Pensions Bill (HL Bill 91)

(b) in paragraph (b), after “55A” insert “or 55AA”.

(4) After subsection (2) insert—

“(3) For the purposes of this Chapter, a person’s shareable new state
scheme rights are the person’s entitlement, or prospective
5entitlement, to the excess amount in a state pension under section 4
of the Pensions Act 2014.

(4) “The excess amount”, in relation to a state pension under section 4 of
the Pensions Act 2014, means any amount by which the rate of the
pension exceeds the full rate of the state pension (see section 3 of that
10Act).

(5) In determining the rate of a state pension under section 4 of the
Pensions Act 2014 for the purposes of this Chapter, ignore
Schedule 6 to that Act (reduced rate elections: effect on rate of section
4 pension).”

11 15In section 48 (activation of benefit sharing), in subsection (1), for the words
from the beginning to “shareable state scheme rights” substitute “Section 49
or 49A applies where any of the following has taken effect in relation to a
person’s shareable state scheme rights”.

12 (1) Section 49 (creation of state scheme pension debits and credits) is amended
20as follows.

(2) For subsection (1) substitute—

“(A1) This section applies if—

(a) the transferor is in the old state pension system, or

(b) the transferor is in the new state pension system but the
25transfer day was before 6 April 2016.

(1) Where this section applies because of a relevant order or provision—

(a) the transferor is subject, for the purposes of the relevant state
pension legislation, to a debit of the appropriate amount, and

(b) the transferee is entitled, for the purposes of the relevant state
30pension legislation, to a credit of that amount.”

(3) In subsection (2), after “shareable” insert “old”.

(4) In subsection (3)(b), for “relevant” substitute “shareable old”.

(5) After subsection (5) insert—

“(5A) The fact that a person who reaches pensionable age on or after 6
35April 2016 is not entitled to a pension of the kind mentioned in
section 47(2)(a) or (b) does not affect the calculation under this
section of the appropriate amount by reference to the transferor’s
prospective entitlement, immediately before the transfer day, to a
pension of that kind.”

(6) 40In subsection (6), at the appropriate place insert—

• ““the relevant state pension legislation”—

  (a)

  in relation to a transferor or transferee in the old state
  pension system, means Part 2 of the Contributions
  and Benefits Act, and

  Pensions BillPage 51

  (b)

  in relation to a transferor or transferee in the new state
  pension system, means Part 1 of the Pensions Act
  2014.”

(7) At the end of the heading insert “: transferor in old state pension system or
5pension sharing activated before 6 April 2016”.

13 After section 49 insert—

“49A Creation of debits and credits: transferor in new state pension system
and sharing activated on or after 6 April 2016

(1) This section applies if—

(a) 10the transferor is in the new state pension system, and

(b) the transfer day is 6 April 2016 or any later date.

(2) Where this section applies because of a relevant order or provision—

(a) the transferor is subject, for the purposes of section 14 of the
Pensions Act 2014, to a debit of the shared weekly amount,
15and

(b) the transferee is entitled, for the purposes of the relevant state
pension legislation, to a credit of the shared weekly amount.

(3) The shared weekly amount is the specified percentage of the excess
amount of the transferor’s state pension under section 4 of the
20Pensions Act 2014 as at the transfer day.

(4) For the purposes of calculating the shared weekly amount—

(a) a transferor who is under pensionable age on the transfer day
is to be treated as having reached pensionable age and to
have become entitled to the state pension under section 4 of
25the Pensions Act 2014 on the transfer day;

(b) a transferor who has reached pensionable age on the transfer
day but who has not yet become entitled to the state pension
under section 4 of the Pensions Act 2014 is to be treated as
having become entitled to the pension on that day.

(5) 30In this section—

• “the excess amount” has the meaning given by section 47(4);

• “relevant order or provision” means the order or provision by
  virtue of which this section applies (see section 48);

• “the relevant state pension legislation”—

  (a)

  35in relation to a transferee in the old state pension
  system, means Part 2 of the Contributions and
  Benefits Act, and

  (b)

  in relation to a transferee in the new state pension
  system, means Part 1 of the Pensions Act 2014;

• 40“specified percentage” means the percentage specified in the
  relevant order or provision for the purposes of subsection (3);

• “transfer day” means the day on which the relevant order or
  provision takes effect;

• “transferor” means the person to whose rights the relevant
  45order or provision relates;

• “transferee” means the person for whose benefit the relevant
  order or provision is made.”

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 In section 1 (outline of contributory system), in subsection (1)(a), after “this
Act” insert “or any other Act”.

4 In section 13 (Class 3 contributions), in subsection (2), omit “contribution”.

5 After section 19A insert—

“19B 5Extended meaning of “benefit” etc in Part 1

In this Part references to “benefit” or “contributory benefit” include
benefit under Part 1 of the Pensions Act 2014.”

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

(2) In subsection (2)—

(a) 10in paragraph (a), omit the final “and”;

(b) after paragraph (b) insert “; and

(c) establishing 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) 15After subsection (5) insert—

“(5ZA) Regulations may provide for crediting—

(a) for 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,

20for the purpose of bringing an earnings factor for that tax year to a
figure which will make that year a “qualifying year”, “pre-
commencement 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).

(5ZB) 25Regulations under subsection (5ZA) must provide for crediting a
person with such contributions as may be specified in respect of
periods on or after 6 April 1975 during which the person was—

(a) a spouse or civil partner of a member of Her Majesty’s forces,

(b) accompanying the member on an assignment outside the
30United Kingdom, and

(c) not of a description specified in the regulations.”

7 In section 122(1) (interpretation), in the definition of “benefit”, after
paragraph (c) insert—

“(For the meaning of “benefit” in Part 1, see also section 19B)”.

35Social Security Administration Act 1992 (c. 5)Social Security Administration Act 1992 (c. 5)

8 The Administration Act is amended as follows.

9 In 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
402014;”.

10 In section 5 (regulations about claims for and payments of benefits), in

subsection (2), after paragraph (za) insert—

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

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

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

12 In section 73 (overlapping benefits - general)—

(a) in subsection (1), after “adjusting” insert “state pension under Part 1
10of the Pensions Act 2014 or”;

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

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

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

“(hl) 15Part 1 of the Pensions Act 2014;”.

14 In 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”.

15 In section 124 (age, death and marriage), in subsection (1), after paragraph
20(ae) insert—

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

16 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”.

17 After section 148AB insert—

“148AC 25 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) In this section “the review period” means the period since the
30beginning 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) The percentage specified in the order is the “revaluing percentage”
35for 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
on amounts calculated in accordance with paragraph 6 of Schedule 1
40to 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
determination.

(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.”

18 In section 150 (annual up-rating of benefits), in subsection (1), after
5paragraph (o) insert—

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

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

“(za) 10the amount specified in regulations under section 3(1) of the
Pensions Act 2014 (full rate of state pension);”.

20 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
20by reference to periods which have ended before the
coming into force of the order.”

21 After section 151 insert—

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

(1) The Secretary of State must, in each tax year, review the general level
25of 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
amounts mentioned in the following provisions of the Pensions Act
302014 are to be increased—

(a) section 9;

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

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

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

(3) 35The 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
if it appears to the Secretary of State that the effect of the order on the
40amounts 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) The Secretary of State must lay with a draft order under this section
45a 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
order under section 150 or 150A, the report required by virtue of
5subsection (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
Secretary of State thinks fit.”

22 (1) 10Section 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) in sub-paragraph (i), after “by way of” insert “state pension under
15the Pensions Act 2014,”.

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

23 (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
20Act 2014;”.

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

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

24 25In section 170 (Social Security Advisory Committee), in subsection (5)—

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

• “(am)

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

(b) 30in the definition of “the relevant Northern Ireland enactments”, after
paragraph (al) insert—

• “(am)

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

25 (1) 35Section 179 (reciprocal agreements) is amended as follows.

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

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

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

(4) 40In subsection (5)—

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

(b) after paragraph (ac) insert—

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

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

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

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

28 5In 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)

29 In section 2 of the Social Security Act 1993 (payments into National
Insurance Fund out of money provided by Parliament), in subsection (4)(a),
10after “paragraphs” insert “(za),”.

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

30 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
Welfare Reform Act 2007 and the Pensions Act 2014”.

15Social Security Act 1998 (c. 14)Social Security Act 1998 (c. 14)

31 The Social Security Act 1998 is amended as follows.

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

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

(b) after paragraph (l) insert—

“(m) 20Part 1 of the Pensions Act 2014;”.

33 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
Pensions Act 2014;”;

(b) 25in subsection (4), for “or Part 4 of that Act” substitute “, Part 4 of that
Act or Part 1 of the Pensions Act 2014”.

34 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
“, Part 4 of that Act and Part 1 of the Pensions Act 2014”.

35 30In 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.”

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

(a) 35in paragraph (h), omit the final “or”;

(b) after paragraph (i) insert “or

(j) Part 1 of the Pensions Act 2014.”

37 In Schedule 3 (decisions against which an appeal lies), after paragraph 6B

insert—

“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 5A decision that a person is not entitled to increases in the rate of a
state 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)

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

(2) In 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) 15a projection of the amount of any state pension under Part 1
of 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
20“section 8 of the Pensions Act 2014 or”.

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

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

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

(a) in the definition of “disqualifying benefit”, after paragraph (za)
25insert—

“(zb) 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;”;

(b) in the definition of “sanctionable benefit”, before paragraph (b)
30insert—

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

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

“(bf) 35state 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;”.

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

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

43 40In 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”.

44 In 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
5Part;”.

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

45 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) 10any provision of Part 1 of the Pensions Act 2014 or any
corresponding provision under the law of Northern
Ireland,”.

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

46 The Gender Recognition Act 2004 is amended as follows.

47 15In section 23 of that Act (power to modify statutory provisions) “enactment”
includes sections 11 and 12 of, and Schedules 6 and 7 to, this Act.

48 (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) 20Any question—

(a) whether the person is entitled to a state pension under
Part 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
25period,

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

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

(a) 30is a woman entitled to a state pension under Part 1 of the
Pensions Act 2014, but

(b) has 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)
35the person—

(a) is a man who has attained the age at which a woman of the
same 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
40Act 2014 as attaining pensionable age when it is issued.

(4) But sub-paragraph (1) does not apply if and to the extent that the
decision of any question to which it refers is affected by the