10 In Schedule 3 (increase in pensionable age for men and women) omit
paragraph 4(4).

Section 2

SCHEDULE 2 Abolition of certain additions to the state pension: consequential
5amendments etc

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

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

2 In section 55 (pension increase or lump sum where entitlement to retirement
10pension is deferred) in subsection (2) for “paragraphs 4 to 7 make” substitute
“paragraph 4 makes”.

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

(2) Omit paragraph A1(4).

(3) 15In paragraph 2(5)(a) omit “, 5, 5A, 6 or 6A”.

(4) Omit paragraph 2A.

(5) In paragraph 3B(5)(b)(i) omit “or paragraphs 5 to 6A of this Schedule”.

(6) Omit paragraph 3C(5).

(7) In paragraph 4(1A) after “6A” (in each place) insert “(as those provisions
20have effect by virtue of section 2(7) of the Pensions Act 2011)”.

(8) In paragraph 7B(5)(b)(i) after “Schedule” insert “(as those provisions have
effect by virtue of section 2(7) of the Pensions Act 2011)”.

Repeals of spent enactments

4 The following provisions are repealed—

(a) 25paragraph 40 of Schedule 1 to the Social Security (Incapacity for
Work) Act 1994;

(b) paragraph 21(15) and (16) of Schedule 4 to the Pensions Act 1995;

(c) paragraph 7 of Schedule 11 to the Pensions Act 2004;

(d) paragraph 20 of Schedule 1 to the Pensions Act 2007.

Section 3

30SCHEDULE 3 Consolidation of additional pension

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

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

2 (1) Section 45 (the additional pension in a Category A retirement pension) is
amended as follows.

(2) In subsection (2) (as amended by section 102(3) of the Pensions Act 2008) for
“6th April 2020” substitute “a date specified for the purposes of this
5subsection by order (“the specified date”)”.

(3) In subsection (2A) (as inserted by section 102(4) of the Pensions Act 2008)—

(a) in the opening words for “a tax year after 5th April 2020” substitute
“the tax year beginning with the specified date or a subsequent tax
year”;

(b) 10in paragraph (a) for “flat rate introduction” substitute “additional
pension consolidation”;

(c) for paragraph (b) substitute—

“(b) in relation to the additional pension consolidation
year and subsequent years, the weekly equivalent of
15the amount calculated in accordance with
Schedule 4B to this Act.”

3 In section 46 (modifications of section 45 for calculating the additional
pension in certain benefits) in subsection (5)(a) (as inserted by paragraph
6(3) of Schedule 4 to the Pensions Act 2008) for “6th April 2020” substitute “a
20date specified for the purposes of this subsection by order (“the specified
date”)”.

4 In section 122(1) (interpretation of Parts 1 to 6) insert at the appropriate
place—

• ““the additional pension consolidation year” means such tax
  25year as may be designated as such by order;”.

5 (1) Section 176 (Parliamentary control) is amended as follows.

(2) After subsection (3) insert—

“(3A) Subsection (3) above does not apply to a statutory instrument by
reason only that it contains an order under section 45(2).”

(3) 30In subsection (4) after “flat rate introduction year” insert “or the additional
pension consolidation year”.

6 (1) Schedule 4B (additional pension: accrual rates for purposes of section
45(2)(d)) is amended as follows.

(2) In paragraph 1—

(a) 35in sub-paragraph (1) in the opening words after “45(2)(d)” insert “or
(2A)(b)”;

(b) in sub-paragraphs (1)(a) and (b) and (2) after “45(2)(d)” insert “or
(2A)(b) (as the case may be)”.

(3) In paragraph 11 after “45(2)(d)” insert “or (2A)(b)”.

7 (1) 40Schedule 4C (additional pension: calculation of revalued consolidated
amount) (as inserted by Schedule 3 to the Pensions Act 2008) is amended as
follows.

(2) In paragraphs 1 and 2 for “flat rate introduction” substitute “additional
pension consolidation”.

(3) 45Omit paragraph 3.

(4) In paragraphs 5(b) and 7(1) for “and (c)” (in each place) substitute “, (c) and
(d)”.

(5) In paragraph 6 for “6th April 2020” substitute “the date specified for the
purposes of section 45(2) of this Act”.

(6) 5In paragraph 7(1) for “6th April 2020” substitute “the date specified for the
purposes of section 45(2)”.

(7) In paragraph 7(2)—

(a) in paragraph (b) after “2(2)(b),” insert “5(2)(b),”;

(b) after paragraph (b) insert—

“(c) 10in Schedule 4B, paragraphs 4, 5(b), 8(3), 9(2)(b) and
(3) and 10(1)(b).”

(8) After paragraph 7(2) insert—

“(3) Paragraph 1(1) of Schedule 4B applies as if a reference to the
relevant years within section 45(2)(d) were a reference to the
15relevant years falling within the period beginning with the flat
rate introduction year and ending immediately before the
consolidation date.”

Social Security Administration Act 1992 (c. 5)1992 (c. 5)

8 (1) Section 148AB of the Social Security Administration Act 1992 (revaluation of
20consolidated amount) (as inserted by paragraph 14 of Schedule 4 to the
Pensions Act 2008) is amended as follows.

(2) In subsections (1) and (2) for “flat rate introduction” substitute “additional
pension consolidation”.

(3) After subsection (8) insert—

“(9) 25In this section “the additional pension consolidation year” has the
meaning given by section 122 of the Contributions and Benefits Act
(interpretation of Parts 1 to 6 etc).”

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

9 The Pension Schemes Act 1993 is amended as follows.

10 30In section 46 (effect of entitlement to guaranteed minimum pensions on
payment of social security benefits) in subsection (1A) (as inserted by section
103(2) of the Pensions Act 2008) for “in tax year after 5th April 2020”
substitute “on or after the date specified for the purposes of section 45(2) of
that Act”.

11 35In section 46A (retirement in tax year after 5th April 2020) (as inserted by
section 103(3) of the Pensions Act 2008)—

(a) in subsection (1)(c) for “in tax year after 5th April 2020” substitute
“on or after the date specified for the purposes of section 45(2) of that
Act”;

(b) 40in the heading for “in tax year after 5th April 2020” substitute “on or
after the specified date”.

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

12 The Pensions Act 2008 is amended as follows.

13 In section 102 (consolidation of additional pension) in subsection (7) for “6th
April 2020” substitute “the date specified for the purposes of section 45(2) of
5the 1992 Act”.

Section 18

SCHEDULE 4 Pension Protection Fund

Requirements to obtain actuarial valuations

1 The Pensions Act 2004 is amended as follows.

2 10In section 58(3) (right to apply under section 423 of the Insolvency Act
1986)—

(a) for the words from “an actuarial” to the first “scheme” substitute “a
determination made, or actuarial valuation obtained, in respect of
the scheme by the Board of the Pension Protection Fund under
15section 143(2)”, and

(b) for “that section” substitute “section 143”.

3 (1) Section 141 (effect of review of ill-health pension) is amended as follows.

(2) In subsection (4) after “which” insert “a determination under section
143(2)(a) or”.

(3) 20In subsection (5)(a) after “first” insert “makes a determination under section
143(2)(a) or”.

4 In section 142(1) (interpretation) in the definition of “scheme valuation” for
“143” substitute “143(2)(b)”.

5 (1) Section 143 (Board’s obligation to obtain valuation of assets and protected
25liabilities) is amended as follows.

(2) For subsection (2) substitute—

“(2) The Board must, as soon as reasonably practicable—

(a) determine whether the condition in subsection (2)(a) of the
section in question is satisfied, or

(b) 30for the purposes of determining whether that condition is
satisfied, obtain an actuarial valuation of the scheme as at the
relevant time.

(2A) Before doing so, it must give a notice stating whether it will make a
determination under subsection (2)(a) or obtain an actuarial
35valuation under subsection (2)(b) to—

(a) the trustees or managers of the scheme, and

(b) any insolvency practitioner in relation to the employer or, if
there is no such insolvency practitioner, the employer.”

(3) In subsection (3) for “those purposes” substitute “the purposes of this
40section”.

(4) In subsection (4) for “this section” substitute “a determination made under
subsection (2)(a) or an actuarial valuation obtained under subsection (2)(b)”.

(5) In subsection (5B) for “mentioned in subsection (2)” substitute “of this
section”.

(6) 5After subsection (5B) insert—

“(5C) The Board must issue a statement setting out how (subject to any
provision made under subsection (4)) it will make determinations
under subsection (2)(a).”

(7) In subsection (6)—

(a) 10after “subsection (4),” insert “for the purposes of an actuarial
valuation obtained under subsection (2)(b)”, and

(b) for “paragraphs (a) and (b) of that subsection” substitute “subsection
(4)(a) and (b)”.

(8) In subsection (9)—

(a) 15for “requires the” substitute “requires a determination to be made, or
an”, and

(b) after “purposes of” insert “the determination or”.

(9) In subsection (10) for “requires the” substitute “requires a determination to
be made, or an”.

(10) 20In subsection (11)(b)(ii) after “first” insert “makes a determination under
subsection (2)(a) or”.

6 After section 143 insert—

“143A Determinations under section 143

(1) Where the Board makes a determination under section 143(2)(a) it
25must give a copy of the determination to—

(a) the Regulator,

(b) the trustees or managers of the scheme, and

(c) any insolvency practitioner in relation to the employer or, if
there is no such insolvency practitioner, the employer.

(2) 30For the purposes of this Chapter a determination under section
143(2)(a) is not binding until—

(a) the period within which the determination may be reviewed
by virtue of Chapter 6 has expired, and

(b) if the determination is so reviewed—

(i) 35the review and any reconsideration,

(ii) any reference to the PPF Ombudsman in respect of
the determination, and

(iii) any appeal against the PPF Ombudsman’s
determination or directions,

40has been finally disposed of.

(3) For the purposes of determining whether or not the condition in
section 127(2)(a) or, as the case may be, section 128(2)(a) (condition
that scheme assets are less than protected liabilities) is satisfied in
relation to a scheme, a binding determination under section 143(2)(a)
45is conclusive.

This subsection is subject to section 172(3) and (4) (treatment of fraud
compensation payments).

(4) Where a determination under section 143(2)(a) becomes binding
under this section the Board must as soon as reasonably practicable
50give a notice to that effect together with a copy of the binding
determination to—

(a) the Regulator,

(b) the trustees or managers of the scheme, and

(c) any insolvency practitioner in relation to the employer or, if
55there is no such insolvency practitioner, the employer.

(5) A notice under subsection (4) must be in the prescribed form and
contain the prescribed information.”

7 (1) Section 144 (approval of valuation) is amended as follows.

(2) In subsection (1) for “143” substitute “143(2)(b)”.

(3) 60In subsection (2) for “that section” substitute “section 143”.

8 In section 145(1) (binding valuations) for “143” substitute “143(2)(b)”.

9 (1) Section 151 (application for Board to assume responsibility for schemes) is
amended as follows.

(2) In subsections (2)(b) and (3)(b) for the words from “the valuation” to
65“scheme” substitute “the determination made by the Board or valuation
obtained by the Board in respect of the scheme under section 143(2)”.

(3) In subsection (6)—

(a) in paragraphs (a)(ii) and (b)(ii) after “binding” insert “determination
or”, and

(b) 70in paragraph (a)(ii) for “section” substitute “subsection”.

(4) In subsection (10) for “under that section” substitute “under section
143(2)(b)”.

10 In section 154(5)(b) (requirement to wind up scheme) after “that the” insert
“determination made by the Board or”.

11 (1) 75Section 158 (Board’s duty to assume responsibility for closed schemes) is
amended as follows.

(2) For subsection (3) substitute—

“(3) The Board must, as soon as reasonably practicable—

(a) determine whether the condition in subsection (1) is satisfied,
80or

(b) for the purposes of determining whether that condition is
satisfied, obtain an actuarial valuation (within the meaning of
section 143) of the scheme as at the relevant time.

(3A) Before doing so, it must give the trustees or managers of the scheme
85a notice stating whether it will make a determination under
subsection (3)(a) or obtain an actuarial valuation under subsection
(3)(b).”

(3) In subsection (4) for “those purposes as it applies for the purposes
mentioned in subsection (2)” substitute “the purposes of this section as it
applies for the purposes”.

(4) In subsection (5)—

(a) 5for “a valuation obtained under subsection (3)” substitute “a
determination made under subsection (3)(a) and a valuation
obtained under subsection (3)(b)”,

(b) for “a valuation obtained under section 143” substitute “a
determination made under section 143(2)(a) and a valuation
10obtained under section 143(2)(b)”, and

(c) after paragraph (a) insert—

“(aa) section 143A (determinations under section 143),
other than subsections (1)(c) and (4)(c) (duty to give
copy of determinations to employer’s insolvency
15practitioner);”.

(5) In subsection (6)—

(a) after “sections 143” insert “, 143A”,

(b) omit “and” at the end of paragraph (a), and

(c) after that paragraph insert—

“(aa) 20subsection (3) of section 143A applies as if the
reference to section 128(2)(a) included a reference
to subsection (1) of this section, and”.

12 (1) Section 160 (transfer notice) is amended as follows.

(2) In subsection (3) for “valuation obtained under section 143” substitute
25“determination made or valuation obtained under section 143(2)”.

(3) In subsection (4) after “until the” insert “determination made or”.

13 (1) Schedule 9 (reviewable matters) is amended as follows.

(2) For paragraph 8 substitute—

“7B A notice under section 143(2A) (whether Board will make a
30determination or obtain an actuarial valuation).

7C The failure by the Board either to—

(a) make a determination under section 143(2)(a), or

(b) obtain an actuarial valuation under section 143(2)(b).

7D A determination by the Board under section 143(2)(a) (whether
35condition in section 127(2)(a) or 128(2)(a) satisfied).”

(3) After paragraph 14 insert—

“14A A notice under section 158(3A) (whether Board will make a
determination or obtain an actuarial valuation).

14B The failure by the Board either to—

(a) 40make a determination under section 158(3)(a), or

(b) obtain an actuarial valuation under section 158(3)(b).

14C A determination by the Board under section 158(3)(a) (whether
condition in section 158(1) satisfied).”

Requirement to obtain protected benefits quotation

14 In section 151(4)(a) of the Pensions Act 2004 (application for Board to assume
responsibility for scheme) after “form,” insert “or evidence in the prescribed
form which shows that the trustees or managers of the scheme have taken
5all reasonable steps to obtain a protected benefits quotation but were unable
to do so,”.

15 (1) Section 152 of the Pensions Act 2004 (Board’s duty to assume responsibility
for scheme) is amended as follows.

(2) After subsection (1) insert—

“(1A) 10Subsection (2) applies where the application is accompanied by a
protected benefits quotation.”

(3) After subsection (2) insert—

“(2A) Subsection (2B) applies where—

(a) the application is accompanied by evidence in the
15prescribed form which shows that the trustees or
managers of the scheme have taken all reasonable steps to
obtain a protected benefits quotation but were unable to do
so, and

(b) the Board is satisfied that that is the case.

(2B) 20The Board must assume responsibility for the scheme in
accordance with this Chapter if it is satisfied that the value of the
assets of the scheme at the reconsideration time is less than the
amount of the protected liabilities at that time.”

(4) In subsection (3)—

(a) 25after “subsection (2)” insert “or (2B)”, and

(b) for “a determination notice” substitute “a notice to that effect (a
“determination notice”)”.

(5) Omit subsection (4).

(6) In subsection (5)—

(a) 30after “in subsection (2)” insert “or (2B)”, and

(b) for “under subsection (2)” substitute “under that subsection”.

(7) Omit subsection (8).

(8) In subsection (10) for “Regulations” substitute “Where subsection (2)
applies, regulations”.

(9) 35After subsection (10) insert—

“(10A) The Board may, for the purposes of subsection (2B), obtain its own
valuation of the assets of the scheme and the protected liabilities of
the scheme as at the reconsideration time (within the meaning of
section 151).

(10B) 40A valuation under subsection (10A) must be prepared in accordance
with such requirements as may be prescribed.

(10C) Section 143(3) to (6) applies in relation to a determination under
subsection (2B) and a valuation under subsection (10A) as it applies

in relation to a determination under section 143(2)(a) and an
actuarial valuation obtained under section 143(2)(b).

(10D) In the application of section 143 by virtue of subsection (10C)—

(a) references to the relevant time are to be read as references to
5the reconsideration time (within the meaning of section 151),
and

(b) references to the pre-approval period are to be read as
references to the period which begins immediately after the
reconsideration time, and ends immediately before the Board
10first issues a determination notice under this section.”

16 In the following provisions of the Pensions Act 2004 after “152(2)” insert “or
(2B)”—

(a) section 154(2)(c) (requirement to wind up certain schemes), and

(b) section 172(4) and (5)(c) (fraud compensation regime).

15Removal of restriction on transfer notices

17 (1) The Pensions Act 2004 is amended as follows.

(2) In section 160(7) (transfer notice)—

(a) for “172(1) and (2)” substitute “172(2)”, and

(b) omit “within first 12 months of assessment period or”.

(3) 20Omit section 172(1) (no transfer notice within first 12 months of assessment
period).

Parliamentary control of subordinate legislation

18 (1) Section 316(2) of the Pensions Act 2004 (subordinate legislation subject to
affirmative procedure) is amended as follows.

(2) 25Omit paragraph (a) (the administration levy).

(3) In paragraph (f) (the levy ceiling) after “ceiling)” insert “which is made by
virtue of section 178(8)”.

(4) In paragraph (s) (the compensation cap) after “Fund)” insert “except an
order which is made by virtue of paragraph 27 of that Schedule”.

30Pension credit members

19 (1) Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
amended as follows.

(2) For paragraph 21 (pension credit members under normal benefit age at
assessment date) substitute—

“21 (1) 35This paragraph applies to a person who—

(a) is a pension credit member of the scheme immediately
before the assessment date, but

(b) has not attained normal benefit age before that date.

(2) But it applies only to the extent that the member’s pension credit
40rights do not involve the member being credited by the scheme
with notional pensionable service.

(3) Paragraphs 15, 18 and 19 apply to the pension credit member as
they apply to a deferred member who has not attained normal
pension age before the assessment date, subject to the following
modifications.

(4) 5In paragraph 15—

(a) in sub-paragraphs (1) and (2) the references to normal
pension age are to be read as references to normal benefit
age,