14183.12-16

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Lords Amendments to the Pensions Bill

12

“(3A)
In subsection (3) the references to additional pension in a

Category A or Category B retirement pension do not include any

amount of additional pension attributable to units of additional

pension.

(3B)
If an amount of additional pension in the Category B retirement

pension is attributable to units of additional pension, the

additional pension in the Category A retirement pension is

increased by that amount (in addition to any increase under

subsection (3)).”

9
After section 61 insert—

“61ZA
Shortfall in contributions: people with units of additional

pension

(1)
This section applies to a person who has one or more units of

additional pension if the person—

(a)
is not entitled to a Category A retirement pension, but

(b)
would be entitled to a Category A retirement pension if

the relevant contribution conditions were satisfied.

(2)
The relevant contribution conditions are to be taken to be

satisfied for the purposes of the person’s entitlement to a

Category A retirement pension.

(3)
But where a person is entitled to a Category A retirement pension

because of this section, the only element of that pension to which

the person is so entitled is the additional pension attributable to

the units of additional pension.

(4)
For units of additional pension, see section 14A.

61ZB
Shortfall in contributions: people whose dead spouse had units of

additional pension

(1)
This section applies to a person whose spouse or civil partner

died with one or more units of additional pension if the person—

(a)
is not entitled to a Category B retirement pension as a

result of the death, but

(b)
would be entitled to a Category B retirement pension as a

result of the death if the relevant contribution conditions

were satisfied.

(2)
The relevant contribution conditions are to be taken to be

satisfied for the purposes of the person’s entitlement to that

Category B retirement pension.

(3)
But where a person is entitled to a Category B retirement pension

because of this section, the only element of that pension to which

the person is so entitled is the additional pension attributable to

the units of additional pension.

(4)
For units of additional pension, see section 14A.

61ZC
Entitlement to more than one pension: sections 61ZA and 61ZB

(1)
Section 43 does not prevent a person from being entitled for the

same period to both—

13

(a)
a Category A retirement pension because of

section 61ZA, and

(b)
one Category B retirement pension.

(2)
Section 43 does not prevent a person from being entitled for the

same period to both—

(a)
a Category A retirement pension, and

(b)
one Category B retirement pension because of section

61ZB (or, if there is more than one such Category B

retirement pension, the most favourable of them).

(3)
Accordingly—

(a)
in section 43(2)(a) the reference to “a Category A or a

Category B retirement pension”, in a case in which

subsection (1) or (2) of this section applies, includes “a

Category A and a Category B retirement pension”,

(b)
in sections 43(3)(a) and (aa), 51A and 52 “Category A

retirement pension” does not include a pension to which

a person is entitled because of section 61ZA, and

(c)
in sections 43(3)(a) and 52 “Category B retirement

pension” does not include a pension to which a person is

entitled because of section 61ZB.”

10
In section 122 (interpretation), in subsection (1), at the appropriate place

insert—

““unit of additional pension” means a unit of additional pension for

which a person has paid a Class 3A contribution under

section 14A;”.

11
In section 176 (parliamentary control), in subsection (1)(a), at the

appropriate places insert—

“section 14A;”

“section 45(2A);”.

12
In the heading to Schedule 1, for “and 3” substitute “, 3 and 3A”.

Social Security Administration Act 1992 (c. 5)

13  (1)
Section 162 of the Social Security Administration Act 1992 (destination of

contributions) is amended as follows.

      (2)
In subsection (5)(e), after “those contributions;” insert—

“(ea)
in the case of Class 3A contributions, 15.5 per cent of the

amount estimated to be the total of those contributions;”.

      (3)
In subsection (8)(c), for “or (e)” substitute “, (e) or (ea)”.

Welfare Reform and Pensions Act 1999 (c. 30)

14
In section 47 of the Welfare Reform and Pensions Act 1999 (shareable

state scheme rights), in subsection (2)(a), omit “earnings-related”.

14

Part 2

Northern Ireland

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

15
The Social Security Contributions and Benefits (Northern Ireland) Act

1992 is amended as follows.

16  (1)
Section 1 (outline of contributory system) is amended as follows.

      (2)
In subsection (2)—

(a)
omit “six”;

(b)
in paragraph (d), after “making up entitlement;” insert—

“(da)
Class 3A, payable by eligible people voluntarily

under section 14A with a view to obtaining units

of additional pension;”.

      (3)
In subsection (4)(a), for “and 3” substitute “, 3 and 3A”.

17
After section 14 insert—

“Class 3A contributions

14A
Class 3A contributions in return for units of additional pension

(1)
An eligible person is entitled to pay a Class 3A contribution in

return for a unit of additional pension.

(2)
A person is eligible to pay a Class 3A contribution if the person—

(a)
is entitled to a Category A, Category B or Category D

retirement pension or graduated retirement benefit, or

(b)
has deferred entitlement to a Category A or Category B

retirement pension or graduated retirement benefit.

(3)
The amount of a Class 3A contribution needed to obtain a unit of

additional pension is to be determined in accordance with

regulations made by the Treasury.

(4)
Before making those regulations the Treasury must consult the

Government Actuary or the Deputy Government Actuary.

(5)
A person—

(a)
may pay Class 3A contributions on more than one

occasion, but

(b)
may not obtain more than the maximum number of units

of additional pension.

(6)
The maximum number of units of additional pension that a

person may obtain is to be specified by the Treasury in

regulations.

(7)
In this section “deferred”, in relation to graduated retirement

benefit, has the meaning given by section 35(4A) of the National

Insurance Act (Northern Ireland) 1966.

(8)
For the meaning of “deferred” in relation to a Category A or

Category B retirement pension, see section 55(3) of this Act.

15

14B
Class 3A contributions: repayment

(1)
The Treasury may by regulations provide for a Class 3A

contribution to be repaid in specified circumstances.

(2)
Regulations under subsection (1) may, in particular, make

provision about applications for repayments and other

procedural matters.

(3)
A person is to be treated as never having had a unit of additional

pension if the Class 3A contribution paid in respect of it is repaid.

(4)
Regulations under subsection (1) may provide for benefits paid

to a person because of the unit of additional pension to be

recovered by deducting them from the repayment.

14C
Class 3A contributions: power to change eligibility or remove the

option to pay

(1)
The Treasury may by regulations change who is eligible to pay

Class 3A contributions.

(2)
The Treasury may by regulations remove the option for people to

pay Class 3A contributions.

(3)
Regulations under this section may, in particular, amend an Act.”

18  (1)
If paragraph 17 comes into force before the new state pension

commencement date for Northern Ireland, section 14A(2) as inserted by

that paragraph has effect as if the reference to entitlement included the

prospective entitlement of a person who—

(a)
has not yet reached pensionable age, but

(b)
will reach pensionable age before that day (assuming that the

person lives until pensionable age).

      (2)
In this paragraph “the new state pension commencement date for

Northern Ireland” means the date on which legislation in Northern

Ireland corresponding to section 2 of this Act comes fully into force.

19
In section 121 (interpretation), in subsection (1), at the appropriate place

insert—

““unit of additional pension” means a unit of additional pension for

which a person has paid a Class 3A contribution under

section 14A;”.

20
In section 172 (procedure for regulations etc), in subsection (11A), after

“11(3)” insert “, 14A”.

21
In the heading to Schedule 1, for “and 3” substitute “, 3 and 3A”.

Social Security Administration (Northern Ireland) Act 1992 (c. 8)

22  (1)
Section 142 of the Social Security Administration (Northern Ireland) Act

1992 (destination of contributions) is amended as follows.

      (2)
In subsection (5)(e), after “those contributions;” insert—

“(ea)
in the case of Class 3A contributions, 15.5 per cent of the

amount estimated to be the total of those contributions;”.

      (3)
In subsection (8)(c), for “or (e)” substitute “, (e) or (ea)”.”

16

Schedule 16
28
Page 91, leave out lines 11 to 13
29
Page 92, line 23, after “State” insert “or the Commissioners for Her Majesty’s

Revenue and Customs”
Schedule 17
30
Page 94, line 6, leave out “work-based”
31
Page 94, line 24, leave out “work-based”
Schedule 19
32
Page 98, line 26, at end insert—

  “( )
A person credited with a length of notional pensionable

service because of pension credit rights is to be treated for the

purposes of this paragraph as having pensionable service of

that length (in addition to any pensionable service that the

person is treated as having under sub-paragraph (8)).”
33
Page 98, line 36, at end insert—

“(9A)
Where a person becomes entitled to relevant compensation in

respect of benefits under two or more connected occupational

pension schemes at the same time, this paragraph applies in

relation to the relevant compensation in respect of each benefit

as if—

(a)
a reference to the length of the person’s pensionable

service were a reference to the total length of the

person’s pensionable service under all of the schemes

(counting any period of overlap once only), and

(b)
sub-paragraphs (8) and (9) apply for the purposes of

working out the length of the person’s pensionable

service in respect of each scheme as if a reference to the

admissible rules were to the admissible rules of that

scheme.”
34
Page 98, line 36, at end insert—

“(9B)
When applying this paragraph in relation to relevant

compensation in respect of a benefit, ignore any pensionable

service that relates to a benefit that is not from the same source.

    (9C)
For the purposes of sub-paragraph (9B)—

(a)
benefits attributable to a person’s pensionable service

under a scheme are from the same source as benefits

attributable to the person’s pensionable service under

that or a connected occupational pension scheme,

(b)
benefits under a scheme which are attributable to a

pension credit from a transferor are from the same

source as benefits under that or a connected

occupational pension scheme which are attributable to

a pension credit from the same transferor, and

(c)
benefits are not otherwise from the same source.”