Pensions Bill (HL Bill 76)

14 (1) Section 51 (interpretation) is amended as follows.

(2) The current text becomes subsection (1).

(3) In that subsection for the definition of “shareable state scheme rights”
substitute—

• 5“shareable state scheme rights”, and related expressions, have
  the meaning given by section 47;”.

(4) After that subsection insert—

“(2) For the purposes of this Chapter—

(a) a person is in the old state pension system if the person
10reached pensionable age before 6 April 2016 (or would have
done so if the person had lived until pensionable age), and

(b) a person is in the new state pension system if the person
reached pensionable age on or after 6 April 2016 (or will do
so if the person lives until pensionable age).”

15State Pension Credit Act 2002 (c. 16)State Pension Credit Act 2002 (c. 16)

15 In section 16 of the State Pension Credit Act 2002 (meaning of “retirement
pension income”), in subsection (1), for paragraph (b) substitute—

“(b) a shared additional pension payable under—

(i) section 55A of either of those Acts, or

(ii) 20section 55AA of the Contributions and Benefits Act or
any corresponding provision under the law of
Northern Ireland;”.

Gender Recognition Act 2004 (c. 7)Gender Recognition Act 2004 (c. 7)

16 In Schedule 5 to the Gender Recognition Act 2004 (benefits and pensions), in
25paragraph 9(1)(a) and (3), after “section 55A” insert “or 55AA”.

Section 23

SCHEDULE 12 State pension: amendments

Part 1 Amendments to do with new state pension system

30Forfeiture Act 1982 (c. 34)Forfeiture Act 1982 (c. 34)

1 In section 4 of the Forfeiture Act 1982 (Upper Tribunal to decide whether
forfeiture rule applies to social security benefits), in the definition of
“relevant enactment” in subsection (5), after the entry relating to the Pension
Schemes Act 1993 insert—

• 35“Part 1 of the Pensions Act 2014,”.

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

2 The Contributions and Benefits Act is amended as follows.

3 (1) Section 22 (earnings factors) is amended as follows.

(2) In subsection (2)—

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

(b) after paragraph (b) insert “; and

(c) 5establishing entitlement to a state pension under
Part 1 of the Pensions Act 2014 and, where relevant,
calculating the rate of a state pension under that Part.”

(3) After subsection (5) insert—

“(5ZA) Regulations may provide for crediting—

(a) 10for 1987-88 or any subsequent tax year, earnings or Class 2 or
Class 3 contributions, or

(b) for any earlier tax year, contributions of any class,

for the purpose of bringing an earnings factor for that tax year to a
figure which will make that year a “qualifying year”, “pre-
15commencement qualifying year” or “post-commencement
qualifying year” of a person for the purposes of Part 1 of the Pensions
Act 2014 (see sections 2(4) and 4(4) of that Act).”

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

4 The Administration Act is amended as follows.

5 20In section 1 (entitlement to benefit dependent on claim), in subsection (4),
after paragraph (za) insert—

“(zb) state pension or a lump sum under Part 1 of the Pensions Act
2014;”.

6 In section 5 (regulations about claims for and payments of benefits), in
25subsection (2), after paragraph (za) insert—

“(zb) state pension or a lump sum under Part 1 of the Pensions Act
2014;”.

7 In section 71 (overpayments - general), in subsection (11), before paragraph
(a) insert—

“(za) 30state pension or a lump sum under Part 1 of the Pensions Act
2014;”.

8 In section 73 (overlapping benefits - general)—

(a) in subsection (1), after “adjusting” insert “state pension under Part 1
of the Pensions Act 2014 or”;

(b) 35in subsection (4), before paragraph (a) insert—

“(za) state pension under Part 1 of the Pensions Act 2014;”.

9 In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hk) insert—

“(hl) Part 1 of the Pensions Act 2014;”.

10 40In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “Part 4 of that Act”
insert “, Part 1 of the Pensions Act 2014”.

11 In section 124 (age, death and marriage), in subsection (1), after paragraph

(ae) insert—

“(af) of the provisions of Part 1 of the Pensions Act 2014; and”.

12 In section 125 (regulations as to notification of deaths), in subsection (1),
after “Part 4 of that Act” insert “, Part 1 of the Pensions Act 2014”.

13 5After section 148AB insert—

“148AC Revaluation for transitional pensions under Pensions Act 2014

(1) The Secretary of State must, in each tax year, review the general level
of prices in Great Britain and any changes which have taken place
during the review period.

(2) 10In this section “the review period” means the period since the
beginning of 6 April 2016.

(3) If on a review it appears to the Secretary of State that the general level
of prices has increased during the review period, the Secretary of
State must make an order specifying the percentage of the increase.

(4) 15The percentage specified in the order is the “revaluing percentage”
for the purposes of paragraph 6(5) of Schedule 1 to the Pensions Act
2014.

(5) Subsection (3) does not require the Secretary of State to make an
order if it appears to the Secretary of State that the effect of the order
20on amounts calculated in accordance with paragraph 6 of Schedule 1
to the Pensions Act 2014 would be inconsiderable.

(6) If on a review the Secretary of State determines that no order under
this section is required, the Secretary of State must lay before
Parliament a report explaining the reasons for arriving at that
25determination.

(7) For the purposes of any review under this section the Secretary of
State may estimate the general level of prices in such manner as the
Secretary of State thinks fit.”

14 In section 150 (annual up-rating of benefits), in subsection (1), after
30paragraph (o) insert—

“(p) which are the increases in the rates of state pensions under
section 17 of the Pensions Act 2014;”.

15 In section 150A (annual up-rating), in subsection (1), before paragraph (a)
insert—

“(za) 35the amount specified in regulations under section 3(1) of the
Pensions Act 2014 (full rate of state pension);”.

16 In section 151 (up-rating: supplementary), in subsection (2)—

(a) for “(dza) or (e)” substitute “(dza), (e) or (p)”;

(b) after “order and” insert “—

(a)”;

(c) at the end insert “, and

(b) in the case of the sums mentioned in subsection (1)(p)
of that section, shall apply only in relation to sums
calculated under section 17 of the Pensions Act 2014

by reference to periods which have ended before the
coming into force of the order.”

17 After section 151 insert—

“151A Up-rating of transitional state pensions under Pensions Act 2014

(1) 5The Secretary of State must, in each tax year, review the general level
of prices in Great Britain and any changes which have taken place.

(2) If on a review it appears to the Secretary of State that the general level
of prices has increased during the review period, the Secretary of
State must make an order specifying a percentage by which the
10amounts mentioned in the following provisions of the Pensions Act
2014 are to be increased—

(a) section 9;

(b) paragraph 4(3) of Schedule 2;

(c) paragraphs 5(3) and 6 of Schedule 4;

(d) 15paragraphs 5(3) and 6 of Schedule 9.

(3) The percentage specified in the order must not be less than the
percentage by which the general level of prices has increased during
the review period.

(4) This section does not require the Secretary of State to make an order
20if it appears to the Secretary of State that the effect of the order on the
amounts referred to in subsection (2) would be inconsiderable.

(5) An order under this section must be framed so as to bring the
increase in question into force in the week beginning with the first
Monday in the tax year following that in which the order is made.

(6) 25The Secretary of State must lay with a draft order under this section
a copy of a report by the Government Actuary or the Deputy
Government Actuary giving that Actuary’s opinion on the likely
effect on the National Insurance Fund.

(7) If a draft order under this section is combined with a draft up-rating
30order under section 150 or 150A, the report required by virtue of
subsection (6) may be combined with that required by virtue of
section 150(8) or 150A(5).

(8) For the purposes of any review under this section the Secretary of
State may estimate the general level of prices in such manner as the
35Secretary of State thinks fit.”

18 (1) Section 155A (power to anticipate pensions up-rating order) is amended as
follows.

(2) In subsection (1)(a)—

(a) for “150 or 150A” substitute “150, 150A or 151A”;

(b) 40in sub-paragraph (i), after “by way of” insert “state pension under
the Pensions Act 2014,”.

(3) In subsection (2), after “an award is made of” insert “a state pension,”.

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

(2) In subsection (1), before paragraph (a) insert—

“(za) state pension and lump sums under Part 1 of the Pensions
Act 2014;”.

(3) In subsection (2)(a), after “Contributions and Benefits Act” insert “, Part 1 of
5the Pensions Act 2014”.

(4) In subsection (3)(b), after “that Act” insert “or Part 1 of the Pensions Act
2014”.

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

(a) in the definition of “the relevant enactments”, after paragraph (al)
10insert—

• “(am)

  the provisions of Part 1 of the Pensions Act
  2014;”;

(b) in the definition of “the relevant Northern Ireland enactments”, after
paragraph (al) insert—

• “(am)

  15any provisions in Northern Ireland which
  correspond to the provisions of Part 1 of the
  Pensions Act 2014;”.

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

(2) In subsection (3)(a), after “Part 4 of that Act” insert “, Part 1 of the Pensions
20Act 2014”.

(3) In subsection (4), after paragraph (ah) insert—

“(ai) to Part 1 of the Pensions Act 2014;”.

(4) In subsection (5)—

(a) after “Act 2007” insert “or Part 1 of the Pensions Act 2014”;

(b) 25after paragraph (ac) insert—

“(ad) state pension under Part 1 of the Pensions Act 2014;”.

22 In section 187 (inalienability), in subsection (1), after paragraph (za) insert—

“(zb) state pension under Part 1 of the Pensions Act 2014;”.

23 In section 190 (parliamentary control of orders and regulations), in
30subsection (1)(a) after “150A,” insert “151A,”.

24 In section 191 (interpretation), in the definition of “benefit”, after “universal
credit,” insert “state pension under Part 1 of the Pensions Act 2014,”.

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

25 In section 2 of the Social Security Act 1993 (payments into National
35Insurance Fund out of money provided by Parliament), in subsection (4)(a),
after “paragraphs” insert “(za),”.

Pensions Act 1995 (c. 26)Pensions Act 1995 (c. 26)

26 In Schedule 4 to the Pensions Act 1995 (pensionable age), in paragraph 1, for
“and Part 1 of the Welfare Reform Act 2007” substitute “, Part 1 of the
40Welfare Reform Act 2007 and the Pensions Act 2014”.

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

27 The Social Security Act 1998 is amended as follows.

28 In section 2 (use of computers), in subsection (2)—

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

(b) 5after paragraph (l) insert—

“(m) Part 1 of the Pensions Act 2014;”.

29 In section 8 (decisions by Secretary of State)—

(a) in subsection (3), after paragraph (aa) insert—

“(ab) state pension or a lump sum under Part 1 of the
10Pensions Act 2014;”;

(b) in subsection (4), for “or Part 4 of that Act” substitute “, Part 4 of that
Act or Part 1 of the Pensions Act 2014”.

30 In section 11 (regulations with respect to decisions), in subsection (3), in the
definition of “the current legislation”, for “and Part 4 of that Act” substitute
15“, Part 4 of that Act and Part 1 of the Pensions Act 2014”.

31 In section 27 (restrictions on entitlement to benefit in certain cases of error),
in subsection (7), in the definition of “benefit”, after paragraph (f) insert—

“(g) state pension or a lump sum under Part 1 of the Pensions Act
2014.”

32 20In section 28 (correction of errors in decisions etc), in subsection (3)—

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

(b) after paragraph (i) insert “or

(j) Part 1 of the Pensions Act 2014.”

33 In Schedule 3 (decisions against which an appeal lies), after paragraph 6B
25insert—

“State pension: prisoners and overseas residents

6C A decision that a state pension under Part 1 of the Pensions Act
2014 is not payable by reason of section 19 of that Act (prisoners).

6D A decision that a person is not entitled to increases in the rate of a
30state pension under Part 1 of the Pensions Act 2014 by reason of
regulations under section 20 of that Act (overseas residents).”

Child Support, Pensions and Social Security Act 2000 (c. 19)Child Support, Pensions and Social Security Act 2000 (c. 19)

34 (1) Section 42 of the Child Support, Pensions and Social Security Act 2000
(disclosure of state pension information) is amended as follows.

(2) 35In subsection (7), after paragraph (a) insert—

“(aa) the amount of any state pension under Part 1 of the Pensions
Act 2014 a present or future entitlement to which has already
accrued to that individual;

(ab) a projection of the amount of any state pension under Part 1
40of the Pensions Act 2014 to which that individual is likely to
become entitled, or might become entitled in particular
circumstances;”.

(3) In subsection (11), in the definition of “lump sum”, after “under” insert
“section 8 of the Pensions Act 2014 or”.

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

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

36 5In section 6A (definitions), in subsection (1)—

(a) in the definition of “disqualifying benefit”, after paragraph (za)
insert—

“(zb) state pension or a lump sum under Part 1 of the
Pensions Act 2014 or under any provision in Northern
10Ireland which corresponds to that Part;”;

(b) in the definition of “sanctionable benefit”, before paragraph (b)
insert—

“(aa) state pension or a lump sum under Part 1 of the
Pensions Act 2014;”.

37 15In section 10 (power to supplement and mitigate loss of benefit provisions),
in subsection (3), after paragraph (be) insert—

“(bf) state pension or a lump sum under Part 1 of the Pensions Act
2014 or under any provision in Northern Ireland which
corresponds to that Part;”.

20State Pension Credit Act 2002 (c. 16)State Pension Credit Act 2002 (c. 16)

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

39 In section 7 (fixing of claimant’s retirement provision for assessed income
period), in subsection (6)(a), after “benefit under” insert “Part 1 of the
Pensions Act 2014 or”.

40 25In section 16 (meaning of “retirement pension income”), in subsection (1),
before paragraph (a) insert—

“(za) a state pension under Part 1 of the Pensions Act 2014 or under
any provision in Northern Ireland which corresponds to that
Part;”.

30Income Tax (Earnings and Pensions) Act 2003 (c. 1)2003 (c. 1)

41 In 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), before paragraph (a) insert—

“(za) any provision of Part 1 of the Pensions Act 2014 or any
35corresponding provision under the law of Northern
Ireland,”.

Gender Recognition Act 2004 (c. 7)Gender Recognition Act 2004 (c. 7)

42 The Gender Recognition Act 2004 is amended as follows.

43 In section 23 of that Act (power to modify statutory provisions) “enactment”
40includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

44 (1) Schedule 5 (benefits and pensions) is amended as follows.

(2) After paragraph 6 insert—

“Pension under Part 1 of the Pensions Act 2014

6A (1) Any question—

(a) whether the person is entitled to a state pension under
5Part 1 of the Pensions Act 2014 for any period after the
certificate is issued, and

(b) (if so) the rate at which the person is so entitled for the
period,

is to be decided as if the person’s gender were the acquired
10gender.

(2) Accordingly, if (immediately before the certificate is issued) the
person—

(a) is a woman entitled to a state pension under Part 1 of the
Pensions Act 2014, but

(b) 15has not attained the age of 65,

the person ceases to be so entitled when it is issued.

(3) And, conversely, if (immediately before the certificate is issued)
the person—

(a) is a man who has attained the age at which a woman of the
20same age attains pensionable age, but

(b) has not attained the age of 65,

the person is to be treated for the purposes of Part 1 of the Pensions
Act 2014 as attaining pensionable age when it is issued.

(4) But sub-paragraph (1) does not apply if and to the extent that the
25decision of any question to which it refers is affected by the
payment or crediting of contributions, or the crediting of earnings,
in respect of a period ending before the certificate is issued.

(5) If the person’s acquired gender is the male gender, sections 11 and
12 of, and Schedules 6 and 7 to, the Pensions Act 2014 (effect of
30reduced rate elections) apply in relation to the person as they
apply in relation to a woman (but only once the person has
reached pensionable age for a man).

(6) Paragraph 10 makes provision about deferment of state pensions
under Part 1 of the Pensions Act 2014.”

(3) 35In paragraph 7, in sub-paragraph (1), at the end insert “(but this is subject to
sub-paragraph (3))”.

(4) In paragraph 10, in sub-paragraph (1), before paragraph (a) insert—

“(za) a state pension under Part 1 of the Pensions Act 2014,”.

Finance (No. 2) Act 2005 (c. 22)Finance (No. 2) Act 2005 (c. 22)

45 40The Finance (No. 2) Act 2005 is amended as follows.

46 (1) Section 8 (meaning of “applicable year of assessment” in section 7) is
amended as follows.

(2) In subsection (3), for “subsection (4)” substitute “subsections (4) and (4A)”

(3) After subsection (4) insert—

“(4A) In a case where the social security pension lump sum is a lump sum
under section 8 of the Pensions Act 2014 or under any corresponding
provision under the law of Northern Ireland, “the first benefit
5payment day” for the purposes of subsection (2) is the day as from
which the lump sum becomes payable.”

47 In section 9 (interpretation), in the definition of “state pension lump sum” in
subsection (2), before paragraph (a) insert—

• “(za)

  section 8 of the Pensions Act 2014 or under any
  10corresponding provision under the law of Northern
  Ireland,”.

Welfare Reform Act 2012 (c. 5)2012 (c. 5)

48 In section 96 of the Welfare Reform Act 2012 (benefit cap), in subsection (11),
before paragraph (a) insert—

“(za) 15state pension under Part 1 of the Pensions Act 2014,”.

Part 2 Amendments to do with old state pension system

Graduated retirement benefit

49 (1) Section 36 of the National Insurance Act 1965 (graduated retirement benefit),
20so far as continuing in force, is amended as follows.

(2) In subsection (7), for “has attained pensionable age” substitute “attained
pensionable age before 6 April 2016”.

(3) In subsection (8), in the definition of “retirement pension”, after “any
category” insert “under the Social Security Contributions and Benefits Act
251992”.

Category A retirement pensions

50 The Contributions and Benefits Act is amended as follows.

51 In section 44(1) (Category A retirement pensions), for paragraph (a)
substitute—

“(a) 30the person attained pensionable age before 6 April 2016,”.

52 (1) Section 48 (use of former spouse’s contributions) is amended as follows.

(2) In subsection (1), after “person” insert “who attained pensionable age before
6 April 2016”.

(3) After subsection (2) insert—

“(2A) 35Regulations under subsection (1) may not provide for contributions
of a person in respect of times on or after 6 April 2016 to be treated as
contributions of another person.”

Category B retirement pensions

53 The Contributions and Benefits Act is amended as follows.

54 In section 23A (contributions credits for relevant parents and carers), in
subsection (1)(b), after “section 48A” insert “or 48AA”.

55 In section 46 (modification of section 45 for calculating additional pension in
certain benefits), in subsection (2), omit “48A(4) or” (in both places).

56 5For section 48A substitute—

“48A Category B retirement pension for married person or civil partner

(1) A married person is entitled to a Category B retirement pension by
virtue of the contributions of his or her spouse if—

(a) the person attained pensionable age before 6 April 2016, and

(b) 10the spouse—

(i) has attained pensionable age, and

(ii) satisfies the relevant contribution condition.

(2) But subsection (1) does not confer a right to a Category B retirement
pension on—

(a) 15a man whose spouse was born before 6 April 1950, or

(b) a woman whose wife was born before 6 April 1950.

(3) A person who is a civil partner is entitled to a Category B retirement
pension by virtue of the contributions of his or her civil partner (“the
contributing civil partner”) if—

(a) 20the person attained pensionable age before 6 April 2016, and

(b) the contributing civil partner—

(i) was born on or after 6 April 1950,

(ii) has attained pensionable age, and

(iii) satisfies the condition in paragraph 5A of Schedule 3.

(4) 25A Category B retirement pension payable under this section is
payable at the weekly rate specified in paragraph 5 of Part 1 of
Schedule 4.

(5) A person ceases to be entitled to a Category B retirement pension
under this section if—

(a) 30the person’s spouse or civil partner dies (but see sections 48B
and 51), or

(b) the person otherwise ceases to be married or in the civil
partnership (but see section 48AA).

(6) In subsection (1)(b)(ii) “the relevant contribution condition” means—

(a) 35in a case where the spouse was born before 6 April 1945, the
conditions in paragraph 5 of Schedule 3;

(b) in any other case, the condition in paragraph 5A of
Schedule 3.

(7) For the purposes of any provision of this Act as it applies in relation
40to this section, no account is to be taken of any earnings factors of the
spouse or contributing civil partner for the tax year beginning with 6
April 2016 or any later tax year.

(8) Section 51ZA contains special rules for cases involving changes in
gender.