Pensions Bill (HL Bill 76)

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

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

3 (1) Section 20 (descriptions of contributory benefits) is amended as follows.

(2) 5In subsection (1), for paragraph (ea) substitute—

“(ea) widowed parent’s allowance;”.

(3) In subsection (2), in the definition of “long-term benefit” omit paragraph
(bb).

4 (1) Section 21 (contribution conditions) is amended as follows.

(2) 10In the table in subsection (2) omit the entries for bereavement payment and
bereavement allowance.

(3) Omit subsection (4).

5 In section 22 (earnings factors), in subsection (2), after paragraph (c)
(inserted by Schedule 12 to this Act) insert “and

(d) 15establishing entitlement to bereavement support payment
under section 30 of the Pensions Act 2014.”

6 (1) Section 23A (contributions credits for relevant parents and carers) is
amended as follows.

(2) In subsection (1) omit paragraph (e).

(3) 20In subsection (6)(b) omit “or (e)”.

7 For the italic heading above section 36 substitute “Bereavement benefits:
deaths before the day on which section 30 of the Pensions Act 2014 comes
into force”.

8 Section 36 (bereavement payment) is repealed.

9 25Section 36A (cases in which sections 37 to 41 apply) is repealed.

10 (1) Section 37 (widowed mother’s allowance) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies only in cases where a woman’s husband has
died before 9 April 2001.”

(3) 30At the end of the heading insert “: deaths before 9 April 2001”.

11 (1) Section 38 (widow’s pension) is amended as follows.

(2) Before subsection (1) insert—

“(A1) This section applies only in cases where a woman’s husband has
died before 9 April 2001.”

(3) 35At the end of the heading insert “: deaths before 9 April 2001”.

12 In section 39A (widowed parent’s allowance), for subsection (1) substitute—

“(1) This section applies where—

(a) a person’s spouse or civil partner has died before the day on
which section 30 of the Pensions Act 2014 comes into force
(but see subsection (1A)),

(b) the person has not married or formed a civil partnership after
5the death but before that day, and

(c) the person is under pensionable age on that day.

(1A) This section does not apply in cases where a woman’s husband has
died before 9 April 2001.”

13 Section 39B (bereavement allowance where no dependent children) is
10repealed.

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

(2) Omit subsection (2).

(3) Omit subsection (5).

(4) 15In the heading omit “and bereavement allowance”.

15 In section 48B (Category B retirement pension for widows and widowers),
in subsection (8), for “the appointed day (as defined by section 36A(3))”
substitute “9 April 2001”.

16 In section 48BB (Category B retirement pension: entitlement by reference to
20benefits under section 39A or 39B), in subsection (3)(a)(i), after “bereavement
allowance” insert “under section 39B (before that section was repealed)”.

17 (1) Section 60 (complete or partial failure to satisfy contribution condition) is
amended as follows.

(2) In subsection (1) omit paragraph (ab).

(3) 25In subsection (3) omit paragraphs (a) and (bb).

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

(2) Omit paragraph 4 and the italic heading above it.

(3) Omit paragraphs 7 and 9.

19 30In Schedule 4 (rates of benefits etc) omit Part 2.

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

20 The Social Security Administration Act 1992 is amended as follows.

21 (1) Section 1 (entitlement to benefit dependent on claim) is amended as follows.

(2) For subsection (2) substitute—

“(2) 35Where under subsection (1) a person is required to make a claim or
to be treated as making a claim for a benefit in order to be entitled to
it, the person is not entitled to it in respect of any period more than
12 months before the date on which the claim is made or treated as
made.

(2A) 40But subsection (2) does not apply—

(a) to disablement benefit or reduced earnings allowance, or

(b) in a case where a claim for the benefit is made or treated as
made by virtue of section 3(2).”

(3) In subsection (4), after paragraph (zb) (inserted by Schedule 12 to this Act)
5insert—

“(zc) bereavement support payment under section 30 of the
Pensions Act 2014;”.

22 In section 2A (claim or full entitlement to certain benefits conditional on
work-focused interview), in subsection (2)(d), omit “(other than a
10bereavement payment)”.

23 (1) Section 3 (late claims for bereavement benefit where death is difficult to
establish) is amended as follows.

(2) Subsection (3) is repealed.

(3) After subsection (4) insert—

“(5) 15In subsection (2) “bereavement benefit” means—

(a) bereavement support payment, or

(b) widowed parent’s allowance.”

24 In section 5 (regulations about claims for and payments of benefits), in
subsection (2), after paragraph (zb) (inserted by Schedule 12 to this Act)
20insert—

“(zc) bereavement support payment under section 30 of the
Pensions Act 2014;”.

25 In section 71 (overpayments - general), in subsection (11), after paragraph
(ad) insert—

“(ae) 25bereavement support payment under section 30 of the
Pensions Act 2014;”.

26 In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hl) (inserted by Schedule 12 to this Act) insert—

“(hm) Part 5 of the Pensions Act 2014;”.

27 30In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “, Part 1 of the
Pensions Act 2014” (inserted by Schedule 12 to this Act) insert “, section 30
of that Act”.

28 In section 124 (age, death and marriage), in subsection (1), after
35paragraph (af) (inserted by Schedule 12 to this Act) insert—

“(ag) of section 30 of the Pensions Act 2014; and”.

29 In section 125 (regulations as to notification of deaths), in subsection (1),
after “, Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act)
insert “, section 30 of that Act”.

30 40In section 150 (annual up-rating of benefits), in subsection (1), after
paragraph (p) (inserted by Schedule 12 to this Act) insert—

“(q) specified in regulations under section 30 of the Pensions Act
2014 (bereavement support payment).”

31 (1) Section 163 (general financial arrangements) is amended as follows.

(2) In subsection (1), after paragraph (za) (inserted by Schedule 12 to this Act)
insert—

“(zb) bereavement support payment under section 30 of the
Pensions Act 2013;”.

(3) 5In subsection (2)(a), after “, Part 1 of the Pensions Act 2014” (inserted by
Schedule 12 to this Act) insert “, section 30 of that Act”.

(4) In subsection (3)(b), after “or Part 1 of the Pensions Act 2014” (inserted by
Schedule 12 to this Act) insert “or section 30 of that Act”.

32 In section 170 (Social Security Advisory Committee), in subsection (5)—

(a) 10in the definition of “the relevant enactments”, after paragraph (am)
(inserted by Schedule 12 to this Act) insert—

• “(an)

  section 30 of the Pensions Act 2014;”;

(b) in the definition of “the relevant Northern Ireland enactments”, after
paragraph (am) (inserted by Schedule 12 to this Act) insert—

• “(an)

  15any provisions in Northern Ireland which
  correspond to section 30 of the Pensions Act
  2014;”.

33 (1) Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “Pensions Act 2014” (inserted by Schedule 12 to
20this Act) insert “, Part 5 of that Act”.

(3) In subsection (4), after paragraph (ai) (inserted by Schedule 12 to this Act)
insert—

“(aj) to Part 5 of the Pensions Act 2014;”.

(4) In subsection (5)—

(a) 25after “Pensions Act 2014” (inserted by Schedule 12 to this Act) insert
“or section 30 of that Act”;

(b) after paragraph (ad) (inserted by Schedule 12 to this Act) insert—

“(ae) bereavement support payment;”.

34 In section 187 (inalienability), in subsection (1), after paragraph (ad) insert—

“(ae) 30bereavement support payment under section 30 of the
Pensions Act 2014;”.

35 In section 191 (interpretation), in the definition of “benefit”, for “and
personal independence payment” substitute “, personal independence
payment and bereavement support payment under section 30 of the
35Pensions Act 2014”.

Social Security Act 1993 (c. 3)Social Security Act 1993 (c. 3)

36 In section 2 of the Social Security Act 1993 (payments into National
Insurance Fund out of money provided by Parliament), in subsection (4)(a),
after “(za),” (inserted by Schedule 12 to this Act) insert “(zb),”.

40Social Security Act 1998 (c. 14)Social Security Act 1998 (c. 14)

37 The Social Security Act 1998 is amended as follows.

38 In section 2 (use of computers), in subsection (2), after paragraph (m)

(inserted by Schedule 12 to this Act) insert “or

(n) section 30 of the Pensions Act 2014;”.

39 (1) Section 8 (decisions by Secretary of State) is amended as follows.

(2) In subsection (3), after paragraph (ab) (inserted by Schedule 12 to this Act)
5insert—

“(ac) bereavement support payment under section 30 of the
Pensions Act 2014;”.

(3) In subsection (4), after “Part 1 of the Pensions Act 2014” (inserted by
Schedule 12 to this Act) insert “or section 30 of that Act”.

40 10In section 11 (regulations with respect to decisions), in subsection (3), in the
definition of “the current legislation”, after “Part 1 of the Pensions Act 2014”
(inserted by Schedule 12 to this Act) insert “and section 30 of that Act”.

41 In section 27 (restriction on entitlement in cases of error), in subsection (7),
in the definition of “benefit”—

(a) 15after paragraph (df) insert—

“(dg) bereavement support payment under section 30 of the
Pensions Act 2014;”;

(b) in paragraph (e), for “to (df)” substitute “to (dg)”.

42 In section 28 (correction of errors in decisions etc), in subsection (3)(j), after
20“Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert
“or section 30 of that Act”.

Social Security Fraud Act 2001 (c. 11)Social Security Fraud Act 2001 (c. 11)

43 The Social Security Fraud Act 2001 is amended as follows.

44 In section 6A (definitions), in subsection (1), in the definition of
25“disqualifying benefit”, after paragraph (ca) insert—

“(cb) bereavement support payment under section 30 of the
Pensions Act 2014 or under any provision in Northern
Ireland which corresponds to that section;”.

45 In section 10 (power to supplement and mitigate loss of benefit provisions),
30in subsection (3), after paragraph (bf) (inserted by Schedule 12 to this Act)
insert—

“(bg) bereavement support payment under section 30 of the
Pensions Act 2014 or under any provision in Northern
Ireland which corresponds to that section;”.

35Income Tax (Earnings and Pensions) Act 2003 (c. 1)2003 (c. 1)

46 The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

47 In section 660 (taxable benefits: UK benefits - Table A), in the table in
subsection (1), in the entry relating to bereavement allowance, omit the
words “SSCBA 1992 Section 39B” (in the second column).

48 40In section 677 (UK social security benefits wholly exempt from tax), in Part 1
of Table B in subsection (1), in the entry relating to bereavement payments,
omit the words “SSCBA 1992 Section 36” (in the second column).

Section 33

SCHEDULE 17 Automatic transfer of pension benefits etc

Part 1 Automatic transfer of pension benefits

5Regulations providing for transfer of cash equivalent of transferable benefits

1 (1) The Secretary of State must make regulations with a view to ensuring that,
where a qualifying member of an automatic transfer scheme has transferable
benefits under another pension scheme, the cash equivalent of the
transferable benefits—

(a) 10is transferred to the automatic transfer scheme, and

(b) is used to provide rights for the member under it.

(2) In this Schedule “automatic transfer scheme” means—

(a) a work-based pension scheme, other than a scheme of a prescribed
description, which is registered under Chapter 2 of Part 4 of the
15Finance Act 2004 and is a money purchase scheme, or

(b) a pension scheme of a prescribed description.

(3) In this Schedule “qualifying member”, in relation to an automatic transfer
scheme, means an active member of the scheme of a prescribed description.

(4) For the purposes of this Schedule a person has transferable benefits under a
20pension scheme if—

(a) the scheme is a transferable benefits scheme,

(b) the person is a member of the scheme,

(c) contributions to the scheme by, or on behalf or in respect of, the
member have ceased,

(d) 25the member has accrued rights to benefits under the applicable rules,

(e) all of those rights accrued on or after the prescribed date (which may
be a date before the coming into force of this paragraph),

(f) the cash equivalent of those benefits is less than the prescribed
amount (but not nil), and

(g) 30any other prescribed conditions are met.

(5) In this Schedule “transferable benefits scheme” means—

(a) a work-based pension scheme, other than a scheme of a prescribed
description, which is registered under Chapter 2 of Part 4 of the
Finance Act 2004 and is a money purchase scheme, or

(b) 35a pension scheme of a prescribed description.

(6) In sub-paragraph (4)—

• “the applicable rules”—

  (a)

  in relation to an occupational pension scheme, has the
  meaning given by section 94(2) of the Pension Schemes Act
  401993;

  (b)

  in relation to a personal pension scheme, means the rules of
  the scheme;

• “benefits” means—

  Pensions BillPage 96

  (a)

  money purchase benefits other than money purchase benefits
  of a prescribed description, or

  (b)

  benefits of a prescribed description.

Automatic transfer scheme to find out whether members have transferable benefits

2 (1) 5The regulations must require the trustees or managers of an automatic
transfer scheme to take steps to find out whether a qualifying member of the
scheme has transferable benefits under another pension scheme.

(2) The regulations may make provision—

(a) about when a step is to be taken (for example, within a prescribed
10period after a person becomes a qualifying member or at prescribed
intervals);

(b) for the steps to be taken at any particular time to relate to a particular
qualifying member, or to some or all qualifying members.

Automatic transfer scheme to request transfer of cash equivalent

3 (1) 15The regulations must require the trustees or managers of an automatic
transfer scheme to give a transfer notice if—

(a) they find out that a qualifying member of the scheme has
transferable benefits under another pension scheme, and

(b) any other prescribed conditions are met.

(2) 20A “transfer notice” is a notice given to the trustees or managers of the other
pension scheme requesting the transfer of the cash equivalent of the
transferable benefits to the automatic transfer scheme.

(3) The conditions that may be prescribed because of sub-paragraph (1)(b)
include a condition that the trustees or managers must not give a transfer
25notice unless the qualifying member consents in accordance with the
regulations.

Right to opt out of automatic transfer

4 (1) If the regulations do not include the condition mentioned in paragraph 3(3),
they must ensure that where the duty to give a transfer notice has arisen in
30relation to transferable benefits of a qualifying member of an automatic
transfer scheme, the member can opt out of the transfer in accordance with
the regulations.

(2) The regulations must provide that, where the member does opt out—

(a) the duty to give the transfer notice is not to be complied with, and

(b) 35the cash equivalent of the member’s transferable benefits is not to be
transferred.

Information to be given to qualifying members of automatic transfer schemes

5 (1) The regulations must require a prescribed person to give information to a
qualifying member of an automatic transfer scheme who has transferable
40benefits under another scheme for the purpose of helping the member to
decide whether (as applicable)—

(a) to consent to the giving of a transfer notice in relation to the
transferable benefits, or

(b) to opt out of the transfer of the cash equivalent of the transferable
benefits.

(2) The information to be given—

(a) must include information about the effect of the regulations, and in
5particular the member’s power to consent or right to opt out (as
applicable);

(b) may include other information, for example information about the
schemes.

Transferable benefits scheme to comply with request

6 (1) 10The regulations must require the trustees or managers of a pension scheme
who receive a transfer notice requesting the transfer of the cash equivalent
of a person’s transferable benefits to do what is needed to carry out the
request.

(2) The regulations may in particular—

(a) 15require the trustees or managers of the scheme to take particular
steps to carry out the request;

(b) provide for the discharge, in prescribed circumstances, of any
obligation to provide the transferable benefits.

(3) The regulations may provide for circumstances in which the duty to carry
20out the request does not apply.

Automatic transfer scheme to use cash equivalent to provide rights under the scheme

7 (1) The regulations must require the trustees or managers of an automatic
transfer scheme to whom the cash equivalent of a person’s transferable
benefits is transferred to use the cash equivalent to provide rights for the
25person under the scheme.

(2) The regulations may make provision about how that is to be done and in
particular about—

(a) the nature and value of the rights to be provided;

(b) calculating and verifying the value of the rights to be provided.

30Cash equivalents: calculation and verification

8 (1) The regulations may provide for the manner in which cash equivalents are
to be calculated and verified.

(2) The regulations may in particular—

(a) provide that a cash equivalent is to be increased or reduced in
35prescribed circumstances;

(b) make provision about the time by reference to which a cash
equivalent is to be calculated for the purposes of a provision of the
regulations.

(3) Regulations made because of sub-paragraph (2)(a) may provide for a cash
40equivalent to be reduced to nil.

Disclosure of information and establishment of database

9 (1) The regulations must make provision about disclosure of information.

(2) The regulations may in particular require a person to disclose information to
another person—

(a) for the purposes of helping a person to comply with a duty imposed
on the person by the regulations, or

(b) 5otherwise for the purposes of a provision of the regulations.

(3) The regulations may require the Secretary of State or the Regulator to
establish and operate a database containing information relating to people
who have or had transferable benefits for the purposes of helping the
trustees or managers of an automatic transfer scheme to comply with their
10duties under the regulations.

Compliance

10 (1) The regulations may make provision with a view to ensuring compliance
with any provision of the regulations.

(2) For this purpose the regulations may in particular—

(a) 15provide for the Regulator to issue a notice (a “compliance notice”) to
a person with a view to ensuring the person’s compliance with a
provision of the regulations;

(b) provide for the Regulator to issue a notice (a “third party compliance
notice”) to a person with a view to ensuring another person’s
20compliance with a provision of the regulations;

(c) provide for the Regulator to issue a notice (a “penalty notice”)
imposing a penalty on a person where the Regulator is of the opinion
that the person has failed to comply with a compliance notice or third
party compliance notice or has contravened a provision of the
25regulations;

(d) provide for the making of a reference to the First-tier Tribunal or
Upper Tribunal in respect of the issue of a penalty notice or the
amount of a penalty;

(e) confer other functions on the Regulator.

(3) 30The regulations may make provision for determining the amount, or the
maximum amount, of a penalty in respect of a failure or contravention.

(4) But the amount of a penalty imposed under the regulations in respect of a
failure or contravention must not exceed—

(a) £5,000, in the case of an individual, and

(b) 35£50,000, in any other case.

Record keeping

11 (1) The regulations may require any person—

(a) to make records;

(b) to preserve records for a prescribed period;

(c) 40to provide records to the Regulator on request.

(2) The regulations may provide that section 10 of the Pensions Act 1995 (civil
penalties) applies to a person who fails to comply with those requirements.

Further provision about the regulations

12 The regulations may—

(a) impose or confer other functions on the trustees or managers of an
automatic transfer scheme or transferable benefits scheme;

(b) confer a discretion on a person.

5Review of limit on value of cash equivalent

13 (1) The regulations must require the Secretary of State to review from time to
time the amount for the time being prescribed under paragraph 1(4)(f).

(2) The regulations must provide—

(a) for the first review to be conducted no later than 5 years after the date
10on which regulations under this Schedule first come into force;

(b) for subsequent reviews to be conducted no later than 5 years after the
previous review.

(3) The regulations must require the Secretary of State, in conducting a review,
to have regard to—

(a) 15changes in the general level of prices in Great Britain;

(b) changes in the general level of earnings in Great Britain;

(c) any other factors the Secretary of State considers relevant.

(4) The regulations must authorise the Secretary of State to estimate the general
level of prices or earnings for the purposes of the review in the manner the
20Secretary of State thinks fit.

Part 2 Merger of pension accounts

14 (1) The Secretary of State may by regulations make provision for the purposes
of requiring dormant pension accounts of a qualifying member of an
25automatic transfer scheme to be merged into a current pension account of
the member.

(2) The regulations may not require a dormant pension account to be merged
unless the accrued rights to benefits to which the account relates would be
transferable benefits of the member if—

(a) 30all other accrued rights to benefits of the member, and any relevant
contributions, were ignored, and

(b) any other prescribed matter were ignored.

(3) The regulations may in particular—

(a) make provision for determining into which current pension account
35(if the member has more than one) a dormant pension account is to
be merged;

(b) provide that the rules of the scheme that are to apply to a merged
pension account are those that apply to the current pension account
into which a dormant pension account is being merged;

(c) 40require the trustees or managers of the scheme to make a transfer of
assets representing the accrued rights to benefits to which a dormant
pension account relates;

(d) include provision corresponding or similar to any provision which
may be made by regulations under Part 1 of this Schedule.