(2) In the table in subsection (2) omit the entries for bereavement payment and
bereavement allowance.

(3) Omit subsection (4).

5 In section 22 (earnings factors), in subsection (2), after paragraph (c)
5(inserted by Schedule 12 to this Act) insert “and

(d) establishing entitlement to bereavement support payment
under section 27 of the Pensions Act 2013.”

6 (1) Section 23A (contributions credits for relevant parents and carers) is
amended as follows.

(2) 10In subsection (1) omit paragraph (e).

(3) In subsection (6)(b) omit “or (e)”.

7 For the italic heading above section 36 substitute “Bereavement benefits:
deaths before the day on which section 27 of the Pensions Act 2013 comes
into force”.

8 15Section 36 (bereavement payment) is repealed.

9 Section 36A (cases in which sections 37 to 41 apply) is repealed.

10 (1) Section 37 (widowed mother’s allowance) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies only in cases where a woman’s husband has
20died before 9 April 2001.”

(3) At the end of the heading insert “: deaths before 9 April 2001”.

11 (1) Section 38 (widow’s pension) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies only in cases where a woman’s husband has
25died before 9 April 2001.”

(3) At the end of the heading insert “: deaths before 9 April 2001”.

12 In section 39A (widowed parent’s allowance), for subsection (1) substitute—

“(1) This section applies where—

(a) a person’s spouse or civil partner has died before the day on
30which section 27 of the Pensions Act 2013 comes into force
(but see subsection (1A)),

(b) the person has not married or formed a civil partnership after
the death but before that day, and

(c) the person is under pensionable age on that day.

(1A) 35This section does not apply in cases where a woman’s husband has
died before 9 April 2001.”

13 Section 39B (bereavement allowance where no dependent children) is
repealed.

14 (1) Section 39C (rate of widowed parent’s allowance and bereavement
40allowance) is amended as follows.

(2) Omit subsection (2).

(3) Omit subsection (5).

(4) In the heading omit “and bereavement allowance”.

15 In section 48B (Category B retirement pension for widows and widowers),
5in subsection (8), for “the appointed day (as defined by section 36A(3))”
substitute “9 April 2001”.

16 In section 48BB (Category B retirement pension: entitlement by reference to
benefits under section 39A or 39B), in subsection (3)(a)(i), after “bereavement
allowance” insert “under section 39B (before that section was repealed)”.

17 (1) 10Section 60 (complete or partial failure to satisfy contribution condition) is
amended as follows.

(2) In subsection (1) omit paragraph (ab).

(3) In subsection (3) omit paragraphs (a) and (bb).

18 (1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as
15follows.

(2) Omit paragraph 4 and the italic heading above it.

(3) Omit paragraphs 7 and 9.

19 In Schedule 4 (rates of benefits etc) omit Part 2.

Social Security Administration Act 1992 (c. 5)Social Security Administration Act 1992 (c. 5)

20 20The Social Security Administration Act 1992 is amended as follows.

21 (1) Section 1 (entitlement to benefit dependent on claim) is amended as follows.

(2) For subsection (2) substitute—

“(2) Where under subsection (1) a person is required to make a claim or
to be treated as making a claim for a benefit in order to be entitled to
25it, the person is not entitled to it in respect of any period more than
12 months before the date on which the claim is made or treated as
made.

(2A) But subsection (2) does not apply—

(a) to disablement benefit or reduced earnings allowance, or

(b) 30in a case where a claim for the benefit is made or treated as
made by virtue of section 3(2).”

(3) In subsection (4), after paragraph (zb) (inserted by Schedule 12 to this Act)
insert—

“(zc) bereavement support payment under section 27 of the
35Pensions Act 2013;”.

22 In section 2A (claim or full entitlement to certain benefits conditional on
work-focused interview), in subsection (2)(d), omit “(other than a
bereavement payment)”.

23 (1) Section 3 (late claims for bereavement benefit where death is difficult to
40establish) is amended as follows.

(2) Subsection (3) is repealed.

(3) After subsection (4) insert—

“(5) In subsection (2) “bereavement benefit” means—

(a) bereavement support payment, or

(b) 5widowed parent’s allowance.”

24 In section 5 (regulations about claims for and payments of benefits), in
subsection (2), after paragraph (zb) (inserted by Schedule 12 to this Act)
insert—

“(zc) bereavement support payment under section 27 of the
10Pensions Act 2013;”.

25 In section 71 (overpayments - general), in subsection (11), after paragraph
(ad) insert—

“(ae) bereavement support payment under section 27 of the
Pensions Act 2013;”.

26 15In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hl) (inserted by Schedule 12 to this Act) insert—

“(hm) sections 27 and 28 of the Pensions Act 2013;”.

27 In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “, Part 1 of the
20Pensions Act 2013” (inserted by Schedule 12 to this Act) insert “, section 27
of that Act”.

28 In section 124 (age, death and marriage), in subsection (1), after
paragraph (af) (inserted by Schedule 12 to this Act) insert—

“(ag) of section 27 of the Pensions Act 2013; and”.

29 25In section 125 (regulations as to notification of deaths), in subsection (1),
after “, Part 1 of the Pensions Act 2013” (inserted by Schedule 12 to this Act)
insert “, section 27 of that Act”.

30 In section 150 (annual up-rating of benefits), in subsection (1), after
paragraph (p) (inserted by Schedule 12 to this Act) insert—

“(q) 30specified in regulations under section 27 of the Pensions Act
2013 (bereavement support payment).”

31 (1) Section 163 (general financial arrangements) is amended as follows.

(2) In subsection (1), after paragraph (za) (inserted by Schedule 12 to this Act)
insert—

“(zb) 35bereavement support payment under section 27 of the
Pensions Act 2013;”.

(3) In subsection (2)(a), after “, Part 1 of the Pensions Act 2013” (inserted by Schedule
12 to this Act) insert “, section 27 of that Act”.

(4) In subsection (3)(b), after “or Part 1 of the Pensions Act 2013” (inserted by
40Schedule 12 to this Act) insert “or section 27 of that Act”.

32 In section 170 (Social Security Advisory Committee), in subsection (5)—

(a) in the definition of “the relevant enactments”, after paragraph (am)
(inserted by Schedule 12 to this Act) insert—

• “(an)

  section 27 of the Pensions Act 2013;”;

(b) in the definition of “the relevant Northern Ireland enactments”, after
paragraph (am) (inserted by Schedule 12 to this Act) insert—

• “(an)

  any provisions in Northern Ireland which
  correspond to section 27 of the Pensions Act
  52013;”.

33 (1) Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “Pensions Act 2013” (inserted by Schedule 12 to
this Act) insert “, section 27 or 28 of that Act”.

(3) In subsection (4), after paragraph (ai) (inserted by Schedule 12 to this Act)
10insert—

“(aj) to section 27 or 28 of the Pensions Act 2013;”.

(4) In subsection (5)—

(a) after “Pensions Act 2013” (inserted by Schedule 12 to this Act) insert
“or section 27 of that Act”;

(b) 15after paragraph (ad) (inserted by Schedule 12 to this Act) insert—

“(ae) bereavement support payment;”.

34 In section 187 (inalienability), in subsection (1), after paragraph (ad) insert—

“(ae) bereavement support payment under section 27 of the
Pensions Act 2013;”.

35 20In section 191 (interpretation), in the definition of “benefit”, for “and
personal independence payment” substitute “, personal independence
payment and bereavement support payment under section 27 of the
Pensions Act 2013”.

Social Security Act 1993 (c. 3)Social Security Act 1993 (c. 3)

36 25In section 2 of the Social Security Act 1993 (payments into National Insurance
Fund out of money provided by Parliament), in subsection (4)(a), after “(za),”
(inserted by Schedule 12 to this Act) insert “(zb),”.

Social Security Act 1998 (c. 14)Social Security Act 1998 (c. 14)

37 The Social Security Act 1998 is amended as follows.

38 30In section 2 (use of computers), in subsection (2), after paragraph (m)
(inserted by Schedule 12 to this Act) insert “or

(n) section 27 of the Pensions Act 2013;”.

39 (1) Section 8 (decisions by Secretary of State) is amended as follows.

(2) In subsection (3), after paragraph (ab) (inserted by Schedule 12 to this Act)
35insert—

“(ac) bereavement support payment under section 27 of the
Pensions Act 2013;”.

(3) In subsection (4), after “Part 1 of the Pensions Act 2013” (inserted by
Schedule 12 to this Act) insert “or section 27 of that Act”.

40 40In section 11 (regulations with respect to decisions), in subsection (3), in the
definition of “the current legislation”, after “Part 1 of the Pensions Act 2013”
(inserted by Schedule 12 to this Act) insert “and section 27 of that Act”.

41 In section 27 (restriction on entitlement in cases of error), in subsection (7),
in the definition of “benefit”—

(a) after paragraph (df) insert—

“(dg) bereavement support payment under section 27 of the
5Pensions Act 2013;”;

(b) in paragraph (e), for “to (df)” substitute “to (dg)”.

42 In section 28 (correction of errors in decisions etc), in subsection (3)(j), after
“Part 1 of the Pensions Act 2013” (inserted by Schedule 12 to this Act) insert
“or section 27 of that Act”.

10Social Security Fraud Act 2001 (c. 11)Social Security Fraud Act 2001 (c. 11)

43 The Social Security Fraud Act 2001 is amended as follows.

44 In section 6A (definitions), in subsection (1), in the definition of
“disqualifying benefit”, after paragraph (ca) insert—

“(cb) bereavement support payment under section 27 of the
15Pensions Act 2013 or under any provision in Northern
Ireland which corresponds to that section;”.

45 In section 10 (power to supplement and mitigate loss of benefit provisions),
in subsection (3), after paragraph (bf) (inserted by Schedule 12 to this Act)
insert—

“(bg) 20bereavement support payment under section 27 of the
Pensions Act 2013 or under any provision in Northern
Ireland which corresponds to that section;”.

Income Tax (Earnings and Pensions) Act 2003 (c. 1)2003 (c. 1)

46 The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

47 25In section 660 (taxable benefits: UK benefits - Table A), in the table in
subsection (1), in the entry relating to bereavement allowance, omit the
words “SSCBA 1992 Section 39B” (in the second column).

48 In section 677 (UK social security benefits wholly exempt from tax), in Part 1
of Table B in subsection (1), in the entry relating to bereavement payments,
30omit the words “SSCBA 1992 Section 36” (in the second column).

Section 29

SCHEDULE 16 Automatic transfer of pension benefits etc

Part 1 Automatic transfer of pension benefits

35Regulations providing for transfer of cash equivalent of transferable benefits

1 (1) The Secretary of State must make regulations with a view to ensuring that,
where a qualifying member of an automatic transfer scheme has transferable
benefits under another pension scheme, the cash equivalent of the
transferable benefits—

(a) is transferred to the automatic transfer scheme, and

(b) is used to provide rights for the member under it.

(2) In this Schedule “automatic transfer scheme” means—

(a) a work-based pension scheme, other than a scheme of a prescribed
5description, which is registered under Chapter 2 of Part 4 of the
Finance Act 2004 and is a money purchase scheme, or

(b) a pension scheme of a prescribed description.

(3) In this Schedule “qualifying member”, in relation to an automatic transfer
scheme, means an active member of the scheme of a prescribed description.

(4) 10For the purposes of this Schedule a person has transferable benefits under a
pension scheme if—

(a) the scheme is a transferable benefits scheme,

(b) the person is a member of the scheme,

(c) contributions to the scheme by, or on behalf or in respect of, the
15member have ceased,

(d) the member has accrued rights to benefits under the applicable rules,

(e) all of those rights accrued on or after the prescribed date (which may
be a date before the coming into force of this paragraph),

(f) the cash equivalent of those benefits is less than the prescribed
20amount (but not nil), and

(g) any other prescribed conditions are met.

(5) In this Schedule “transferable benefits scheme” means—

(a) a work-based pension scheme, other than a scheme of a prescribed
description, which is registered under Chapter 2 of Part 4 of the
25Finance Act 2004 and is a money purchase scheme, or

(b) a pension scheme of a prescribed description.

(6) In sub-paragraph (4)—

• “the applicable rules”—

  (a)

  in relation to an occupational pension scheme, has the
  30meaning given by section 94(2) of the Pension Schemes Act
  1993;

  (b)

  in relation to a personal pension scheme, means the rules of
  the scheme;

• “benefits” means—

  (a)

  35money purchase benefits other than money purchase benefits
  of a prescribed description, or

  (b)

  benefits of a prescribed description.

Automatic transfer scheme to find out whether members have transferable benefits

2 (1) The regulations must require the trustees or managers of an automatic
40transfer scheme to take steps to find out whether a qualifying member of the
scheme has transferable benefits under another pension scheme.

(2) The regulations may make provision—

(a) about when a step is to be taken (for example, within a prescribed
period after a person becomes a qualifying member or at prescribed
45intervals);

(b) for the steps to be taken at any particular time to relate to a particular
qualifying member, or to some or all qualifying members.

Automatic transfer scheme to request transfer of cash equivalent

3 (1) The regulations must require the trustees or managers of an automatic
5transfer scheme to give a transfer notice if—

(a) they find out that a qualifying member of the scheme has
transferable benefits under another pension scheme, and

(b) any other prescribed conditions are met.

(2) A “transfer notice” is a notice given to the trustees or managers of the other
10pension scheme requesting the transfer of the cash equivalent of the
transferable benefits to the automatic transfer scheme.

(3) The conditions that may be prescribed because of sub-paragraph (1)(b)
include a condition that the trustees or managers must not give a transfer
notice unless the qualifying member consents in accordance with the
15regulations.

Right to opt out of automatic transfer

4 (1) If the regulations do not include the condition mentioned in paragraph 3(3),
they must ensure that where the duty to give a transfer notice has arisen in
relation to transferable benefits of a qualifying member of an automatic
20transfer scheme, the member can opt out of the transfer in accordance with
the regulations.

(2) The regulations must provide that, where the member does opt out—

(a) the duty to give the transfer notice is not to be complied with, and

(b) the cash equivalent of the member’s transferable benefits is not to be
25transferred.

Information to be given to qualifying members of automatic transfer schemes

5 (1) The regulations must require a prescribed person to give information to a
qualifying member of an automatic transfer scheme who has transferable
benefits under another scheme for the purpose of helping the member to
30decide whether (as applicable)—

(a) to consent to the giving of a transfer notice in relation to the
transferable benefits, or

(b) to opt out of the transfer of the cash equivalent of the transferable
benefits.

(2) 35The information to be given—

(a) must include information about the effect of the regulations, and in
particular the member’s power to consent or right to opt out (as
applicable);

(b) may include other information, for example information about the
40schemes.

Transferable benefits scheme to comply with request

6 (1) The regulations must require the trustees or managers of a pension scheme
who receive a transfer notice requesting the transfer of the cash equivalent

of a person’s transferable benefits to do what is needed to carry out the
request.

(2) The regulations may in particular—

(a) require the trustees or managers of the scheme to take particular
5steps to carry out the request;

(b) provide for the discharge, in prescribed circumstances, of any
obligation to provide the transferable benefits.

(3) The regulations may provide for circumstances in which the duty to carry
out the request does not apply.

10Automatic transfer scheme to use cash equivalent to provide rights under the scheme

7 (1) The regulations must require the trustees or managers of an automatic
transfer scheme to whom the cash equivalent of a person’s transferable
benefits is transferred to use the cash equivalent to provide rights for the
person under the scheme.

(2) 15The regulations may make provision about how that is to be done and in
particular about—

(a) the nature and value of the rights to be provided;

(b) calculating and verifying the value of the rights to be provided.

Cash equivalents: calculation and verification

8 (1) 20The regulations may provide for the manner in which cash equivalents are
to be calculated and verified.

(2) The regulations may in particular—

(a) provide that a cash equivalent is to be increased or reduced in
prescribed circumstances;

(b) 25make provision about the time by reference to which a cash
equivalent is to be calculated for the purposes of a provision of the
regulations.

(3) Regulations made because of sub-paragraph (2)(a) may provide for a cash
equivalent to be reduced to nil.

30Disclosure of information and establishment of database

9 (1) The regulations must make provision about disclosure of information.

(2) The regulations may in particular require a person to disclose information to
another person—

(a) for the purposes of helping a person to comply with a duty imposed
35on the person by the regulations, or

(b) otherwise for the purposes of a provision of the regulations.

(3) The regulations may require the Secretary of State or the Regulator to establish and
operate a database containing information relating to people who have or had
transferable benefits for the purposes of helping the trustees or managers of an
40automatic transfer scheme to comply with their duties under the regulations.

Compliance

10 (1) The regulations may make provision with a view to ensuring compliance
with any provision of the regulations.

(2) For this purpose the regulations may in particular—

(a) 5provide for the Regulator to issue a notice (a “compliance notice”) to
a person with a view to ensuring the person’s compliance with a
provision of the regulations;

(b) provide for the Regulator to issue a notice (a “third party compliance
notice”) to a person with a view to ensuring another person’s
10compliance with a provision of the regulations;

(c) provide for the Regulator to issue a notice (a “penalty notice”)
imposing a penalty on a person where the Regulator is of the opinion
that the person has failed to comply with a compliance notice or third
party compliance notice or has contravened a provision of the
15regulations;

(d) provide for the making of a reference to the First-tier Tribunal or
Upper Tribunal in respect of the issue of a penalty notice or the
amount of a penalty;

(e) confer other functions on the Regulator.

(3) 20The regulations may make provision for determining the amount, or the
maximum amount, of a penalty in respect of a failure or contravention.

(4) But the amount of a penalty imposed under the regulations in respect of a
failure or contravention must not exceed—

(a) £5,000, in the case of an individual, and

(b) 25£50,000, in any other case.

Record keeping

11 (1) The regulations may require any person—

(a) to make records;

(b) to preserve records for a prescribed period;

(c) 30to provide records to the Regulator on request.

(2) The regulations may provide that section 10 of the Pensions Act 1995 (civil
penalties) applies to a person who fails to comply with those requirements.

Automatic transfer schemes: quality requirements and administration charges

12 (1) The regulations may impose requirements that must be satisfied by any
35automatic transfer scheme.

(2) The requirements may in particular relate to—

(a) the governance of the scheme;

(b) the administration of the scheme.

(3) The regulations may make provision limiting or prohibiting any
40administration charge that may otherwise be imposed on a member of an
automatic transfer scheme.

(4) Regulations made because of sub-paragraph (3)—

(a) may make provision for the manner of, and criteria for, determining
whether an administration charge exceeds any limit or is prohibited;

(b) may provide for the determination to be made in accordance with
guidance issued from time to time by the Secretary of State.

(5) 5The requirements that may be imposed, and the charges that may be limited
or prohibited, because of this paragraph need not relate to things done
under the regulations.

Transferable benefits schemes: administration charges

13 (1) The regulations may make provision limiting or prohibiting a relevant
10administration charge that may otherwise be imposed on a member of a
transferable benefits scheme.

(2) For this purpose an administration charge is “relevant” to the extent that it
is imposed in respect of, or in connection with, anything done in compliance
with a provision of the regulations.

15Further provision about the regulations

14 The regulations may—

(a) impose or confer other functions on the trustees or managers of an
automatic transfer scheme or transferable benefits scheme;

(b) confer a discretion on a person.

20
Review of limit on value of cash equivalent

15 (1) The regulations must require the Secretary of State to review from time to
time the amount for the time being prescribed under paragraph 1(4)(f).

(2) The regulations must provide—

(a) 25for the first review to be conducted no later than 5 years after the date
on which regulations under this Schedule first come into force;

(b) for subsequent reviews to be conducted no later than 5 years after the
previous review.

(3) The regulations must require the Secretary of State, in conducting a review,
30to have regard to—

(a) changes in the general level of prices in Great Britain;

(b) changes in the general level of earnings in Great Britain;

(c) any other factors the Secretary of State considers relevant.

(4) The regulations must authorise the Secretary of State to estimate the general
35level of prices or earnings for the purposes of the review in the manner the
Secretary of State thinks fit.

Part 2 Merger of pension accounts

16 (1) The Secretary of State may by regulations make provision for the purposes
40of requiring dormant pension accounts of a qualifying member of an