14183.8-11

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Lords Amendments to the Pensions Bill

8
15
Page 25, line 5, after “51(1)” insert “, (6A)”
Clause 51
16
Page 25, line 20, leave out subsection (2)
17
Page 25, line 22, leave out subsection (3) and insert—

“(3)
The following come into force on the day on which this Act is passed—

(a)
section 28;

(b)
section (Pension Protection Fund: compensation cap to apply separately

to certain benefits);

(c)
this Part.”
18
Page 25, line 36, at end insert—

“(6A)
Section (Public service pension schemes: transitional arrangements) comes into

force on such day or days as the Treasury may by order appoint.

(6B)
An order under subsection (1) or (6A) may appoint different days for

different purposes.”
Schedule 1
19
Page 27, line 34, at end insert—

    “( )
Where regulations under section 22(5ZA) of the Contributions and

Benefits Act have the effect that a person is credited, on or after 6 April

2016, with earnings or contributions for a tax year starting before that

date, the earnings or contributions are to be treated for the purposes of

calculating the rate under this paragraph as having been credited before

6 April 2016.”
Schedule 12
20
Page 47, line 37, at end insert—


“In section 1 (outline of contributory system), in subsection (1)(a), after

“this Act” insert “or any other Act”.


In section 13 (Class 3 contributions), in subsection (2), omit

“contribution”.


After section 19A insert—

“19B
Extended meaning of “benefit” etc in Part 1

In this Part references to “benefit” or “contributory benefit”

include benefit under Part 1 of the Pensions Act 2014.””
21
Page 48, line 17, at end insert—

“(5ZB)
Regulations under subsection (5ZA) must provide for crediting a

person with such contributions as may be specified in respect of

periods on or after 6 April 1975 during which the person was—

(a)
a spouse or civil partner of a member of Her Majesty’s

forces,

(b)
accompanying the member on an assignment outside the

United Kingdom, and

9

(c)
not of a description specified in the regulations.””
22
Page 48, line 17, at end insert—


“In section 122(1) (interpretation), in the definition of “benefit”, after

paragraph (c) insert—


“(For the meaning of “benefit” in Part 1, see also section 19B)”.”
23
Page 62, line 25, at end insert—


“In Schedule 4 to the Marriage (Same Sex Couples) Act 2013, omit

paragraphs 11, 12, 13 and 16.”
Schedule 13
24
Page 76, line 25, at end insert—

“Pensions Act 2004 (c. 35)


In section 258 of the Pensions Act 2004 (pension protection on transfer of

employment), in subsection (2)(c), for sub-paragraphs (i) and (ii)

substitute “complies with prescribed requirements”.”
Schedule 14
25
Page 78, line 19, at end insert—

    “( )
Where the effect of using the power to increase employee contributions

of the relevant members would be to increase the contributions that the

employer is required to pay, the power may be used to make other

amendments needed to ensure that only the employee contributions are

increased because of the use of the power.

      ( )
Where the effect of using the power to alter the future accrual of benefits

for or in respect of the relevant members would be to decrease the

contributions that any members are required to pay, the power may be

used to make other amendments needed to ensure that the contributions

of those members are not decreased because of the use of the power.”
26
Page 78, line 20, leave out sub-paragraph (5)
Before Schedule 15
27
Insert the following new Schedule—

“Option to boost old retirement pensions

Part 1

Great Britain

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

1
The Social Security Contributions and Benefits Act 1992 is amended as

follows.

2    (1)
Section 1 (outline of contributory system) is amended as follows.

10

      (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”.

3
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 36(4A) of the National

Insurance Act 1965.

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

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

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.

11

(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.”

4
If paragraph 3 comes into force before the day mentioned in

section 51(5), 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).

5
In section 43 (persons entitled to more than one retirement pension), in

subsection (1), after “subsection (2) below” insert “and section 61ZC

below (which deals with unusual cases involving units of additional

pension)”.

6
In section 44 (Category A retirement pension), in subsection (3)—

(a)
in paragraph (b), at the end insert “or where the pensioner has

one or more units of additional pension”;

(b)
after paragraph (b) insert—


“For units of additional pension, see section 14A.”

7    (1)
Section 45 (rate of additional pension in a Category A retirement

pension) is amended as follows.

      (2)
In subsection (1)—

(a)
after “shall be” insert “the sum of the following—

(a)
in relation to any surpluses in the pensioner’s

earnings factors,”;

(b)
at the end insert “; and

(b)
if the pensioner has one or more units of

additional pension, a specified amount for each of

those units.”

      (3)
In subsection (2), at the end of paragraph (d) insert “; and

(e)
if the pensioner has one or more units of additional

pension, a specified amount for each of those units.”

      (4)
After subsection (2) insert—

“(2A)
For the purposes of subsections (1)(b) and (2)(e) the “specified

amount” is an amount to be specified by the Secretary of State in

regulations.”

8
In section 52 (special provision for surviving spouses), after

subsection (3) insert—