SCHEDULE 15 continued PART 2
Pensions BillPage 90
15
The Social Security Contributions and Benefits (Northern Ireland) Act 1992
5is amended as follows.
16 (1) Section 1 (outline of contributory system) is amended as follows.
(2) In subsection (2)—
(a) omit “six”;
(b) in paragraph (d), after “making up entitlement;” insert—
“(da)
10Class 3A, payable by eligible people voluntarily
under section 14A with a view to obtaining units of
additional pension;”.
(3) In subsection (4)(a), for “and 3” substitute “, 3 and 3A”.
17 After section 14 insert—
(1)
An eligible person is entitled to pay a Class 3A contribution in return
for a unit of additional pension.
(2) A person is eligible to pay a Class 3A contribution if the person—
(a)
20is entitled to a Category A, Category B or Category D
retirement pension or graduated retirement benefit, or
(b)
has deferred entitlement to a Category A or Category B
retirement pension or graduated retirement benefit.
(3)
The amount of a Class 3A contribution needed to obtain a unit of
25additional pension is to be determined in accordance with
regulations made by the Treasury.
(4)
Before making those regulations the Treasury must consult the
Government Actuary or the Deputy Government Actuary.
(5) A person—
(a)
30may pay Class 3A contributions on more than one occasion,
but
(b)
may not obtain more than the maximum number of units of
additional pension.
(6)
The maximum number of units of additional pension that a person
35may obtain is to be specified by the Treasury in regulations.
(7)
In this section “deferred”, in relation to graduated retirement benefit,
has the meaning given by section 35(4A) of the National Insurance
Act (Northern Ireland) 1966.
(8)
For the meaning of “deferred” in relation to a Category A or
40Category B retirement pension, see section 55(3) of this Act.
Pensions BillPage 91
(1)
The Treasury may by regulations provide for a Class 3A contribution
to be repaid in specified circumstances.
(2)
Regulations under subsection (1) may, in particular, make provision
5about applications for repayments and other procedural matters.
(3)
A person is to be treated as never having had a unit of additional
pension if the Class 3A contribution paid in respect of it is repaid.
(4)
Regulations under subsection (1) may provide for benefits paid to a
person because of the unit of additional pension to be recovered by
10deducting them from the repayment.
(1)
The Treasury may by regulations change who is eligible to pay Class
3A contributions.
(2)
15The Treasury may by regulations remove the option for people to
pay Class 3A contributions.
(3) Regulations under this section may, in particular, amend an Act.”
18
(1)
If paragraph 17 comes into force before the new state pension
commencement date for Northern Ireland, section 14A(2) as inserted by that
20paragraph has effect as if the reference to entitlement included the
prospective entitlement of a person who—
(a) has not yet reached pensionable age, but
(b)
will reach pensionable age before that day (assuming that the person
lives until pensionable age).
(2)
25In this paragraph “the new state pension commencement date for Northern
Ireland” means the date on which legislation in Northern Ireland
corresponding to section 2 of this Act comes fully into force.
19
In section 121 (interpretation), in subsection (1), at the appropriate place
insert—
30““unit of additional pension” means a unit of additional pension for
which a person has paid a Class 3A contribution under section 14A;”.
20
In section 172 (procedure for regulations etc), in subsection (11A), after
“11(3)” insert “, 14A”.
21 In the heading to Schedule 1, for “and 3” substitute “, 3 and 3A”.
22
(1)
Section 142 of the Social Security Administration (Northern Ireland) Act
1992 (destination of contributions) is amended as follows.
(2) In subsection (5)(e), after “those contributions;” insert—
“(ea)
in the case of Class 3A contributions, 15.5 per cent of the
40amount estimated to be the total of those contributions;”.
(3) In subsection (8)(c), for “or (e)” substitute “, (e) or (ea)”.
Pensions BillPage 92
Section 31
1
In section 4 of the Forfeiture Act 1982 (Upper Tribunal to decide whether
5forfeiture rule applies to social security benefits), in the definition of
“relevant enactment” in subsection (5), after the entry relating to Part 1 of
this Act (inserted by Schedule 12 to this Act) insert—
“section 30 of that Act,”.
2
10The Social Security Contributions and Benefits Act 1992 is amended as
follows.
3 (1) Section 20 (descriptions of contributory benefits) is amended as follows.
(2) In subsection (1), for paragraph (ea) substitute—
“(ea) widowed parent’s allowance;”.
(3)
15In subsection (2), in the definition of “long-term benefit” omit paragraph
(bb).
4 (1) Section 21 (contribution conditions) is amended as follows.
(2)
In the table in subsection (2) omit the entries for bereavement payment and
bereavement allowance.
(3) 20Omit subsection (4).
5
In section 22 (earnings factors), in subsection (2), after paragraph (c)
(inserted by Schedule 12 to this Act) insert “and
(d)
establishing entitlement to bereavement support payment
under section 30 of the Pensions Act 2014.”
6
(1)
25Section 23A (contributions credits for relevant parents and carers) is
amended as follows.
(2) In subsection (1) omit paragraph (e).
(3) In subsection (6)(b) omit “or (e)”.
7
For the italic heading above section 36 substitute “Bereavement benefits:
30deaths before the day on which section 30 of the Pensions Act 2014 comes
into force”.
8 Section 36 (bereavement payment) is repealed.
9 Section 36A (cases in which sections 37 to 41 apply) is repealed.
10 (1) Section 37 (widowed mother’s allowance) is amended as follows.
(2) 35Before subsection (1) insert—
“(A1)
This section applies only in cases where a woman’s husband has
died before 9 April 2001.”
(3) At the end of the heading insert “: deaths before 9 April 2001”.
Pensions BillPage 93
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) 5At 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
10(but see subsection (1A)),
(b)
the person has not married or formed a civil partnership after
the 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
15died before 9 April 2001.”
13
Section 39B (bereavement allowance where no dependent children) is
repealed.
14
(1)
Section 39C (rate of widowed parent’s allowance and bereavement
allowance) is amended as follows.
(2) 20Omit subsection (2).
(3) Omit subsection (5).
(4) In 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))”
25substitute “9 April 2001”.
16
In section 48BB (Category B retirement pension: entitlement by reference to
benefits 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
30amended as follows.
(2) In subsection (1) omit paragraph (ab).
(3) In subsection (3) omit paragraphs (a) and (bb).
18
(1)
Schedule 3 (contribution conditions for entitlement to benefit) is amended as
follows.
(2) 35Omit paragraph 4 and the italic heading above it.
(3) Omit paragraphs 7 and 9.
19 In Schedule 4 (rates of benefits etc) omit Part 2.
20 The Social Security Administration Act 1992 is amended as follows.
Pensions BillPage 94
21 (1) Section 1 (entitlement to benefit dependent on claim) is amended as follows.
(2) For subsection (2) substitute—
“(2)
Where 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
5it, 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) But subsection (2) does not apply—
(a) to disablement benefit or reduced earnings allowance, or
(b)
10in 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)
insert—
“(zc)
bereavement support payment under section 30 of the
15Pensions 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
bereavement payment)”.
23
(1)
Section 3 (late claims for bereavement benefit where death is difficult to
20establish) is amended as follows.
(2) Subsection (3) is repealed.
(3) After subsection (4) insert—
“(5) In subsection (2) “bereavement benefit” means—
(a) bereavement support payment, or
(b) 25widowed 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)
insert—
“(zc)
bereavement support payment under section 30 of the
30Pensions Act 2014;”.
25
In section 71 (overpayments - general), in subsection (11), after paragraph
(ad) insert—
“(ae)
bereavement support payment under section 30 of the
Pensions Act 2014;”.
26
35In 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
40In 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
45paragraph (af) (inserted by Schedule 12 to this Act) insert—
“(ag) of section 30 of the Pensions Act 2014; and”.
Pensions BillPage 95
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
In section 150 (annual up-rating of benefits), in subsection (1), after
5paragraph (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)
10insert—
“(zb)
bereavement support payment under section 30 of the
Pensions Act 2014;”.
(3)
In 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)
15In 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)
in the definition of “the relevant enactments”, after paragraph (am)
(inserted by Schedule 12 to this Act) insert—
20section 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—
any provisions in Northern Ireland which
correspond to section 30 of the Pensions Act
252014;”.
33 (1) Section 179 (reciprocal agreements) is amended as follows.
(2)
In subsection (3)(a), after “Pensions Act 2014” (inserted by Schedule 12 to
this Act) insert “, Part
5
30 of that Act”.
(3)
In subsection (4), after paragraph (ai) (inserted by Schedule 12 to this Act)
insert—
“(aj) to Part
5
35 of the Pensions Act 2014;”.
(4) In subsection (5)—
(a)
after “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) 40bereavement support payment;”.
34 In section 187 (inalienability), in subsection (1), after paragraph (ad) insert—
“(ae)
bereavement support payment under section 30 of the
Pensions Act 2014;”.
35
In section 191 (interpretation), in the definition of “benefit”, for “and
45personal independence payment” substitute “, personal independence
payment and bereavement support payment under section 30 of the
Pensions Act 2014”.
Pensions BillPage 96
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),”.
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) 10Section 8 (decisions by Secretary of State) is amended as follows.
(2)
In subsection (3), after paragraph (ab) (inserted by Schedule 12 to this Act)
insert—
“(ac)
bereavement support payment under section 30 of the
Pensions Act 2014;”.
(3)
15In 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
In 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
20In section 27 (restriction on entitlement in cases of error), in subsection (7),
in the definition of “benefit”—
(a) after paragraph (df) insert—
“(dg)
bereavement support payment under section 30 of the
Pensions Act 2014;”;
(b) 25in paragraph (e), for “to (df)” substitute “to (dg)”.
42
In section 28 (correction of errors in decisions etc), in subsection (3)(j), after
“Part 1 of the Pensions Act 2014” (inserted by Schedule 12 to this Act) insert
“or section 30 of that Act”.
43 30The Social Security Fraud Act 2001 is amended as follows.
44
In section 6A (definitions), in subsection (1), in the definition of
“disqualifying benefit”, after paragraph (ca) insert—
“(cb)
bereavement support payment under section 30 of the
Pensions Act 2014 or under any provision in Northern
35Ireland which corresponds to that section;”.
45
In section 10 (power to supplement and mitigate loss of benefit provisions),
in subsection (3), after paragraph (bf) (inserted by Schedule 12 to this Act)
insert—
“(bg)
bereavement support payment under section 30 of the
40Pensions Act 2014 or under any provision in Northern
Ireland which corresponds to that section;”.
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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
5words “SSCBA 1992 Section 39B” (in the second column).
48
In 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
1
(1)
The Secretary of State must make regulations with a view to ensuring that,
15where a qualifying member of an automatic transfer scheme has transferable
benefits under another pension scheme, the cash equivalent of the
transferable benefits—
(a) is transferred to the automatic transfer scheme, and
(b) is used to provide rights for the member under it.
(2) 20In 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
Finance Act 2004 and is a money purchase scheme, or
(b) a pension scheme of a prescribed description.
(3)
25In 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
pension scheme if—
(a) the scheme is a transferable benefits scheme,
(b) 30the 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) the member has accrued rights to benefits under the applicable rules,
(e)
all of those rights accrued on or after the prescribed date (which may
35be 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) any other prescribed conditions are met.
(5) In this Schedule “transferable benefits scheme” means—
Pensions BillPage 98
(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) a pension scheme of a prescribed description.
(6) 5In sub-paragraph (4)—
“the applicable rules”—
in relation to an occupational pension scheme, has the
meaning given by section 94(2) of the Pension Schemes Act
1993;
10in relation to a personal pension scheme, means the rules of
the scheme;
“benefits” means—
money purchase benefits other than money purchase benefits
of a prescribed description, or
15benefits of a prescribed description.
2
(1)
The 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) 20The regulations may make provision—
(a)
about when a step is to be taken (for example, within a prescribed
period 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
25qualifying member, or to some or all qualifying members.
3
(1)
The 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
30transferable benefits under another pension scheme, and
(b) any other prescribed conditions are met.
(2)
A “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)
35The conditions that may be prescribed because of sub-paragraph (1)(b)
include a condition that the trustees or managers must not give a transfer
notice unless the qualifying member consents in accordance with the
regulations.
4
(1)
40If 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
relation 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.
Pensions BillPage 99
(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)
the cash equivalent of the member’s transferable benefits is not to be
transferred.
5
(1)
The regulations must require a prescribed person to give information to a
qualifying member of an automatic transfer scheme who has transferable
benefits under another scheme for the purpose of helping the member to
decide whether (as applicable)—
(a)
10to 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)
15must include information about the effect of the regulations, and in
particular the member’s power to consent or right to opt out (as
applicable);
(b)
may include other information, for example information about the
schemes.
6
(1)
The 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) 25The regulations may in particular—
(a)
require 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)
30The regulations may provide for circumstances in which the duty to carry
out the request does not apply.
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
35benefits is transferred to use the cash equivalent to provide rights for the
person 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) 40calculating and verifying the value of the rights to be provided.
8
(1)
The regulations may provide for the manner in which cash equivalents are
to be calculated and verified.