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A

BILL

TO

Make provision relating to pensions; and for connected purposes.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

Part 1 State pension

1 Equalisation of and increase in pensionable age for men and women

(1) In Schedule 4 to the Pensions Act 1995 (equalisation of and increase in
5pensionable age for men and women) paragraph 1 is amended as follows.

(2) In sub-paragraph (1) for “6th April 1959” substitute “6th December 1953”.

(3) Omit sub-paragraph (4).

(4) In table 1 for the entries (in both columns) relating to each of the periods from
“6th April 1953 to 5th May 1953” to “6th March 1955 to 5th April 1955”
10substitute—

6th April 1953 to 5th May 1953 6th July 2016
6th May 1953 to 5th June 1953 6th November 2016
6th June 1953 to 5th July 1953 6th March 2017
6th July 1953 to 5th August 1953 6th July 2017
6th August 1953 to 5th September
1953
156th November 2017

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6th September 1953 to 5th October
1953
6th March 2018
6th October 1953 to 5th November
1953
6th July 2018
6th November 1953 to 5th
December 1953
56th November 2018

(5) For table 2 substitute—

TABLE 2

(1) (2)
Period within which birthday falls Day pensionable age
10attained
6th December 1953 to 5th January
1954
6th March 2019
6th January 1954 to 5th February
1954
6th July 2019
6th February 1954 to 5th March
1954
156th November 2019
6th March 1954 to 5th April 1954 6th March 2020

(6) In sub-paragraph (6) for “1960” substitute “1954”.

(7) Schedule 1 (equalisation of and increase in pensionable age for men and
20women: consequential amendments) has effect.

2 Abolition of certain additions to the state pension

(1) In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits)—

(a) in subsection (1)(e)(i) for “person who is also entitled to a Category A
25or Category B retirement pension” substitute “relevant person”;

(b) after subsection (1) insert—

(1A) In subsection (1)(e)(i) “relevant person” means a person—

(a) who became entitled to a Category A or Category B
retirement pension before the day on which section 2(1)
30of the Pensions Act 2011 comes into force, and

(b) to whom sums became payable by virtue of section 15(1)
of the Pension Schemes Act 1993 (including sums
payable by virtue of section 17(2)) before that day.

(1B) In subsection (1A)—

(a) 35a reference to becoming entitled to a pension before a
day includes a reference to becoming entitled on or after

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that day to the payment of a pension in respect of a
period before that day;

(b) a reference to sums becoming payable before a day
includes a reference to sums becoming payable on or
5after that day in respect of a period before that day.

(2) In that section after subsection (10A) insert—

(10B) Subsection (10A) does not have effect unless—

(a) the member became entitled to a Category A or Category B
retirement pension before the day on which section 2(2) of the
10Pensions Act 2011 comes into force, and

(b) the member’s postponed pension under the scheme became
payable before that day.

(10C) In subsection (10B)—

(a) a reference to becoming entitled to a pension before a day
15includes a reference to becoming entitled on or after that day to
the payment of a pension in respect of a period before that day;

(b) a reference to a pension becoming payable before a day includes
a reference to a pension becoming payable on or after that day
in respect of a period before that day.

(3) 20In section 151 of that Act (up-rating - supplementary) omit subsection (5).

(4) The repeal made by subsection (3) does not affect the application of
section 151(5) of that Act in relation to a person who became entitled to a
Category A or Category B retirement pension before the day on which
subsection (3) comes into force.

(5) 25In Schedule 5 to the Social Security Contributions and Benefits Act 1992
(pension increase or lump sum where entitlement to retirement pension is
deferred) omit paragraphs 5, 5A, 6, 6A and 7.

(6) Schedule 2 (repeals and amendments consequential on subsection (5)) has
effect.

(7) 30The repeals made by subsection (5) do not affect the application of paragraphs
5 to 6A of Schedule 5 to the Social Security Contributions and Benefits Act 1992
in a case where—

(a) W became entitled to a Category A or Category B retirement pension
before the day on which subsection (5) comes into force, and

(b) 35S died before that day;

(and section 150(1)(d) of the Social Security Administration Act 1992 continues
to apply accordingly).

(8) The enactments amended by Schedule 2 have effect in relation to such a case as
if the repeals and amendments made by that Schedule (apart from the
40amendments made by paragraph 3(7) and (8)) had not been made.

(9) In subsection (7) “W” and “S” have the same meaning as in paragraph 5 of
Schedule 5 to the Social Security Contributions and Benefits Act 1992.

(10) In this section a reference to becoming entitled to a pension before a day
includes a reference to becoming entitled on or after that day to the payment of
45a pension in respect of a period before that day.

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3 Consolidation of additional pension

Schedule 3 (consolidation of additional pension) has effect.

Part 2 Automatic enrolment

4 5Automatic re-enrolment where employer interrupts scheme membership

(1) In section 2 (continuity of scheme membership) of the Pensions Act 2008 (“the
2008 Act”) for subsection (3) substitute—

(3) Subsection (1) is not contravened if by virtue of section 5 the jobholder
becomes an active member of an automatic enrolment scheme within
10the prescribed period.

(2) In section 5 of the 2008 Act (automatic re-enrolment) for subsection (4)
substitute—

(4) Regulations may provide for subsection (2) not to apply in relation to a
jobholder who in prescribed circumstances—

(a) 15has ceased to be an active member of a qualifying scheme
because of any action or omission by the jobholder, or by the
employer at the jobholder’s request, or

(b) is treated as not being an active member of a qualifying scheme
because the jobholder has given notice under section 8.

(3) 20In section 6 of the 2008 Act (timing of automatic re-enrolment) in subsection
(4)(b) omit “or the employer”.

(4) In section 54 of the 2008 Act (inducements) in subsection (1)(b) for “the period
prescribed under section 2(3)” substitute “the prescribed period”.

5 Earnings trigger for automatic enrolment and re-enrolment

(1) 25In section 3 of the 2008 Act (automatic enrolment) for subsection (1)
substitute—

(1) This section applies to a jobholder—

(a) who is aged at least 22,

(b) who has not reached pensionable age, and

(c) 30to whom earnings of more than £7,475 are payable by the
employer in the relevant pay reference period (see section 15).

(2) After subsection (6) of that section insert—

(6A) In this section “earnings” has the meaning given in section 13(3).

(6B) In the case of a pay reference period of less or more than 12 months,
35subsection (1) applies as if the amount in paragraph (c) were
proportionately less or more.

(3) In section 5 of the 2008 Act (automatic re-enrolment) for subsection (1)
substitute—

(1) This section applies to a jobholder who is aged at least 22 and has not
40reached pensionable age, and either—

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(a) is a person to whom earnings of more than £7,475 are payable
by the employer in the relevant pay reference period (see
section 15), or

(b) falls within subsection (1A).

(1A) 5A jobholder falls within this subsection if the jobholder is not an active
member of a qualifying scheme because—

(a) at any time after the jobholder’s automatic enrolment date the
jobholder has ceased to be an active member of a qualifying
scheme, or a qualifying scheme of which the jobholder was an
10active member has ceased to be such a scheme, by reason of
something other than an action or omission by the jobholder, or

(b) there has been a period beginning at any time after that date
during which the requirements of section 1(1)(a) or (c) were not
met (so that the person was not a jobholder for that period).

(4) 15After subsection (7) of that section insert—

(7A) In this section “earnings” has the meaning given in section 13(3).

(7B) In the case of a pay reference period of less or more than 12 months,
subsection (1) applies as if the amount in paragraph (a) were
proportionately less or more.

6 20Postponement or disapplication of automatic enrolment

(1) In section 3 of the 2008 Act (automatic enrolment) at the end of subsection (7)
insert—

This is subject to section 4.

(2) For section 4 of the 2008 Act substitute—

4 25Postponement or disapplication of automatic enrolment

(1) Where—

(a) an employer (E) gives to a person employed by E on E’s staging
date (“the worker”) notice that E intends to defer automatic
enrolment for the worker until a date specified in the notice
30(“the deferral date”), and

(b) any prescribed requirements in relation to the notice are met,

the worker’s automatic enrolment date is the deferral date if on that
date section 3 applies to the worker as a jobholder of E; if not,
subsection (4) applies.

(2) 35Where—

(a) a person (“the worker”) begins to be employed by an employer
(E) after E’s staging date,

(b) E gives the worker notice that E intends to defer automatic
enrolment until a date specified in the notice (“the deferral
40date”), and

(c) any prescribed requirements in relation to the notice are met,

the worker’s automatic enrolment date is the deferral date if on that
date section 3 applies to the worker as a jobholder of E; if not,
subsection (4) applies.

(3) 45Where—

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(a) a person (“the worker”) employed by an employer (E) becomes,
after E’s staging date, a jobholder to whom section 3 applies,

(b) E gives the worker notice that E intends to defer automatic
enrolment until a date specified in the notice (“the deferral
5date”), and

(c) any prescribed requirements in relation to the notice are met,

the worker’s automatic enrolment date is the deferral date if on that
date section 3 applies to the worker as a jobholder of E; if not,
subsection (4) applies.

(4) 10Where this subsection applies, section 3(2) does not apply in relation to
any employment of the worker by E in the period beginning with the
starting day and ending with the deferral date.

(5) A notice under this section may be given on or before the starting day
or within a prescribed period after that day.

(6) 15The deferral date may be any date in the period of three months after
the starting day.

(7) An employer who gives a worker a notice under subsection (1) or (2)
may not give the worker a notice under subsection (3) in relation to any
occasion on or before the deferral date specified in the notice on which
20the worker becomes a jobholder to whom section 3 applies.

(8) In this section—

(3) In section 6 of the 2008 Act (timing of automatic re-enrolment)—

(a) omit subsections (3) and (6);

(b) 35in subsection (4) for “second case” substitute “first case”;

(c) in subsection (5) for “third case” substitute “second case”.

(4) In section 7 of the 2008 Act (jobholder’s right to opt in) omit paragraph (b) of
subsection (2) and the “or” before it.

(5) In section 30 of the 2008 Act (transitional period for defined benefits and hybrid
40schemes) in subsection (7)—

(a) for “applies, section” substitute applies—

(a) section;

(b) for “day on which” substitute “day with effect from which”;

(c) at the end insert—

(b) 45section 4 applies as if—

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(i) the reference in subsection (1) to the employer’s
staging date were a reference to the employer’s
first enrolment date;

(ii) in that subsection, for “the workers’s automatic
5enrolment date is the deferral date” there were
substituted “the day with effect from which
arrangements fall to be made by virtue of section
30 in respect of the jobholder is changed to the
deferral date”;

(iii) 10in subsections (4) to (6), references to the starting
day were references to the day with effect from
which arrangements would by virtue of this
section fall to be made in respect of the
jobholder.

7 15Timing of automatic re-enrolment

In section 6 of the 2008 Act (timing of automatic re-enrolment) in subsection
(1)(b) for “three years” substitute “2 years and 9 months”.

8 Review of earnings trigger and qualifying earnings band

(1) For section 14 of the 2008 Act (review of qualifying earnings band) substitute—

14 20Review of earnings trigger and qualifying earnings band

(1) The Secretary of State must in each tax year consider whether any of the
amounts in sections 3(1)(c), 5(1)(a) and 13(1)(a) and (b) should be
increased or decreased.

(2) If the Secretary of State considers that any of those amounts should be
25increased or decreased, the Secretary of State may make an order
substituting in the provisions in question the amounts that the
Secretary of State thinks appropriate.

(3) For the purposes of subsection (1) the Secretary of State may take into
account any of the factors specified in subsection (4) (as well as any
30others that the Secretary of State thinks relevant).

(4) The factors are—

(a) the amounts for the time being specified in Chapter 2 of Part 3
(personal allowances) of the Income Tax Act 2007;

(b) the amounts for the time being specified in regulations under
35section 5 of the Social Security Contributions and Benefits Act
1992 (earnings limits and thresholds for Class 1 national
insurance contributions);

(c) the amount for the time being specified in section 44(4) of that
Act (rate of basic state pension);

(d) 40the general level of prices in Great Britain, and the general level
of earnings there, estimated in such manner as the Secretary of
State thinks fit.

(2) For the italic heading before section 13 of the 2008 Act substitute—

Qualifying earnings and earnings trigger.

(3) 45In section 143(5) of the 2008 Act (statutory instruments subject to affirmative
resolution procedure) in paragraph (c) after “section” insert “14(2),”.

9 Rounded figures for earnings trigger and qualifying earnings band

After section 15 of the 2008 Act insert—

15A Power to specify rounded figures

(1) 50The Secretary of State may by order specify rounded figures for the
purposes of section 3(6B), 5(7B) or 13(2) in the case of pay reference
periods of any length specified in the order.

(2) A rounded figure so specified applies in place of the amount that
would otherwise apply (“the exact amount”).

(3) 55The Secretary of State must decide in relation to any particular amount
whether to specify—

(a) a figure that is a whole number of pounds, or

(b) a figure that is divisible by 10 pence, or

(c) a figure that includes a whole number of pennies.

(4) 60It is for the Secretary of State to decide whether to round any particular
amount up or down.

Accordingly, a figure specified under this section may be the figure
within paragraph (a) or (b) or (c) of subsection (3) that is closest to the
exact amount or the one that is next closest to it (or, if two figures are
65joint closest, it may be either of those).

10 Certification that alternative to quality requirement is satisfied

(1) Section 28 of the 2008 Act (sections 20, 24 and 26: certification that quality
requirement is satisfied) is amended as follows.

(2) In the heading after “quality requirement” insert “or alternative requirement”.

(3) 70In subsection (1) for “any jobholder of an employer” substitute “each of an
employer’s relevant jobholders”.

(4) After subsection (1) insert—

(1A) In this section—

(a) “relevant jobholder” means a jobholder to whom the certificate
75in question applies;

(b) a reference to a scheme includes a reference to part of a scheme.

(5) In subsection (2)—

(a) for “state that” substitute state—

(a) that;

(b) 80for “the jobholders” substitute “relevant jobholders”;

(c) at the end insert , or

(b) that, in relation to those jobholders, the scheme is in that
person’s opinion able to satisfy a prescribed alternative
requirement throughout the certification period.

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(6) After subsection (2) insert—

(2A) In prescribing an alternative requirement under subsection (2)(b) the
Secretary of State must be satisfied that, in all or most cases, a scheme
will be able to satisfy the requirement only if—

(a) 5for a majority of the individual relevant jobholders, and

(b) in relation to all relevant jobholders taken together,

each of the amounts in subsection (2B) is no less than it is in the case of
a scheme satisfying the relevant quality requirement.

(2B) The amounts are—

(a) 10the amount of contributions paid under the scheme by the
employer;

(b) the total amount of the contributions paid under the scheme by
the employer and by the jobholder or jobholders.

(7) In subsection (6)—

(a) 15in paragraph (e) for “any jobholder” substitute “any relevant
jobholder”;

(b) in paragraph (f) for “jobholders” substitute “relevant jobholders”.

(8) In section 32 of the 2008 Act (power to modify by resolution) in subsection
(1)(b) for the words after “the scheme” substitute to satisfy—

(i) 20the requirements contained in section 20(1),

(ii) those requirements as modified under section 24(1)(a),
or

(iii) a requirement prescribed under section 28(2)(b).

11 Transitional period for defined benefits and hybrid schemes to be optional

(1) 25Section 30 of the 2008 Act (transitional period for defined benefits and hybrid
schemes) is amended as follows.

(2) In subsection (3) for “Where this subsection applies” substitute “If by the end
of the prescribed period the employer has given the jobholder notice that the
employer intends to defer automatic enrolment until the end of the transitional
30period for defined benefits and hybrid schemes”.

(3) In subsection (4) for “at any time” substitute “a notice is given under subsection
(3) and at any later time”.

(4) After subsection (7) insert—

(7A) The Secretary of State may by regulations make provision about the
35form and content of a notice under subsection (3).

12 Arrangements where transitional conditions cease to be satisfied

In section 30(5) of the 2008 Act after “money purchase scheme” insert “or
personal pension scheme”.

13 Power of managers to modify by resolution

40In section 32 of the 2008 Act (power of trustees to modify by resolution) in
subsection (1) and in the heading after “trustees” insert “or managers”.

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14 No indemnification for civil penalties

In section 256 of the Pensions Act 2004 (no indemnification for fines or civil
penalties) in subsection (1)(b)—

(a) for “or section” substitute “, section”;

(b) 5after “1993 (c. 48)1993 (c. 48)” insert “or section 40 or 41 of the Pensions Act 2008”.

Part 3 Occupational pension schemes

Indexation and revaluation

15 Indexation and revaluation

(1) 10Section 84 of the Pension Schemes Act 1993 (basis of revaluation of accrued
benefits) is amended as follows.

(2) In subsection (5)(b) for the words from “maintains” to “index” substitute “, in
the opinion of the Secretary of State, maintains the value of the pension or other
benefit by reference to the rise in the general level of prices in Great Britain”.

(3) 15Omit subsection (6).

(4) Section 51 of the Pensions Act 1995 (annual increase in rate of certain pensions)
is amended as follows.

(5) For subsection (4) substitute—

(4) For the purposes of subsection (3) the relevant percentage is—

(a) 20the percentage increase in the consumer prices index for the
reference period, being a period determined, in relation to each
periodic increase, under the rules, or

(b) if lower, the default percentage for that period.

(4ZA) Subsection (4ZB) applies if the rules require and, since the relevant
25time, have always required the annual rate of the pension to be
increased at intervals of not more than twelve months by at least—

(a) the percentage increase in the retail prices index for the
reference period, being a period determined, in relation to each
periodic increase, under the rules, or

(b) 30if lower, the default percentage for that period.

(4ZB) Subsection (4) applies as if in paragraph (a) for “consumer prices index”
there were substituted “retail prices index”.

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