...
financial relief under Part III of the Matrimonial Causes (Northern Ireland) Order 1978 or Part IV of the Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (Northern Ireland powers corresponding to those mentioned in sub-paragraph (i)), or
financial relief under Schedule 15 or 17 to the 2004 Act (Northern Ireland powers corresponding to those mentioned in sub-paragraph (ia));
make provision about calculation and verification in relation to the valuation of—for the purposes of regulations under paragraph (a)(i) (ia), (iii) or (iv);
benefits under a pension arrangement, or
shareable state scheme rights,
make provision about calculation and verification in relation to—
the valuation of shareable rights under a pension arrangement or shareable state scheme rights for the purposes of regulations under paragraph (a)(ii), so far as relating to the making of orders for financial provision (within the meaning of the Family Law (Scotland) Act 1985), or
the valuation of benefits under a pension arrangement for the purposes of such regulations, so far as relating to the making of orders under section 12A of that Act;
make provision for the purpose of enabling the person responsible for a pension arrangement to recover prescribed charges in respect of providing information in accordance with regulations under paragraph (a).
Regulations under subsection (1)(b) or (c) may include provision for calculation or verification in accordance with guidance from time to time prepared by a person prescribed by the regulations.
Regulations under subsection (1)(d) may include provision for the application in prescribed circumstances, with or without modification, of any provision made by virtue of section 41(2).
In subsection (1)—
the reference in paragraph (c)(i) to shareable rights under a pension arrangement is to rights in relation to which pension sharing is available under Chapter I of Part IV, or under corresponding Northern Ireland legislation, and
the references to shareable state scheme rights are to rights in relation to which pension sharing is available under Chapter II of Part IV, or under corresponding Northern Ireland legislation.
The Secretary of State may by regulations make provision for the purpose of enabling the person responsible for a pension arrangement to recover prescribed charges in respect of complying with—
an order under section 23 of the Matrimonial Causes Act 1973 (financial provision orders in connection with divorce etc.), so far as it includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions),
an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision orders in connection with dissolution of civil partnerships etc.) so far as it includes provision made by virtue of Part 6 of that Schedule (powers to include provision about pensions),
an order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 (powers in relation to pensions lump sums when making a capital sum order), ...
an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978, so far as it includes provision made by virtue of Article 27B or 27C of that Order (Northern Ireland powers corresponding to those mentioned in paragraph (a)), or
an order under Part 1 of Schedule 15 to the 2004 Act so far as it includes provision made by virtue of Part 5 of that Schedule (Northern Ireland powers corresponding to those mentioned in paragraph (aa)).
Supplementary
If any amendment by the Family Law Act 1996 of Part II or IV of the Matrimonial Causes Act 1973 comes into force before the day on which any provision of this Part comes into force, the Lord Chancellor may by order make such consequential amendment of that provision as he thinks fit.
No order under this section may be made unless a draft of the order has been laid before and approved by resolution of each House of Parliament.
In this Part—“occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993;“pension arrangement” means an occupational pension scheme, a personal pension scheme, a retirement annuity contract, an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, and an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit under section 29(1)(b) or under corresponding Northern Ireland legislation;“personal pension scheme” has the same meaning as in the Pension Schemes Act 1993;“prescribed” means prescribed by regulations made by the Secretary of State;“retirement annuity contract” means an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which became a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004,“trustees or managers”, in relation to an occupational pension scheme or a personal pension scheme, means—in the case of a scheme established under a trust, the trustees of the scheme, and in any other case, the managers of the scheme.
References to the person responsible for a pension arrangement are—
in the case of an occupational pension scheme or a personal pension scheme, to the trustees or managers of the scheme,
in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of “pension arrangement” above, the provider of the annuity, and
in the case of an insurance policy falling within paragraph (d) of the definition of that expression, the insurer.
Pension sharing
Pension sharing mechanism
Pension sharing is available under this Chapter in relation to a person’s shareable rights under any pension arrangement other than an excepted public service pension scheme.
For the purposes of this Chapter, a person’s shareable rights under a pension arrangement are any rights of his under the arrangement, other than rights of a description specified by regulations made by the Secretary of State.
For the purposes of subsection (1), a public service pension scheme is excepted if it is specified by order made by such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the scheme.
Section 29 applies on the taking effect of any of the following relating to a person’s shareable rights under a pension arrangement—
a pension sharing order under the Matrimonial Causes Act 1973,
a pension sharing order under Schedule 5 to the Civil Partnership Act 2004,
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an order under Part III of the Matrimonial and Family Proceedings Act 1984 (financial relief in England and Wales in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (a),
an order under Schedule 7 to the 2004 Act (financial relief in England and Wales after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (aa),
a pension sharing order under the Family Law (Scotland) Act 1985,
provision which corresponds to the provision which may be made by such an order and which—
is contained in a qualifying agreement between the parties to a marriage or between persons who are civil partners of each other,
is in such form as the Secretary of State may prescribe by regulations, and
takes effect on the grant, in relation to the marriage, of decree of divorce under the Divorce (Scotland) Act 1976 or of declarator of nullity or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity,
an order under Part IV of the Matrimonial and Family Proceedings Act 1984 (financial relief in Scotland in relation to overseas divorce etc.) or under Schedule 11 to the 2004 Act (financial provision in Scotland after overseas proceedings) corresponding to such an order as is mentioned in paragraph (e),
a pension sharing order under the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)),
an order under Part IV of the Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (h).
a pension sharing order under Schedule 15 to the 2004 Act, and
an order under Schedule 17 to the 2004 Act (financial relief in Northern Ireland after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (j).
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For the purposes of subsection (1)(f), a qualifying agreement is one which—
has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and
is registered in the Books of Council and Session.
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Subsection (1)(f) does not apply if there is in force an order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 which relates to benefits or future benefits to which the party who is the transferor is entitled under the pension arrangement to which the provision relates.
For the purposes of this section, an order or provision falling within subsection (1)(e), (f) or (g) shall be deemed never to have taken effect if the person responsible for the arrangement to which the order or provision relates does not receive before the end of the period of 2 months beginning with the relevant date—
copies of the relevant ... documents, and
such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 34(1)(b)(ii).
The relevant date for the purposes of subsection (7) is—
in the case of an order or provision falling within subsection (1)(e) or (f), the date of the extract of the decree or declarator responsible for the divorce, dissolution or annulment to which the order or provision relates, and
in the case of an order falling within subsection (1)(g), the date of disposal of the application under section 28 of the Matrimonial and Family Proceedings Act 1984 or, where the order is under Schedule 11 to the 2004 Act, the date of disposal of the application under paragraph 2 of that Schedule.
The reference in subsection (7)(a) to the relevant ... documents is—
in the case of an order falling within subsection (1)(e) or (g), to copies of the order and the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and
in the case of provision falling within subsection (1)(f), to—
copies of the provision and the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and
documentary evidence that the agreement containing the provision is one to which subsection (3)(a) applies.
The Court of Session or the sheriff may, on the application of any person having an interest, make an order—
extending the period of 2 months referred to in subsection (7), and
if that period has already expired, providing that, if the person responsible for the arrangement receives the documents and information concerned before the end of the period specified in the order, subsection (7) is to be treated as never having applied.
Subsection (6), the reference to the party who is the transferor is to the party to whose rights the provision relates.
On the application of this section—
the transferor’s shareable rights under the relevant arrangement become subject to a debit of the appropriate amount, and
the transferee becomes entitled to a credit of that amount as against the person responsible for that arrangement.
Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of subsection (1) is the specified percentage of the cash equivalent of the relevant benefits on the valuation day.
Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of subsection (1) is the lesser of—
the specified amount, and
the cash equivalent of the relevant benefits on the valuation day.
Where the relevant arrangement is an occupational pension scheme and the transferor is in pensionable service under the scheme on the transfer day, the relevant benefits for the purposes of subsections (2) and (3) are the benefits or future benefits to which he would be entitled under the scheme by virtue of his shareable rights under it had his pensionable service terminated immediately before that day.
Otherwise, the relevant benefits for the purposes of subsections (2) and (3) are the benefits or future benefits to which, immediately before the transfer day, the transferor is entitled under the terms of the relevant arrangement by virtue of his shareable rights under it.
The Secretary of State may by regulations provide for any description of benefit to be disregarded for the purposes of subsection (4) or (5).
For the purposes of this section, the valuation day is such day within the implementation period for the credit under subsection (1)(b) as the person responsible for the relevant arrangement may specify by notice in writing to the transferor and transferee.
In this section—“relevant arrangement” means the arrangement to which the relevant order or provision relates;“relevant order or provision” means the order or provision by virtue of which this section applies;“transfer day” means the day on which the relevant order or provision takes effect;“transferor” means the person to whose rights the relevant order or provision relates;“transferee” means the person for whose benefit the relevant order or provision is made.
The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of section 29.
The power conferred by subsection (1) includes power to provide for calculation or verification—
in such manner as may, in the particular case, be approved by a person prescribed by the regulations, or
in accordance with guidance from time to time prepared by a person so prescribed.
Pension debits
Subject to subsection (2), where a person’s shareable rights under a pension arrangement are subject to a pension debit, each benefit or future benefit—is reduced by the appropriate percentage.
to which he is entitled under the arrangement by virtue of those rights, and
which is a qualifying benefit,
Where a pension debit relates to the shareable rights under an occupational pension scheme of a person who is in pensionable service under the scheme on the transfer day, each benefit or future benefit—is reduced by an amount equal to the appropriate percentage of the corresponding qualifying benefit.
to which the person is entitled under the scheme by virtue of those rights, and
which corresponds to a qualifying benefit,
A benefit is a qualifying benefit for the purposes of subsections (1) and (2) if the cash equivalent by reference to which the amount of the pension debit is determined includes an amount in respect of it.
The provisions of this section override any provision of a pension arrangement to which they apply to the extent that the provision conflicts with them.
In this section—“appropriate percentage”, in relation to a pension debit, means—if the relevant order or provision specifies the percentage value to be transferred, that percentage; if the relevant order or provision specifies an amount to be transferred, the percentage which the appropriate amount for the purposes of subsection (1) of section 29 represents of the amount mentioned in subsection (3)(b) of that section;“relevant order or provision”, in relation to a pension debit, means the pension sharing order or provision on which the debit depends;“transfer day”, in relation to a pension debit, means the day on which the relevant order or provision takes effect.
The Pension Schemes Act 1993 shall be amended as follows.
In section 10 (protected rights), in subsection (1), for “subsections (2) and (3)” there shall be substituted “ the following provisions of this section ”, and at the end there shall be added—
After section 15 there shall be inserted—
In section 47 (entitlement to guaranteed minimum pensions for the purposes of the relationship with social security benefits), at the end there shall be added—
In section 181(1), there shall be inserted at the appropriate place—.
Pension credits
A person subject to liability in respect of a pension credit shall discharge his liability before the end of the implementation period for the credit.
Where the trustees or managers of an occupational pension scheme have not done what is required to discharge their liability in respect of a pension credit before the end of the implementation period for the credit—
they shall, except in such cases as the Secretary of State may prescribe by regulations, notify the Regulatory Authority of that fact within such period as the Secretary of State may so prescribe, and
section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties) shall apply to any trustee or manager who has failed to take all such steps as are reasonable to ensure that liability in respect of the credit was discharged before the end of the implementation period for it.
If trustees or managers to whom subsection (2)(a) applies fail to perform the obligation imposed by that provision, section 10 of the Pensions Act 1995 shall apply to any trustee or manager who has failed to take all reasonable steps to ensure that the obligation was performed.
On the application of the trustees or managers of an occupational pension scheme who are subject to liability in respect of a pension credit, the Regulatory Authority may extend the implementation period for the credit for the purposes of this section if it is satisfied that the application is made in such circumstances as the Secretary of State may prescribe by regulations.
In this section “the Regulatory Authority” means the Pensions Regulator.
For the purposes of this Chapter, the implementation period for a pension credit is the period of 4 months beginning with the later of—
the day on which the relevant order or provision takes effect, and
the first day on which the person responsible for the pension arrangement to which the relevant order or provision relates is in receipt of—
the relevant ... documents, and
such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations.
The reference in subsection (1)(b)(i) to the relevant ... documents is to copies of—and, if the pension credit depends on provision falling within subsection (1)(f) of section 28, to documentary evidence that the agreement containing the provision is one to which subsection (3)(a) of that section applies.
the relevant order or provision, and
the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates,
Subsection (1) is subject to any provision made by regulations under section 41(2)(a).
The Secretary of State may by regulations—
make provision requiring a person subject to liability in respect of a pension credit to notify the transferor and transferee of the day on which the implementation period for the credit begins;
provide for this section to have effect with modifications where the pension arrangement to which the relevant order or provision relates is being wound up;
provide for this section to have effect with modifications where the pension credit depends on a pension sharing order and the order is the subject of an application for leave to appeal out of time.
In this section—“relevant order or provision”, in relation to a pension credit, means the pension sharing order or provision on which the pension credit depends;“transferor” means the person to whose rights the relevant order or provision relates;“transferee” means the person for whose benefit the relevant order or provision is made.
Schedule 5 (which makes provision about how liability in respect of a pension credit may be discharged) shall have effect.
Where the person entitled to a pension credit dies before liability in respect of the credit has been discharged—
Schedule 5 shall cease to have effect in relation to the discharge of liability in respect of the credit, and
liability in respect of the credit shall be discharged in accordance with regulations made by the Secretary of State.
Treatment of pension credit rights under schemes
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After section 101 of the Pension Schemes Act 1993 there shall be inserted—
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In the case of an occupational pension scheme which is not a scheme to which this section applies, rights attributable (directly or indirectly) to a pension credit are to be accorded in a winding up the same treatment—
if they have come into payment, as the rights of a pensioner member, and
if they have not come into payment, as the rights of a deferred member.
This section applies to an occupational pension scheme other than—
a money purchase scheme, or
a prescribed scheme or a scheme of a prescribed description.
Subsection (2) overrides the provisions of a scheme to the extent that it conflicts with them, and the scheme has effect with such modifications as may be required in consequence.
In subsection (2)—
“deferred member” and “pensioner member” have the same meanings as in Part I of the Pensions Act 1995,
“pension credit” includes a credit under Northern Ireland legislation corresponding to section 29(1)(b), and
references to rights attributable to a pension credit having come into payment are to the person to whom the rights belong having become entitled by virtue of the rights to the present payment of pension or other benefits.
Indexation
The Pensions (Increase) Act 1971 shall be amended as follows.
In section 3 (qualifying conditions), after subsection (2) there shall be inserted—
In section 8, in subsection (1) (definition of “pension”), in paragraph (a), the words from “(either” to “person)” shall be omitted.
In that section, in subsection (2) (when pension deemed for purposes of the Act to begin), after “pension”, in the first place, there shall be inserted “ which is not attributable to a pension credit ”, and after that subsection there shall be inserted—
In section 17(1) (interpretation)—
for the definitions of “derivative pension” and “principal pension” there shall be substituted—,
after the definition of “pension” there shall be inserted—, and
for the definition of “widow’s pension” there shall be substituted—
The Secretary of State may by regulations make provision for a pension to which subsection (2) applies to be increased, as a minimum, by reference to relevant percentage increases, so far as not exceeding the maximum percentage per annum.
Subject to subsection (2A), this subsection applies to—
a pension provided to give effect to eligible pension credit rights of a member under a qualifying occupational pension scheme, ...
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Subsection (2) does not apply to pensions which—
are money purchase benefits, and
become pensions in payment on or after the commencement day.
In subsection (1) “relevant percentage increases” means percentage increases estimated by the Secretary of State from time to time for the purposes of paragraph 2(3)(a) of Schedule 3 to the Pension Schemes Act 1993 for revaluation periods of 12 months.
For the purposes of subsection (1) the “maximum percentage” means—
5% in a case where—
the pension is in payment before the commencement day, or
the pension is not in payment before the commencement day but the entitlement to the relevant pension credit arose before that day, and
2.5% in a case where the entitlement to the relevant pension credit arises on or after the commencement day.
In this section—“commencement day” means the day appointed for the coming into force of section 280 of the Pensions Act 2004 (amendments to section 40);“eligible”, in relation to pension credit rights, means of a description prescribed by regulations made by the Secretary of State;“money purchase benefit” has the meaning given by section 181(1) of the Pension Schemes Act 1993;“pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a credit under section 29(1)(b) or under corresponding Northern Ireland legislation;“qualifying occupational pension scheme” means an occupational pension scheme which is not a public service pension scheme;“relevant pension credit” means the pension credit to which the eligible pension credit rights... are (directly or indirectly) attributable;“safeguarded rights” has the meaning given in section 68A of the Pension Schemes Act 1993.
Charges by pension arrangements
The Secretary of State may by regulations make provision for the purpose of enabling the person responsible for a pension arrangement involved in pension sharing to recover from the parties to pension sharing prescribed charges in respect of prescribed descriptions of pension sharing activity.
Regulations under subsection (1) may include—
provision for the start of the implementation period for a pension credit to be postponed in prescribed circumstances;
provision, in relation to payments in respect of charges recoverable under the regulations, for reimbursement as between the parties to pension sharing;
provision, in relation to the recovery of charges by deduction from a pension credit, for the modification of Schedule 5;
provision for the recovery in prescribed circumstances of such additional amounts as may be determined in accordance with the regulations.
For the purposes of regulations under subsection (1), the question of how much of a charge recoverable under the regulations is attributable to a party to pension sharing is to be determined as follows—
where the relevant order or provision includes provision about the apportionment of charges under this section, there is attributable to the party so much of the charge as is apportioned to him by that provision;
where the relevant order or provision does not include such provision, the charge is attributable to the transferor.
For the purposes of subsection (1), a pension arrangement is involved in pension sharing if section 29 applies by virtue of an order or provision which relates to the arrangement.
In that subsection, the reference to pension sharing activity is to activity attributable (directly or indirectly) to the involvement in pension sharing.
In subsection (3)—
the reference to the relevant order or provision is to the order or provision which gives rise to the pension sharing, and
the reference to the transferor is to the person to whose rights that order or provision relates.
In this section “prescribed” means prescribed in regulations under subsection (1).
Adaptation of statutory schemes
Power under an Act to establish a pension scheme shall include power to make provision for the provision, by reference to pension credits which derive from rights under—of benefits to or in respect of those entitled to the credits.
the scheme, or
a scheme in relation to which the scheme is specified as an alternative for the purposes of paragraph 2 of Schedule 5,
Subsection (1) is without prejudice to any other power.
Subsection (1) shall apply in relation to Acts whenever passed.
No obligation to consult shall apply in relation to the making, in exercise of a power under an Act to establish a pension scheme, of provision of a kind authorised by subsection (1).
Any provision of, or under, an Act which makes benefits under a pension scheme established under an Act a charge on, or payable out of—shall be treated as including any benefits under the scheme which are attributable (directly or indirectly) to a pension credit which derives from rights to benefits charged on, or payable out of, that fund.
the Consolidated Fund,
the Scottish Consolidated Fund, or
the Consolidated Fund of Northern Ireland,
In this section—“pension credit” includes a credit under Northern Ireland legislation corresponding to section 29(1)(b);“pension scheme” means a scheme or arrangement providing benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of persons to whom the scheme or arrangement applies.
The appropriate minister may by regulations amend the Sheriffs’ Pensions (Scotland) Act 1961, the Judicial Pensions Act 1981 or the Judicial Pensions and Retirement Act 1993 for the purpose of—
extending a pension scheme under the Act to include the provision, by reference to pension credits which derive from rights under—of benefits to or in respect of those entitled to the credits, or
the scheme, or
a scheme in relation to which the scheme is specified as an alternative for the purposes of paragraph 2 of Schedule 5,
restricting the power of the appropriate minister to accept payments into a pension scheme under the Act, where the payments represent the cash equivalent of rights under another pension scheme which are attributable (directly or indirectly) to a pension credit.
Regulations under subsection (1)—
may make benefits provided by virtue of paragraph (a) of that subsection a charge on, and payable out of, the Consolidated Fund;
may confer power to make subordinate legislation, including subordinate legislation which provides for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the subordinate legislation.
The appropriate minister for the purposes of subsection (1) is—
in relation to a pension scheme whose ordinary members are limited to those who hold judicial office whose jurisdiction is exercised exclusively in relation to Scotland, the Secretary of State, and
in relation to any other pension scheme, the Lord Chancellor.
In this section—“pension credit” includes a credit under Northern Ireland legislation corresponding to section 29(1)(b);“pension scheme” means a scheme or arrangement providing benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or in respect of persons to whom the scheme or arrangement applies.
Supplementary
Nothing in any of the following provisions (restrictions on alienation of pension rights) applies in relation to any order or provision falling within section 28(1)—
section 91 of the Pensions Act 1995,
any provision of any enactment (whether passed or made before or after this Act is passed) corresponding to any of the enactments mentioned in paragraphs (a) and (b), and
any provision of a pension arrangement corresponding to any of those enactments.
In this section, “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978).
The Secretary of State may by regulations require the person responsible for a pension arrangement involved in pension sharing to supply to such persons as he may specify in the regulations such information relating to anything which follows from the application of section 29 as he may so specify.
Section 168 of the Pension Schemes Act 1993 (breach of regulations) shall apply as if this section were contained in that Act (otherwise than in Chapter II of Part VII).
For the purposes of this section, a pension arrangement is involved in pension sharing if section 29 applies by virtue of an order or provision which relates to the arrangement.
In this Chapter—“implementation period”, in relation to a pension credit, has the meaning given by section 34;“occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;“pension arrangement” means—an occupational pension scheme, a personal pension scheme, a retirement annuity contract, an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, and an annuity purchased, or entered into, for the purpose of discharging liability in respect of a credit under section 29(1)(b) or under corresponding Northern Ireland legislation;“pension credit” means a credit under section 29(1)(b);“pension debit” means a debit under section 29(1)(a);“pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme;“personal pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993;“retirement annuity contract” means a contract or scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988;“shareable rights” has the meaning given by section 27(2);“trustees or managers”, in relation to an occupational pension scheme or a personal pension scheme means—in the case of a scheme established under a trust, the trustees of the scheme, and in any other case, the managers of the scheme.
In this Chapter, references to the person responsible for a pension arrangement are—
in the case of an occupational pension scheme or a personal pension scheme, to the trustees or managers of the scheme,
in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of “pension arrangement” in subsection (1), to the provider of the annuity, and
in the case of an insurance policy falling within paragraph (d) of the definition of that expression, to the insurer.
In determining what is “pensionable service” for the purposes of this Chapter—
service notionally attributable for any purpose of the scheme is to be disregarded, and
no account is to be taken of any rules of the scheme by which a period of service can be treated for any purpose as being longer or shorter than it actually is.
Pension sharing is available under this Chapter in relation to a person’s shareable state scheme rights.
For the purposes of this Chapter, a person's shareable state scheme rights are—
the person's shareable old state scheme rights;
the person's shareable new state scheme rights.
For the purposes of this Chapter, a person’s shareable old state scheme rights are—
his entitlement, or prospective entitlement, to a Category A retirement pension by virtue of section 44(3)(b) of the Contributions and Benefits Act (... additional pension), and
his entitlement, or prospective entitlement, to a pension under section 55A or 55AA of that Act (shared additional pension).
For the purposes of this Chapter, a person's shareable new state scheme rights are the person's entitlement, or prospective entitlement, to the excess amount in a state pension under section 4 of the Pensions Act 2014.
a pension sharing order under the Matrimonial Causes Act 1973,
a pension sharing order under Schedule 5 to the Civil Partnership Act 2004,
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an order under Part III of the Matrimonial and Family Proceedings Act 1984 (financial relief in England and Wales in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (a),
an order under Schedule 7 to the 2004 Act (financial relief in England and Wales after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (aa),
a pension sharing order under the Family Law (Scotland) Act 1985,
provision which corresponds to the provision which may be made by such an order and which—
is contained in a qualifying agreement between the parties to a marriage or between persons who are civil partners of each other,
is in such form as the Secretary of State may prescribe by regulations, and
takes effect on the grant, in relation to the marriage, of decree of divorce under the Divorce (Scotland) Act 1976 or of declarator of nullity or (as the case may be) on the grant, in relation to the civil partnership, of decree of dissolution or of declarator of nullity,
an order under Part IV of the Matrimonial and Family Proceedings Act 1984 (financial relief in Scotland in relation to overseas divorce etc.) or under Schedule 11 to the 2004 Act (financial provision in Scotland after overseas proceedings) corresponding to such an order as is mentioned in paragraph (e),
a pension sharing order under the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)),
an order under Part IV of the Matrimonial and Family Proceedings (Northern Ireland) Order 1989 (financial relief in Northern Ireland in relation to overseas divorce etc.) corresponding to such an order as is mentioned in paragraph (h).
a pension sharing order under Schedule 15 to the 2004 Act, and
an order under Schedule 17 to the 2004 Act (financial relief in Northern Ireland after overseas dissolution etc. of a civil partnership) corresponding to such an order as is mentioned in paragraph (j).
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For the purposes of subsection (1)(f), a qualifying agreement is one which—
has been entered into in such circumstances as the Secretary of State may prescribe by regulations, and
is registered in the Books of Council and Session.
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For the purposes of this section, an order or provision falling within subsection (1)(e), (f) or (g) shall be deemed never to have taken effect if the Secretary of State does not receive before the end of the period of 2 months beginning with the relevant date—
copies of the relevant ... documents, and
such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations under section 34(1)(b)(ii).
The relevant date for the purposes of subsection (6) is—
in the case of an order or provision falling within subsection (1)(e) or (f), the date of the extract of the decree or declarator responsible for the divorce, dissolution or annulment to which the order or provision relates, and
in the case of an order falling within subsection (1)(g), the date of disposal of the application under section 28 of the Matrimonial and Family Proceedings Act 1984 or, where the order is under Schedule 11 to the 2004 Act, the date of disposal of the application under paragraph 2 of that Schedule.
The reference in subsection (6)(a) to the relevant ... documents is—
in the case of an order falling within subsection (1)(e) or (g), to copies of the order and the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and
in the case of provision falling within subsection (1)(f), to—
copies of the provision and the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates, and
documentary evidence that the agreement containing the provision is one to which subsection (3)(a) applies.
The Court of Session or the sheriff may, on the application of any person having an interest, make an order—
extending the period of 2 months referred to in subsection (6), and
if that period has already expired, providing that, if the Secretary of State receives the documents and information concerned before the end of the period specified in the order, subsection (6) is to be treated as never having applied.
This section applies if—
the transferor is in the old state pension system, or
the transferor is in the new state pension system but the transfer day was before 6 April 2016.
Where this section applies because of a relevant order or provision—
the transferor is subject, for the purposes of the relevant state pension legislation, to a debit of the appropriate amount, and
the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of that amount.
Where the relevant order or provision specifies a percentage value to be transferred, the appropriate amount for the purposes of subsection (1) is the specified percentage of the cash equivalent on the transfer day of the transferor’s shareable old state scheme rights immediately before that day.
Where the relevant order or provision specifies an amount to be transferred, the appropriate amount for the purposes of subsection (1) is the lesser of—
the specified amount, and
the cash equivalent on the transfer day of the transferor’s shareable old state scheme rights immediately before that day.
The Secretary of State may by regulations make provision about the calculation and verification of cash equivalents for the purposes of this section.
The power conferred by subsection (4) above includes power to provide—
for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and
for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.
In determining prospective entitlement to a Category A retirement pension for the purposes of this section, only tax years before that in which the transfer day falls shall be taken into account.
The fact that a person who reaches pensionable age on or after 6 April 2016 is not entitled to a pension of the kind mentioned in section 47(2)(a) or (b) does not affect the calculation under this section of the appropriate amount by reference to the transferor's prospective entitlement, immediately before the transfer day, to a pension of that kind.
In this section—“relevant order or provision” means the order or provision by virtue of which this section applies;“the relevant state pension legislation”—in relation to a transferor or transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and in relation to a transferor or transferee in the new state pension system, means Part 1 of the Pensions Act 2014.“transfer day” means the day on which the relevant order or provision takes effect;“transferor” means the person to whose rights the relevant order or provision relates;“transferee” means the person for whose benefit the relevant order or provision is made.
This section applies if—
the transferor is in the new state pension system, and
the transfer day is 6 April 2016 or any later date.
Where this section applies because of a relevant order or provision—
the transferor is subject, for the purposes of section 14 of the Pensions Act 2014, to a debit of the shared weekly amount, and
the transferee is entitled, for the purposes of the relevant state pension legislation, to a credit of the shared weekly amount.
The shared weekly amount is the specified percentage of the excess amount of the transferor's state pension under section 4 of the Pensions Act 2014 as at the transfer day.
For the purposes of calculating the shared weekly amount—
a transferor who is under pensionable age on the transfer day is to be treated as having reached pensionable age and to have become entitled to the state pension under section 4 of the Pensions Act 2014 on the transfer day;
a transferor who has reached pensionable age on the transfer day but who has not yet become entitled to the state pension under section 4 of the Pensions Act 2014 is to be treated as having become entitled to the pension on that day.
In this section—“the excess amount” has the meaning given by section 47(4);“relevant order or provision” means the order or provision by virtue of which this section applies (see section 48);“the relevant state pension legislation”—in relation to a transferee in the old state pension system, means Part 2 of the Contributions and Benefits Act, and in relation to a transferee in the new state pension system, means Part 1 of the Pensions Act 2014;“specified percentage” means the percentage specified in the relevant order or provision for the purposes of subsection (3);“transfer day” means the day on which the relevant order or provision takes effect;“transferor” means the person to whose rights the relevant order or provision relates;“transferee” means the person for whose benefit the relevant order or provision is made.
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“shareable state scheme rights”, and related expressions, have the meaning given by section 47;“tax year” has the meaning given by section 122(1) of the Contributions and Benefits Act.
In this Chapter—
For the purposes of this Chapter—
a person is in the old state pension system if the person reached pensionable age before 6 April 2016 (or would have done so if the person had lived until pensionable age), and
a person is in the new state pension system if the person reached pensionable age on or after 6 April 2016 (or will do so if the person lives until pensionable age).
Welfare
Additional pensions
The Secretary of State may by regulations make such provision as is authorised by one or more of subsections (2) to (4).
The regulations may provide for any prescribed provision of Part II of the Contributions and Benefits Act (contributory benefits) which relates to additional pension for widows, widowers or surviving civil partners to have effect, in relation to persons of any prescribed description, with such modifications as may be prescribed for securing—is increased by such percentage as may be prescribed (which may be 100 per cent.).
that any such additional pension, or
in the case of any provision of Schedule 5 to that Act (increase of pension or payment of lump sum where entitlement is deferred), that any constituent element of an increase or of a lump sum provided for by that Schedule,
The regulations may amend (or further amend) any prescribed provision set out in section 39(2) of the Child Support, Pensions and Social Security Act 2000 (which sets out provisions falling within subsection (2) of this section) so as to substitute a reference to a later date for—
any reference in that provision to 5th October 2002 or 6th October 2002; or
any reference to a date inserted in that provision by a substitution made by virtue of this subsection.
The regulations may make provision for and in connection with—
the establishment, for a prescribed period, of a scheme for dealing with claims made by persons on the grounds that, in reliance on any incorrect or incomplete information provided by a government department with respect to the SERPS reduction (however that information came to their knowledge), they—had they instead received correct and complete information with respect to that reduction; and
failed to take any, or any particular, relevant steps which they would have taken, or
took any steps which they would not have taken,
securing that, where persons have made successful claims under the scheme, surviving spouses of those persons (or, as the case may be, those persons themselves) will not be affected by the SERPS reduction.
The regulations may provide, for the purposes of any provision made by virtue of subsection (4), for a case in which a person who, as a consequence of receiving incorrect or incomplete information, did not give any consideration to—to be treated as a case in which his failure to take the step, or his taking of the step he did take, was in reliance on the incorrect or incomplete information and as a case in which that step is one which he would have taken, or (as the case may be) would not have taken, had the information been correct and complete.
the taking of a step which is a step he might have taken had he considered the matter on the basis of correct and complete information, or
refraining from taking a step which is a step he did take but might have refrained from taking had he considered the matter on that basis,
In subsection (4) “relevant steps”, in relation to a person, means steps towards safeguarding the financial position of that person’s spouse in the event of the spouse becoming that person’s surviving spouse or (as the case may be) towards safeguarding that person’s own financial position in the event of that person becoming a surviving spouse (whether or not, in either case, that person was at any material time already married); and “the SERPS reduction” means—
(in the context of subsection (4)(a)) the operation of any of—
the provisions of section 19 of the Social Security Act 1986, or
the provisions of Part II of the Contributions and Benefits Act reproducing the effect of those provisions;
(in the context of subsection (4)(b)) the operation of any of the provisions of the Contributions and Benefits Act mentioned in paragraph (a)(ii) above or of section 39C(4) or 48BB(7) of that Act.
Regulations under subsection (4) may, in particular, make provision—
with respect to the time within which, and the manner in which, claims under the scheme are to be made;
for requiring claimants—
to supply such information in connection with their claims as may be prescribed or reasonably requested by any person for the purpose of dealing with their claims,
to attend interviews at such time and place as may be reasonably specified by any person for that purpose;
for a claim to be disallowed where the claimant fails to comply with a requirement imposed by virtue of paragraph (a) or (b) above and does not show within the prescribed period that he had good cause for that failure;
prescribing—
matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any failure to comply with any such requirement, or
circumstances in which a person is or is not to be regarded as having or not having good cause for any such failure;
prescribing the conditions which must be satisfied in relation to any claim in order for it to be a successful claim under the scheme;
prescribing the matters that may be relied on, and the presumptions that may be made, in the determination of whether or not the prescribed conditions have been satisfied;
with respect to—
the manner in which decisions under the scheme are to be made (which may include authorising decisions of any prescribed description to be made by a computer), and
the time within which, and the manner in which, such decisions are to be notified to claimants;
for provisions of Chapter II of Part I of the Social Security Act 1998 (social security decisions and appeals) to apply in relation to decisions under the scheme with such modifications as may be prescribed;
for provisions of Part II of the Contributions and Benefits Act to apply in relation to—with such modifications as may be prescribed.
surviving spouses of persons who have made successful claims under the scheme, or
persons who have themselves made such claims,
If no regulations under this section are in force on 6th April 2000, then until such time as any such regulations come into force—
any provisions of Part II of the Contributions and Benefits Act which (whether alone or together with other provisions) would otherwise result in a reduction of one-half in the amount payable by way of additional pension in cases where a person’s spouse dies after 5th April 2000 shall be taken—as the case may require; and
as not applying, or
as providing for the full amount to be payable by way of additional pension,
in Schedule 5 to that Act—
any provision which is expressed to apply in relation to deaths occurring after that date shall not apply, and
any provision which (with or without any other limitation) is expressed to apply in relation to deaths occurring before 6th April 2000 shall be taken as applying also in relation to deaths occurring on or after that date.
No regulations shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament.
In this section “prescribed” means prescribed by regulations under subsection (2), (3) or (4), as the case may be.
State maternity allowance
In section 35 of the Contributions and Benefits Act (state maternity allowance), for subsections (1) and (1A) there shall be substituted—
In subsection (3) of that section—
for “Schedule 3, Part I, paragraph 3” there shall be substituted “ section 35A below ”; and
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After that section there shall be inserted—
This section applies in relation to the payment of maternity allowance in cases where a woman’s expected week of confinement (within the meaning of section 35 of the Contributions and Benefits Act) begins on or after 20th August 2000.
Benefits for widows and widowers
For section 36 of the Contributions and Benefits Act there shall be substituted—
In Schedule 4 to the Contributions and Benefits Act (rates of benefits etc.), for Part II there shall be substituted—
After section 36 of the Contributions and Benefits Act there shall be inserted—
After section 39 of the Contributions and Benefits Act there shall be inserted—
After section 48B of the Contributions and Benefits Act there shall be inserted—
Work-focused interviews
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Jobseeker’s allowance
Schedule 7 (which makes provision in connection with requiring certain couples to make joint claims for an income-based jobseeker’s allowance) shall have effect.
The Secretary of State may by regulations make provision for or in connection with the participation of claimants for a jobseeker’s allowance in schemes of any prescribed description, being schemes established for designated areas in Great Britain (or for the whole of Great Britain) and designed to assist such persons to obtain sustainable employment.
Regulations under this section may, in particular, make provision—
for the imposition during any prescribed period, as additional conditions for entitlement to a jobseeker’s allowance applying in the case of persons participating in schemes, of requirements to take steps determined in accordance with the regulations with a view to improving those persons’ prospects of securing employment;
for the suspension, during any prescribed period, of any prescribed conditions that would otherwise apply to such persons.
Regulations under this section may make provision for any provisions of the Jobseekers Act 1995 to apply for the purposes of the regulations subject to prescribed modifications.
The provisions of that Act which may be so applied include in particular any provisions of—
section 19 or 20A (circumstances in which jobseeker’s allowance is not payable); or
The Secretary of State may for the purposes of, or in connection with, any scheme—
make such arrangements (whether or not with other persons) for the provision of any facilities,
provide such support (by whatever means) for arrangements made by other persons for the provision of any facilities,
make such payments—as he considers appropriate.
by way of fees, grants, loans or otherwise, to persons undertaking the provision of facilities under arrangements within paragraph (a) or (b),
by way of grants, loans or otherwise, to persons participating in the scheme, or
in respect of any incidental expenses,
For the purposes of, or in connection with, a scheme established for (or for an area which includes) Wales or a part of Wales, the National Assembly for Wales may, if it considers that facilities whose provision any person (including the Secretary of State) is undertaking under arrangements within subsection (5)(a) or (b) are capable of being supportive of the training of persons for employment, make such payments to that person as the Assembly considers appropriate; and any such payments—
may be by way of fees, grants, loans or otherwise, and
may, unless the Assembly otherwise specifies, be used by the person to whom they are made for the provision of any of the facilities provided under the arrangements.
In subsections (5) and (6) “facilities” includes services, and any reference to the provision of facilities includes the making of payments to persons participating in the scheme.
The power of the Secretary of State to make an order under section 26 of the Employment Act 1988 (status of trainees etc.) shall include power to make, in relation to—provision corresponding to any provision which (by virtue of subsection (1) or (2) of that section) may be made in relation to persons using such facilities, and to such payments received by them, as are mentioned in subsection (1) of that section.
persons participating in any scheme, and
payments received by them by virtue of subsection (5) above,
In this section—“designated” means designated by the Secretary of State;“employment” has the meaning given by regulations under this section;“prescribed” means specified in or determined in accordance with regulations under this section;“scheme” means a scheme such as is mentioned in subsection (1).
Incapacity for work
For section 171C of the Contribution and Benefits Act there shall be substituted—
Incapacity benefits
Paragraph 2 of Schedule 3 to the Contributions and Benefits Act (contribution conditions for short-term incapacity benefit) shall be amended as follows.
In sub-paragraph (2) (the first condition), for paragraph (a) there shall be substituted—.
In sub-paragraph (7) (claim by person who does not satisfy second contribution condition to be disregarded in relation to subsequent claim), after “does not satisfy” there shall be inserted “ the first contribution condition (specified in sub-paragraph (2) above) or, as the case may be, ”.
After sub-paragraph (7) there shall be added—
After section 30D of the Contributions and Benefits Act there shall be inserted—
In subsection (1) of section 30A of the Contributions and Benefits Act (incapacity benefit: entitlement)—
for “either of the following conditions” there shall be substituted—; and
after “any day of incapacity for work” there shall be inserted “ (“the relevant day”) ”.
In subsection (2) of that section—
after “conditions” there shall be inserted “ mentioned in subsection (1)(a) above ”; and
in paragraph (a), for “the day in question” there shall be substituted “ the relevant day ”.
After that subsection there shall be inserted—
In subsection (3) of that section, after “benefit” there shall be inserted “ under subsection (1)(a) above ”.
After subsection (5) of that section there shall be inserted—
Sections 68 and 69 of the Contributions and Benefits Act (severe disablement allowance) shall cease to have effect.
Disability benefits
After subsection (3) of section 64 of the Contributions and Benefits Act (entitlement to attendance allowance) there shall be added—
In subsection (1) of section 66 of that Act (attendance allowance for the terminally ill)—
in paragraph (a)(i), for the words from “for the remainder of his life” to “terminally ill” there shall be substituted “ for so much of the period for which he is terminally ill as does not fall before the date of the claim ”;
in paragraph (a)(ii), for “that date”, in the first place where those words occur, there shall be substituted “ the date of the claim or, if later, the first date on which he is terminally ill ”; and
in paragraph (b), for “the remainder of the person’s life, beginning with that date” there shall be substituted “ so much of the period for which he is terminally ill as does not fall before the date of the claim ”.
In subsection (3) of section 71 of the Contributions and Benefits Act (disability living allowance), for “for life” there shall be substituted “ for an indefinite period ”.
In subsection (5)(b) of section 72 of that Act (the care component), for “for the remainder of his life beginning with that date” there shall be substituted “ for so much of the period for which he is terminally ill as does not fall before the date of the claim ”.
In subsection (1) of section 73 of that Act (the mobility component), for “the age of 5” there shall be substituted “ the relevant age ” and after that subsection there shall be inserted—
Subsection (3) does not affect awards made before the day on which that subsection comes into force.
Miscellaneous
An overpayment to which this section applies shall not be recoverable from the payee, whether by the Secretary of State or a local authority, under any provision made by or under Part III of the Administration Act (overpayments and adjustments of benefit).
This section applies to an overpayment if—
it is in respect of a qualifying benefit;
it is referable to a decision given on a review that there has been an alteration in the relevant person’s condition, being a decision to which effect is required to be given as from a date earlier than that on which it was given;
the decision was given before 1st June 1999; and
the overpayment is not excluded by virtue of subsection (6).
In subsection (2)(b) the reference to a decision on a review that there has been an alteration in the relevant person’s condition is a reference to a decision so given that that person’s physical or mental condition either was at the time when the original decision was given, or has subsequently become, different from that on which that decision was based, with the result—
that he did not at that time, or (as the case may be) has subsequently ceased to, meet any of the conditions contained in the following provisions of the Contributions and Benefits Act, namely—
section 64 (attendance allowance),
section 72(1) or (2) (care component of disability living allowance), and
section 73(1) or (2) (mobility component of that allowance); or
that he was at that time, or (as the case may be) has subsequently become, capable of work in accordance with regulations made under section 171C(2) of that Act (the all work test).
For the purposes of this section “qualifying benefit” means—
attendance allowance;
disability living allowance;
any benefit awarded wholly or partly by reason of a person being (or being treated as being) in receipt of a component (at any rate) of disability living allowance or in receipt of attendance allowance;
incapacity benefit;
any benefit (other than incapacity benefit) awarded wholly or partly by reason of a person being (or being treated as being) incapable of work; or
any benefit awarded wholly or partly by reason of a person being (or being treated as being) in receipt of any benefit falling within paragraph (c), (d) or (e).
For the purposes of this section—
“review” means a review taking place by virtue of section 25(1)(a) or (b), 30(2)(a) or (b) or 35(1)(a) or (b) of the Administration Act;
“the relevant person”, in relation to a review, means the person to whose entitlement to a qualifying benefit or to whose incapacity for work the review related; and
“the original decision”, in relation to a review, means the decision as to any such entitlement or incapacity to which the review related.
An overpayment is excluded by virtue of this subsection if (before or after the passing of this Act)—
the payee has agreed to pay a penalty in respect of the overpayment under section 115A of the Administration Act,
the payee has been convicted of any offence (under section 111A or 112(1) or (1A) of that Act or otherwise) in connection with the overpayment, or
proceedings have been instituted against the payee for such an offence and the proceedings have not been determined or abandoned.
Nothing in this section applies to an overpayment to the extent that it was recovered from the payee (by any means) before 26th February 1999.
In this section—“benefit” includes any amount included in—the applicable amount in relation to an income-related benefit (as defined by section 135(1) of the Contributions and Benefits Act), or the applicable amount in relation to a jobseeker’s allowance (as defined by section 4(5) of the Jobseekers Act 1995);“income-related benefit” has the meaning given by section 123(1) of the Contributions and Benefits Act;“overpayment” means an amount of benefit paid in excess of entitlement;“the payee”, in relation to an overpayment, means the person to whom that amount was paid.
In section 13 of the Administration Act (entitlement to child benefit dependent on claim), after subsection (1) there shall be inserted—
Schedule 8 (which makes minor and consequential amendments of provisions relating to welfare benefits) shall have effect.
Supplementary
After section 7 of the Administration Act there shall be inserted—
The Secretary of State may by regulations make such provision for or in connection with any of the following matters, namely—as the Secretary of State considers appropriate in connection with any provision to which subsection (3) applies or in connection with any scheme or arrangements to which subsection (4) applies.
the use by a person within subsection (2) of social security information, or information relating to employment or training, held by that person,
the supply (whether to a person within subsection (2) or otherwise) of social security information, or information relating to employment or training, held by a person within that subsection,
the relevant purposes for which a person to whom such information is supplied under the regulations may use it, and
the circumstances and extent (if any) in and to which a person to whom such information is supplied under the regulations may supply it to any other person (whether within subsection (2) or not),
The persons within this subsection are—
a Minister of the Crown;
a person providing services to, or designated (specifically or by description) for the purposes of this section by an order of, a Minister of the Crown;
a local authority (within the meaning of the Administration Act); ...
a county council in England; and
a person providing services to, or authorised to exercise any function of, any authority mentioned in paragraph (c) or (ca).
This subsection applies to any provision made by or under—
any of sections 2A to 2F and 7A of the Administration Act,
section 60 of this Act, ...
the Jobseekers Act 1995,...
Part 1 of the Welfare Reform Act 2007, or
Part 1 of the Welfare Reform Act 2012.
This subsection applies to—
any scheme designated by regulations under subsection (1), being a scheme operated by the Secretary of State (whether under arrangements with any other person or not) for any purposes connected with employment or training in the case of persons of a particular category or description;
any arrangements of a description specified in such regulations, being arrangements made by the Secretary of State for any such purposes.
any arrangements made by the Scottish Ministers under section 2 of the Employment and Training Act 1973 by virtue of article 2(1) of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2020.
Regulations under subsection (1) may, in particular, authorise information supplied to a person under the regulations—
to be used for the purpose of amending or supplementing other information held by that person; and
if it is so used, to be supplied to any other person, and used for any purpose, to whom or for which that other information could be supplied or used.
In this section—“relevant purposes” means purposes connected with—social security, child support or war pensions, or employment or training;“social security information” means ... information relating to social security, child support or war pensions; and in this subsection “war pensions” means war pensions within the meaning of section 25 of the Social Security Act 1989 (establishment and functions of war pensions committees).
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Any reference in this section to information relating to, or purposes connected with, employment or training includes information relating to, or purposes connected with, the existing or future employment or training prospects or needs of persons, and (in particular) assisting or encouraging persons to enhance their employment prospects.
Schedule 9 (which amends the Contributions and Benefits Act, the Administration Act and the Pension Schemes Act 1993 so as to make provision for and in connection with the introduction of a new primary threshold for primary Class 1 contributions) shall have effect.
Schedule 10 (which amends the Social Security Contributions and Benefits (Northern Ireland) Act 1992, the Social Security Administration (Northern Ireland) Act 1992 and the Pension Schemes (Northern Ireland) Act 1993 so as to make provision for and in connection with the introduction for Northern Ireland of a new primary threshold for primary Class 1 contributions) shall have effect.
After section 4 of the Contributions and Benefits Act there shall be inserted—
After section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 there shall be inserted—
In section 10A of the Contributions and Benefits Act (Class 1B contributions), for subsection (6) (level of Class 1B percentage) there shall be substituted—
In section 10A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 1B contributions), for subsection (6) (level of Class 1B percentage) there shall be substituted—
The Secretary of State may by regulations make a scheme providing for a housing benefit claimant, where he moves from an under-occupied dwelling in the public or social rented sector to a qualifying dwelling, to be entitled to be paid an amount calculated by reference to the difference between—
the prescribed payments he was liable to make in respect of his former dwelling, and
those he is liable to make in respect of his new dwelling.
In subsection (1) the reference to a qualifying dwelling is to a dwelling (whether in the public or social rented sector or not) which, in relation to the claimant, either—
is not under-occupied, or
is under-occupied to a lesser extent than the claimant’s former dwelling.
Regulations under this section may, in particular, make provision—
as to the circumstances in which, in relation to a housing benefit claimant, a dwelling is or is not to be regarded for the purposes of the scheme as under-occupied or under-occupied to a lesser extent than another dwelling;
as to the manner in which an amount payable to such a claimant under the scheme is to be calculated;
for any such amount to be payable (subject to subsection (7))—
in a case where the claimant’s former and new dwellings are situated in the area of the same local authority, by that authority, or
in a case where they are situated in the areas of different local authorities, by whichever of those authorities is prescribed.
Regulations made in pursuance of subsection (3)(b) may provide for the amount payable to a housing benefit claimant under the scheme (“the relevant amount”) to be reduced on account of—but regulations under this section shall not otherwise provide for the making of any reduction in the relevant amount on account of any sum due to or recoverable by any public or local authority.
any arrears of rent payable by him, or
any amount paid to him by way of housing benefit which constitutes an overpayment for housing benefit purposes;
A person aggrieved by a determination of any prescribed description made under regulations under this section may appeal to such court or tribunal as may be prescribed; and the regulations may make provision as to the procedure to be followed in connection with appeals under this subsection.
Regulations under this section may provide that the scheme is to apply only in relation to one or more prescribed areas; and, if they do so, they may also—
provide that (unless continued in force by subsequent regulations under this section) the scheme is to remain in force there only for a prescribed period;
include such transitional, consequential or saving provisions as the Secretary of State considers appropriate in connection with the scheme ceasing to be in force in relation to the area or areas at the end of that period.
Despite the fact that the scheme is in force in relation to the area of a local authority (whether by virtue of subsection (6) or otherwise), it shall not have effect in relation to the authority unless it has been adopted by resolution of the authority.
Where a local authority makes any payment under the scheme the authority shall be reimbursed by the Secretary of State in respect of that payment in such manner and subject to such conditions as to claims, records, certificates or other information or evidence as may be prescribed (any reduction made by virtue of subsection (4) being disregarded for the purposes of this subsection).
Subject to any prescribed exceptions or modifications, the provisions of the Administration Act shall have effect in relation to payments under the scheme as they have effect in relation to housing benefit.
For the purposes of this section a dwelling occupied by a housing benefit claimant is in the public or social rented sector if the payments which the claimant is liable to make in respect of the dwelling (and on account of which he is entitled to housing benefit) are to be made to—
a local authority,
a body eligible for registration as a social landlord under Part I of the Housing Act 1996 (whether so registered or not), an unregistered housing association within the meaning of the Housing Associations Act 1985,
a private registered provider of social housing,
a registered social landlord within the meaning of Part 1 of the Housing Act 1996, or
in Scotland, a registered housing association within the meaning of the Housing Associations Act 1985.
But if the payments are to be made to a profit-making private registered provider of social housing the dwelling is in the public or social rented sector for the purposes of this section only if the dwelling is social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.
In this section—“dwelling” has the same meaning as in Part VII of the Contributions and Benefits Act (income-related benefits);“housing benefit claimant”, in relation to a dwelling, means a person entitled to housing benefit by virtue of being liable to make payments in respect of the dwelling;“local authority” has the same meaning as in the Administration Act;“prescribed” means specified in or determined in accordance with regulations under this section.
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General
Miscellaneous
Schedule 11 (which contains amendments dealing with administrative matters relating to contributions and pensions) shall have effect.
Where—the Secretary of State may, subject to subsections (2) and (3), incur such expenditure during that period.
a Minister of the Crown is proposing that or considering whether an Act should change the law as from a specified date, or a date to be determined, and
the Secretary of State is of the opinion that the change is such that, unless expenditure for preparing for the change is incurred during the period before the passing of that Act, it will not be possible for a service for which he has or will have responsibility to be effectively provided as from that date,
Expenditure is not authorised by virtue of subsection (1) unless—
the Secretary of State has with the consent of the Treasury laid before the House of Commons a report which states—
the change in the law which the Minister of the Crown is proposing or considering, and
the amount of the expenditure which the Secretary of State proposes to incur and the purposes for which he proposes to incur it; and
the report has been approved by a resolution of the House of Commons.
Expenditure is not authorised by virtue of subsection (1) at any time after the end of the period of two years beginning with the day on which the resolution under subsection (2)(b) is passed.
Subsection (1) is without prejudice to any power of the Secretary of State to incur expenditure otherwise than by virtue of that subsection.
There shall be made out of the National Insurance Fund into the Consolidated Fund such payments as the Secretary of State determines (in accordance with any directions of the Treasury) to be appropriate in consequence of the operation of this section.
Any payments falling to be made by virtue of subsection (5) shall be made at such times and in such manner as may be determined by the Treasury.
In this section “the Secretary of State” means the Secretary of State having responsibility for social security.
Supplementary
Any power under this Act to make regulations or orders (other than orders under section 72(2)) shall be exercisable by statutory instrument.
A statutory instrument—shall be subject to annulment in pursuance of a resolution of either House of Parliament.
which contains (whether alone or with other provisions) regulations made under this Act, and
which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,
A statutory instrument containing an order under section 27(3) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Any power under this Act to make regulations or orders may be exercised—
either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;
so as to make, as respects the cases in relation to which it is exercised—
the full provision to which the power extends or any less provision (whether by way of exception or otherwise);
the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act;
any such provision either unconditionally or subject to any specified condition.
Where any such power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes.
Any such power includes power—
to make such incidental, supplementary, consequential, saving or transitional provision (including provision amending, repealing or revoking enactments) as appears to the authority making the regulations or order to be expedient; and
to provide for a person to exercise a discretion in dealing with any matter.
Any power to make regulations or an order for the purposes of any provision of this Act is without prejudice to any power to make regulations or an order for the purposes of any other provision of this or any other Act.
housing benefit, or
council tax benefit,
Before exercising any power to make regulations under Part IV, the authority on whom the power is conferred, or, if the power is the subject of a direction under subsection (10), that authority and the Treasury acting jointly, shall consult such persons as the authority, or the authority and the Treasury, may consider appropriate.
The consequential amendments specified in Schedule 12 shall have effect.
The Secretary of State may by regulations make such amendments or revocations of any instrument made under an Act as he thinks necessary or expedient in consequence of the coming into force of any of the provisions specified in subsection (4).
The Secretary of State may, for the purposes of or in connection with the coming into force of any of the provisions specified in subsection (4), make by regulations any provision which could be made by an order bringing the provision into force.
The provisions mentioned in subsections (2) and (3) are—
Part IV;
subsection (1) above so far as relating to paragraphs 14 to 63 of Schedule 12; and
The Secretary of State may, for the purposes of or in connection with the coming into force of any provisions of Parts I and II, by regulations make such transitional adaptations or modifications—as he considers necessary or expedient.
of those provisions, or
in connection with those provisions, of any provisions of—then in force,
this Act,
the Pension Schemes Act 1993, or
the Pensions Act 1995,
No pension sharing order may be made—
under section 24B of the Matrimonial Causes Act 1973 if the proceedings in which the decree is granted were begun before the day on which section 19 comes into force, or
under section 31(7B) of that Act if the marriage was dissolved by a decree granted in proceedings so begun.
Where an action of divorce or an action for declarator of nullity has been brought before the day on which section 20 comes into force—in relation to that divorce or declarator.
no pension-sharing order may be made under section 8(1) of the Family Law (Scotland) Act 1985, and
The Secretary of State may by regulations make such transitional or consequential provision, or such savings, as he considers necessary or expedient for the purposes of or in connection with—
the coming into force of any provision of Part V, or
the operation of any enactment repealed or amended by a provision of Part V during any period when the repeal or amendment is not wholly in force.
There shall be paid out of money provided by Parliament—
any expenditure incurred by a Minister of the Crown or government department under this Act; and
any increase attributable to this Act in the sums which under any other Act are payable out of money so provided.
There shall be paid into the Consolidated Fund any increase attributable to this Act in the sums which under any other Act are payable into that Fund.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which contains a statement that it is made only for purposes corresponding to those of this Act—
shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament), but
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
The enactments specified in Schedule 13 (which include certain enactments no longer of practical utility) are hereby repealed to the extent specified in the third column of that Schedule.
Subject to the provisions of this section, the provisions of this Act shall not come into force until such day as the Secretary of State may by order appoint.
The following provisions shall not come into force until such day as the Lord Chancellor may by order appoint—
The following provisions shall not come into force until such day as the Treasury may by order appoint—
The following provisions come into force on the day on which this Act is passed—
section 72;
The following provisions come into force on the day on which this Act is passed, but for the purpose only of the exercise of any power to make regulations—
Parts I to IV;
Without prejudice to section 83, an order under this section may appoint different days for different purposes or different areas.
The following provisions extend to England and Wales only—
section 15;
The following provisions extend to Scotland only—
section 20;
section 85(5).
The following provisions extend to England and Wales and Scotland only—
Part I;
section 79;
The following provisions extend to England and Wales, Scotland and Northern Ireland—
section 80;
The following provisions extend to Northern Ireland only—
section 87.
Nothing in the preceding provisions of this section applies to any repeal made by this Act; and the extent of any such repeal is the same as that of the enactment repealed.
This Act may be cited as the Welfare Reform and Pensions Act 1999.
In this Act—“the Administration Act” means the Social Security Administration Act 1992;“the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992.
For the purposes of the Scotland Act 1998, the following provisions shall be taken to be pre-commencement enactments within the meaning of that Act—
paragraphs 8(3) and (4) and 10 of Schedule 12; and
Application of 1993 and 1995 Acts to registered schemes
The provisions specified in sub-paragraph (2) shall apply as if any pension scheme established under a trust which—were an occupational pension scheme.
is not an occupational pension scheme, but
is or has been registered under section 2,
The provisions are—
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the following provisions of Part I of the 1995 Act—
section 41 (functions of trustees or managers);
section 47 (professional advisers);
section 49 (receipts, payment and records) except subsections (5) and (8) to (13);
section 50 (resolution of disputes);
section 68 (power of trustees to modify scheme by resolution) except subsection (3);
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sections 91, 92 and 94 (assignment and forfeiture etc.) except section 91(5)(d);
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section 117 (overriding requirements); and
sections 124 and 125 (interpretation); and
the following provisions of the Pensions Act 2004—
section 67 (accessibility of register of prohibited trustees);
Chapters 4 and 5 of Part 2 (fraud compensation and information gathering);
sections 247 to 249 (requirements for knowledge and understanding); and
section 318 (interpretation).
Section 47(9) of the 1995 Act (as applied by sub-paragraph (1)) shall have effect as if the reference to any person who is or has been the employer were a reference to any person who, in pursuance of section 3(5), is or has been required—
to deduct an employee’s contributions to the scheme from his remuneration; and
to pay them to the trustees or managers of the scheme or to a prescribed person.
Section 124(1) of the 1995 Act, and section 318(1) of the Pensions Act 2004, (as so applied) shall have effect as if the definition of “member” were omitted.
Chapters 4 and 5 of Part 2 of the Pensions Act 2004 (as applied by sub-paragraph (1)) shall have effect with such modifications as the Secretary of State may prescribe by regulations.
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Pensions: miscellaneous amendments
Income payments orders against pension payments
Extended meaning of “personal pension scheme”
In the Pension Schemes Act 1993—
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in section 181(1) (general interpretation), for the definition of “employed earner” substitute—.
In consequence of sub-paragraph (1), the following provisions of that Act shall cease to have effect, namely—
in subsection (2)(a)(ii) of section 73 (short service benefit), the words “or a self-employed pension arrangement” and “or arrangement”;
in subsection (2)(a) of section 96 (exercise of option under section 95), sub-paragraph (iii) and the word “or” immediately preceding that sub-paragraph; and
in subsection (1) of section 181 (general interpretation), the definition of “self-employed pension arrangement”.
Revaluation of earnings factors: meaning of “relevant year”
Interim arrangements
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Effect of certain orders on guaranteed minimum pensions
Mandatory payment of contributions equivalent premiums
In section 55 of the Pension Schemes Act 1993 (contributions equivalent premiums)—
in subsection (2), after “the prescribed person” insert “ shall, if subsection (2B) applies, pay and otherwise ”;
in subsection (2A), omit the words following paragraph (e); and
after that subsection insert—
In section 51 of the Pension Schemes (Northern Ireland) Act 1993 (contributions equivalent premiums)—
in subsection (2), after “the prescribed person” insert “ shall, if subsection (2B) applies, pay and otherwise ”;
in subsection (2A), omit the words following paragraph (e); and
after that subsection insert—
Payment by Secretary of State of unpaid pension contributions
Paragraph 2 of Schedule 4 to the Pension Schemes Act 1993 (priority in bankruptcy for amounts paid by Secretary of State in respect of unpaid pension contributions) is amended as follows.
For sub-paragraphs (1) to (3) substitute—
In sub-paragraph (4), for “sub-paragraph (3)” substitute “ sub-paragraph (3A) ”.
Supervision by the Occupational Pensions Regulatory Authority
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In section 8(4) of the Pensions Act 1995 (provision which may be contained in orders made by the Authority appointing pension scheme trustees), omit the word “or” at the end of paragraph (a).
In section 10 of the Pensions Act 1995 (imposition of civil penalties by the Authority), after subsection (8) insert—
Occupational pension schemes: institutions who may hold money deposited by trustees etc.
Section 49 of the Pensions Act 1995 (other responsibilities of trustees, employers, etc.) is amended as follows.
In each of subsections (1) and (5) (money to be kept by trustees or employers in accounts with institutions authorised under the Banking Act 1987), for “an institution authorised under the Banking Act 1987” substitute “ a relevant institution ”.
After subsection (1) insert—
Annual increase in rate of pension
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Occupational pension schemes: certificates etc. relating to minimum funding requirement
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Excess assets of wound-up schemes
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Pensions Compensation Board
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Diligence against pensions: Scotland
Pensionable service
In section 124(3) of the Pensions Act 1995 (matters to be disregarded in determining “pensionable service”), at the end insert— “ but, in its application for the purposes of section 51, paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month. ”
Occupational pension schemes: rights of employee who is director of corporate trustee
The Employment Rights Act 1996 is amended as follows.
In section 46 (employee who is a trustee of a pension scheme not to be subject to detriment referable to his carrying out his functions as such a trustee), after subsection (2) insert—
In section 58 (right to time off for pension scheme trustees), after subsection (2) insert—
In section 102 (unfair dismissal of pension scheme trustees), after subsection (1) insert—
Pension sharing orders: England and Wales
The Matrimonial Causes Act 1973 is amended as follows.
After section 21 there is inserted—
In section 24 (property adjustment orders in connection with divorce proceedings, etc), in paragraphs (c) and (d) of subsection (1), there is inserted at the end “ , other than one in the form of a pension arrangement (within the meaning of section 25D below) ”.
After section 24A there is inserted—
In section 25 (matters to which the court is to have regard in deciding how to exercise its powers with respect to financial relief)—
in subsection (1), for “or 24A” there is substituted “ , 24A or 24B ”, and
in subsection (2), for “or 24A” there is substituted “ , 24A or 24B ”.
In section 25A(1) (court’s duty to consider desirability of exercising power to achieve clean break), for “or 24A” there is substituted “ , 24A or 24B ”.
Section 31 (variation, discharge etc. of certain orders for financial relief) is amended as follows.
In subsection (2), at the end there is inserted—
After subsection (4) there is inserted—
In subsection (5)—
for “(7F)” there is substituted “ (7G) ”,
for “or (e)” there is substituted “ , (e) or (g) ”, and
after “property adjustment order” there is inserted “ or pension sharing order ”.
In subsection (7B), after paragraph (b) there is inserted—.
After subsection (7F) there is inserted—
After subsection (14) there is inserted—
In section 33A (consent orders), in subsection (3), in the definition of “order for financial relief”, after “24A” there is inserted “ , 24B ”.
In section 37 (avoidance of transactions intended to prevent or reduce financial relief), in subsection (1), after “24,” there is inserted “ 24B, ”.
After section 40 there is inserted—
In section 52 (interpretation), in subsection (2), for “and” at the end of paragraph (a) there is substituted—.
Amendments of sections 25B to 25D of the Matrimonial Causes Act 1973
Section 25B of the Matrimonial Causes Act 1973 is amended as follows.
In subsection (1), for “scheme”, wherever occurring, there is substituted “ arrangement ”.
Subsection (2) ceases to have effect.
In subsection (3), for “scheme” there is substituted “ arrangement ”.
In subsection (4)—
for “scheme”, wherever occurring, there is substituted “ arrangement ”, and
for “trustees or managers of” there is substituted “ person responsible for ”.
For subsection (5) there is substituted—
In subsection (6)—
for “trustees or managers”, in the first place, there is substituted “ person responsible for the arrangement ”, and
for “the trustees or managers”, in the second place, there is substituted “ his ”.
In subsection (7)—
for the words from “may require any” to “those benefits” there is substituted “ has a right of commutation under the arrangement, the order may require him to exercise it to any extent ”,
for “the payment of any amount commuted” there is substituted “ any payment due in consequence of commutation ”, and
for “scheme” there is substituted “ arrangement ”.
After that subsection there is inserted—
Section 25C of that Act is amended as follows.
In subsection (1), for “scheme” there is substituted “ arrangement ”.
In subsection (2)—
in paragraph (a)—
for the words from “trustees” to “have” there is substituted “ person responsible for the pension arrangement in question has ”, and
for “them” there is substituted “ him ”, and
in paragraph (c), for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ”.
In subsection (3)—
for “trustees or managers” there is substituted “ person responsible for the arrangement ”, and
for “the trustees, or managers,” there is substituted “ his ”.
At the end there is inserted—
Section 25D of that Act is amended as follows.
For subsection (1) there is substituted—
In subsection (2)—
for “Regulations may” there is substituted “ The Lord Chancellor may by regulations ”,
in paragraph (a), for “trustees or managers of a pension scheme” there is substituted “ person responsible for a pension arrangement ”,
after that paragraph there is inserted—
after paragraph (b) there is inserted—
paragraphs (c) and (d) are omitted,
for paragraph (e) there is substituted—, and
the words after paragraph (e) are omitted.
After that subsection there is inserted—
For subsections (3) and (4) there is substituted—
Pension credits: mode of discharge
Funded pension schemes
This paragraph applies to a pension credit which derives from—
a funded occupational pension scheme, or
a personal pension scheme.
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—
with his consent, or
in accordance with regulations made by the Secretary of State.
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—
the qualifying arrangement is not disqualified as a destination for the credit,
the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and
payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.
For the purposes of sub-paragraph (2), no account is to be taken of consent of the person entitled to the pension credit unless—
it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or
it is not withdrawn within 7 days of receipt of such notice.
Unfunded public service pension schemes
This paragraph applies to a pension credit which derives from an occupational pension scheme which is—
not funded, and
a public service pension scheme.
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.
If such a scheme as is mentioned in sub-paragraph (1) is closed to new members, the appropriate authority in relation to that scheme may by regulations specify another public service pension scheme as an alternative to it for the purposes of this paragraph.
Where the trustees or managers of a scheme in relation to which an alternative is specified under sub-paragraph (3) are subject to liability in respect of a pension credit, they may—
discharge their liability in respect of the credit by securing that appropriate rights are conferred on the person entitled to the credit by the trustees or managers of the alternative scheme, and
for the purpose of so discharging their liability, require the trustees or managers of the alternative scheme to take such steps as may be required.
In sub-paragraph (3), “the appropriate authority”, in relation to a public service pension scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the scheme.
Other unfunded occupational pension schemes
This paragraph applies to a pension credit which derives from an occupational pension scheme which is—
not funded, and
not a public service pension scheme.
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.
The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—
the qualifying arrangement is not disqualified as a destination for the credit,
the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and
payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.
Other pension arrangements
This paragraph applies to a pension credit which derives from—
a retirement annuity contract,
an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, or
an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit.
The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—
the qualifying arrangement is not disqualified as a destination for the credit,
the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and
payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.
The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by entering into an annuity contract with the person entitled to the credit if the contract is not disqualified as a destination for the credit.
The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may, in such circumstances as the Secretary of State may prescribe by regulations, discharge his liability in respect of the credit by assuming an obligation to provide an annuity for the person entitled to the credit.
In sub-paragraph (1)(c), “pension credit” includes a credit under Northern Ireland legislation corresponding to section 29(1)(b).
Appropriate rights
For the purposes of this Schedule, rights conferred on the person entitled to a pension credit are appropriate if—
they are conferred with effect from, and including, the day on which the order, or provision, under which the credit arises takes effect, and
their value, when calculated in accordance with regulations made by the Secretary of State, equals the amount of the credit.
Qualifying arrangements
The following are qualifying arrangements for the purposes of this Schedule—
an occupational pension scheme,
a personal pension scheme,
an appropriate annuity contract,
an appropriate policy of insurance, and
an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations 1996.
An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the insurer with which it is entered into or taken out—
is carrying on ... long-term insurance business in the United Kingdom ..., and
satisfies such requirements as the Secretary of State may prescribe by regulations.
“Insurer” and “long-term insurance business” have the meaning given in section 180A of the Pension Schemes Act 1993.
Disqualification as destination for pension credit
If a pension credit derives from a pension arrangement which is a registered pension scheme under section 153 of the Finance Act 2004, an arrangement is disqualified as a destination for the credit unless—
it is also registered for those purposes, or
it satisfies such requirements as the Secretary of State may prescribe by regulations.
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An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Secretary of State, equals the credit.
An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Secretary of State may prescribe by regulations.
The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.
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Adjustments to amount of pension credit
If—paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Secretary of State.
a pension credit derives from an occupational pension scheme,
the scheme is one to which Part 3 of the Pensions Act 2004 (scheme funding) applies,
the scheme is underfunded on the valuation day, and
such circumstances as the Secretary of State may prescribe by regulations apply,
Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Secretary of State.
For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.
If—this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Secretary of State.
a person’s shareable rights under a pension arrangement have become subject to a pension debit, and
the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,
The Secretary of State may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.
General
Liability in respect of a pension credit shall be treated as discharged if the effect of paragraph 8(1) or 9 is to reduce it to zero.
Liability in respect of a pension credit may not be discharged otherwise than in accordance with this Schedule.
Regulations under paragraph 5(b) or 7(3) may provide for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the regulations.
The provisions of this Schedule are subject to—
In this Schedule—“funded”, in relation to an occupational pension scheme, means that the scheme meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;“public service pension scheme” has the same meaning as in the Pension Schemes Act 1993.
Effect of state scheme pension debits and credits
The Contributions and Benefits Act is amended as follows.
After section 45A there is inserted—
After section 55 there is inserted—
Joint claims for jobseeker’s allowance
Jobseekers Act 1995 (c.18)
The Jobseekers Act 1995 has effect subject to the following amendments.
Section 1 (entitlement to jobseeker’s allowance) is amended as follows.
After subsection (2) insert—
In subsection (4)—
in the definition of “an income-based jobseeker’s allowance”, at the end insert“ or a joint-claim jobseeker’s allowance; ”and
after that definition insert—
In section 2(1) (the contribution-based conditions), for “section 1(2)(d)(i)” substitute “ section 1(2)(d) ”.
In subsection (1) of section 3 (the income-based conditions), for “section 1(2)(d)(ii)” substitute“ section 1(2A)(b) ”.
After that section insert—
Section 4 (amount of jobseeker’s allowance) is amended as follows.
In subsection (3) (amount payable in respect of an income-based jobseeker’s allowance), after “allowance” insert “ (other than a joint-claim jobseeker’s allowance) ”.
After subsection (3) insert—
After subsection (11) insert—
After section 4 insert—
Section 8 (power to make regulations requiring attendance etc.) is amended as follows.
In subsection (1), after “claimant” insert “ (other than a joint-claim couple claiming a joint-claim jobseeker’s allowance) ”.
After subsection (1) insert—
In subsection (2), after “Regulations under subsection (1)” insert “ or (1A) ”.
In subsection (2)(a) (cases where entitlement to allowance may cease on account of non-compliance), after “in the case of a claimant who” insert “ , or (as the case may be) a joint-claim couple claiming a joint-claim jobseeker’s allowance a member of which, ”.
In subsection (2)(b) (cases where entitlement to allowance may cease by reference to the time expired since the claimant’s last attendance)—
after “he” insert “ or, as the case may be, a member of the joint-claim couple ”; and
after “subsection (1)(a)” insert “ or (1A)(a) ”.
For paragraph (c) of subsection (2) (provision for entitlement not to cease where good cause shown) substitute—.
In section 9(12) (jobseeker’s agreement ends when allowance ends), at the end insert “ or to a joint-claim couple of which he is a member. ”
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Section 31 (termination of awards where another entitlement exists) is amended as follows.
In subsection (1) (termination of award of income support where there will be an entitlement to a jobseeker’s allowance), after “or where he is a member of a married or unmarried couple his partner” insert “ or the couple ”.
In subsection (2) (termination of award of a jobseeker’s allowance where there will be an entitlement to income support), after “or where he is a member of a married or unmarried couple his partner,” insert “ or where the award was made to a couple a member of the couple, ”.
Section 35 (interpretation) is amended as follows.
In the definition of “claimant”, at the end insert“ except that in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance it means the couple, or each member of the couple, as the context requires; ”.
After the definition of “job-seeking period” insert—.
After the definition of “married couple” insert—.
Schedule 1 (jobseeker’s allowance: supplementary provisions) is amended as follows.
After paragraph 8 (entitlement without satisfying conditions) insert—
In paragraph 9(a) (rate of allowance payable under paragraph 8), after “paragraph 8” insert“ or 8A ”.
After paragraph 9 insert—
For paragraph 10(1) (entitlement before claim determined) substitute—
In paragraph 10(2) (allowance where payment suspended), for “to a claimant even though payment to him” substitute.
In paragraph 10(3) (information to be supplied to obtain payments under sub-paragraph (1) or (2)), after “the claimant” insert“ or (as the case may be) the couple or the member of the couple ”.
Social Security Act 1998 (c.14)
In section 39(1) of the Social Security Act 1998 (interpretation of Chapter II of Part I), after the definition of “appeal tribunal” insert—.
Welfare benefits: minor and consequential amendments
Bereavement benefits
Income and Corporation Taxes Act 1988 (c.1)
Section 617 of the Income and Corporation Taxes Act 1988 (social security benefits and contributions) is amended as follows.
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Omit subsection (6).
Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act has effect subject to the following amendments.
Section 20 (descriptions of contributory benefits) is amended as follows.
In subsection (1)—
in paragraph (e), omit sub-paragraph (i); and
after that paragraph insert—.
In subsection (2), in the definition of “long-term benefit”, after paragraph (b) insert—.
Section 21 (contribution conditions) is amended as follows.
In subsection (2)—
for “Widow’s payment” substitute “ Bereavement payment ”; and
after the entry relating to widowed mother’s allowance insert—
In subsection (4), for “widow’s payment” substitute “ bereavement payment ”.
after “section 39(1)” insert “ or 39C(1) ”; . . .
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In section 48B (Category B retirement pension for widows and widowers), at the end add—
In section 48C(4) (category B retirement pension: general), for “or 48B(2)” substitute “ , 48B(2) or 48BB(5) ”.
Section 60 (complete or partial failure to satisfy contribution conditions) is amended as follows.
In subsection (1), after paragraph (a) insert—.
In subsection (3)—
for paragraph (a) substitute—; and
after paragraph (b) insert—; and
in paragraph (d), after “48B” insert “ or 48BB ”.
In section 61(1) (exclusion of increase of benefit for failure to satisfy contribution condition), after “widowed mother’s allowance” insert “ or widowed parent’s allowance ”.
In section 61A(3) (contributions paid in error)—
at the end of paragraph (b) insert “ (payable by virtue of section 48B or 48BB above) ”; and
after “widow’s pension,” insert—.
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In section 150 (interpretation of provisions relating to Christmas bonus), in subsection (1)(c), after “allowance” insert “ , widowed parent’s allowance ”.
Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.
In paragraph 4(1) (contribution condition for widow’s payment) and in the cross-heading preceding paragraph 4, for “widow’s payment” and “Widow’s payment” substitute “ bereavement payment ” and “ Bereavement payment ” respectively.
In paragraph 5(1) (contribution conditions for widowed mother’s allowance, widow’s pension etc.), after “allowance,” insert “ a widowed parent’s allowance, a bereavement allowance, ”; and in the cross-heading preceding paragraph 5, after “allowance” insert “ , widowed parent’s allowance, bereavement allowance ”.
In paragraph 7(1) and (3) (satisfaction of conditions in early years of contribution), for “widow’s payment” substitute “ bereavement payment ”.
In paragraph 9 (satisfaction of condition where condition for short-term benefit satisfied)—
for “a woman claims a widow’s payment” substitute “ a claim is made for a bereavement payment ”; and
for “widow’s payment” (in the second place where it occurs) substitute “ bereavement payment ”.
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Social Security Administration Act 1992 (c.5)
The Administration Act is amended as follows.
In section 1(2)(a) (entitlement to benefit dependent on claim), for “widow’s payment, she” substitute “ bereavement payment, the person ”.
For section 3 (and the cross-heading preceding it) substitute—
Pension Schemes Act 1993 (c.48)
Section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefit) is amended as follows.
In subsection (1), after “widowed mother’s allowance” insert “ , a widowed parent’s allowance ”.
In subsection (6)(b)(iii), for “or 48B” substitute “ , 48B or 48BB ”.
Pensions Act 1995 (c.26)
Section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses) is amended as follows.
In subsection (4), after “subsections (5)” insert “ , (5A) ”.
After subsection (5) insert—
In subsection (6), for “or 48B(2)” substitute “ , 48B(2) or 48BB(5) ”.
Incapacity
Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act has effect subject to the following amendments.
In section 21 (contribution conditions)—
in subsection (1), after “other than” insert “ short-term incapacity benefit under subsection (1)(b) of section 30A below, ” and for “30A below” substitute “ subsection (5) of that section ”; and
in subsection (2), for “30A” substitute “ 30A(1)(a) ”.
In section 30B (incapacity benefit: rate), at the end add—
Section 171A (test of incapacity for work) is amended as follows.
After subsection (2) insert—
In subsection (3) (requirement to have medical examination), for “a question arises as to” substitute “ it falls to be determined ”.
After subsection (4) add—
In section 171B(1) (the “own occupation test”), for “the test applicable is the own occupation test” substitute “ the own occupation test is applicable in his case. ”
In section 176 (parliamentary control), in subsection (1)(a) (regulations subject to affirmative resolution procedure), after “section 28(3);” insert—.
Abolition of severe disablement allowance
Social Security Contributions and Benefits Act 1992 (c.4)
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Criminal Justice Act 1991 (c.53)
In section 24(4) of the Criminal Justice Act 1991 (recovery of fines etc. by deductions from income support), in the definition of “income support”, for “, retirement pension or severe disablement allowance” substitute “ or retirement pension ”.
Income support
Social Security Contributions and Benefits Act 1992 (c.4)
In section 124(1)(f) of the Contributions and Benefits Act (entitlement to income support conditional on claimant and any partner not being entitled to an income-based jobseeker’s allowance), after “the other member of the couple is not” insert “ , and the couple are not, ”.
Jobseeker’s allowance
Jobseekers Act 1995 (c.18)
The Jobseekers Act 1995 is amended as follows.
In section 4 (amount payable by way of a jobseeker’s allowance), in each of subsections (6) and (8) (amount payable where claimant satisfies the contribution-based, and the income-based, conditions)—
for “satisfies both the contribution-based conditions and the income-based conditions” substitute“ is entitled to both a contribution-based jobseeker’s allowance and an income-based jobseeker’s allowance ”; and
after “the amount payable” insert“ by way of a jobseeker’s allowance ”.
In section 8 (attendance, information and evidence)—
in subsection (1)(a) (power of Secretary of State to specify place and time for claimant to attend), for “the Secretary of State” substitute “ an employment officer ”; and
at the end add—
In section 17(1) (reduction of allowance payable to young persons), for “payable to” substitute “ payable in respect of ”.
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In section 36(1) (orders to be made by statutory instrument unless made under specified provision), after “section” insert “ 8(3), ”.
In paragraph 10(2) of Schedule 1 (allowance payable to claimant even though payment to him has been suspended), for “payable to” there shall be substituted “ payable in respect of ”.
Maternity allowance
Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act has effect subject to the following amendments.
Section 21 (contribution conditions) is amended as follows.
In subsection (1), after “30A below” insert “ , maternity allowance under section 35 below ”.
In subsection (2), omit the entry relating to maternity allowance.
In subsection (4), omit “, other than maternity allowance,”.
In section 176(1)(c) (parliamentary control), after “section 28(2)” insert—.
Retirement pensions
Social Security Contributions and Benefits Act 1992 (c.4)
In section 48A of the Contributions and Benefits Act (category B retirement pension for married person), after subsection (4) insert—
Administration of benefits
In each of the provisions of the Administration Act to which this paragraph applies—
any reference to a person authorised to exercise any function of a relevant authority relating to housing benefit or council tax benefit shall include a reference to a person providing services to a relevant authority which relate to such a benefit; and
any reference to the exercise of any function relating to such a benefit shall include a reference to the provision of any services so relating.
This paragraph applies to the following provisions of the Administration Act—
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sections 122C, 122D and 122E (supply of information in connection with administration of housing benefit or council tax benefit);
section 126A (power to require information from landlords etc. in connection with claims for housing benefit);
section 182B (information about redirection of post); and
Schedule 4 (persons covered by offence relating to unauthorised disclosures).
In this paragraph “relevant authority” means an authority administering housing benefit or council tax benefit.
New threshold for primary Class 1 contributions
New primary threshold
Earnings limits and thresholds for Class 1 contributions
For section 5 of the Contributions and Benefits Act substitute—
Liability for Class 1 contributions
For section 6 of the Contributions and Benefits Act substitute—
Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
After section 6 of the Contributions and Benefits Act insert—
Calculation of primary Class 1 contributions
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Calculation of secondary Class 1 contributions
For section 9 of the Contributions and Benefits Act substitute—
Reduced contributions in respect of members of contracted-out schemes
Reduced rates for members of salary related contracted-out schemes
Section 41 of the Pension Schemes Act 1993 is amended as follows.
In subsection (1), for “(1C)” substitute “ (1E) ”.
For subsections (1A) to (1C) substitute—
Reduced rates for members of money purchase contracted-out schemes
Section 42A of the Pension Schemes Act 1993 is amended as follows.
In subsection (1), for “(3)” substitute “ (2D) and (3) ”.
For subsections (2) to (2B) substitute—
Payments by Inland Revenue out of and into National Insurance Fund
Section 177 of the Pension Schemes Act 1993 is amended as follows.
In subsection (2)(za), for “section 42A(3)” substitute “ section 41(1D) or section 42A(2C) or (3) ”.
In subsection (7)(a), for “42A(5) or” substitute “ 41(1E), 42A(2D) or (5) or ”.
National Health Service allocation
Section 162 of the Administration Act is amended as follows.
In subsection (5)—
in paragraph (a), for “the lower earnings limit” substitute “ the primary threshold ”; and
in paragraph (b), before “earnings” insert “ total ”.
In subsection (6A)—
for “the lower or upper earnings limit” substitute “ the primary threshold or the upper earnings limit ”; and
for “that limit prescribed under section 8(3)” substitute “ that threshold or limit prescribed under section 5(4) ”.
New threshold for primary Class 1 contributions: Northern Ireland
New primary threshold
Earnings limits and thresholds for Class 1 contributions
For section 5 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—
Liability for Class 1 contributions
For section 6 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—
Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit
After section 6 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 insert—
Calculation of primary Class 1 contributions
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Calculation of secondary Class 1 contributions
For section 9 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 substitute—
Reduced contributions in respect of members of contracted-out schemes
Reduced rates for members of salary related contracted-out schemes
Section 37 of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
In subsection (1), for “(1C)” substitute “ (1E) ”.
For subsections (1A) to (1C) substitute—
Reduced rates for members of money purchase contracted-out schemes
Section 38A of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
In subsection (1), for “(3)” substitute “ (2D) and (3) ”.
For subsections (2) to (2B) substitute—
Payments by Inland Revenue out of and into National Insurance Fund
Section 172 of the Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
In subsection (1)(za), for “section 38A(3)” substitute “ section 37(1D) or section 38A(2C) or (3) ”.
In subsection (7), for “section 38A(5) or” substitute “ section 37(1E), 38A(2D) or (5) or ”.
Health Service allocation
Section 142 of the Social Security Administration (Northern Ireland) Act 1992 is amended as follows.
In subsection (5)—
in paragraph (a), for “the lower earnings limit” substitute “ the primary threshold ”; and
in paragraph (b), before “earnings” insert “ total ”.
In subsection (6A)—
for “the lower or upper earnings limit” substitute “ the primary threshold or the upper earnings limit ”; and
for “that limit prescribed under section 8(3)” substitute “ that threshold or limit prescribed under section 5(4) ”.
Contributions and pensions administration
Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act is amended as follows.
In section 2 (categories of earners), for subsection (2A) there is substituted—
In paragraph 8 of Schedule 1 (general regulation-making powers), at the end of sub-paragraph (1A) there is inserted “ acting with the concurrence of the Inland Revenue ”.
Social Security Administration Act 1992 (c.5)
The Administration Act is amended as follows.
In section 116 (legal proceedings), in subsection (5A) for the words from the beginning to “that section” there is substituted “ In relation to proceedings for an offence under section 114 above ”.
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In section 121E (supply of contributions etc. information held by Inland Revenue), in subsection (1) after “statutory maternity pay” there is inserted “ or functions under Part III of the Pensions Act ”.
In section 121F (supply to Inland Revenue for purposes of contributions etc. of information held by Secretary of State), at the end of subsection (2) there is inserted “ or functions under Part III of the Pensions Act ”.
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.
In section 2 (categories of earners), for subsection (2A) there is substituted—
In section 172 (Assembly, etc. control of regulations and orders), in subsection (2)(c) for “, 153(2) or” there is substituted “ or 153(2) ”.
In paragraph 8 of Schedule 1 (general regulation-making powers), at the end of sub-paragraph (1A) there is inserted “ acting with the concurrence of the Inland Revenue ”.
Social Security Administration (Northern Ireland) Act 1992 (c.8)
The Social Security Administration (Northern Ireland) Act 1992 is amended as follows.
In section 110 (legal proceedings), for subsection (5A) there is substituted—
In section 115D (supply of contributions, etc. information held by Inland Revenue), in subsection (1) after “statutory maternity pay” there is inserted “ or functions under Part III of the Pensions Act ”.
In section 115E (supply to Inland Revenue for purposes of contributions etc. of information held by Department or Secretary of State), at the end of subsection (2) there is inserted “ or functions under Part III of the Pensions Act ”.
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In section 145 (adjustments between the Northern Ireland National Insurance Fund and the Consolidated Fund of Northern Ireland)—
in subsection (1)(a), sub-paragraphs (i) and (ii) are omitted; and
in subsection (3)(a), for “subsection (1)(a) and (b)” there is substituted “ subsection (1)(b) ”.
These amendments shall be deemed to have come into force on 5th October 1999 in place of those made by paragraph 34 of Schedule 2 to the Tax Credits Act 1999.
In section 165 (regulations and orders - general), in subsection (9)(c), for “142(7), 145(4)” there is substituted “ 145(4)(a) ”.
This amendment shall be deemed to have come into force on 1st April 1999 in place of that made by paragraph 49(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.
Pension Schemes Act 1993 (c.48)
The Pension Schemes Act 1993 is amended as follows.
In section 40 (scope of Chapter II of Part III), in paragraph (b) for “Secretary of State” there is substituted “ Inland Revenue ”.
In section 170 (decisions and appeals), as amended by section 16(2) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999, in subsection (5)—
for paragraphs (a) and (b) there is substituted—, and
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Pension Schemes (Northern Ireland) Act 1993 (c.49)
The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
In section 154 (disclosure of information between government departments, etc.), in subsection (5) after “Subsections (1) and (1A)” there is inserted “ extend ”.
This amendment shall be deemed to have come into force on 1st April 1999.
In section 165 (decisions and appeals), as amended by Article 15(2) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, in subsection (5)—
for paragraphs (a) and (b) there is substituted—, and
for “such a revision or decision” there is substituted “ a revision under Article 10 or decision under Article 11 ”.
In section 177 (orders and regulations - general provisions), for subsection (7) there is substituted—
This amendment shall be deemed to have come into force on 1st April 1999 in place of those made by paragraph 75(3) of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.
In section 180(2) (consultation about regulations)—
for “the appropriate government department” there is substituted “ the Department or, as the case may be, the Secretary of State ”, and
after “it” there is inserted “ or him ”.
Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2)
The Social Security Contributions (Transfer of Functions, etc.) Act 1999 is amended as follows.
In section 3 (general functions of Inland Revenue), subsection (3)(c) (which excludes the application of section 27 of the Inland Revenue Regulation Act 1890 but has not come into force) is omitted.
In section 4 (recovery of contributions where income tax recovery provisions not applicable)—
in paragraph (a), after “1992” there is inserted “ or paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ”,
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in paragraph (c), for “that Act” there is substituted “ the Social Security Contributions and Benefits Act 1992 or paragraph 7A or 7B of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ”.
In Schedule 1 (transfer of Contributions Agency functions and associated functions), the following provisions are omitted, namely—
paragraph 4(6) (which was superseded by paragraph 4 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999), and
paragraph 66(3) (which has not come into force).
In Schedule 2 (transfer of functions under subordinate legislation), the entry in the third column relating to the Pensions Act 1995 (Commencement No. 10) Order 1997 shall have effect, and be deemed always to have had effect, with the substitution for “Articles 4 and 13” of “In Article 4, paragraph (1), paragraph (2), except so far as relating to section 55(3) of the Pension Schemes Act 1993, to the making of regulations under section 64(1) of that Act and to section 64(3) and (5) to (9) of that Act, and paragraph (3) and Article 13”.
Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671)
In Schedule 2 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (transfer of functions under subordinate legislation), the entry in the third column relating to the Pensions (1995 Order) (Commencement No. 8) Order (Northern Ireland) 1997 shall have effect, and be deemed always to have had effect, with the substitution for “Articles 4 and 13” of “In Article 4, paragraph (1), paragraph (2), except so far as relating to section 51(3) of the Pension Schemes (Northern Ireland) Act 1993 and to the making of regulations under section 60(1) of that Act, and paragraph (3) and Article 13”.
Transfer of certain functions under subordinate legislation: Great Britain
There are hereby transferred to the Commissioners of Inland Revenue—
all functions of the Secretary of State under the Social Security (Contributions) Regulations 1979 which are not transferred to the Commissioners of Inland Revenue by virtue of section 1(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999, except his functions under regulation 44 of those regulations,
the functions of the Secretary of State under those provisions of the Occupational Pension Schemes (Contracting-out) Regulations 1984 (“the 1984 regulations”) which remain in force by virtue of regulation 77(a) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (“the 1996 regulations”), including his functions under the modifications of section 60(4) and (5) of the Pension Schemes Act 1993 made by regulation 23(10)(a)(iii) of the 1984 regulations, but excluding—
his functions under paragraph (2) of regulation 20 of the 1984 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and
his functions under regulations 23(4) and 23A(4) of the 1984 regulations,
the functions of the Secretary of State under regulation 2 of the Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations 1987 (so far as remaining in force by virtue of regulation 77(b) of the 1996 regulations), and
the functions of the Secretary of State under the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations 1987 (“the 1987 regulations”) (so far as remaining in force by virtue of regulation 4(2) of the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997), except—
his functions under paragraph (3) of regulation 5 of the 1987 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and
his functions under regulation 6(4) of the 1987 regulations.
Transfer of certain functions under subordinate legislation: Northern Ireland
There are hereby transferred to the Commissioners of Inland Revenue—
all functions of the Department under the Social Security (Contributions) Regulations (Northern Ireland) 1979 which are not transferred to the Commissioners of Inland Revenue by virtue of Article 3(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, except the functions of the Department under regulation 44 of those regulations,
the functions of the Department under those provisions of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1985 (“the 1985 regulations”) which remain in force by virtue of regulation 78(a) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (“the 1996 regulations”), including its functions under the modifications of section 56(4) and (5) of the Pension Schemes (Northern Ireland) Act 1993 made by regulation 22(10)(a) of the 1985 regulations, but excluding—
its functions under paragraph (2) of regulation 19 of the 1985 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and
its functions under regulations 22(4) and 22A(4) of the 1985 regulations,
the functions of the Department under regulation 2 of the Occupational Pension Schemes (Contracted-out Protected Rights Premiums) Regulations (Northern Ireland) 1987 (so far as remaining in force by virtue of regulation 78(b) of the 1996 regulations), and
the functions of the Department under the Personal Pension Schemes (Personal Pension Protected Rights Premiums) Regulations (Northern Ireland) 1987 (“the 1987 regulations”) (so far as remaining in force by virtue of regulation 4(2) of the Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations (Northern Ireland) 1997), except—
its functions under paragraph (3) of regulation 5 of the 1987 regulations so far as relating to any extension of the period first referred to in that paragraph by more than six months, and
its functions under regulation 6(4) of the 1987 regulations.
In sub-paragraph (1) “the Department” means the Department of Health and Social Services for Northern Ireland.
Savings
Paragraphs 1 and 2 of Schedule 8 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (general provisions relating to transfers of functions) shall have effect as if paragraphs 2, 3, 6, 21 and 35 of this Schedule were provisions of that Act specified in section 21(1) of that Act.
Paragraphs 1 and 2 of Schedule 7 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (general provisions relating to transfers of functions) shall have effect as if paragraphs 10, 12 and 36 of this Schedule were provisions of that Order specified in Article 20(1) of that Order.
Consequential amendments
Amendments consequential on Parts III and IV
Senior Courts Act 1981 (c.54)
In paragraph 3 of Schedule 1 to the Senior Courts Act 1981, after paragraph (f) there is inserted—.
Matrimonial and Family Proceedings Act 1984 (c.42)
The Matrimonial and Family Proceedings Act 1984 is amended as follows.
In section 17, for subsection (1) there is substituted—
In section 21—
the word “made”, in both places, is omitted,
after paragraph (b) there is inserted—, and
at the end there is inserted—
Family Law (Scotland) Act 1985 (c.37)
The Family Law (Scotland) Act 1985 has effect subject to the following amendments.
In section 8, after subsection (3) there is inserted—
After section 8 there is inserted—
Section 10 is amended as follows.
In subsection (5)(b), for “scheme” there is substituted “ arrangement ”.
For subsection (8) there is substituted—
After that subsection there is inserted—
In subsection (9), after “subsection (8) above” there is inserted “ may make different provision for different purposes and ”.
Subsections (10) and (11) cease to have effect.
Section 12A is amended as follows.
In subsection (1)(a), for “scheme” there is substituted “ arrangement ”.
In subsection (2), for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ”.
In subsection (3), in paragraphs (a) and (c) for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ” and in paragraph (a) for “have” there is substituted “ has ”.
In subsection (4)—
for “trustees or managers” there is substituted “ person responsible for the pension arrangement ”, and
for “trustees’ or managers’ liability” there is substituted “ liability of the person responsible for the pension arrangement ”.
In subsection (5), for “trustees or managers” there is substituted “ person responsible for the pension arrangement ”.
In subsection (6)—
for “trustees or managers of”, wherever occurring, there is substituted “ person responsible for ”,
for “scheme”, wherever occurring, there is substituted “ arrangement ”, and
in paragraph (b), for “have” there is substituted “ has ”.
In subsection (7)—
for “trustees or managers” where first occurring there is substituted “ person responsible for the pension arrangement ”,
for “trustees or managers of” there is substituted “ person responsible for ”, and
for “scheme” there is substituted “ arrangement ”.
For subsection (10) there is substituted—
In section 13(2)(b), after “property” there is inserted “ , or a pension sharing order, ”.
Section 16 is amended as follows.
In subsection (2), for paragraph (b) there is substituted—
After that subsection there is inserted—
In section 27(1), the following definitions are inserted at the appropriate places—.
Income and Corporation Taxes Act 1988 (c.1)
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Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act has effect subject to the following amendments.
Section 20 is amended as follows.
In subsection (1), after paragraph (f) there is inserted—.
In subsection (2), in the definition of “long-term benefit”, after paragraph (d) there is inserted—.
In section 21(1), after “41 below” there is inserted “ or a shared additional pension under section 55A below ”.
In section 43, at the end there is inserted—
In section 48A(4), for “45A” there is substituted “ 45B ”.
In section 48B(2) and (3), for “45A” there is substituted “ 45B ”.
In section 48C(4), for “45A” there is substituted “ 45B ”.
In section 54(1), at the end there is inserted “ or to a shared additional pension ”.
Social Security Administration Act 1992 (c.5)
The Administration Act is amended as follows.
In section 150(1)—
after paragraph (c) there is inserted—, and
after paragraph (d) there is inserted—.
Section 155A is amended as follows.
In subsection (1)(a)(i), after “retirement pension” there is inserted “ or shared additional pension ”.
In subsection (2), after “retirement pension” there is inserted “ , a shared additional pension ”.
In section 163(2)—
after paragraph (a) there is inserted—, and
in paragraph (b), for “that Act” there is substituted “ the Contributions and Benefits Act ”.
In section 165(5)(b), after “section 163(2)(a)” there is inserted “ or (aa) ”.
Pension Schemes Act 1993 (c.48)
The Pension Schemes Act 1993 has effect subject to the following amendments.
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Section 83 is amended as follows.
In subsection (1), before “benefits”, in both places, there is inserted “ relevant ”.
After that subsection there is inserted—
At the end there is inserted—
In section 85, after “73(2)(b)” there is inserted “ or 101D(2)(b) ”.
In section 93, after subsection (1) there is inserted—
In section 93A, after subsection (1) there is inserted—
In section 94, after subsection (1A) there is inserted—
In section 96, there is inserted at the end—
Section 98 is amended as follows.
In subsection (5)—
after “part of the” there is inserted “ relevant ”, and
for “any of the benefits mentioned in that section” there is substituted “ benefits ”.
In subsection (8), after “this section” there is inserted—.
Section 100 is amended as follows.
In subsection (1), for “subsection (2)” there is substituted “ subsections (2) and (2A) ”.
After subsection (2) there is inserted—
Section 129 is amended as follows.
In subsection (1), after “Part IV,” there is inserted “ Chapters I and II of Part IVA, ”.
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Section 178 is amended as follows.
In paragraph (a)—
the words “or of” are omitted, and
at the end there is inserted “ , section 25D of the Matrimonial Causes Act 1973, section 12A of the Family Law (Scotland) Act 1985 or Part III or IV of the Welfare Reform and Pensions Act 1999. ”
In paragraph (b), after “Part IV,” there is inserted “ Chapter I of Part IVA, ”.
In section 181(1)—
after the definition of “occupational pension scheme” there is inserted—, and
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In section 183(3), for “and 97(1)” there is substituted “ , 97(1) and 101I ”.
Pensions Act 1995 (c.26)
The Pensions Act 1995 has effect subject to the following amendments.
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Section 38 is amended as follows.
In subsection (1), for the words from “that the scheme” to the end there is substituted—
In subsection (2), the words from “but” to the end are omitted.
After that subsection there is inserted—
In section 51(6), after “a pension” there is inserted “ which is attributable (directly or indirectly) to a pension credit or ”.
In section 53, after subsection (3) there is inserted—
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In section 68(2), for “and” at the end of paragraph (d) there is substituted—.
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In section 74(3)(b), at the end there is inserted “ or pension credit rights ”.
Section 91 is amended as follows.
In subsection (1), for the words from “, or has” to “occupational pension scheme” there is substituted “ to a pension under an occupational pension scheme or has a right to a future pension under such a scheme ”.
In subsection (2), for the words from “, or” to “scheme” there is substituted “ to a pension under an occupational pension scheme, or right to a future pension under such a scheme, ”.
In subsection (5)—
for the words from “, or has” to “scheme” there is substituted “ to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme ”,
in paragraph (d), for “accrued right, to pension” there is substituted “ right, ”, and
in paragraph (e), for “accrued right, to pension” there is substituted “ right ”.
Section 92 is amended as follows.
In subsection (1), for the words from “, or” to “scheme” there is substituted “ to a pension under an occupational pension scheme or a right to a future pension under such a scheme ”.
In subsection (4), for the words from “person entitled” to “accrued” there is substituted “ pensioner, or prospective pensioner ”.
Section 93 is amended as follows.
In subsection (1), for the words from “, or” to “scheme” there is substituted “ to a pension under an occupational pension scheme or right to a future pension under such a scheme ”.
In subsection (2)—
for “accrued right to a pension” there is substituted “ right ”, and
for “accrued right to a pension under the scheme” there is substituted “ right ”.
In subsection (4), for “accrued right to a pension” there is substituted “ right ”.
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Section 124 is amended as follows.
In subsection (1), in the definition of “member”, for “or pensioner” there is substituted “ , pensioner or pension credit ”.
In that subsection, after the definition of “payment schedule” there is inserted—.
After subsection (2) there is inserted—
Section 166 is amended as follows.
In subsection (4), for “scheme” there is substituted “ arrangement ”.
In subsection (5)(d), for “scheme” there is substituted “ arrangement ”.
In section 167(4)—
for “scheme”, where first occurring, there is substituted “ arrangement ”, and
Family Law Act 1996 (c.27)
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Other consequential amendments
Bankruptcy (Scotland) Act 1985 (c.66)
The Bankruptcy (Scotland) Act 1985 has effect subject to the following amendments.
After section 36C there is inserted—
Insolvency Act 1986 (c.45)
The Insolvency Act 1986 is amended as follows.
After section 342C there is inserted—
In section 384(1) (meaning of “prescribed” in the second Group of Parts), after “Subject to the next subsection” insert “ and sections 342C(7) and 342F(9) in Chapter V of Part IX ”.
Income and Corporation Taxes Act 1988 (c.1)
The Income and Corporation Taxes Act 1988 is amended as follows.
In section 172(3) (exceptions from tax), for “earnings threshold” substitute “ secondary threshold ”.
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Social Security Contributions and Benefits Act 1992 (c.4)
The Contributions and Benefits Act has effect subject to the following amendments.
Section 122(1) (interpretation of Parts I to VI etc.) is amended as follows.
In the definition of “current”, after “limits” insert “ and primary and secondary thresholds ”.
In the definition beginning with “lower earnings limit”—
for “and “earnings threshold”” substitute “primary threshold” and “secondary threshold”; and
for “the earnings” substitute “ the primary or secondary ”.
Paragraph 1 of Schedule 1 (supplementary provisions relating to contributions) is amended in accordance with sub-paragraphs (2) to (5).
For “earnings threshold” (wherever occurring) substitute “ secondary threshold ”.
For “lower earnings limit” (wherever occurring) substitute “ primary threshold ”.
Omit sub-paragraphs (4) and (5).
After sub-paragraph (9) add—
In paragraph 6 of that Schedule—
in sub-paragraph (5), for “section 159A” substitute “ section 4A, 159A ”; and
in sub-paragraph (6), after “relating” insert “ to relevant payments or benefits within the meaning of section 4A above or (as the case may be) ”.
Social Security Administration Act 1992 (c.5)
The Administration Act has effect subject to the following amendments.
After section 140E insert—
In section 170(5) (enactments conferring functions in respect of which Social Security Advisory Committee is to advise)—
in the definition of “the relevant enactments”, after paragraph (ad) insert—; and
in the definition of “the relevant Northern Ireland enactments”, after paragraph (ad) insert—.
In section 189 (regulations and orders—general), after subsection (7) insert—
In section 190 (Parliamentary control of orders and regulations), in subsection (1) (instruments subject to the affirmative procedure), before the “or” at the end of paragraph (a) insert—.
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c.7)
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 has effect subject to the following amendments.
Section 121(1) (interpretation of Parts I to VI etc.) is amended as follows.
In the definition of “current”, after “limits” insert “ and primary and secondary thresholds ”.
In the definition beginning with “lower earnings limit”—
for “and “earnings threshold”” substitute “primary threshold” and “secondary threshold”; and
for “the earnings” substitute “ the primary or secondary ”.
Paragraph 1 of Schedule 1 (supplementary provisions relating to contributions) is amended in accordance with sub-paragraphs (2) to (5).
For “earnings threshold” (wherever occurring) substitute “ secondary threshold ”.
For “lower earnings limit” (wherever occurring) substitute “ primary threshold ”.
Omit sub-paragraphs (4) and (5).
After sub-paragraph (9) add—
In paragraph 6 of that Schedule—
in sub-paragraph (5), for “section 155A” substitute “ section 4A, 155A ”; and
in sub-paragraph (6), after “relating” insert “ to relevant payments or benefits within the meaning of section 4A above or (as the case may be) ”.
Social Security Act 1998 (c.14)
In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal lies), after paragraph 5 insert—
Repeals
Pensions: miscellaneous
Pensions on divorce etc
Pension sharing
Abolition of severe disablement allowance
Benefits: miscellaneous
National Insurance contributions etc
National Insurance contributions etc: Northern Ireland