Pensions Bill (HC Bill 91)

16 After section 151 insert—

“151A Up-rating of transitional state pensions under Pensions Act 2013

(1) The Secretary of State must, in each tax year, review the general level
of prices in Great Britain and any changes which have taken place.

(2) 5If on a review it appears to the Secretary of State that the general level
of prices has increased during the review period, the Secretary of
State must make an order specifying a percentage by which the
amounts mentioned in the following provisions of the Pensions Act
2013 are to be increased—

(a) 10section 9;

(b) paragraph 4(3) of Schedule 2;

(c) paragraphs 5(3) and 6 of Schedule 4;

(d) paragraphs 5(3) and 6 of Schedule 9.

(3) The percentage specified in the order must not be less than the
15percentage by which the general level of prices has increased during
the review period.

(4) This section does not require the Secretary of State to make an order
if it appears to the Secretary of State that the effect of the order on the
amounts referred to in subsection (2) would be inconsiderable.

(5) 20An order under this section must be framed so as to bring the
increase in question into force in the week beginning with the first
Monday in the tax year following that in which the order is made.

(6) The Secretary of State must lay with a draft order under this section
a copy of a report by the Government Actuary or the Deputy
25Government Actuary giving that Actuary’s opinion on the likely
effect on the National Insurance Fund.

(7) If a draft order under this section is combined with a draft up-rating
order under section 150 or 150A, the report required by virtue of
subsection (6) may be combined with that required by virtue of
30section 150(8) or 150A(5).

(8) For the purposes of any review under this section the Secretary of
State may estimate the general level of prices in such manner as the
Secretary of State thinks fit.”

17 (1) Section 155A (power to anticipate pensions up-rating order) is amended as
35follows.

(2) In subsection (1)(a)—

(a) for “150 or 150A” substitute “150, 150A or 151A”;

(b) in sub-paragraph (i), after “by way of” insert “state pension under
the Pensions Act 2013,”.

(3) 40In subsection (2), after “an award is made of” insert “a state pension,”.

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

(2) In subsection (1), before paragraph (a) insert—

“(za) state pension and lump sums under Part 1 of the Pensions
Act 2013;”.

(3) In subsection (2)(a), after “Contributions and Benefits Act” insert “, Part 1 of
the Pensions Act 2013”.

(4) In subsection (3)(b), after “that Act” insert “or Part 1 of the Pensions Act
2013”.

19 5In section 170 (Social Security Advisory Committee), in subsection (5)—

(a) in the definition of “the relevant enactments”, after paragraph (al)
insert—

• “(am)

  the provisions of Part 1 of the Pensions Act
  2013;”;

(b) 10in the definition of “the relevant Northern Ireland enactments”, after
paragraph (al) insert—

• “(am)

  any provisions in Northern Ireland which
  correspond to the provisions of Part 1 of the
  Pensions Act 2013;”.

20 (1) 15Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “Part 4 of that Act” insert “, Part 1 of the Pensions
Act 2013”.

(3) In subsection (4), after paragraph (ah) insert—

“(ai) to Part 1 of the Pensions Act 2013;”.

(4) 20In subsection (5)—

(a) after “Act 2007” insert “or Part 1 of the Pensions Act 2013”;

(b) after paragraph (ac) insert—

“(ad) state pension under Part 1 of the Pensions Act 2013;”.

21 In section 187 (inalienability), in subsection (1), after paragraph (za) insert—

“(zb) 25state pension under Part 1 of the Pensions Act 2013;”.

22 In section 190 (parliamentary control of orders and regulations), in
subsection (1)(a) after “150A,” insert “151A,”.

23 In section 191 (interpretation), in the definition of “benefit”, after “universal
credit,” insert “state pension under Part 1 of the Pensions Act 2013,”.

30Social Security Act 1993 (c. 3)Social Security Act 1993 (c. 3)

24 In section 2 of the Social Security Act 1993 (payments into National
Insurance Fund out of money provided by Parliament), in subsection (4)(a),
after “paragraphs” insert “(za),”.

Pensions Act 1995 (c. 26)Pensions Act 1995 (c. 26)

25 35In Schedule 4 to the Pensions Act 1995 (pensionable age), in paragraph 1, for
“and Part 1 of the Welfare Reform Act 2007” substitute “, Part 1 of the
Welfare Reform Act 2007 and the Pensions Act 2013”.

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

26 The Social Security Act 1998 is amended as follows.

27 40In section 2 (use of computers), in subsection (2)—

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

(b) after paragraph (l) insert—

“(m) Part 1 of the Pensions Act 2013;”.

28 In section 8 (decisions by Secretary of State)—

(a) in subsection (3), after paragraph (aa) insert—

“(ab) 5state pension or a lump sum under Part 1 of the
Pensions Act 2013;”;

(b) in subsection (4), for “or Part 4 of that Act” substitute “, Part 4 of that
Act or Part 1 of the Pensions Act 2013”.

29 In section 11 (regulations with respect to decisions), in subsection (3), in the
10definition of “the current legislation”, for “and Part 4 of that Act” substitute
“, Part 4 of that Act and Part 1 of the Pensions Act 2013”.

30 In section 27 (restrictions on entitlement to benefit in certain cases of error),
in subsection (7), in the definition of “benefit”, after paragraph (f) insert—

“(g) state pension or a lump sum under Part 1 of the Pensions Act
152013.”

31 In section 28 (correction of errors in decisions etc), in subsection (3)—

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

(b) after paragraph (i) insert “or

(j) Part 1 of the Pensions Act 2013.”

32 20In Schedule 3 (decisions against which an appeal lies), after paragraph 6B
insert—

“State pension: prisoners and overseas residents

6C A decision that a state pension under Part 1 of the Pensions Act
2013 is not payable by reason of section 19 of that Act (prisoners).

6D 25A decision that a person is not entitled to increases in the rate of a
state pension under Part 1 of the Pensions Act 2013 by reason of
regulations under section 20 of that Act (overseas residents).”

Child Support, Pensions and Social Security Act 2000 (c. 19)Child Support, Pensions and Social Security Act 2000 (c. 19)

33 (1) Section 42 of the Child Support, Pensions and Social Security Act 2000
30(disclosure of state pension information) is amended as follows.

(2) In subsection (7), after paragraph (a) insert—

“(aa) the amount of any state pension under Part 1 of the Pensions
Act 2013 a present or future entitlement to which has already
accrued to that individual;

(ab) 35a projection of the amount of any state pension under Part 1
of the Pensions Act 2013 to which that individual is likely to
become entitled, or might become entitled in particular
circumstances;”.

(3) In subsection (11), in the definition of “lump sum”, after “under” insert
40“section 8 of the Pensions Act 2013 or”.

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

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

35 In section 6A (definitions), in subsection (1)—

(a) in the definition of “disqualifying benefit”, after paragraph (za)
insert—

“(zb) state pension or a lump sum under Part 1 of the
5Pensions Act 2013 or under any provision in Northern
Ireland which corresponds to that Part;”;

(b) in the definition of “sanctionable benefit”, before paragraph (b)
insert—

“(aa) state pension or a lump sum under Part 1 of the
10Pensions Act 2013;”.

36 In section 10 (power to supplement and mitigate loss of benefit provisions),
in subsection (3), after paragraph (be) insert—

“(bf) state pension or a lump sum under Part 1 of the Pensions Act
2013 or under any provision in Northern Ireland which
15corresponds to that Part;”.

State Pension Credit Act 2002 (c. 16)State Pension Credit Act 2002 (c. 16)

37 In section 16 of the State Pension Credit Act 2002 (meaning of “retirement
pension income”), in subsection (1), before paragraph (a) insert—

“(za) a state pension under Part 1 of the Pensions Act 2013 or under
20any provision in Northern Ireland which corresponds to that
Part;”.

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

38 In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United
Kingdom social security pensions), in the definition of “state pension” in
25subsection (2), before paragraph (a) insert—

“(za) any provision of Part 1 of the Pensions Act 2013 or any
corresponding provision under the law of Northern
Ireland,”.

Gender Recognition Act 2004 (c. 7)Gender Recognition Act 2004 (c. 7)

39 30The Gender Recognition Act 2004 is amended as follows.

40 In section 23 of that Act (power to modify statutory provisions) “enactment”
includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

41 (1) Schedule 5 (benefits and pensions) is amended as follows.

(2) After paragraph 6 insert—

35“Pension under Part 1 of the Pensions Act 2013

6A (1) Any question—

(a) whether the person is entitled to a state pension under
Part 1 of the Pensions Act 2013 for any period after the
certificate is issued, and

(b) 40(if so) the rate at which the person is so entitled for the
period,

is to be decided as if the person’s gender were the acquired
gender.

(2) Accordingly, if (immediately before the certificate is issued) the
person—

(a) is a woman entitled to a state pension under Part 1 of the
Pensions Act 2013, but

(b) 5has not attained the age of 65,

the person ceases to be so entitled when it is issued.

(3) And, conversely, if (immediately before the certificate is issued)
the person—

(a) is a man who has attained the age at which a woman of the
10same age attains pensionable age, but

(b) has not attained the age of 65,

the person is to be treated for the purposes of Part 1 of the Pensions
Act 2013 as attaining pensionable age when it is issued.

(4) But sub-paragraph (1) does not apply if and to the extent that the
15decision of any question to which it refers is affected by the
payment or crediting of contributions, or the crediting of earnings,
in respect of a period ending before the certificate is issued.

(5) If the person’s acquired gender is the male gender, sections 11 and
12 of, and Schedules 6 and 7 to, the Pensions Act 2013 (effect of
20reduced rate elections) apply in relation to the person as they
apply in relation to a woman (but only once the person has
reached pensionable age for a man).

(6) Paragraph 10 makes provision about deferment of state pensions
under Part 1 of the Pensions Act 2013.”

(3) 25In paragraph 7, in sub-paragraph (1), at the end insert “(but this is subject to
sub-paragraph (3))”.

(4) In paragraph 10, in sub-paragraph (1), before paragraph (a) insert—

“(za) a state pension under Part 1 of the Pensions Act 2013,”.

Finance (No. 2) Act 2005 (c. 22)Finance (No. 2) Act 2005 (c. 22)

42 30The Finance (No. 2) Act 2005 is amended as follows.

43 (1) Section 8 (meaning of “applicable year of assessment” in section 7) is
amended as follows.

(2) In subsection (3), for “subsection (4)” substitute “subsections (4) and (4A)”

(3) After subsection (4) insert—

“(4A) 35In a case where the social security pension lump sum is a lump sum
under section 8 of the Pensions Act 2013 or under any corresponding
provision under the law of Northern Ireland, “the first benefit
payment day” for the purposes of subsection (2) is the day as from
which the lump sum becomes payable.”

44 40In section 9 (interpretation), in the definition of “state pension lump sum” in
subsection (2), before paragraph (a) insert—

• “(za)

  section 8 of the Pensions Act 2013 or under any
  corresponding provision under the law of Northern
  Ireland,”.

Welfare Reform Act 2012 (c. 5)2012 (c. 5)

45 In section 96 of the Welfare Reform Act 2012 (benefit cap), in subsection (11),
before paragraph (a) insert—

“(za) state pension under Part 1 of the Pensions Act 2013,”.

5Part 2 Amendments to do with old state pension system

Graduated retirement benefit

46 (1) Section 36 of the National Insurance Act 1965 (graduated retirement benefit),
so far as continuing in force, is amended as follows.

(2) 10In subsection (7), for “has attained pensionable age” substitute “attained
pensionable age before 6 April 2016”.

(3) In subsection (8), in the definition of “retirement pension”, after “any
category” insert “under the Social Security Contributions and Benefits Act
1992”.

15Category A retirement pensions

47 The Contributions and Benefits Act is amended as follows.

48 In section 44(1) (Category A retirement pensions), for paragraph (a)
substitute—

“(a) the person attained pensionable age before 6 April 2016,”.

49 (1) 20Section 48 (use of former spouse’s contributions) is amended as follows.

(2) In subsection (1), after “person” insert “who attained pensionable age before
6 April 2016”.

(3) After subsection (2) insert—

“(2A) Regulations under subsection (1) may not provide for contributions
25of a person in respect of times on or after 6 April 2016 to be treated as
contributions of another person.”

Category B retirement pensions

50 The Contributions and Benefits Act is amended as follows.

51 In section 23A (contributions credits for relevant parents and carers), in
30subsection (1)(b), after “section 48A” insert “or 48AA”.

52 In section 46 (modification of section 45 for calculating additional pension in
certain benefits), in subsection (2), omit “48A(4) or” (in both places).

53 For section 48A substitute—

“48A Category B retirement pension for married person or civil partner

(1) 35A married person is entitled to a Category B retirement pension by
virtue of the contributions of his or her spouse if—

(a) the person attained pensionable age before 6 April 2016, and

(b) the spouse—

(i) has attained pensionable age, and

(ii) satisfies the relevant contribution condition.

(2) But subsection (1) does not confer a right to a Category B retirement
5pension on—

(a) a man whose spouse was born before 6 April 1950, or

(b) a woman whose wife was born before 6 April 1950.

(3) A person who is a civil partner is entitled to a Category B retirement
pension by virtue of the contributions of his or her civil partner (“the
10contributing civil partner”) if—

(a) the person attained pensionable age before 6 April 2016, and

(b) the contributing civil partner—

(i) was born on or after 6 April 1950,

(ii) has attained pensionable age, and

(iii) 15satisfies the condition in paragraph 5A of Schedule 3.

(4) A Category B retirement pension payable under this section is
payable at the weekly rate specified in paragraph 5 of Part 1 of
Schedule 4.

(5) A person ceases to be entitled to a Category B retirement pension
20under this section if—

(a) the person’s spouse or civil partner dies (but see sections 48B
and 51), or

(b) the person otherwise ceases to be married or in the civil
partnership (but see section 48AA).

(6) 25In subsection (1)(b)(ii) “the relevant contribution condition” means—

(a) in a case where the spouse was born before 6 April 1945, the
conditions in paragraph 5 of Schedule 3;

(b) in any other case, the condition in paragraph 5A of
Schedule 3.

(7) 30For 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
spouse or contributing civil partner for the tax year beginning with 6
April 2016 or any later tax year.

(8) Section 51ZA contains special rules for cases involving changes in
35gender.

48BAA Category B retirement pension for divorcee or former civil partner

(1) A person who has been in a marriage that has been dissolved is
entitled to a Category B retirement pension by virtue of the
contributions of his or her former spouse if—

(a) 40the person attained pensionable age—

(i) before 6 April 2016, and

(ii) before the marriage was dissolved, and

(b) the former spouse—

(i) attained pensionable age before the marriage was
45dissolved, and

(ii) satisfied the relevant contribution condition.

(2) But subsection (1) does not confer a right to a Category B retirement
pension on—

(a) a man whose former spouse was born before 6 April 1950, or

(b) a women whose former wife was born before 6 April 1950.

(3) 5A person who has been in a civil partnership that has been dissolved
is entitled to a Category B retirement pension by virtue of the
contributions of his or her former civil partner if—

(a) the person attained pensionable age—

(i) before 6 April 2016, and

(ii) 10before the civil partnership was dissolved, and

(b) the former civil partner—

(i) was born on or after 6 April 1950,

(ii) attained pensionable age before the civil partnership
was dissolved, and

(iii) 15satisfied the condition in paragraph 5A of Schedule 3.

(4) During any period when the person’s former spouse or civil partner
is alive, a Category B retirement pension payable under this section
is payable at the weekly rate specified in paragraph 5 of Part 1 of
Schedule 4.

(5) 20During any period after the person’s former spouse or civil partner
is dead, a Category B retirement pension payable under this section
is payable at the weekly rate of the basic pension specified in
section 44(4).

(6) In subsection (1)(b)(ii) “the relevant contribution condition” means—

(a) 25in a case where the former spouse was born before 6 April
1945, the conditions in paragraph 5 of Schedule 3;

(b)
in any other case, the condition in paragraph 5A of
Schedule 3.

(7) For the purposes of any provision of this Act as it applies in relation
30to this section, no account is to be taken of any earnings factors of the
former spouse or civil partner for the tax year beginning with 6 April
2016 or any later tax year.

(8) A voidable marriage or civil partnership which has been annulled is
to be treated for the purposes of this section as if it had been a valid
35marriage or civil partnership which was dissolved at the date of
annulment.

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

54 (1) Section 48B (Category B retirement pension for widows and widowers) is
40amended as follows.

(2) For subsections (1) to (1A) substitute—

“(1) A person (“the pensioner”) whose spouse died while they were
married is entitled to a Category B retirement pension by virtue of
the contributions of his or her spouse if—

(a) 45the pensioner attained pensionable age—

(i) before 6 April 2016, and

(ii) before the spouse died, and

(b) the spouse satisfied the relevant contribution condition.

(1ZA) But subsection (1) does not confer a right to a Category B retirement
pension on—

(a) 5a man who attained pensionable age before 6 April 2010, or

(b) a woman who attained pensionable age before 6 April 2010
and whose spouse was a woman.

(1ZB) In subsection (1)(b) “the relevant contribution condition” means—

(a) in a case where the spouse—

(i) 10died before 6 April 2010, or

(ii) died on or after that date having attained pensionable
age before that date,

the conditions in paragraph 5 of Schedule 3, and

(b)
in any other case, the condition in paragraph 5A of
15Schedule 3.

(1A) A person (“the pensioner”) whose civil partner died while they were
civil partners of each other is entitled to a Category B retirement
pension by virtue of the contributions of his or her civil partner if—

(a) the pensioner attained pensionable age—

(i) 20on or after 6 April 2010 but before 6 April 2016, and

(ii) before the civil partner died, and

(b) the civil partner satisfied the relevant contribution condition.

(1B) In subsection (1A)(b) “the relevant contribution condition” means—

(a) in a case where the deceased civil partner attained
25pensionable age before 6 April 2010, the conditions in
paragraph 5 of Schedule 3, and

(b) in any other case, the condition in paragraph 5A of
Schedule 3.”

(3) After subsection (3) insert—

“(3A) 30For 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
deceased for the tax year beginning with 6 April 2016 or any later tax
year.”

(4) For subsection (4) substitute—

“(4) 35A woman (“the pensioner”) whose husband died before she attained
pensionable age is entitled to a Category B retirement pension by
virtue of the contributions of her husband if—

(a) she attained pensionable age before 6 April 2016, and

(b) the condition in subsection (5) is satisfied.

(4A) 40A man (“the pensioner”) whose wife died before he attained
pensionable age is entitled to a Category B retirement pension by
virtue of the contributions of his wife if—

(a) he attained pensionable age on or after 6 April 2010 but
before 6 April 2016, and

(b) 45the condition in subsection (5) would have been satisfied on
the assumption mentioned in subsection (7).”

(5) In subsection (6), after “subsection (4)” insert “or (4A)”.

(6) In subsection (7), for “(4)” substitute “(4A)”.

(7) After subsection (8) insert—

“(9) Section 51ZA contains special rules for cases involving changes in
5gender.”

55 (1) Section 48BB (Category B retirement pension: entitlement by reference to
widowed parent’s allowance or bereavement allowance where no
dependent children) is amended as follows.

(2) In subsection (1), for “who has attained pensionable age” substitute “who
10attained pensionable age before 6 April 2016”.

(3) In subsection (3), for “who has attained pensionable age” substitute “who
attained pensionable age before 6 April 2016”.

56 (1) Section 48C (Category B retirement pension: general) is amended as follows.

(2) In subsection (3), for “sections 48A(4)(b) and” substitute “section”.

(3) 15In subsection (4), omit “48A(4),”.

57 For section 51 substitute—

“51 Category B retirement pension for widows, widowers and surviving
civil partners who attained pensionable age before 6 April 2010

(1) A person (“the pensioner”) whose spouse died while they were
20married is entitled to a Category B retirement pension if—

(a) they were both over pensionable age at the time of the death,

(b) the pensioner attained pensionable age before 6 April 2010,
and

(c) the spouse satisfied the relevant contribution condition.

(2) 25But subsection (1) does not confer a right to a Category B retirement
pension on—

(a) a woman whose husband has died, or

(b) a man whose wife died before 6 April 1979.

(3) In subsection (1)(c) “the relevant contribution condition” means—

(a) 30in a case where the spouse attained pensionable age before 6
April 2010, the conditions in paragraph 5 of Schedule 3, and

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

(4) 35A person (“the pensioner”) whose civil partner died while they were
civil partners of each other is entitled to a Category B retirement
pension if—

(a) they were both over pensionable age at the time of the death,

(b) the pensioner attained pensionable age before 6 April 2010,
40and

(c) the deceased civil partner satisfied the relevant contribution
condition.

(5) In subsection (4)(c) “the relevant contribution condition” means—