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Pensions BillPage 60

(a) in a case where the deceased civil partner attained
pensionable age before 6 April 2010, the conditions in
paragraph 5 of Schedule 3, and

(b)
in a case where the deceased civil partner attained
5pensionable age on or after 6 April 2010, the condition in
paragraph 5A of Schedule 3.

(6) The weekly rate of a person’s Category B retirement pension under
this section is to be determined in accordance with sections 44 to
45AA and Schedule 4A as they apply in the case of a Category A
10retirement pension taking references in those sections to the
pensioner as references to the spouse or deceased civil partner.

(7) But in the case of—

(a) a man whose wife dies after 5 October 2002,

(b) a surviving party to a marriage of a same sex couple, or

(c) 15a surviving civil partner,

any amount of additional pension falling to be calculated under
subsection (6) is to be halved.

(8) For the purposes of any provision of this Act as it applies in relation
to this section, no account is to be taken of any earnings factors of the
20spouse or deceased civil partner for the tax year beginning with 6
April 2016 or any later tax year.

(9) Subject to the provisions of this Act, a person becomes entitled to a
Category B retirement pension under this section on the day on
which the conditions of entitlement become satisfied and the
25entitlement continues throughout the person’s life.

(10) Section 51ZA contains special rules for cases involving changes in
gender.

58 After section 51 insert—

51ZA Special provision for married person whose spouse changed gender

(1) 30Section 48A(2)(b) does not prevent a woman from being entitled to a
Category B retirement pension under that section in a case where—

(a) her spouse is a woman by virtue of a full gender recognition
certificate having been issued under the Gender Recognition
Act 2004, and

(b) 35the marriage subsisted before the time when that certificate
was issued.

(2) Section 48AA(2)(b) does not prevent a woman from being entitled to
a Category B retirement pension under that section in a case where—

(a) her former spouse was, at the time the marriage was
40dissolved, a woman by virtue of a full gender recognition
certificate having been issued under the Gender Recognition
Act 2004, and

(b) the marriage subsisted before the time when that certificate
was issued.

(3) 45Section 48B(1ZA)(b) does not prevent a woman from being entitled
to a Category B retirement pension under that section in a case
where—

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(a) her dead spouse was, at the time of death, a woman by virtue
of a full gender recognition certificate having been issued
under the Gender Recognition Act 2004, and

(b) the marriage subsisted before the time when that certificate
5was issued,

and in such a case the reference in section 48B(1ZB)(a)(ii) to the
spouse having attained pensionable age before 6 April 2010 is to be
read as a reference to the spouse having been born before 6 April
1945.

(4) 10Section 51(1) does not confer a right to a Category B retirement
pension on a woman if—

(a) her dead spouse was, at the time of death, a woman by virtue
of a full gender recognition certificate having been issued
under the Gender Recognition Act 2004, and

(b) 15the marriage subsisted before the time when that certificate
was issued.

59 In section 52(3) (special provision for surviving spouses) for “prescribed
maximum” substitute “maximum amount specified in regulations”.

60 (1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as
20follows.

(2) In paragraph 5, for sub-paragraph (1) substitute—

(1) This paragraph sets out the contribution conditions for—

(a) a widowed mother’s allowance, a widowed parent’s
allowance or a widow’s pension;

(b) 25a Category A retirement pension (other than one in
relation to which paragraph 5A applies);

(c) a Category B retirement pension in the cases provided for
by any of sections 48A to 51ZA.

(3) In paragraph 5A(1), for paragraphs (b) and (c) substitute—

(b) 30a Category B retirement pension in the cases provided for
by any of sections 48A to 51ZA.

61 In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for
“section 48A(3)” substitute “section 48A(4) or 48AA(4)”.

62 In Schedule 4A (additional pension: accrual rates for purposes of
35section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).

63 In section 150 of the Administration Act (annual up-rating of benefits), in
subsection (1), after paragraph (ab) insert—

(ac) specified in regulations under section 52(3) of that Act;.

64 In section 46 of the Pension Schemes Act 1993 (effect of entitlement to
40guaranteed minimum pensions on payment of social security benefits), in
subsection (6)(b)(iii), omit “48A,”.

65 In section 128 of the Pensions Act 1995 (additional pension: calculation of
surpluses), in subsection (6), omit “48A,”.

66 In Schedule 4 to the Pensions Act 1995 (equalisation of, and increase in,
45pensionable age for men and women), omit paragraph 3(2) and (3).

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67 In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United
Kingdom social security pensions), in the definition of “state pension” in
subsection (2)—

(a) in paragraph (a), after “48A,” insert “48AA,”;

(b) 5in paragraph (b), after “1992” insert “or any provision under the law
of Northern Ireland that corresponds to section 48AA of SSCBA
1992”.

68 In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 25(6)
and 28(6).

69 10In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in
paragraph 8(1)(a) and (3), after “48A,” insert “48AA,”.

Category C retirement pensions: repeal of spent provisions

70 The Contributions and Benefits Act is amended as follows.

71 In section 63(f)(i) (descriptions of non-contributory benefits), for the words
15from “payable” to “widows” substitute “payable in certain cases to a widow
whose husband was over pensionable age on 5 July 1948 or to a woman
whose marriage to a husband who was over pensionable age on that date
was terminated otherwise than by his death”.

72 (1) Section 78 (Category C retirement pensions etc) is amended as follows.

(2) 20Omit subsections (1), (2) and (5).

(3) In subsections (7) and (8), omit “Category C or”.

73 In Part 3 of Schedule 4 —

(a) omit paragraph 6 (rate of Category C retirement pension);

(b) in paragraph 7 (rate of Category D retirement pension), for the text
25in the second column substitute the amount specified in paragraph 6
as the higher rate for a Category C retirement pension immediately
before 6 April 2016.

74 In section 150A of the Administration Act (annual up-rating), in
subsection (10), in the definition of “the specified amounts in the case of
30Category B, C or D retirement pensions”—

(a) in paragraph (a), omit the final “and”;

(b) in paragraph (b), for “amounts specified in paragraphs 6 and 7”
substitute “amount specified in paragraph 7”;

(c) at the end of paragraph (b) insert , and

75 In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions)
omit paragraph 11 and the heading above it.

40Category D retirement pensions

76 In section 78(3) of the Contributions and Benefits Act (entitlement to a
Category D retirement pension), for “and satisfies” substitute “, who reached
pensionable age before 6 April 2016 and who satisfies”.

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Age addition

77 In sections 63(g) and 79(1) of the Contributions and Benefits Act (age
addition), after “retirement pension of any category” insert “under this Act”.

Christmas bonus

78 5In section 150(2) of the Contributions and Benefits Act (Christmas bonus:
interpretation), for the definition of “retirement pension” substitute—

Transition: same sex marriages

79 (1) If marriage of same sex couples is not lawful under the law of Scotland when
the amendments made by this Part of this Schedule come into force then,
under the law of Scotland, references in the amendments to a married
15person do not include a person married to someone of the same sex; and
related expressions (such as “spouse”) are to be read accordingly.

(2) See also Part 1 of Schedule 2 to the Marriage (Same Sex Couples) Act 2013
(power to provide for English and Welsh marriages of same sex couples to
be treated in Scotland as civil partnerships).

20Part 3 Amendments to do with state pension credit

80 The State Pension Credit Act 2002 is amended as follows.

81 In section 3 (savings credit), for subsection (1) substitute—

(1) The first of the conditions mentioned in section 1(2)(c)(ii) is that the
25claimant—

(a) has attained pensionable age before 6 April 2016 and has
attained the age of 65 (before, on or after that date), or

(b) is a member of a couple, the other member of which falls
within paragraph (a).

82 30After that section insert—

3ZA Power to limit savings credit for certain mixed-age couples

(1) Regulations may provide that, in prescribed cases, a person who is a
member of a mixed-age couple is not entitled to a savings credit.

(2) For example, the regulations could provide that a member of
35a mixed-age couple is not entitled to a savings credit unless—

(a) the person has been awarded a savings credit with effect
from a day before 6 April 2016 and was entitled to a savings
credit immediately before that date, and

(b) the person remained entitled to state pension credit at all
40times since the beginning of 6 April 2016.

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(3) In this section “mixed-age couple” means a couple (whenever
formed) one member of which had attained pensionable age before
6 April 2016 and the other had not.

83 In Schedule 1 to the Pensions Act 2007, omit paragraph 44.

5Part 4 Other amendments to do with Part 1

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

84 The Contributions and Benefits Act is amended as follows.

85 (1) Section 39C (rate of widowed parent’s allowance and bereavement
10allowance) is amended as follows.

(2) In subsection (1), for the words from “45AA” to “as they apply” substitute
“45AA and Schedules 4A and 4B below as they apply”.

(3) In subsection (3), for the words from “45AA” to “by virtue of subsection (1)
above” substitute “45AA and Schedules 4A and 4B below by virtue of
15subsection (1) above”.

(4) In subsection (4), for the words from “45AA” to “below” substitute “45AA
and Schedules 4A and 4B below”.

86 (1) Schedule 5 (pension increase or lump sum where entitlement to retirement
pension is deferred) is amended as follows.

(2) 20In the following provisions omit “(as those provisions have effect by virtue
of section 2(7) of the Pensions Act 2011)”—

(3) After paragraph 7 insert—

7ZA (1) 25This paragraph modifies paragraphs 5A to 6A in cases where—

(a) W became entitled to a Category A or Category B
retirement pension before 6 April 2012, and

(b) S died before 6 April 2012.

(“W” and “S” have the same meaning as in paragraph 5.)

(2) 30Paragraph 5A applies as if—

(a) in sub-paragraph (2), after paragraph (a), there were
inserted—

(b) the appropriate amount; and;

(b) in sub-paragraph (3), after “following—”, there were
35inserted—

(a) one half of the appropriate amount; and.

(3) Paragraph 6 applies as if—

(a) in sub-paragraph (2), after paragraph (a), there were
inserted—

(b) 40the appropriate amount; and;

(b) in sub-paragraph (3), after paragraph (b), there were

Pensions BillPage 65

inserted—

(c) the appropriate amount reduced by the amount of
any increases under section 109 of the Pensions
Act; and;

(c) 5in sub-paragraph (4), after paragraph (a), there were
inserted—

(b) one half of the appropriate amount; and.

(4) Paragraph 6A applies as if in sub-paragraph (2), after
paragraph (a), there were inserted—

(b) 10one half of the appropriate amount; and;

(5) In paragraphs 5A to 6A as modified by this paragraph, the
“appropriate amount” means the greater of—

(a) the amount by which the deceased person’s Category A or
Category B retirement pension had been increased under
15section 150(1)(e) of the Administration Act; or

(b) the amount by which his or her Category A or Category B
retirement pension would have been so increased had he
or she died immediately before the surviving spouse or
civil partner became entitled to a Category A or Category
20B retirement pension.

(6) In sub-paragraph (1)(a) the reference to becoming entitled to a
pension before 6 April 2012 includes a reference to becoming
entitled on or after that day to the payment of a pension in respect
of a period before that day.

25Pension Schemes Act 1993 (c. 48)1993 (c. 48)

87 Section 46A of the Pension Schemes Act 1993 (retirement in tax year after 5
April 2020) is repealed.

Pensions Act 2008 (c. 30)2008 (c. 30)

88 In the Pensions Act 2008, the following are repealed—

(a) 30sections 102 and 103 (consolidation of additional pension);

(b) Schedule 3 (consolidation of additional pension);

(c) in Schedule 4 (minor and consequential amendments)—

40Pensions Act 2011 (c. 19)2011 (c. 19)

89 In the Pensions Act 2011, the following are repealed—

(a) section 2(5) to (9) and Schedule 2 (abolition of certain additions to the
state pension);

(b) section 3 and Schedule 3 (consolidation of additional pension).

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Section 24

SCHEDULE 13 Abolition of contracting-out for salary related schemes

Part 1 Pension Schemes Act 1993: amendments

1 5The Pension Schemes Act 1993 is amended as follows.

2 For “the abolition date” (in each place) substitute “the first abolition date”.

3 In the heading for Part 3 of the Act—

(a) for “Certification of pension schemes” substitute “Schemes that were
contracted-out etc”;

(b) 10omit “and duties”.

4 For the heading to Chapter 1 of Part 3 substitute “Schemes that were
contracted-out: guaranteed minimum pensions and alteration of scheme
rules etc”.

5 Section 7 (issue of contracting-out certificates) is repealed (and accordingly,
15any certificates in force under that section immediately before this
paragraph comes into force cease to have effect).

6 After section 7 insert—

7A Meaning of “the first abolition date” and “the second abolition date”

In this Act—

7B Meaning of “contracted-out scheme” and “appropriate scheme” etc.

(1) This section applies for the interpretation of this Act.

(2) 30An occupational pension scheme was “contracted-out” at a time if, at
that time, there was in force a certificate under section 7 (as it then
had effect) stating that the employment of an earner in employed
earner’s employment was contracted-out employment by reference
to the scheme.

(3) 35“Contracting-out certificate” means a certificate of the kind
mentioned in subsection (2).

(4) An occupational pension scheme was a “salary related contracted-
out scheme” at a time if, at that time, the scheme was contracted-out
by virtue of satisfying section 9(2) (as it then had effect).

(5) 40An occupational pension scheme was a “money purchase
contracted-out scheme” at a time if, at that time, the scheme was

Pensions BillPage 67

contracted-out by virtue of satisfying section 9(3) (as it then had
effect).

(6) A personal pension scheme was an “appropriate scheme” at a time if,
at that time, there was in force a certificate issued under
5section 7(1)(b) (as it then had effect) stating that the scheme was an
appropriate scheme.

(7) “Appropriate scheme certificate” means a certificate of the kind
mentioned in subsection (6).

(8) An appropriate scheme certificate that was in force in relation to a
10scheme is to be taken as conclusive that the scheme was, at that time,
an appropriate scheme.

7 (1) Section 8 (meaning of “contracted-out employment”, “guaranteed minimum
pension” and “minimum payment”) is amended as follows.

(2) For subsection (1) substitute—

(1) 15In relation to any period before the second abolition date, the
employment of an earner in employed earner’s employment was
“contracted-out employment” in relation to the earner during that
period if—

(a) the earner was under pensionable age;

(b) 20the earner’s service in the employment was service which
qualified the earner for a pension provided by a salary
related contracted-out scheme; and

(c) there was in force a contracting-out certificate issued in
accordance with this Chapter (as it then had effect) stating
25that the employment was contracted-out employment by
reference to the scheme.

(3) After subsection (1A) insert—

(1B) In the following provisions of this Act “earner”, in relation to a
scheme, means a person who was an earner in contracted-out
30employment by reference to the scheme.

(4) In subsection (2), in the definition of “guaranteed minimum pension”, for
“by an occupational pension scheme” substitute “, by a scheme that was a
salary related contracted-out scheme,”.

(5) For subsection (4) substitute—

(4) 35A contracting-out certificate that was in force in respect of an
employed earner’s employment is to be taken as conclusive that the
employment was, at that time, contracted-out employment.

8 The italic heading above section 9 is repealed.

9 Sections 9 and 11 (requirements for certification of schemes: general) are
40repealed.

10 The italic heading above section 12A is repealed.

11 Sections 12A to 12D (requirements for certification applying to employment
from 6 April 1997) are repealed.

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12 For the italic heading above section 13 substitute “Guaranteed minimum
pensions”.

13 (1) Before section 13 insert—

12E Former salary related contracted-out schemes to comply with GMP
5requirements

(1) A scheme that was a salary related contracted-out scheme is to be
treated as including whatever provision it needs to contain to
comply with the GMP requirements.

(2) A scheme complies with the GMP requirements if, in relation to any
10earner’s service before the principal appointed day, it complies in all
respects with sections 13 to 24E.

(3) Where—

(a) a scheme is permitted by any of those sections to include
provision subject to certain requirements, and

(b) 15the scheme includes the provision but not the requirements,

the scheme is to be treated by subsection (1) as including the
requirements.

(4) This section overrides any provision of a scheme to the extent that
the provision of the scheme conflicts with it.

(2) 20For the purposes of section 12E it does not matter whether the scheme ceased
to be contracted-out when the amendment made by paragraph 5 of this
Schedule came into force or before that time.

(3) But section 12E does not treat a scheme as having included any provision
before this paragraph comes into force.

14 25In section 13 (minimum pensions for earners), in subsection (2)—

(a) for “is a married woman or widow who is liable” substitute “was a
married woman or widow who was liable”;

(b) after “Act 1992” insert “at a time during a relevant year when she was
in contracted-out employment by reference to the scheme”;

(c) 30at the end of that subsection insert—

““Relevant year” has the meaning given by section 14(8).”

15 (1) Section 14 (earner’s guaranteed minimum) is amended as follows.

(2) For subsection (1) substitute—

(1) An earner has a guaranteed minimum in relation to the pension
35provided by a scheme that was a salary related contracted-out
scheme if in any tax week in a relevant year—

(a) earnings were paid to or for the earner’s benefit in respect of
employment which was contracted-out by reference to the
scheme; and

(b) 40those earnings were in excess of the lower earnings limit for
that tax week (or the prescribed equivalent if the earner was
paid otherwise than weekly).

(3) In subsection (2), for “earnings such as are mentioned in subsection (1)”
substitute “excess earnings mentioned in subsection (1)(b)”.

Pensions BillPage 69

16 In section 16 (revaluation of earnings factors for the purposes of section 14:
early leavers etc), for subsection (2) substitute—

(2) The scheme may provide that in a case where—

(a) an earner was, before the second abolition date, in
5contracted-out employment by reference to a scheme, and

(b) the earner ceases to be in pensionable service under the
scheme before the final relevant year,

the earnings factors for that person shall be determined for the
purposes of section 14(2) by reference to the last such order to come
10into force before the end of the tax year in which the earner ceases to
be in pensionable service under the scheme (“the last service tax
year”).

17 (1) Section 17 (minimum pensions for widows, widowers and surviving civil
partners) is amended as follows.

(2) 15In subsection (4A), after paragraph (a) insert—

(aa) for life, in a case where—

(i) the widow, widower or surviving civil partner
attained state pension age on or after the second
abolition date, and

(ii) 20the earner died on or after the date on which the
widow, widower or surviving civil partner attained
state pension age;

(ab) for any period after the widow, widower or surviving civil
partner has attained state pension age, in a case where—

(i) 25the earner died before the widow, widower or
surviving civil partner attained state pension age,

(ii) the widow, widower or surviving civil partner did
not marry or form a civil partnership after the death
and before attaining state pension age, and

(iii) 30the widow, widower or surviving civil partner
attained state pension age on or after the second
abolition date;.

(3) After subsection (9) insert—

(10) For the purposes of subsection (4A)(aa) and (ab) a person attains
35state pension age when he or she attains pensionable age within the
meaning given by the rules in paragraph 1 of Schedule 4 to the
Pensions Act 1995.

18 In section 20 (transfer of accrued rights), in subsection (1)(a)—

(a) in sub-paragraph (i), after “under a” insert “scheme that was a”;

(b) 40in sub-paragraph (ii)—

(i) omit “which is not contracted-out,”;

(ii) after “under a” insert “scheme that was a”.

19 In section 23 (securing of benefits), in subsection (2), omit paragraph (d).

20 In section 24A—

(a) 45the existing text becomes subsection (1), and

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