Pensions Bill (HL Bill 55)

(a) in 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
5Schedule 3.

(4) A 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) 10the pensioner attained pensionable age before 6 April 2010,
and

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

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

(a) 15in a case where the deceased civil partner attained
pensionable age before 6 April 2010, the conditions in
paragraph 5 of Schedule 3, and

(b)
in a case where the deceased civil partner attained
pensionable age on or after 6 April 2010, the condition in
20paragraph 5A of Schedule 3.

(6) The weekly rate of a person’s Category B retirement pension under
this section is to be determined in accordance with sections 44 to
45AA and Schedule 4A as they apply in the case of a Category A
retirement pension taking references in those sections to the
25pensioner as references to the spouse or deceased civil partner.

(7) But in the case of—

(a) a man whose wife dies after 5 October 2002,

(b) a surviving party to a marriage of a same sex couple, or

(c) a surviving civil partner,

30any amount of additional pension falling to be calculated under
subsection (6) is to be halved.

(8) For 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 deceased civil partner for the tax year beginning with 6
35April 2016 or any later tax year.

(9) Subject to the provisions of this Act, a person becomes entitled to a
Category B retirement pension under this section on the day on
which the conditions of entitlement become satisfied and the
entitlement continues throughout the person’s life.

(10) 40Section 51ZA contains special rules for cases involving changes in
gender.”

61 After section 51 insert—

“51ZA Special provision for married person whose spouse changed gender

(1) Section 48A(2)(b) does not prevent a woman from being entitled to a
45Category B retirement pension under that section in a case where—

(a) her spouse is a woman by virtue of a full gender recognition
certificate having been issued under the Gender Recognition
Act 2004, and

(b) the marriage subsisted before the time when that certificate
5was issued.

(2) Section 48AA(2)(b) does not prevent a woman from being entitled to
a Category B retirement pension under that section in a case where—

(a) her former spouse was, at the time the marriage was
dissolved, a woman by virtue of a full gender recognition
10certificate having been issued under the Gender Recognition
Act 2004, and

(b) the marriage subsisted before the time when that certificate
was issued.

(3) Section 48B(1ZA)(b) does not prevent a woman from being entitled
15to a Category B retirement pension under that section in a case
where—

(a) her dead spouse was, at the time of death, a woman by virtue
of a full gender recognition certificate having been issued
under the Gender Recognition Act 2004, and

(b) 20the marriage subsisted before the time when that certificate
was issued,

and in such a case the reference in section 48B(1ZB)(a)(ii) to the
spouse having attained pensionable age before 6 April 2010 is to be
read as a reference to the spouse having been born before 6 April
251945.

(4) Section 51(1) does not confer a right to a Category B retirement
pension on a woman if—

(a) her dead spouse was, at the time of death, a woman by virtue
of a full gender recognition certificate having been issued
30under the Gender Recognition Act 2004, and

(b) the marriage subsisted before the time when that certificate
was issued.”

62 In section 52(3) (special provision for surviving spouses) for “prescribed
maximum” substitute “maximum amount specified in regulations”.

63 (1) 35Schedule 3 (contribution conditions for entitlement to benefit) is amended as
follows.

(2) In paragraph 5, for sub-paragraph (1) substitute—

“(1) This paragraph sets out the contribution conditions for—

(a) a widowed mother’s allowance, a widowed parent’s
40allowance or a widow’s pension;

(b) a Category A retirement pension (other than one in
relation to which paragraph 5A applies);

(c) a Category B retirement pension in the cases provided for
by any of sections 48A to 51ZA.”

(3) 45In paragraph 5A(1), for paragraphs (b) and (c) substitute—

“(b) a Category B retirement pension in the cases provided for
by any of sections 48A to 51ZA.”

64 In Part 1 of Schedule 4 (rates of certain benefits), in paragraph 5, for
“section 48A(3)” substitute “section 48A(4) or 48AA(4)”.

65 In Schedule 4A (additional pension: accrual rates for purposes of
section 45(2)(c)), in paragraph 1(2), omit “, 48A(4)” (in both places).

66 5In section 150 of the Administration Act (annual up-rating of benefits), in
subsection (1), after paragraph (ab) insert—

“(ac) specified in regulations under section 52(3) of that Act;”.

67 In section 46 of the Pension Schemes Act 1993 (effect of entitlement to
guaranteed minimum pensions on payment of social security benefits), in
10subsection (6)(b)(iii), omit “48A,”.

68 In section 128 of the Pensions Act 1995 (additional pension: calculation of
surpluses), in subsection (6), omit “48A,”.

69 In Schedule 4 to the Pensions Act 1995 (equalisation of, and increase in,
pensionable age for men and women), omit paragraph 3(2) and (3).

70 15In section 577 of the Income Tax (Earnings and Pensions) Act 2003 (United
Kingdom social security pensions), in the definition of “state pension” in
subsection (2)—

(a) in paragraph (a), after “48A,” insert “48AA,”;

(b) in paragraph (b), after “1992” insert “or any provision under the law
20of Northern Ireland that corresponds to section 48AA of SSCBA
1992”.

71 In Schedule 24 to the Civil Partnership Act 2004, omit paragraphs 25(6)
and 28(6).

72 In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in
25paragraph 8(1)(a) and (3), after “48A,” insert “48AA,”.

Category C retirement pensions: repeal of spent provisions

73 The Contributions and Benefits Act is amended as follows.

74 In section 63(f)(i) (descriptions of non-contributory benefits), for the words
from “payable” to “widows” substitute “payable in certain cases to a widow
30whose husband was over pensionable age on 5 July 1948 or to a woman
whose marriage to a husband who was over pensionable age on that date
was terminated otherwise than by his death”.

75 (1) Section 78 (Category C retirement pensions etc) is amended as follows.

(2) Omit subsections (1), (2) and (5).

(3) 35In subsections (7) and (8), omit “Category C or”.

76 In Part 3 of Schedule 4 —

(a) omit paragraph 6 (rate of Category C retirement pension);

(b) in paragraph 7 (rate of Category D retirement pension), for the text
in the second column substitute the amount specified in paragraph 6
40as the higher rate for a Category C retirement pension immediately
before 6 April 2016.

77 In section 150A of the Administration Act (annual up-rating), in
subsection (10), in the definition of “the specified amounts in the case of
Category B, C or D retirement pensions”—

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

(b) 5in paragraph (b), for “amounts specified in paragraphs 6 and 7”
substitute “amount specified in paragraph 7”;

(c) at the end of paragraph (b) insert “, and

• (c)

  any amount specified in regulations under
  section 78(9) of the Contributions and Benefits
  10Act for a Category C retirement pension;”.

78 In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions)
omit paragraph 11 and the heading above it.

Category D retirement pensions

79 In section 78(3) of the Contributions and Benefits Act (entitlement to a
15Category D retirement pension), for “and satisfies” substitute “, who reached
pensionable age before 6 April 2016 and who satisfies”.

Age addition

80 In sections 63(g) and 79(1) of the Contributions and Benefits Act (age
addition), after “retirement pension of any category” insert “under this Act”.

20Christmas bonus

81 In section 150(2) of the Contributions and Benefits Act (Christmas bonus:
interpretation), for the definition of “retirement pension” substitute—

• ““retirement pension” means—

  (a)

  a state pension under Part 1 of the Pensions Act 2013,

  (b)

  25a retirement pension under this Act, or

  (c)

  graduated retirement benefit.”

Transition: same sex marriages

82 (1) If marriage of same sex couples is not lawful under the law of Scotland when
the amendments made by this Part of this Schedule come into force then,
30under the law of Scotland, references in the amendments to a married
person do not include a person married to someone of the same sex; and
related expressions (such as “spouse”) are to be read accordingly.

(2) See also Part 1 of Schedule 2 to the Marriage (Same Sex Couples) Act 2013
(power to provide for English and Welsh marriages of same sex couples to
35be treated in Scotland as civil partnerships).

Part 3 Amendments to do with state pension credit

83 The State Pension Credit Act 2002 is amended as follows.

84 In section 3 (savings credit), for subsection (1) substitute—

“(1) The first of the conditions mentioned in section 1(2)(c)(ii) is that the
claimant—

(a) has attained pensionable age before 6 April 2016 and has
5attained the age of 65 (before, on or after that date), or

(b) is a member of a couple, the other member of which falls
within paragraph (a).”

85 After that section insert—

“3ZA Power to limit savings credit for certain mixed-age couples

(1) 10Regulations may provide that, in prescribed cases, a person who is a
member of a mixed-age couple is not entitled to a savings credit.

(2) For example, the regulations could provide that a member of
a mixed-age couple is not entitled to a savings credit unless—

(a) the person has been awarded a savings credit with effect
15from a day before 6 April 2016 and was entitled to a savings
credit immediately before that date, and

(b) the person remained entitled to state pension credit at all
times since the beginning of 6 April 2016.

(3) In this section “mixed-age couple” means a couple (whenever
20formed) one member of which had attained pensionable age before
6 April 2016 and the other had not.”

86 In Schedule 1 to the Pensions Act 2007, omit paragraph 44.

Part 4 Other amendments to do with Part 1

25Social Security Contributions and Benefits Act 1992 (c. 4)Social Security Contributions and Benefits Act 1992 (c. 4)

87 The Contributions and Benefits Act is amended as follows.

88 (1) Section 39C (rate of widowed parent’s allowance and bereavement
allowance) is amended as follows.

(2) In subsection (1), for the words from “45AA” to “as they apply” substitute
30“45AA and Schedules 4A and 4B below as they apply”.

(3) In subsection (3), for the words from “45AA” to “by virtue of subsection (1)
above” substitute “45AA and Schedules 4A and 4B below by virtue of
subsection (1) above”.

(4) In subsection (4), for the words from “45AA” to “below” substitute “45AA
35and Schedules 4A and 4B below”.

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

(2) In the following provisions omit “(as those provisions have effect by virtue
of section 2(7) of the Pensions Act 2011)”—

• 40paragraph 4(1A)(a), (b) and (c);

• paragraph 7B(5)(b)(i).

(3) After paragraph 7 insert—

“7ZA (1) This paragraph modifies paragraphs 5A to 6A in cases where—

(a) W became entitled to a Category A or Category B
retirement pension before 6 April 2012, and

(b) 5S died before 6 April 2012.

(“W” and “S” have the same meaning as in paragraph 5.)

(2) Paragraph 5A applies as if—

(a) in sub-paragraph (2), after paragraph (a), there were
inserted—

“(b) 10the appropriate amount; and”;

(b) in sub-paragraph (3), after “following—”, there were
inserted—

“(a) one half of the appropriate amount; and”.

(3) Paragraph 6 applies as if—

(a) 15in sub-paragraph (2), after paragraph (a), there were
inserted—

“(b) the appropriate amount; and”;

(b) in sub-paragraph (3), after paragraph (b), there were
inserted—

“(c) 20the appropriate amount reduced by the amount of
any increases under section 109 of the Pensions
Act; and”;

(c) in sub-paragraph (4), after paragraph (a), there were
inserted—

“(b) 25one half of the appropriate amount; and”.

(4) Paragraph 6A applies as if in sub-paragraph (2), after
paragraph (a), there were inserted—

“(b) one half of the appropriate amount; and”;

(5) In paragraphs 5A to 6A as modified by this paragraph, the
30“appropriate amount” means the greater of—

(a) the amount by which the deceased person’s Category A or
Category B retirement pension had been increased under
section 150(1)(e) of the Administration Act; or

(b) the amount by which his or her Category A or Category B
35retirement pension would have been so increased had he
or she died immediately before the surviving spouse or
civil partner became entitled to a Category A or Category
B retirement pension.

(6) In sub-paragraph (1)(a) the reference to becoming entitled to a
40pension before 6 April 2012 includes a reference to becoming
entitled on or after that day to the payment of a pension in respect
of a period before that day.”

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

90 Section 46A of the Pension Schemes Act 1993 (retirement in tax year after 5
45April 2020) is repealed.

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

91 In the Pensions Act 2008, the following are repealed—

(a) sections 102 and 103 (consolidation of additional pension);

(b) Schedule 3 (consolidation of additional pension);

(c) 5in Schedule 4 (minor and consequential amendments)—

• paragraph 4(2)(b) and (3)(b);

• paragraph 6(3);

• paragraph 7(a);

• paragraph 8(a);

• 10paragraph 9(2)(c);

• paragraph 10;

• paragraphs 13 to 22.

Pensions Act 2011 (c. 19)2011 (c. 19)

92 In the Pensions Act 2011, the following are repealed—

(a) 15section 2(5) to (9) and Schedule 2 (abolition of certain additions to the
state pension);

(b) section 3 and Schedule 3 (consolidation of additional pension).

Section 24

SCHEDULE 13 Abolition of contracting-out for salary related schemes

20Part 1 Pension Schemes Act 1993: amendments

1 The Pension Schemes Act 1993 is amended as follows.

2 For “the abolition date” (in each place) substitute “the first abolition date”.

3 In the heading for Part 3 of the Act—

(a) 25for “Certification of pension schemes” substitute “Schemes that were
contracted-out etc”;

(b) omit “and duties”.

4 For the heading to Chapter 1 of Part 3 substitute “Schemes that were
contracted-out: guaranteed minimum pensions and alteration of scheme
30rules etc”.

5 Section 7 (issue of contracting-out certificates) is repealed (and accordingly,
any certificates in force under that section immediately before this
paragraph comes into force cease to have effect).

6 After section 7 insert—

“7A 35Meaning of “the first abolition date” and “the second abolition date”

In this Act—

• “the first abolition date” means 6 April 2012 (the date appointed
  for the commencement of section 15(1) of the Pensions Act

  Pensions BillPage 67

  2007 (abolition of contracting-out for defined contribution
  pension schemes));

• “the second abolition date” means 6 April 2016 (the date on
  which section 51(5) of the Pensions Act 2013 provides for the
  5commencement of section 24(1) of that Act (abolition of
  contracting-out for salary related schemes)).

7B Meaning of “contracted-out scheme” and “appropriate scheme” etc.

(1) This section applies for the interpretation of this Act.

(2) An occupational pension scheme was “contracted-out” at a time if, at
10that time, there was in force a certificate under section 7 (as it then
had effect) stating that the employment of an earner in employed
earner’s employment was contracted-out employment by reference
to the scheme.

(3) “Contracting-out certificate” means a certificate of the kind
15mentioned in subsection (2).

(4) An occupational pension scheme was a “salary related contracted-
out scheme” at a time if, at that time, the scheme was contracted-out
by virtue of satisfying section 9(2) (as it then had effect).

(5) An occupational pension scheme was a “money purchase
20contracted-out scheme” at a time if, at that time, the scheme was
contracted-out by virtue of satisfying section 9(3) (as it then had
effect).

(6) A personal pension scheme was an “appropriate scheme” at a time if,
at that time, there was in force a certificate issued under
25section 7(1)(b) (as it then had effect) stating that the scheme was an
appropriate scheme.

(7) “Appropriate scheme certificate” means a certificate of the kind
mentioned in subsection (6).

(8) An appropriate scheme certificate that was in force in relation to a
30scheme is to be taken as conclusive that the scheme was, at that time,
an appropriate scheme.”

7 (1) Section 8 (meaning of “contracted-out employment”, “guaranteed minimum
pension” and “minimum payment”) is amended as follows.

(2) For subsection (1) substitute—

“(1) 35In relation to any period before the second abolition date, the
employment of an earner in employed earner’s employment was
“contracted-out employment” in relation to the earner during that
period if—

(a) the earner was under pensionable age;

(b) 40the earner’s service in the employment was service which
qualified the earner for a pension provided by a salary
related contracted-out scheme; and

(c) there was in force a contracting-out certificate issued in
accordance with this Chapter (as it then had effect) stating
45that the employment was contracted-out employment by
reference to the scheme.”

(3) After subsection (1A) insert—

“(1B) In the following provisions of this Act “earner”, in relation to a
scheme, means a person who was an earner in contracted-out
employment by reference to the scheme.”

(4) 5In subsection (2), in the definition of “guaranteed minimum pension”, for
“by an occupational pension scheme” substitute “, by a scheme that was a
salary related contracted-out scheme,”.

(5) For subsection (4) substitute—

“(4) A contracting-out certificate that was in force in respect of an
10employed earner’s employment is to be taken as conclusive that the
employment was, at that time, contracted-out employment.”

8 The italic heading above section 9 is repealed.

9 Sections 9 and 11 (requirements for certification of schemes: general) are
repealed.

10 15The italic heading above section 12A is repealed.

11 Sections 12A to 12D (requirements for certification applying to employment
from 6 April 1997) are repealed.

12 For the italic heading above section 13 substitute “Guaranteed minimum
pensions”.

13 (1) 20Before section 13 insert—

“12E Former salary related contracted-out schemes to comply with GMP
requirements

(1) A scheme that was a salary related contracted-out scheme is to be
treated as including whatever provision it needs to contain to
25comply with the GMP requirements.

(2) A scheme complies with the GMP requirements if, in relation to any
earner’s service before the principal appointed day, it complies in all
respects with sections 13 to 24E.

(3) Where—

(a) 30a scheme is permitted by any of those sections to include
provision subject to certain requirements, and

(b) the scheme includes the provision but not the requirements,

the scheme is to be treated by subsection (1) as including the
requirements.

(4) 35This section overrides any provision of a scheme to the extent that
the provision of the scheme conflicts with it.”

(2) For the purposes of section 12E it does not matter whether the scheme ceased
to be contracted-out when the amendment made by paragraph 5 of this
Schedule came into force or before that time.

(3) 40But section 12E does not treat a scheme as having included any provision
before this paragraph comes into force.

14 In section 13 (minimum pensions for earners), in subsection (2)—

(a) for “is a married woman or widow who is liable” substitute “was a
married woman or widow who was liable”;

(b) after “Act 1992” insert “at a time during a relevant year when she was
in contracted-out employment by reference to the scheme”;

(c) 5at the end of that subsection insert—

““Relevant year” has the meaning given by section 14(8).”

15 (1) Section 14 (earner’s guaranteed minimum) is amended as follows.

(2) For subsection (1) substitute—

“(1) An earner has a guaranteed minimum in relation to the pension
10provided by a scheme that was a salary related contracted-out
scheme if in any tax week in a relevant year—

(a) earnings were paid to or for the earner’s benefit in respect of
employment which was contracted-out by reference to the
scheme; and

(b) 15those earnings were in excess of the lower earnings limit for
that tax week (or the prescribed equivalent if the earner was
paid otherwise than weekly).”

(3) In subsection (2), for “earnings such as are mentioned in subsection (1)”
substitute “excess earnings mentioned in subsection (1)(b)”.

16 20In section 16 (revaluation of earnings factors for the purposes of section 14:
early leavers etc), for subsection (2) substitute—

“(2) The scheme may provide that in a case where—

(a) an earner was, before the second abolition date, in
contracted-out employment by reference to a scheme, and

(b) 25the earner ceases to be in pensionable service under the
scheme before the final relevant year,

the earnings factors for that person shall be determined for the
purposes of section 14(2) by reference to the last such order to come
into force before the end of the tax year in which the earner ceases to
30be in pensionable service under the scheme (“the last service tax
year”).”

17 (1) Section 17 (minimum pensions for widows, widowers and surviving civil
partners) is amended as follows.

(2) In subsection (4A), after paragraph (a) insert—

“(aa) 35for life, in a case where—

(i) the widow, widower or surviving civil partner
attained state pension age on or after the second
abolition date, and

(ii) the earner died on or after the date on which the
40widow, widower or surviving civil partner attained
state pension age;

(ab) for any period after the widow, widower or surviving civil
partner has attained state pension age, in a case where—

(i) the earner died before the widow, widower or
45surviving civil partner attained state pension age,